Address: 411 E Loop 281 Suite A , Longview, Texas, United States 75605
Cap Rate: 5.95%
Lease Type: Triple Net (NNN)
Annual Rent: $110,000
Net Operating Income: $110,000
Lease Term Remaining: 18.25 Years
Rental Increases: 10% Rental Escalations Every Five Years
Options: Five, Five Year Renewal Option
Year Built: 2017
Rentable Sq/Ft: 2,350 SF
Rent Sq/Ft: $46.81
Price Sq/Ft: $787
Lot Size: +/-0.914 Acres
The subject property is a dark Taco Cabana ground lease located in Longview, Texas. The 2,350 square foot buildings sits on a prime 0.91 acres of land at an entrance to a busy Home Depot.
This Taco Cabana has approximately 18+ years remaining on the original 20-year ground lease, which commenced in 2017. The property is subject to a true triple net (NNN) ground lease with absolutely zero landlord responsibilities. Despite being dark, the tenant is paying rent on time and covering all of the triple net expenses. The rent is presently $110,000, however it is subject to 10 percent rental escalations every five years.
This former Taco Cabana property is located at 411 East Loop 281, Suite A in Longview, Texas. Longview is a city in Gregg and Harrison counties, but most of the city is located in Gregg County. Longview is an easy two hour drive east of Dallas and only 60 miles west of Shreveport, Louisiana, which is the third most populated city in the state.
The subject property is well-positioned in a strong retail corridor benefitting from its proximity to Longview Mall. The mall contains over 70 stores and restaurants including JCPenny, Dillard’s, Bealls, Dick’s Sporting Goods and many more. There has been a lot of new development along Loop 281, including a new Red Robin, Slim Chickens, Bubba’s 33, Excel ER, a Sprint/Pot Belly, and an On The Border Mexican Grill. Other nationally recognized brands in the area include McDonald’s, Chick Fil A, Panera, Texas Roadhouse, Starbucks, Cheddar’s, Wendy’s, Burger King, BJ’s Brewhouse, Saltgrass Steakhouse, T.J. Maxx, Bed Bath & Beyond, Best Buy, Lowe’s, Ross, Home Depot, Walmart, Sam’s Club, Burlington Coat Factory, and Target just to name a few.
Furthermore, the surrounding area has a robust population with nearly 35,000 people residing within a three-mile radius of the property and approximately 80,000 people within a five-mile radius. This property is located directly off of Loop 281, which experiences an average daily traffic counts of 32,466 and is only a short drive from Route 259, which experiences about 23,000 vehicles per day.
In 2014, Forbes magazine ranked Longview as the sixth fastest-growing small city in the United States. Longview, known as the “Balloon Capital of Texas”, is home to the Great Texas Balloon Race, which takes place every July. Other annual festivals held in the city include the Boat and RV show in January, T-Bone Walker Blues Festival in June, and the Fourth of July Freedom and Fireworks celebration. The town is a regional hub for entertainment and offers a variety performance theaters. Companies with significant presence in Longview include Eastman Chemical and Trinity Rail Group; communities stimulating the city and metro area are LeTourneau University, Kilgore College, and the University of Texas at Tyler’s Longview University Center. Longview has been growing, and home prices continue to rise. Some major sectors of the Longview economy include the East Texas Oil Field, services, technology, and manufacturing. The addition of Kohl’s, two Starbucks, a new Target, a third Walmart supercenter on the south side, and a handful of hotels means Longview is becoming a regional hub for shopping. Keeping shoppers in Longview and away from Tyler, Dallas, and Shreveport has been an important and successful strategy for the city.
Broker of Record: Timothy Speck – License # 432723