Marcus & Millichap is pleased to present the exclusive offering for a subject Velvet Taco; an investment opportunity in the economic powerhouse of Southeast Texas within Harris County, and more particularly located at 2626 West Loop South in Houston, Texas. Opened January 25th, 2021, the subject investment consists of a 2,132 SF building on a +/- 0.23-acre parcel. Situated just off one of the nation’s busiest thoroughfares, Loop 610 as an outparcel to The Galleria, Texas’ largest shopping center and fourth largest domain nationally. The subject property is located on the west side of Loop 610, which experiences average daily traffic counts exceeding 252,400 vehicles, respectively. To the west: Dillard’s; To the south: The Galleria; To the east: Shell Gasoline. Houston is a city in Texas, within the Houston – The Woodlands – Sugar Land metropolitan statistical area.
The investment opportunity is subject to a brand new 15-year, triple-net lease with Taco Libre XXIII, LLC dba Velvet Taco (“Tenant”). The lease commenced upon store opening, January 25th, 2021 and is subject to two (2), five (5)-year tenant renewal options, bringing the total possible lease term to 25 years. The initial rent is $350,000 and is subject to increase by ten percent (10.0%) every five years. The lease is corporately guaranteed by Velvet Taco, Inc.; which currently operates 29-units and has vast expansion plans with 5 units under development. Velvet Taco will reach 40 locations nationwide by the end of 2022, more than doubling its size from the beginning of 2021.
PICTURESQUE, TROPHY REAL ESTATE – OPTIMAL LEASE STRUCTURE:
✓ Brand New 15-Year Triple-Net (NNN) Lease With 14 Years Remaining
✓ Absolute Triple Net (NNN) Lease with Zero Landlord Responsibilities
✓ Attractive Rent Increases: 10% Every 5 Years
✓ Two (2),Five (5)-Year Tenant Renewal Options
✓ E-Commerce Resistant Investment Opportunity
✓ Exceptional, Proven Operator | Corporate Guarantee
✓ Fast Casual Leading Performance – Velvet Taco’s AUV is More Than Double the Segment Average!
LOCATED IN THE CENTER OF NEW GROWTH:
✓ National and Regional Draw – Strong tenant mix of retailers such as Costco Wholesale, Target, Walmart, The Home Depot, Sam’s Club, Lifetime Fitness, and More
✓ Tremendous Freeway Visibility and Access: Situated on W Loop S (Loop 610), I-69 and Westheimer Road, average daily traffic counts exceed 252,400, 349,000 and 60,000 vehicles, respectively.
✓ Irreplaceable Real Estate: Situated as a outparcel to The Galleria, Texas’ largest shopping center and fourth largest domain nationally, which experiences over 30 million visitors annually.
✓ Affluent Suburban Community: The average household income within a one-mile radius of the subject property exceeds over $150,000.
✓ City of Houston had a population of 2.3 million as of 2019, making it the fourth most populous U.S. city. Only New York, Los Angeles and Chicago have more residents. Houston has been Texas’ most populous city since 1930.
✓ The Houston MSA is home to 22 Fortune 500 headquarters, ranking fourth among metro areas. Many other Fortune 500 companies maintain U.S. administrative headquarters in Houston.