SRS National Net Lease Group, in cooperation with Hardesty Realty, is pleased to offer the opportunity to acquire the leased fee interest (land ownership) in an absolute NNN leased, franchisee guaranteed, drive-thru equipped, Andy’s Frozen Custard, investment property located in Waco, Texas. The tenant, Andy’s Texas #5, LLC, recently executed a brand new 20 year lease with 3 (5-year) option periods to extend. The lease features 10% rental increases every 5 years throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is franchisee guaranteed by Andy’s of Central Texas, LLC and is absolute NNN with zero landlord responsibilities. This location is slated to open in August, 2019 and will be the franchisee’s fifth Andy’s Frozen Custard store within the central Texas region.
Andy’s Frozen Custard is located near the hard corner intersection of S 8th Street and J. H. Kultgen Expressway (40,000 VPD) the major thoroughfare for the city of Waco. J. H. Kultgen Expressway is adjacent to I-35 (111,000 VPD), with nearby convenient on/off ramp access. The site is equipped with a drive-thru providing ease to customers. The immediate trade area is tremendously supported by Baylor University which has nearly 14,500 enrolled students. In addition, the site ideally positioned within walking distance of several recent and future developments including La Quinta Inn (New 118-Room Hotel), Aloft (117-Room Hotel Under Construction), Embassy Suites (168-Room Hotel Fall 2019 Construction), and more. Andy’s Frozen Custard is uniquely located within minutes of popular Magnolia Market at the Silos as seen on the popular TV show Fixer Upper. The Magnolia Market, which averages 30,000 visitors per week, offers a place to eat, shop, play games, and a garden to tour. The 5-mile trade area is supported by a dense population of approximately 126,500 people and approximately 78,500 employees.