Edinburg, TX - Taco Palenque

Description:

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building) in an absolute NNN leased, newly constructed, corporate guaranteed, dual drive-thru equipped, Taco Palenque, investment property located in Edinburg, TX. The tenant, TP UT RGV, LLC (dba Taco Palenque), has 10 years remaining in their current lease with 3 (5-year) options to extend. The lease features 10% rental increases every 5 years throughout the initial term and at the beginning of each option period, growing NOI and hedging against inflation. The lease is corporate guaranteed by Palenque Investments, LLC, and is absolute NNN with zero landlord responsibilities. The property was formally a multi-tenant strip retail center, which was acquired and demolished for Taco Palenque.

Taco Palenque is located along W. University Drive, a major thoroughfare, with 30,200 vehicles passing by daily. The subject property is in the center of a primary retail corridor with other nearby national/credit tenants include a 24-hour Walmart Supercenter, Lowe’s Home Improvement, Dollar Tree, Staples, Chick-Fil-A, AutoZone, O’Reilly Auto Parts, Bank of America, Walgreens and many more. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure to the site. In addition, the asset is directly across from the University of Texas Rio Grande Valley (28,500 students enrolled), providing a direct consumer base to draw from. The 5-mile trade area is supported by over 172,000 residents and 57,000 employees, providing a direct consumer base from which to draw. Residents within a 5-mile radius of the subject property have an average household income of $87,621.