Alamogordo, NM - Del Taco

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN, freestanding, drive-thru equipped, Del Taco investment property located in Alamogordo. The tenant, Diamondback DTNM, LLC has over 11 years remaining on its lease with 2 (5-year) options to extend, demonstrating their commitment to the site. The lease features 2.5% annual rental increases throughout the initial term and each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. Founded in 1964, Del Taco is one of the largest Mexican QSR brands in the country serving 3+ million guests each week at its nearly 600 restaurants across 17 states.

The asset is strategically located along S. White Sands Blvd, the primary retail thoroughfare serving the surrounding city and supporting 23,100 vehicles passing daily. Del Taco receives significant consumer traffic from its position along the thoroughfare in addition to crossover retail exposure from nearby national/credit tenants including Walmart Supercenter, Albertsons, Planet Fitness, Staples, and Buffalo Wild Wings. Furthermore, the property is equipped with a drive-thru, providing ease and convenience for customers and is positioned within a dense retail corridor featuring other national QSR brands such as McDonald’s, Burger King, Taco Bell, Dutch Bros, and adjacent KFC and Denny’s. The tenant has access to a direct consumer base within the local community as well as travelers from nearby cities including Tucson, El Paso, and the Holloman Air Force Base. The 5-mile trade area is supported by a population of over 34,800 residents and 12,400 employees with an average household income of $71,908.