Corpus Christi, TX - Alamo Drafthouse

Description:

SRS National Net Lease is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, Alamo Drafthouse Cinema investment property located in Corpus Christi, Texas. The tenant, Reel Dinner Partners - Corpus Christi, LLC, has approximately 19 years remaining on its 20-year lease with 4 (5-year) options to extend, demonstrating their commitment to the site. The lease features 3% annual rental increases throughout the initial term and increases of the greater of 3% or fair market value in the option periods, 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. Alamo Drafthouse’s goal is to deliver the best cinema experience in the world, accomplished through 4 main pillars: creative film programming, unique food and beverage offerings, innovation, and stable, consistent growth strategy. The company has over 35 locations throughout the country. After pandemic restrictions were lifted, Alamo Drafthouse recovered faster than any other theater brand. ADH continues to be a leader in the theater space. As an additional demonstration of commitment to the site, the tenant originally built these theaters, before selling them to a public REIT.

The Alamo Drafthouse is located near the signalized, hard-corner intersection of S. Staples Street and Yorktown Blvd, combining to average over 55,900 vehicles passing by daily. S Staples St is a major retail thoroughfare serving the community of Corpus Christi. The asset is located 2 miles from Saratoga Town Center, a 190,000 square foot shopping center that is anchored by a Kohl’s and features tenants such as Petco, Starbucks, Buffalo Wild Wings, Firehouse Subs, Wendy’s, and Schlotzsky’s. The property is in the center of a primary retail corridor with other nearby national/credit tenants including a Walmart Supercenter, H-E-B, Chick-fil-A, Taco Bell, 7 Brew, Dunkin’ and more, further increasing consumer traffic to the site. Strong tenant synergy increases consumer draw to the immediate trade area and promotes crossover store exposure to the site. The 5-mile trade area is supported by approximately 158,700 residents and 55,000 employees, providing a direct consumer base from which to draw. Residents within 1 mile of the subject property boast an affluent average household income of $129,096.