NNLG-Terrell, TX - Applebee's

Description:

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN, franchisee guaranteed, freestanding, Applebee’s investment property located in Terrell, Texas (Dallas / Fort Worth MSA). The tenant, Apple Texas Restaurants, Inc., has approximately 12 years remaining in their initial term with 4 (5-year) options to extend. The lease features rental increases in July 2022, 2023, and 2028 as well as 10% increases at the beginning of each option period, growing NOI and hedging against inflation. The lease is franchisee guaranteed by Apple Texas Restaurants, Inc. and is absolute NNN with no landlord responsibilities making it an ideal, management-free investment opportunity for a passive investor. Apple Texas Restaurants, Inc. is a subsidiary of SSCP Management, Inc., a privately held Dallas-based firm that currently operates approximately 40+ Applebee’s restaurants throughout Texas.

Applebee’s is strategically located along Interstate 20 (60,400 VPD), a major east/west commuter highway traveling through Terrell and serves as a gateway to major markets throughout the Southeast. The site is equipped with a large pylon, creating excellent visibility along Interstate 20. The asset is ideally situated as an outparcel to the Tanger Outlets Terrell, a 193,600 SF outlet center featuring a variety of brand-name stores including Nike, Old Navy, Levi’s, and more. Furthermore, the site is positioned across from a Home Depot anchored shopping center (119,000 SF), significantly increasing consumer draw to the immediate trade area and promoting crossover store exposure for the restaurant. Other nearby national/credit tenants include Walmart Supercenter, Tractor Supply Co., Harbor Freight Tools, Big Lots, CVS Pharmacy, and more, further increasing exposure and crossover synergy for the asset. Moreover, the site is surrounded by several housing communities including Meadowview Townhomes (76 units), Terrell Senior Terraces (252 units), and Terrell Crossing (200 units), providing a direct residential consumer base from which to draw. The 5-mile trade area is supported by a population of over 21,600 with an average household income of $64,000.