McDonald’s Ground Lease, Katy, Texas

405 S. Fry Road no-imageVIEW MAP

Property Information

Price: $3,455,375
Cap Rate: 4.0%
NOI: $138,215
Lease Term: 14.5 Years Remaining
Lease Type: Absolute NNN Ground Lease
Building Size: Approximately 3,119 Square Feet
Year Built: 1995 / 2019
Status: Available
Lead Broker Information:

Randy Bell

bell@realcapitalinvestments.com

214-380-3670
Marketing Package

Property Description

Investment Highlights

  • Absolute NNN Ground Lease with 14.5 Years Remaining – Stable Cash Flow Asset – Zero Landlord Responsibilities – Eighteen (5-Year) Options to Renew
  • Successful Operating History of Over 30 Years at This Site and Recent, Early Lease Extension and Store Remodel Prove the Tenant’s Long-Term Commitment to the Location
  • Corporately Guaranteed Lease by McDonald’s – a Best in Class, Leading Fast-Food Tenant Founded in 1940 That Operates More Than 45,300 Locations Worldwide & Generated More Than $26.9 Billion in Total Revenue in 2025
  • 5% Rent Increases Every 5 Years Throughout the Initial Term and Option Periods Provide a Hedge Against Inflation and Increase the Return Over the Hold Period
  • Situated on a Sizeable 0.93-Acre Parcel Containing 50 Parking Spaces & a Drive-Thru, Providing McDonald’s with the Ability to Effectively Handle High Restaurant Volume
  • Strategically Positioned as a Pad to Green Tree Shopping Center, a 503,000 Square Foot Shopping Center Anchored by Randalls (Albertsons/Safeway), Target and Lowe’s with More Than 4.1 Million Visits Over the Last Calendar Year – Massive Numbers of Daily-Needs Consumers Visiting the Trade Area
  • High Traffic Location with More Than 23,000 Vehicles Per Day on Fry Rd and 276,959 Vehicles Per Day on Interstate-10
  • Densely Populated, Infill Location with Excellent Demographics – Over 267,000 People within a 5-Mile Radius with Average Household Income Exceeding $133,000
  • Located in the Affluent and Rapidly Growing Houston Suburb of Katy, Experiencing Booming Population Growth at Over 4.7% Annually – Positioned in Harris, Waller and Fort Bend Counties – Waller County is the Fastest-Growing County in Texas and the Second-Fastest-Growing County in the United States with a 28.5% Population Increase Since the 2020 Census – Fort Bend Population has Increased 20.3% in the Same Period
  • Adjacent to the 145-Bed Methodist Houston Continuing Care Hospital with Over $396 Million in Total Patient Revenue in 2025 and a Staff of More Than 1,200 Healthcare Professionals
  • Tremendous Multi-Family Density with More Than 24,000 Apartment Units Located within a 5-Mile Radius of the Property
  • Texas is an Income Tax Free State with a Strong Economy, Providing an Ideal Location for a 1031 Exchange Asset