Valvoline Ground Lease, Katy, Texas

23711 Katy Freeway no-imageVIEW MAP

Property Information

Price: $2,873,563

Cap Rate: 4.35%
NOI: $125,000
Lease Term: 15 Years
Lease Type: Absolute NNN Ground Lease
Building Size: Approximately 2,087 Square Feet
Year Built: 2021
Status: Under Contract
Lead Broker Information:

Randy Bell


Property Description

Investment Highlights

  • New 15 Year Absolute NNN Ground Lease – Stable Cash Flow Asset – Zero Landlord Responsibilities – Three (5-Year) Options to Renew
  • 10% Rent Increases Every 5 Years Throughout the Initial Term and Option Periods, Providing a Strong Hedge Against Inflation
  • Corporately Guaranteed Lease by Valvoline – Brand New 3-Bay Building Prototype, the First to Open in the Houston MSA
  • Valvoline Has Been Designated an “Essential Business” by the Department of Homeland Security and Has Remained Open Throughout the Pandemic
  • High Traffic Location –Over 226,800 Vehicles Per Day on Interstate-10, the Largest Contiguous Highway in the United States, Spanning from California to Florida – Plus an Additional 82,368 on Nearby Grand Pkwy (TX-99)
  • Strategically Positioned in Katy Grand Crossing, a Mixed-Use Retail Power Center Anchored by Costco Wholesale & Multiple Apartment Complexes with a Combined 1,233 Units
  • Densely Populated Location with Excellent Demographics – Over 71,300 People in a 5-Mile Radius with Average Household Income Exceeding $121,500
  • Tremendous Recent Growth – Over 169% Population Growth in a 5-Mile Radius Since the 2000 Census – Continued Estimated Growth Potential Exceeding an Additional 17% by 2026
  • Strategically Located in an Extremely Strong Trade Area Containing Over 19.8 Million Square Feet of Retail & Restaurant and Almost 20 Million Square Feet of Industrial & Office Space within a 5-Mile Radius of the Property
  • High Daytime Population with More Than 71,300 Employees in a 5-Mile Radius – Near Many Major Businesses Including the Academy Sports & Outdoors Corporate Office and the Geico Houston Headquarters
  • Situated Approximately 1.3 Miles from the University of Houston-Victoria at Katy with Over 10,000 Students & Faculty Members
  • Within a 5-Mile Radius of 34 Primary & Private Schools with 37,467 Combined Students – Katy ISD is Projected to Grow to More Than 90,000 Students in the Next 7 Years
  • Less Than 5 Miles from the 58-Bed Houston Methodist Continuing Care Hospital with Over $126.9 Million Total Patient Revenue in 2020 and a Staff of More Than 1,450 Healthcare Professionals
  • Texas is an Income Tax Free State with a Strong Economy and Growing Population, Providing an Ideal Location for a 1031 Exchange Asset