1220 W Orem Dr | Houston, TX 77047
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1220 W Orem Dr
Houston, TX 77047
Taco Bell · Retail Property For Sale
Investment Highlights
- 20-year absolute NNN ground lease with five (5) five-year options and no landlord management
- High-quality 2024 construction featuring dual-lane drive-thru
- Taco Bell’s wide customer base and strong brand support reliable income and tenant performance
- 10% rental increases every five years, providing a hedge against inflation
- B&G Food Enterprises of Texas, LLC, a well-established franchisee of Taco Bell
- H-E-B, LP, Texas’ largest grocery operator, acquired an adjacent ~8.409-acre tract on 8/7/24
Executive Summary
The site resides just 10 minutes from Texas Medical Center (“TMC), which employs 120,000 people, has 10 million patient encounters per year, and is the 8th largest business district in the U.S. This is an absolute NNN ground lease, with no landlord responsibilities, giving investors a low-maintenance and stable income stream. Tenant is a corporate-backed Taco Bell franchise with a longstanding reputation and reliable customer base. Located near TX-288 with traffic counts exceeding 169,000 AADT, making it highly visible to a consistent flow of vehicles. Lease includes 10% rental increases every five years, ensuring steady income growth over the long-term lease. The property includes a contemporary Taco Bell building, complete with an 8-car double drive-thru, enhancing customer service and convenience. The site benefits from nearby employment centers, drawing in employees and residents, increasing customer traffic consistently throughout the day.
PROPERTY FACTS
Sale Type
Investment NNN
Sale Condition
1031 Exchange
Property Type
Retail
Property Subtype
Building Size
2,069 SF
Building Class
B
Year Built
2024
Price
$1,945,000
Price Per SF
$940
Cap Rate
4.50%
NOI
$87,500
Tenancy
Single
Building Height
1 Story
Building FAR
0.06
Lot Size
0.84 AC
Parking
23 Spaces (11.12 Spaces per 1,000 SF Leased)
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