Transaction marks team’s third Texas Roadhouse, Inc. sale in 2023 with two additional assets currently on the market
Louisville, KY (June 20, 2023) – SRS Real Estate Partners’ National Net Lease Group (NNLG) announced today it has completed the $2.63 million ground lease sale of a 7,000-square-foot (sf) Bubba’s 33-occupied restaurant property located at 8748 E. U.S. Highway 36 in Avon, IN. The new construction property is situated on just under two acres of land and has a 15-year absolute triple-net corporate-guaranteed lease in place from parent company, Texas Roadhouse, Inc. Founded in 2013, Bubba’s 33 is an expanding sister brand of Texas Roadhouse.
SRS NNLG’s First Vice Presidents Morgan Merrill and Sarah Shanks represented the seller, Texas Roadhouse, Inc. in the transaction. The buyer was a California-based private investor. The closing cap rate was 5.45%.
“This asset offers the new ownership a management-free, cash-flowing opportunity with a solid tenant and rental increases every five years of the initial 15-year lease term,” said Shanks.
Merrill added, “We garnered a significant amount of interest for this well-located property in a highly trafficked retail corridor in a growing and affluent submarket that is just 11 miles from downtown Indianapolis.”
Merrill and Shanks have been active brokers with Texas Roadhouse, Inc., representing the company on two other ground lease sales of Texas Roadhouse-occupied assets this year including the $2.07 million sale of a property in Festus, MO that closed at a 5.10% cap rate, and the $2.40 million sale of a property in Altoona, IA which closed at a 5.25% cap rate.
Last week, the team also listed a Texas Roadhouse property in Foley, AL for $3.20 million with the grand opening of the restaurant in August 2023 and has a $3.00 million listing in Searcy, AR with a grand opening in December 2023. Both properties are also new construction and feature 15-year corporate-guaranteed ground leases with rental increases every five years.
In 2022, SRS’ Investment Properties Group (IPG) and National Net Lease Group (NNLG) completed more than $2.8 billion in deal volume comprised of 705 transactions in 49 states. SRS currently has in excess of 550 properties actively on the market with a market value surpassing $2.8 billion.
About SRS Real Estate Partners
Founded in 1986, SRS Real Estate Partners is building upon its retail foundation to provide extensive commercial real estate solutions to tenants, owners, and investors. Headquartered in Dallas, with more than 25 offices in the U.S., SRS has grown into one of the industry’s most influential and respected leaders. Our commitment to excellence is strengthened by our Guarantee of Value and our success is measured in the achievement of our clients’ objectives, satisfaction, and trust. For more information, please visit srsre.com.
SRS’ Investment Properties Group (IPG) & National Net Lease Group (NNLG) is a unified platform of seasoned net lease professionals located and transacting nationally with all underwriting and marketing efforts strategically located in Southern California. In 2022, the group completed more than 705 sales across 49 states and has over 160 brokerage professionals nationally. From proactive sales to targeted acquisitions and tailored debt and equity solutions, SRS’ National Net Lease Group offers comprehensive services to net lease owners and investors. Superior speed-to-market, world-class marketing materials, a deep investor database and unparalleled retail submarket intelligence from the entire SRS platform allow SRS’ National Net Lease Group to deliver the best possible returns. For more information, please visit srsre.com/national-net-lease-group.