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Prosper, TX - Andy's Frozen Custard
1151 E. First Street | Prosper, TX 75078
$3,930,000
Price5.75%
Cap Rate$226,000
NOI2,000
± SF Offering GLADescription
SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, drive-thru equipped, freestanding, Andy’s Frozen Custard investment property located in Prosper, Texas (Dallas-Fort Worth-Arlington MSA). The tenant, Ranchers Custard Company LLC, recently signed a brand new 20-year lease with 4 (5-year) options to extend, demonstrating their long-term commitment to the site. The lease features 1.5% annual rental increases throughout the initial term and option periods, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities, making it an ideal, management free investment opportunity for a passive investor in a state with no state income tax. Rancher’s Custard Company, LLC is an experienced franchisee currently operating 15 locations and plan to open 6 more within the next two years. Rancher’s Custard Company’s CEO is a highly experienced operator who worked directly for Andy’s Frozen Custard for 10 years before leaving to join Rancher’s Custard Company, which has been growing exponentially since his arrival. Andy’s Frozen Custard is the largest frozen custard only business in the Unites States with 118 company owned and franchised stores.
Location
Andy’s is located at the signalized, hard corner intersection of East 1st Street and South Preston Road, which serves over 35,000 vehicles per day. State South Preston Road is the primary retail thoroughfare serving the city of Prosper. The newly-constructed site will feature Andy’s Glass Tower Prototype design and be complete with a drive-thru, providing ease and convenience for customers. On average, stores with drive-thrus experience higher sales than those without. Furthermore, Andy’s Frozen Custard is ideally located less than 1-mile north of The Gates of Prosper, an 808,000 SF Power Center home to notable tenants including Walmart Supercenter, Ross, TJ Maxx, Hobby Lobby, Kohls, Burlington, Dick’s, and more. Strong tenant synergy increases consumer draw to the immediate subject trade area and promotes crossover store exposure to the site. Moreover, the asset is within close proximity of multiple schools including Judy A. Rucker Elementary School (619 students), Robert and Robbie Reynolds Middle School (903 students), Prosper High School (3,875 students), and more, further increasing consumer traffic to the subject trade area. Finally, the subject property is strategically located just under 2 miles north of the Orion Prosper Lake Apartments, a 2-story 308-unit apartment complex, providing a direct residential consumer base from which to draw. The 5-mile subject trade area is supported by more than 143,000 residents and 22,000 daytime employees. Residents within a 1-mile radius boast an extremely affluent household income of over $206,000. From 2010-2020, the population within 3 miles of the subject property grew at an impressive rate of 15.45%.