Listed by Mid-America Real Estate, Pace Properties
$2,860,000
LongHorn Steakhouse
Details
APN DP53560000 0003
Property Type Retail
Sub Type Restaurant
Square Footage 5,800
Cap Rate 5.58%
NOI $159,720
Occupancy 100%
Tenancy Single
Lease Type NNN
Lease Expiration 12/31/2034
Rent Bumps Yes
Year Built 2006
Acreage 1.100
Investment Type Net Lease
Tenant Credit Credit Rated
Retail | 5.58% CAP | 5,800 SqFt
Marketing description
Mid-America Real Estate, in cooperation with Pace Properties, Inc., has been retained on behalf of the owner to sell the 100% simple interest in the 5,800 square foot, freestanding LongHorn Steakhouse located at 16689 West 119th Street, Olathe, KS. The subject offering features an 8.5-year NNN ground lease located in a top tier regional retail node.
Investment highlights
- 8.5 YEAR NNN GROUND LEASE | NEAR TERM 10% RENT ESCALATION - The subject property features a corporate NNN ground lease with LongHorn Steakhouse. The lease has 8.5 years of remaining term complemented by three (3) five-year renewal options. The lease structure provides near-term embedded rent growth, with a scheduled 10% base rent increase effective January 1, 2028. Each subsequent option period carries a 10% rent escalation.
- BEST IN CLASS DARDEN CONCEPT | LEADING SAME STORE SALES GROWTH - LongHorn Steakhouse is one of Darden's strongest and most recognized brands, operating over 640 locations across the United States. The brand continues to demonstrate impressive sales momentum, with its current average unit volume of $5.2M representing a 10% increase over 2023 levels. LongHorn's most recently reported same-store sales growth of 7.2% leads all Darden concepts.
- 19 YEAR OPERATING HISTORY | RECENT 10 YEAR EXTENSION - LongHorn Steakhouse has been operating at this location for 19 years and recently signed a 10-year extension in 2024, reinforcing their long-term commitment to the site.
- INVESTMENT GRADE TENANCY | DARDEN RESTAURANTS - Darden Restaurants, is the nation's largest full-service restaurant company, operating 2,159 restaurants across the United States and Canada under a portfolio of iconic brands including Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, and The Capital Burger, among others. The company reported consolidated revenue of $12.1 billion in FY25 and carries a market capitalization of approximately $24.7 billion. S&P Global has assigned Darden an investment-grade credit rating of BBB, while Moody's has assigned a rating of Baa2, both reflective of the company's strong balance sheet and consistent operating performance.
- DOMINANT RETAIL TRADE AREA | 14.4 MILLION ANNUAL VISITORS - The subject property is situated within the dominant Olathe retail node ranked in the top 15% nationally, drawing 14.4 million visitors over the past 12 months per placer.ai. The immediate trade area located at the intersection of 119th Street (24,396 VPD) and I-35 (52,038 VPD) is a hub for national retailers featuring Bass Pro Shops, AMC, Home Depot, Aldi, Target, PetSmart, Whole Foods, Natural Grocers, Starbucks, among other retailers, many of which are top performers within their chain.
- EXCELLENT DEMOGRAPHICS | DENSITY WITH HIGH INCOMES - The subject offerings' location in Kansas City's southwestern suburbs and convenient regional access provide excellent drawing power for an attractive demographic profile. Within three miles of the property there are 79,151 residents with average household incomes of more than $121,700 and median home values of $357,973. This desirable customer base stems from the property's proximity to major employers, including Garmin International, Farmers Insurance, TransAm Trucking, Johnson County Government, Olathe Medical Center, and Olathe Public Schools.
Listing Contacts
Listed by Mid-America Real Estate, Pace Properties
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$159,720.00
$13,310.00/mo
Valuation Metrics
0
DSCR
5.58%
Cap Rate
5.58%
ROI
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