Olive Garden: Absolute NNN Lease 5.25% cap in El Paso, TX
Absolute NNN Olive Garden in Dominant El Paso Retail Corridor
Marketing description
Pegasus Investments Real Estate Advisory Inc. and ParaSell, inc. as exclusive advisors to the Seller, are pleased to present the opportunity to acquire a newly constructed, 100% absolute triple net (NNN) Olive Garden restaurant located in El Paso, Texas (the “Property”). The Property is leased to Olive Garden Holdings, LLC, a wholly owned subsidiary of Darden Restaurants, Inc. (NYSE: DRI), which carries an investment-grade credit rating (S&P: “BBB”). The building was constructed ground up by Darden and delivered in 2026 with a new 10-year lease featuring 10% rental increases every five years and four (4) 5-year extension options. The combination of investment-grade credit and an absolute net lease structure provide investors with a passive, durable, long-term cash flow at an attractive basis given Darden’s current development costs average approximately $3 million for the improvements alone.
Darden is the world’s largest full-service restaurant company, a Fortune 500 enterprise and the parent of some of the most recognizable brands in American dining. Olive Garden is Darden’s flagship brand and single largest revenue driver, having recently surpassed $5 billion in annual sales across 935 locations nationwide and averaging approximately $5.6 million in sales per restaurant. Darden, between yearend 2021, and year end 2025, grew total sales by nearly 70% from $7.2 billion to $12.1 billion in annual sales. The Property is a ±7,828 SF freestanding restaurant on a 1.98-acre parcel within Montana Commons, a brand new fully leased six-pad development site co-tenanted by leading national operators: Quik Trip, Portillo’s, Panda Express, LongHorn Steakhouse and Mister Carwash. The Property is located directly across from one of the highest-performing Walmart Supercenters in the country (top 1% nationally, per Placer.ai) and a Lowe’s Home Improvement Store. The corridor’s strength is further validated by the co-tenants which have acquired their real estate at Montana Commons — QuikTrip, Mister Car Wash, and Panda Express have each acquired their respective parcels at fair-market pricing, demonstrating long-term commitment to the location. The Property is located in East El Paso, with average household income exceeding $93,000 within a 5-mile radius and a trade area population approaching 200,000 residents, making it the largest and fastest growing submarket in the MSA. The long-term trajectory of this investment is further reinforced by TxDOT’s nearly $400 million Montana Expressway, expected to carry over 100,000 VPD upon completion in 2027, and Fort Bliss, which generates a $28 billion annual economic impact. Fort Bliss, located immediately adjacent to the Property supports 127,000 jobs and in March 2026 was selected as the site of a Carlyle Group hyperscale AI data center projected to bring an additional 2,000 jobs and billions in private investment to the region. Finally, El Paso’s ports of entry support nearly $100 billion in trade annually and the MSA surpassed one million residents in 2025, roughly half of the 2.0 million residents in Ciudad Juarez, which collectively provide a meaningful and dense population.
Investment highlights
- Brand-New 2026 Construction — 100% Absolute NNN Lease
- Wholly Owned Subsidiary of Darden Restaurants, Inc. (NYSE: DRI) — S&P “BBB” Investment-Grade Credit
- TxDOT’s $400 Million Montana Expressway Delivering 2027
- Driven by Fort Bliss Army Base — $27.9 Billion Annual Economic Engine
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