Star Commercial Properties
Listed by Star Commercial Properties
$1,575,000
Pizza Hut
Details
Property Type Retail
Sub Type Restaurant
Square Footage 2,520
Cap Rate 5.10%
NOI $80,300
Tenancy Single
Lease Type Absolute NNN
Rent Bumps Yes
Lease Options Four (4) × Five (5)-Year Options
Lot Size (SqFt) 22,067
Investment Type Net Lease
Lease Commencement 05/26/2021
Retail | 5.10% CAP | 2,520 SqFt
Marketing description
At an asking price of $1,575,000 and a going-in cap rate of 5.10%, this offering delivers a compelling risk-adjusted entry point into a long-duration, passive NNN asset backed by one of the most creditworthy QSR franchisee operators in the United States. The 15-year primary term, structured rent growth, absolute NNN structure, and irreplaceable border-corridor location combine to produce a yield profile that should perform across market conditions. This is an institutional-quality asset at a price point accessible to individual investors.
Investment highlights
- Elite Franchisee Credit: The lease is corporately guaranteed by Ayvaz Pizza LLC, a wholly owned subsidiary of The Dhanani Group—the second-largest Pizza Hut franchisee in the United States with 388 units across 9 states. The Dhanani Group is also one of the nation's largest Burger King and Popeyes franchisees, operating 849 QSR locations across 23 states. This institutional-grade credit profile provides investors with a highly reliable, recession-resistant income stream.
- 15-Year Primary Term with Built-In Escalations: With 15 full years of primary term remaining and 10% rent bumps structured every five years—carried through all four renewal option periods—this lease delivers a rare combination of long-term income certainty and built-in yield escalation well above prevailing inflation benchmarks. The lease is a genuine set-and-forget cash flow vehicle.
- True Passive Income — Zero Landlord Obligations: This is a fee-simple, 100% Absolute NNN lease. The tenant is responsible for all property taxes, insurance, maintenance, structural repairs, and roof replacement. The landlord has zero management obligations, making this an ideal vehicle for 1031 exchange investors, out-of-state buyers, and passive income-focused portfolios.
- Dominant Retail Corridor with 21,000+ VPD: The subject property is situated on US Highway 83, Roma's sole commercial spine and a critical arterial route connecting the Roma-Ciudad Miguel Alemán International Bridge to regional retail. Adjacent national operators—McDonald's, Whataburger, Burger King, and Church's Texas Chicken—provide institutional validation of sustained fast-food demand. Daily traffic counts exceed 21,000 vehicles.
- Captive, Border-Amplified Trade Area: While Roma's municipal population is approximately 11,500, the effective retail trade area is materially larger due to consistent cross-border traffic from Tamaulipas, Mexico via the international bridge, plus demand from underserved surrounding communities. The Pizza Hut has operated successfully at this location for over 25 years with an established customer base that skews heavily toward takeout, delivery, and drive-thru—formats that are structurally resistant to e-commerce disruption.
- Favorable Demographics for Pizza Concepts: The Roma MSA features an average household size of 3.4 persons versus the national average of 2.6. This outsized household demographic directly supports high-frequency, high-ticket bundle orders and positions this Pizza Hut as the dominant multi-person meal solution in the market.
Listing Contacts
Star Commercial Properties
Listed by Star Commercial Properties
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$80,300.00
$6,691.67/mo
Valuation Metrics
0
DSCR
5.1%
Cap Rate
5.1%
ROI
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