KATY RETAIL - KATY, TX
Retail | 7.59% CAP | 8,737 SqFt
Marketing description
This premier retail investment opportunity is strategically located in one of the fastest-growing and most affluent trade areas within the Houston MSA. The property is 100% occupied by two established tenants, including a nationally recognized Krispy Kreme and Dogtopia, providing investors with diversified income from complementary retail uses. The asset consists of approximately 8,737 SF and is offered with an Absolute NNN lease structure, eliminating landlord responsibility for operating expenses and providing truly passive ownership.
Positioned along South Mason Road, a major north-south thoroughfare in Katy, the property benefits from strong visibility, excellent accessibility, and traffic counts exceeding 22,000 CPD. The surrounding trade area is characterized by high household incomes, continued residential expansion, and strong consumer spending patterns that support long-term tenant performance.
The rent roll offers built-in income growth through annual rental increases, while the long-term lease commitments provide stable cash flow and downside protection. With Texas' business-friendly environment, lack of state income tax, and continued population growth, this asset presents an attractive opportunity for investors seeking durable income, inflation protection, and long-term appreciation potential.
Investment highlights
TENANT & SECURITY
- 100% occupied by Krispy Kreme & Dogtopia, two well-established consumer brands
- Diverse tenant mix serving both daily consumer needs and recurring service-based demand
- Long-term lease structures provide predictable cash flow
- Drive-thru location
- Annual contractual rent increases create built-in revenue growth
PASSIVE OWNERSHIP
- Absolute NNN lease structure with tenants responsible for taxes, insurance, maintenance, and operating expenses
- Minimal landlord management responsibilities
- Ideal for passive investors, 1031 exchange buyers, and private capital
STRONG DEMOGRAPHICS
- Population of approximately 294,000 residents within 5 miles
- Average household income approximately $155,000 within 3 miles
- Located within one of the most affluent and fastest-growing submarkets in the Houston metropolitan area
- Dense residential neighborhoods and master-planned communities continue to drive growth
PRIME KATY LOCATION
- Situated along South Mason Road, one of Katy's primary commercial corridors
- Traffic counts of approximately 22,855 CPD on South Mason Road
- Strong surrounding retail synergy and daily consumer traffic
- Excellent access to major transportation routes serving West Houston and Fort Bend Count
ATTRACTIVE LEASE STRUCTURE
- Krispy Kreme lease extends through October 2035 with renewal options
- Dogtopia lease extends through October 3030 with multiple renewal options
- Annual rent escalations of 2%-3% help offset inflation
- Weighted average lease term provides long-term income stability
TEXAS MARKET ADVANTAGE
- Located in a no state income tax state
- Continued corporate relocation and population migration into Texas
- Houston MSA remains one of the nation's strongest employment and population growth markets
- Favorable business climate supports long-term retail demand
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