Blockshares.com

Taco Cabana

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DEAL SNAPSHOT

This Taco Cabana is 3,587 square feet and sits on approximately one acre of land. The property was built in 2003 and is being sold subject to a triple net lease, which was signed in 2004. There are approximately 17 years remaining on the primary lease term.


$730,000

OFFERING SIZE

7%

PROJECT YIELD

$5,000

MINIMUM INVESTMENT

100% FUNDED

100% Funded

Investment Summary

This retail property is located on the busy intersection of Beltway 8 and Clay in Houston, Texas.

Currently occupied by a national tenant with over 150 locations, this modern retail property is 3,587 square feet and sits on approximately one acre of land.

The site was built in 2003 and is being purchased subject to a triple net lease, which was signed in 2004. The lease currently has approximately 7 years remaining on the primary lease term with four 5-year options.

As a triple net lease, this investment will require ZERO landlord responsibilities and expenses, as Tenant covers all costs associated with operating this property including taxes, insurance and maintenance.

Given that store sales at this location have been very strong and the experience and strength of Fiesta Restaurant Group, this site location is projected to thrive for the foreseeable future.


Financial Overview

$730,000

Offering Size

$5,000

Minimum Investment

2-3 Years 

Project Hold Period

7%

Project Annual Yield



Property Data

  • High visibility location on one of Houston's main highways.
  • Cash flowing property with immediate investor income.
  • Triple Net Lease, in which Tenant bears all costs associated with maintaining the property.
  • Strong corporate tenant, lease is with publicly traded franchisee.
  • Long term lease in place with periodic increases.
Exterior
Interior


Area Analysis

  • This area of Houston is densely occupied by businesses, which make this location highly sought by restaurants in the area.
  • Houston will continue to be a top destination for corporate relocations, ranking third on the Best Places for Business and Careers list by Forbes.
  • The property is located within 2 miles from two major colleges and two medical centers.
  • There are more than 40 post-secondary educational institutions in the MSA.
  • Houston has one of the lowest costs of living among major U.S. metro areas.
29.8314993
-95.5647836
This retail property is located on the busy intersection of Beltway 8 and Clay in Houston, Texas. Currently occupied by a national tenant with over 150 locations, this modern retail property is 3,587 square feet and sits on approximately one acre of land. The site was built in 2003 and is being purchased subject to a triple net lease, which was signed in 2004. The lease currently has approximately 7 years remaining on the primary lease term with four 5-year options. As a triple net lease, this investment will require ZERO landlord responsibilities and expenses, as Tenant covers all costs associated with operating this property including taxes, insurance and maintenance. Given that store sales at this location have been very strong and the experience and strength of Fiesta Restaurant Group, this site location is projected to thrive for the foreseeable future.
11


Developer

Blockshares Properties is a Brooklyn based real estate development company that acquires, develops and manages commercial real estate. Our core business targets office, school, retail, and residential properties in specified high growth areas with individual acquisition prices below $20 million. The founders of Blockshares Properties have focused on identifying and investing in budding high growth neighborhoods prior to mainstream institutional developers engaging in development of the area. Along these lines, our development company purchased and repositioned multiple properties in both the Crown Heights and Bedford Stuyvesant areas of Brooklyn several years ahead of the influx of institutional interest and the subsequent surge in property values in these neighborhoods.

Ownership Structure (Equity Breakdown)

Blockshares $730,000 38.83%
Developer Investment Equity $700,000 37.23%
Private Investor Equity $450,000 23.94%
Total Equity Stake $1,880,000 100%


Project Cost and Payout

Annual Return
$132,000
Net Income
÷
$1,880,000
Project Cost
=
7%
Annual Return


Project Income and Expense

Hard Costs
Property Purchase 100% $1,800,000
Total 100% $1,800,000
Soft Costs
Closing Costs 37.5% $30,000
Brokerage 43.75% $35,000
Legal 18.75% $15,000
Total 100% $80,000
Total Hard Costs $1,800,000 96%
Total Soft Costs $80,000 4%
Total Development Costs $1,880,000 100%
Annual Net Income
Gross Income $132,000
Total Expenses
Annual Income $132,000


Development Plans

The property is currently NNN leased to Fiesta Restaurant Group, which has been operating a Taco Cabana in this property since 2004. The Tenant is responsible for all upkeep and maintenance costs associated with the site. The business has shown very strong sales for the past 11 years, which makes this a stable investment property, generating over 7% returns.


Property Highlights

  • High visibility location just off one of Houston's major highways.
  • Immediate income for all investors on this cash generating property.
  • Long term Triple Net lease in place with a strong corporate tenant.
  • Strong sales reported at this location for the past 11 years.


Milestones Date
Property Purchase January 2014
Property Sale January 2019

Area Overview

29.516643
-98.499682
7339 San Pedro Avenue, San Antonio, TX 78216, USA
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32.2809939
-96.5323718
203 Interstate 45 Service Road, Ennis, TX 75119, USA
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30.1105001
-97.3490916
698 Highway 71 West, Bastrop, TX 78602, USA
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29.8314993
-95.5647836
11305 Clay Road, Houston, TX 77041, USA
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12
Spring Branch West, , TX

Area Analysis

  • This area of Houston is densely occupied by businesses, which make this location highly sought by restaurants in the area.
  • Houston will continue to be a top destination for corporate relocations, ranking third on the Best Places for Business and Careers list by Forbes.
  • The property is located within 2 miles from two major colleges and two medical centers.
  • There are more than 40 post-secondary educational institutions in the MSA.
  • Houston has one of the lowest costs of living among major U.S. metro areas.
Houston is located in southeastern Texas, 50 miles inland from the Gulf Coast. The MSA encompasses a 10-county region at the head of the Houston Ship Channel, which links the city to the Gulf of Mexico. Houston is an inland seaport and a major financial, distribution and manufacturing center for the southern United States. Growth has sprawled into nearby counties, primarily to the north and west, making Houston the seventh largest MSA in the nation.

Comparable Area Properties

Taco Cabana - San Antonio

7339 San Pedro Avenue, San Antonio, TX

Property Type : Retail
Number of Units : 1
Status : Existing
Year Built : 1989
Stories : 1
Building Size : 2966
Taco Cabana - Ennis Texas

203 Interstate 45 Service Rd, Ennis, TX

Property Type : Retail
Number of Units : 1
Status : Existing
Year Built : 2006
Stories : 1
Building Size : 3645
Taco Cabana - Bastrop, TX

698 Hwy 71 W Bastrop, TX

Property Type : Retail
Number of Units : 1
Status : Existing
Year Built : 2005
Stories : 1
Building Size : 3803

Developer Information

Blockshares Properties is a Brooklyn based real estate development company that acquires, develops and manages commercial real estate. Our core business targets office, school, retail, and residential properties in specified high growth areas with individual acquisition prices below $20 million. The founders of Blockshares Properties have focused on identifying and investing in budding high growth neighborhoods prior to mainstream institutional developers engaging in development of the area. Along these lines, our development company purchased and repositioned multiple properties in both the Crown Heights and Bedford Stuyvesant areas of Brooklyn several years ahead of the influx of institutional interest and the subsequent surge in property values in these neighborhoods.


Managing Members







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