The subject property is a new 20-year ground lease with a strong corporate guarantee from Pollo Campero Holdings, LLC, located in Houston, Texas. The new 2,100-square foot building is currently under construction and is situated on a 0.69-acre parcel. The lease has scheduled rent escalations every five years, including at the beginning of two five-year renewal periods. Rent is estimated to commence on March 11, 2018.
The property is located in a dense retail trade area north of Interstate 10 (Katy Freeway) on Fry Road. Traffic counts are approximately 44,000 vehicles per day in front of the property. Interstate 10 is approximately a half-mile south, with traffic counts exceeding 189,000 vehicles per day, and is the main east/west thoroughfare in the city. Numerous national and regional tenants are in the surrounding area, including Hobby Lobby, Stein Mart, Palais Royal, Walmart Supercenter, Spec’s, Buffalo Wild Wings, Denny’s, Panda Express, Just Brakes, Sonic Drive-In, McDonald’s, Walgreens, H-E-B Grocery, The Home Depot, Ross Dress for Less, Kohl’s, OfficeMax, Pier 1 Imports, Best Buy, Sam’s Club, Babies ‘R Us, LifeWay Christian Store, and many more. The area also has excellent demographics, with a five-mile average household income of $102,000 and more than 220,400 residents.
