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Freddy’s- 20-Year Absolute NNN Sale-Leaseback 7707 Interstate 35 S 3,686 SF Retail Building San Antonio, TX 78224 $3,000,000 ($813.89/SF) 5.50% Cap Rate
Investment Highlights
- Brand-new 20-year absolute NNN lease with zero landlord responsibilities and long-term passive income stability.
- Corporate guaranty from Lone Star Custard, a proven 41-unit Freddy's franchise operator across four major Texas markets.
- 10% rent increases every five years provide consistent income growth throughout the initial term and renewal options.
- Prime I-35 frontage at South Park Mall with exposure to over 130,000 vehicles passing daily.
- Dense trade area with 231,000+ residents and $1.9 billion in annual consumer spending within five miles.
Executive Summary
Investment Highlights
• New 20-Year Absolute NNN Lease
• Direct I-35 frontage at the SW Military Dr interchange, the dominant retail node on San Antonio's South Side
• Corporate Guaranty from a 41-unit Freddy's operator
• 10% rent increases every 5 years grow the yield from 5.50% to over 10% by the final option
Location Highlights
• Direct frontage on I-35 (~68,760 VPD); the I-35 & SW Military Dr interchange moves 130,000+ vehicles per day across both facilities
• Directly at South Park Mall (Macy's, JCPenney, Dick's Sporting Goods, Floor & Decor), the principal shopping destination for the South Side
• Labor shed anchored by Toyota Motor Manufacturing Texas (3,700+ direct jobs, $531M expansion underway), Texas A&M University-San Antonio (7,000+ students), and the Brooks redevelopment district
• Dense, growing trade area: 231,382 residents and $1.9B in annual consumer spending within 5 miles
Tenant Highlights
• Lone Star Custard: 41-unit Freddy's franchisee operating across San Antonio, Austin, the Rio Grande Valley, and Houston
• Brand-new 20-year absolute NNN sale-leaseback with 10% increases every 5 years and (4) 5-year options
• Established brand: Freddy's boasts over 550 locations across 36 states
• New 20-Year Absolute NNN Lease
• Direct I-35 frontage at the SW Military Dr interchange, the dominant retail node on San Antonio's South Side
• Corporate Guaranty from a 41-unit Freddy's operator
• 10% rent increases every 5 years grow the yield from 5.50% to over 10% by the final option
Location Highlights
• Direct frontage on I-35 (~68,760 VPD); the I-35 & SW Military Dr interchange moves 130,000+ vehicles per day across both facilities
• Directly at South Park Mall (Macy's, JCPenney, Dick's Sporting Goods, Floor & Decor), the principal shopping destination for the South Side
• Labor shed anchored by Toyota Motor Manufacturing Texas (3,700+ direct jobs, $531M expansion underway), Texas A&M University-San Antonio (7,000+ students), and the Brooks redevelopment district
• Dense, growing trade area: 231,382 residents and $1.9B in annual consumer spending within 5 miles
Tenant Highlights
• Lone Star Custard: 41-unit Freddy's franchisee operating across San Antonio, Austin, the Rio Grande Valley, and Houston
• Brand-new 20-year absolute NNN sale-leaseback with 10% increases every 5 years and (4) 5-year options
• Established brand: Freddy's boasts over 550 locations across 36 states
Property Facts
Sale Type
Investment NNN
Sale Condition
Sale Leaseback
Property Type
Retail
Building Size
3,686 SF
Year Built
2008
Price
$3,000,000
Price Per SF
$813.89
Cap Rate
5.50%
NOI
$165,000
Tenancy
Single
Building Height
1 Story
Building FAR
0.08
Lot Size
1.00 AC
Amenities
- Signage
Fairly walkable
40/100
Exceptionally drivable
100/100
Limited public transit
30/100
Somewhat bikeable
30/100
Nearby Major Retailers
1 of 7
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