Freddy’s — 20-Year Absolute NNN Sale-Leaseback - San Antonio, TX
Second Largest Operator - Income Tax Free State
San Antonio, Texas
$3,000,000
Price
5.50%
Cap Rate
$165,000
NOI
San Antonio is the second-largest city in Texas and one of the fastest-growing major metros in the country. The South Side, anchored by the I-35 / SW Military Drive interchange and South Park Mall, is the principal retail and employment hub for the city's southern quadrant.
Its economic base is broad and expanding: Toyota Motor Manufacturing Texas anchors a large advanced-manufacturing labor shed (with a $531M plant expansion underway), Texas A&M University-San Antonio is growing enrollment past 7,000 students, and the Brooks and Port San Antonio redevelopment districts continue to add jobs and rooftops. With 231,382 residents and $1.9B in annual consumer spending within five miles, the South Side is a dense, value-oriented trade area well matched to Freddy's price point.
The lease is guaranteed by Lone Star Custard Holdings, LLC, the second-largest operator in the Freddy's Frozen Custard & Steakburgers system. Built by Dallas-raised brothers John, Nick, and Joe DePinto, Lone Star Custard entered the Freddy's system in 2022 and has scaled to 47 restaurants across Texas, spanning the Dallas-Fort Worth, San Antonio, Austin, Houston, Rio Grande Valley, and Corpus Christi markets. With a corporate guaranty from the parent company standing behind the lease, the tenant offers credit depth backed by one of the largest and most established operating bases in the brand.
Co-founded in 2002 by brothers Bill and Randy Simon, along with their friend and business partner, Scott Redler, the three men named the restaurant after Bill and Randy's father, Freddy Simon, a World War II veteran. Today, Freddy's restaurants from coast-to-coast serve a menu reminiscent of the all-American meals Freddy prepared for his family. Freddy's offers a full menu of longtime favorites from steakburgers to sundaes, as well as hot dogs and chicken. Their kitchens prepare all food only after it is ordered to ensure high quality and freshness. Freddy's locations pride themselves on being bright, clean, and efficient, with quick service and ample room for families to gather and enjoy their time together.
Advisors
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