Longhorn Steakhouse

LongHorn Steakhouse Net Lease Investment Opportunity
Katy, TX MSA
15-Year Absolute Triple Net Lease | Corporate Guarantee | Fee Simple Ownership

This offering provides an excellent opportunity to acquire a LongHorn Steakhouse property located in the high-growth Katy, Texas Metropolitan Statistical Area, part of the greater Houston region. Backed by a long-term absolute triple net (NNN) lease, this investment delivers secure, predictable income from one of the nation’s most recognizable casual dining brands. With a corporate guarantee, a premier location, and strong surrounding demographics, this asset offers both stability and long-term appreciation potential.

Location and Market Overview
Katy, located in the western portion of the Houston MSA, is among the fastest-growing communities in Texas. Known for its high-quality schools, strong residential growth, and expanding employment base, Katy continues to attract both families and corporations. The broader Houston metro is the fifth-largest in the nation, with a population exceeding 7.4 million and a diverse economy anchored by energy, healthcare, technology, and finance.

The subject property is located along a high-traffic corridor with daily vehicle counts exceeding 41,000. Situated near major retail hubs and densely populated residential communities, the site enjoys strong visibility, easy access, and high customer traffic. Surrounding national retailers include Target, Walmart, Costco, and Home Depot, as well as numerous quick-service and full-service restaurants, further enhancing the property’s long-term demand.

Demographics
The property benefits from outstanding demographics. Within a three-mile radius, the population exceeds 87,000 residents, with average household incomes surpassing $112,000. Expanding to five miles, the population grows to more than 210,000 residents, supported by Katy’s ongoing residential expansion and strong employment opportunities. The affluent consumer base provides a consistent stream of demand for full-service dining establishments such as LongHorn Steakhouse.

Property Details
The property consists of a freestanding LongHorn Steakhouse restaurant totaling approximately 6,500 square feet on a 1.9-acre parcel. The building conforms to the brand’s modern prototype, featuring a contemporary dining room, bar area, and updated kitchen design. Ample parking, strong signage, and excellent ingress and egress enhance the site’s convenience and visibility.

Fee simple ownership provides the buyer with long-term control and stability of both the land and building improvements.

Lease Structure and Tenant Guarantee
The property is secured by a brand-new 15-year absolute triple net (NNN) lease. Under this structure, the tenant is responsible for all property expenses, including taxes, insurance, and maintenance, ensuring a truly passive investment. The lease features 10% rental increases every five years, providing dependable income growth throughout the term.

LongHorn Steakhouse is a subsidiary of Darden Restaurants, Inc. (NYSE: DRI), one of the largest full-service restaurant operators in the United States. Darden’s portfolio includes leading brands such as Olive Garden, Capital Grille, and Seasons 52, and the company maintains an investment-grade credit rating. This corporate guarantee enhances tenant security and long-term investment stability.

Surrounding Area and Trade Drivers
The Katy area continues to see strong residential and commercial expansion, driven by corporate relocations, quality of life, and excellent schools. The property’s location near major highways, retail hubs, and residential communities ensures strong daily traffic and consistent customer demand. Katy Mills Mall, Memorial Hermann Katy Hospital, and corporate campuses further enhance the area’s appeal.

Investment Highlights

• Brand-new 15-year absolute triple net (NNN) lease with LongHorn Steakhouse.
• Fee simple ownership of a 1.9-acre parcel with a 6,500-square-foot modern prototype restaurant.
• Tenant responsible for all expenses, providing 100% passive ownership.
• Scheduled 10% rental increases every five years, delivering steady income growth.
• Corporate guarantee from Darden Restaurants, Inc. (NYSE: DRI), an investment-grade Fortune 500 company.
• Prime Katy MSA location with daily traffic counts exceeding 41,000 vehicles.
• Excellent demographics: over 87,000 residents within three miles and 210,000 within five miles, with household incomes averaging $112,000.
• Surrounded by national retailers and anchored within a thriving retail and residential corridor.
• Attractive for 1031 exchange buyers, REITs, family offices, and institutional investors seeking long-term, stable income.

Buyer Profile and Financing
The property is an excellent fit for 1031 exchange buyers, private equity groups, REITs, and institutional investors. The corporate-backed 15-year absolute NNN lease provides lender confidence and highly favorable financing terms.

Conclusion
This LongHorn Steakhouse in the Katy, TX MSA represents a premier single-tenant net lease investment. With a long-term 15-year absolute NNN lease, corporate-backed guarantee, predictable rent escalations, and a prime location in one of the fastest-growing suburbs of Houston, the property offers secure, management-free income and long-term appreciation potential.

Qualified investors are encouraged to request the full offering memorandum, tenant lease abstract, and financial details.