Whataburger

Whataburger Net Lease Investment – Phoenix MSA

National QSR Tenant in a High-Growth Western Market

This offering presents the opportunity to acquire a high-performing Whataburger net lease property located in the rapidly expanding Phoenix metropolitan statistical area (MSA), one of the top-performing growth markets in the Western United States. As a well-established quick-service restaurant brand with nearly 1,000 locations and a growing footprint across the Sunbelt, Whataburger continues to strengthen its national presence through strategic market entries, including key placements across Arizona.

The Phoenix MSA is a premier target for institutional capital, family offices, and private investors due to its strong demographic trends, business-friendly environment, and high volume of new residential and commercial development. This property benefits from a strong regional operator, robust traffic counts, and a location surrounded by complementary national retailers, schools, hospitals, and major employers.

Tenant Overview – Whataburger

Whataburger is a household name in the quick-service restaurant sector, known for its distinctive branding, 24-hour service model, and fan-favorite menu centered around customizable burgers, chicken offerings, and breakfast served all day. Founded in 1950 and headquartered in San Antonio, Texas, Whataburger has expanded aggressively throughout the South and Southwest, with Arizona emerging as one of the brand’s key growth markets.

Whataburger’s expansion across Arizona has been supported by a seasoned regional development team and a focus on prime suburban corridors and high-growth trade areas. The company’s partnership with BDT Capital Partners has fueled a multi-state expansion plan targeting states with strong population growth, pro-business climates, and healthy consumer demand.

Locations in the Phoenix MSA benefit from dense residential communities, major transit corridors, and the area’s growing reliance on quick-service dining. The tenant’s drive-thru model, digital ordering systems, and multi-lane queuing position each site for maximum throughput and long-term performance in both urban and suburban environments.

Absolute NNN Lease Structure – Zero Landlord Responsibility

The property is secured by an absolute triple-net lease, requiring the tenant to cover all property expenses including taxes, insurance, maintenance, and repairs. This lease structure offers investors a fully passive income stream and eliminates any ongoing management obligations.

With a long-term lease in place, the property delivers predictable cash flow backed by a proven QSR brand and strong real estate fundamentals. Lease terms typically include rental increases at regular intervals, enhancing yield over time while maintaining income security. For 1031 exchange buyers, high-net-worth individuals, or institutions focused on capital preservation and income reliability, this structure represents the ideal balance of return and risk.

Phoenix MSA – One of the Nation’s Fastest-Growing Regions

The Phoenix metropolitan area is among the top-ranked U.S. markets for population growth, job creation, and real estate demand. The MSA has added over 1 million residents in the last decade, driven by affordable housing, tax advantages, and an expanding technology and logistics sector. With a total population exceeding 5 million and a consistent influx of both individuals and businesses from California, Illinois, and the Northeast, Phoenix is one of the most sought-after regions for long-term investment.

Within the property’s immediate trade area, the population exceeds 200,000 within a 5-mile radius, supported by rising household incomes and continuous residential development. New subdivisions, master-planned communities, and build-to-rent housing continue to drive demand for retail services, especially quick-service food concepts with national recognition.

The regional economy is supported by a diversified employment base that includes manufacturing, tech, education, logistics, defense, and healthcare. Major employers in the Phoenix area include Intel, Banner Health, Wells Fargo, Arizona State University, Honeywell Aerospace, and Amazon. This economic diversity helps insulate the region from cyclical fluctuations and supports consistent daytime and evening consumer traffic.

Strategic Location Along a Major Retail Corridor

The Whataburger property is strategically located along a primary commercial corridor with direct exposure to traffic counts exceeding 30,000 vehicles per day. The site benefits from outstanding ingress and egress, excellent visibility, and a signalized intersection that drives consistent volume throughout the week.

Surrounding national tenants include Walmart, Fry’s Food & Drug, Dutch Bros Coffee, Walgreens, CVS, Panda Express, AutoZone, and major fuel stations. These complementary brands generate steady co-tenancy synergy, enhancing the value of the retail trade area and driving additional customer traffic to the Whataburger location.

Nearby residential developments, middle and high schools, community parks, and healthcare facilities provide a well-balanced consumer base of families, professionals, and retirees. The area’s demographic profile aligns strongly with Whataburger’s core customer base, contributing to long-term tenant success and reduced occupancy risk.

Arizona’s Business-Friendly Climate and Favorable Tax Policies

Arizona offers a highly favorable business and tax environment that supports long-term real estate investment. With no tax on inventory, a relatively low corporate tax rate, and ongoing efforts to streamline permitting and land use, Arizona remains a key target for developers and national tenants seeking scalable growth.

The state’s economic policies have attracted new manufacturing plants, data centers, and logistics operations, particularly in suburban Phoenix submarkets. These investments continue to push population and infrastructure expansion further out from the urban core, enhancing demand for new retail development and outparcel pad sites.

Real estate investors are increasingly drawn to the Phoenix MSA for its reliable job growth, in-migration trends, and above-average yields on net lease retail assets. Properties leased to top-tier operators in essential categories like QSR, automotive, and medical continue to outperform and attract multiple offers from institutional and private buyers alike.

Demographics and Demand Drivers

• The 1-mile population surrounding the site is highly active, with younger median age groups and strong demand for fast-casual dining.
• The 3- and 5-mile populations show consistent year-over-year growth, driven by affordable housing, job availability, and school district desirability.
• Average household incomes in the immediate area exceed $80,000, with home ownership and consumer spending rising across all income brackets.
• The Phoenix market continues to benefit from rising enrollment at Arizona State University and expanding logistics and warehouse employment, further increasing lunchtime and late-night demand at nearby food operators.

Investment Highlights

• Single-tenant net lease with nationally recognized tenant
• Absolute NNN structure – tenant responsible for all expenses
• Prime location within high-growth Phoenix MSA
• Dense residential and commercial surroundings
• Exposure to 30,000+ vehicles per day
• Surrounded by top national brands and major employers
• Business-friendly state with pro-growth tax policy
• Long-term lease with predictable passive income

Conclusion

This Whataburger net lease asset located in the Phoenix MSA represents a best-in-class opportunity for investors seeking income-producing real estate in one of the most resilient and rapidly expanding markets in the Western U.S. The combination of a proven QSR tenant, fully passive lease structure, strategic real estate fundamentals, and a robust demographic profile make this property an exceptional fit for both short-term income and long-term capital preservation.

Phoenix continues to rank among the top metros for inbound migration, commercial development, and real estate performance, and this asset sits squarely within that trend. Whether for portfolio diversification, wealth preservation, or 1031 exchange, this offering delivers all the essentials: a national tenant, essential use, and durable income in a tax-friendly, high-demand state.