| Purchase Price | $2,680,000 |
|---|---|
| Annual Rental Income | $167,500 |
| Cap Rate | 6.25% |
| Lease Term | 17 Years |
| City | Houston MSA |
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Burger King Net Lease Investment – Houston MSA
Single-Tenant QSR Asset in a Major Texas Metro with Long-Term Growth Trends
This offering presents the opportunity to acquire a single-tenant Burger King property located in the Houston metropolitan statistical area (MSA), one of the largest and most economically diverse metro areas in the United States. Backed by a long-term absolute triple-net lease, this investment offers passive, reliable income supported by one of the most recognizable and established quick-service restaurant (QSR) brands in the world. The property is strategically situated in a dense suburban corridor within the greater Houston area, offering strong demographic fundamentals, excellent traffic visibility, and surrounding national co-tenancy.
With a deep franchise presence and strong consumer recognition in Texas, Burger King continues to maintain a dominant footprint across the region. Its drive-thru-first model and high-frequency customer base provide investors with consistent, recession-resistant income in a pro-business, tax-advantaged market.
Tenant Overview – Burger King
Founded in 1954, Burger King is a global QSR leader with more than 18,000 locations worldwide and over 6,000 units across the United States. As a subsidiary of Restaurant Brands International (RBI), Burger King benefits from corporate backing and one of the world’s largest restaurant portfolios, which also includes Tim Hortons, Popeyes, and Firehouse Subs. The brand’s flame-grilled burgers, value meals, breakfast options, and late-night service have helped it remain a core choice for both budget-conscious and loyal consumers across all age groups.
Burger King properties are typically operated by large, well-capitalized franchisees with multi-unit experience and regional expertise. These operators leverage regional buying power and labor efficiency to maintain profitability across their portfolios. In the Texas market, Burger King is a top-tier operator with high brand visibility and strong historical performance.
As a tenant, Burger King is known for long-term occupancy, adaptability to evolving consumer behavior, and operational stability in suburban and urban markets alike. Its continued reinvestment into store upgrades and technology, including mobile ordering and digital menu boards, further supports long-term viability as a net lease tenant.
Houston MSA – Top-Five U.S. Market with Expanding Economic Base
The Houston MSA is the fifth-largest metro area in the United States, with a population exceeding 7.3 million. It is consistently ranked as one of the top metros for job creation, population growth, and business relocation. While historically associated with the energy sector, Houston has successfully diversified into technology, aerospace, logistics, healthcare, bioscience, and advanced manufacturing.
Major employers include Chevron, ExxonMobil, Sysco, Memorial Hermann, MD Anderson Cancer Center, NASA, and the Texas Medical Center—the largest medical complex in the world. The region’s international airport system, interstate infrastructure, and port facilities make it a vital logistics hub that continues to draw corporate investment and development.
The site’s suburban location within the Houston MSA benefits from increasing residential development, employment growth, and infrastructure investment. Within a 5-mile radius, the population exceeds 200,000, with strong homeownership rates and an average household income above $90,000. This robust and stable consumer base drives high-volume traffic to quick-service tenants, especially those with proven national appeal like Burger King.
Absolute NNN Lease – True Passivity with Long-Term Income Security
The property is leased on an absolute triple-net basis, with the tenant responsible for all real estate taxes, insurance, maintenance, and capital repairs. This structure offers a completely passive ownership experience with no landlord obligations and predictable monthly income throughout the primary lease term and option periods.
The lease includes structured rent escalations, providing an inflation-protected return over time while preserving long-term tenant alignment with market rents. The tenant’s long-term occupancy commitment and history of performance in the region create a stable investment profile ideal for 1031 exchanges, income-focused portfolios, and family trusts seeking low-risk, yield-driven assets.
Prime Location with Strong Retail Co-Tenancy and Traffic Counts
The property benefits from excellent visibility and access along a major suburban commercial corridor, with daily vehicle counts exceeding 35,000. It is situated near a signalized intersection and features multiple points of ingress and egress, maximizing traffic flow and ease of access for both drive-thru and dine-in customers.
The surrounding trade area includes nationally recognized tenants such as H-E-B, Walmart, CVS, AutoZone, Chick-fil-A, McDonald’s, and Walgreens. This co-tenancy synergy creates consistent foot traffic and solidifies the location as a daily destination for groceries, pharmacy needs, fast food, and auto services. The immediate area is also supported by K-12 schools, churches, medical facilities, and residential communities that drive steady weekday and weekend consumer volume.
The combination of location fundamentals—high traffic, strong visibility, population density, and essential retail co-tenancy—provides the foundation for long-term performance and enhances the real estate’s underlying land value.
Texas – Business-Friendly, Tax-Free State with Long-Term Growth Tailwinds
Texas continues to lead the nation in population growth, employment expansion, and inbound business relocation. With no state income tax, a favorable corporate climate, and ongoing infrastructure investment, Texas remains the top target for both institutional and private real estate capital.
The Houston region in particular offers a unique combination of scale, affordability, workforce availability, and transportation infrastructure. It consistently ranks as a top metro for commercial real estate investment due to its size, economic resilience, and regional demand for essential retail services like QSR.
For investors focused on long-term income with appreciation upside, Texas delivers a strong combination of stability, landlord-favorable regulation, and demand for well-located, net-leased properties.
Demographic and Trade Area Overview
The surrounding consumer base aligns well with Burger King’s customer profile: price-conscious, family-oriented, and repeat-use. Combined with strong infrastructure and expanding suburban development, the trade area offers long-term security for tenant operations.
Investment Highlights
Conclusion
This Burger King property within the Houston MSA offers a rare opportunity to secure a truly passive, income-producing net lease asset in one of the nation’s largest and most economically durable markets. Backed by a long-term absolute NNN lease and one of the QSR industry’s most enduring brands, the asset delivers predictable income, strong real estate fundamentals, and long-term appreciation potential.
With growing demand for drive-thru food services, a favorable Texas tax environment, and increasing interest in essential retail investments, this property represents a best-in-class opportunity for both institutional and private investors. Its combination of tenant strength, location quality, and passive structure make it a strategic addition to any net lease portfolio focused on income, stability, and long-term value preservation.