Popeyes

Popeyes – Absolute NNN Investment
Victoria, TX MSA | South-Central Texas Hub | Passive Income | Drive-Thru QSR Asset

This offering showcases a single-tenant Popeyes Louisiana Kitchen property in the growing Victoria Metropolitan Statistical Area (MSA) of South-Central Texas. Leased on a long-term absolute triple-net (NNN) basis, the asset delivers 100 percent passive income, zero landlord responsibilities, scheduled rent escalations, and brand security from a nationally recognized quick-service restaurant (QSR). Strategically positioned on a highly traveled retail corridor between Houston, San Antonio, and Corpus Christi, this Popeyes provides investors with durable cash flow and an excellent long-term hold in a core Texas market.

Tenant Overview – Popeyes | National QSR Brand

Popeyes is a top-tier QSR chain celebrated for its New-Orleans-inspired fried chicken and wildly popular chicken sandwich. The brand has more than 4,000 restaurants worldwide and consistently ranks among the fastest-growing concepts in the segment. Under the absolute NNN lease at this location, the tenant is responsible for all real-estate expenses—property taxes, insurance, roof, structure, HVAC, and maintenance—while contractual rent increases every five years ensure inflation-protected income growth. The combination of strong brand equity, proven unit economics, and a passive lease structure positions this Popeyes as a core income asset.

Lease Structure & Cash-Flow Profile

• Lease Type: Absolute NNN – tenant pays all expenses
• Base Term: 15–20 years
• Renewals: Multiple 5-year options
• Escalations: Fixed bumps every 5 years (typically 7–10 percent)
• Owner Benefits: Hands-off ownership, predictable NOI, and no capital calls

The full-expense pass-through model eliminates landlord risk and streamlines asset management—ideal for investors seeking dependable mailbox income or a 1031 exchange replacement.

Market Overview – Victoria, Texas MSA

Victoria—nicknamed “The Crossroads”—sits at the junction of U.S. Highways 59, 77, and 87, placing it roughly two hours from Houston, San Antonio, Austin, and Corpus Christi. With a metro population of about 115,000 and a trade area topping 250,000, Victoria serves as the regional center for retail, healthcare, petrochemical processing, agriculture, and logistics.

Key economic drivers include:

• Formosa Plastics, Dow, INVISTA, Caterpillar, and H-E-B distribution hubs
• University of Houston–Victoria and Victoria College, drawing students and staff
• Citizens Medical Center and DeTar Healthcare System, anchoring the regional healthcare sector
• Port of Victoria and emerging Gulf-Coast energy infrastructure projects

Steady job creation and capital investment are spurring residential growth in subdivisions north and east of downtown, while tourism tied to coastal fishing, wildlife refuges, and historic sites continues to expand.

Site Analysis – High-Visibility Drive-Thru Corner

The Popeyes occupies a freestanding pad along North Navarro Street, the city’s premier retail artery with daily traffic counts exceeding 32,000 vehicles. The property features:

• Dual-lane drive-thru with ample stacking capacity
• Full signalized-corner access and multiple ingress/egress points
• Strong pylon and building signage visible from both traffic directions
• Contemporary prototype architecture with updated FF&E

Immediate co-tenancy includes Walmart Supercenter, Target, Lowe’s, Academy Sports, Chick-fil-A, Starbucks, and regional banking centers—creating a synergy that drives consistent daypart traffic.

Trade-Area Demographics

• Population (5-mile radius): ~75,000 residents
• Median Household Income: $70,000+ and trending upward
• Average Age: 36 years, balanced mix of families, young professionals, and retirees
• Daytime Population: Bolstered by petrochemical employees, healthcare staff, students, and regional shoppers

Victoria’s relatively low cost of living, absence of state income tax, and central location attract new residents and businesses, generating steady demand for fast-casual and drive-thru dining.

Income Growth & Inflation Protection

Scheduled rent escalations provide reliable, contractual NOI increases, allowing the investment to outpace inflation over the lease term. The absolute NNN structure shifts all operating-expense risk to the tenant, safeguarding the owner from rising costs and preserving yield stability.

Investment Drivers – Why Popeyes in Victoria?

1. Strategic Crossroads Location – Acts as the retail and logistics hub between four major Texas metros
2. Industrial & Petrochemical Expansion – Formosa Plastics and Gulf-Coast energy projects fuel job growth and disposable income
3. Healthcare & Education Anchors – Hospitals and universities provide stable daytime traffic
4. Drive-Thru Resilience – Post-pandemic consumer preference for off-premise dining supports high unit volumes
5. National Tenant Credit – Proven QSR operator with strong brand loyalty and sales trajectory
6. Inflation-Hedged Lease – Fixed rental bumps every five years secure rising cash flow
7. Hands-Off Ownership – Absolute NNN lease eliminates management, ideal for remote investors
8. Limited QSR Supply – Few freestanding, pad-site opportunities along Navarro Street become available
9. Sun Belt Demographic Growth – Texas continues to outpace national averages in population and economic expansion
10. Exit Liquidity – Long lease term, rent escalations, and location quality enhance future resale value

Key Investment Highlights

• Single-tenant Popeyes on long-term absolute NNN lease
• Zero landlord responsibilities—true passive income
• Scheduled 5-year rent escalations for income growth
• Freestanding dual-lane drive-thru on 32,000+ VPD corridor
• Surrounded by Walmart, Target, Lowe’s, and other national brands
• Trade-area population and income growth fueled by industrial investment
• Central Texas location with access to Houston, San Antonio, Austin, and the Gulf Coast
• Ideal for 1031 exchange, family offices, and funds seeking stable yield

Conclusion

This Popeyes in Victoria, Texas, delivers the core attributes savvy net-lease investors demand: national brand security, absolute NNN lease simplicity, inflation-protected income, and a high-traffic, growth-market location. With zero landlord duties and contractual rent bumps, the asset offers predictable cash flow and long-term appreciation potential in a supply-constrained corridor.

For the full offering memorandum, lease abstract, financial model, and demographic package, contact us today. Net-lease QSR opportunities of this caliber in South-Central Texas are limited and command immediate investor attention.