Wendy’s

Purchase Price$2,990,000
Annual Rental Income$149,500
Cap Rate5.00%
Lease Term20 Years
CityHouston MSA
Tenant: Wendy’s
Sector: Fast Food / QSR
State: Texas

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Wendy’s – Absolute NNN Investment
Houston MSA | High-Growth Texas Market | Passive Income | Prime Drive‑Thru QSR Asset

This offering presents an exceptional opportunity to acquire a single-tenant Wendy’s property operating under a long-term absolute triple‑net (NNN) lease in the Houston Metropolitan Statistical Area (MSA)—the fourth-largest metro in the U.S. Situated on a high-traffic suburban retail corridor, this asset delivers zero landlord responsibilities, scheduled rent escalations, and stable passive income—backed by a nationally recognized quick-service restaurant (QSR) brand. With Houston’s diverse economy and sustained demographic growth, this Wendy’s location represents a high-quality addition for investors seeking long-term, low-maintenance income in a top-tier market.


Tenant Overview – Wendy’s | National QSR Leader

Wendy’s is a top-tier national QSR brand, known for its signature square burgers, fresh-cut fries, and diverse menu that balances value and quality. With over 6,800 locations worldwide, Wendy’s has strong brand recognition and a proven operating model. Now known for efficient drive-thru systems, digital ordering, and delivery integration, Wendy’s remains relevant across demographic segments and retains high unit-level sales even in suburban and secondary markets—like those found throughout Houston’s sprawling MSA.

This property is structured on an absolute NNN lease, meaning Wendy’s assumes responsibility for all property-related expenses including real estate taxes, insurance, repairs, and routine maintenance. Additionally, scheduled rent escalations—typically implemented every five years—provide predictable income growth and act as a hedge against inflation, making this a compelling passive-income vehicle for investors.


Lease Structure & Cash Flow Profile

  • Lease Type: Absolute NNN—100% tenant responsibility for all operating expenses
  • Lease Term: 15–20‑year base term
  • Renewal Options: Multiple 5-year extensions
  • Escalations: Fixed increases every five years (typically 6–10%)
  • Investor Benefits: Mailbox-style, fully passive income with inflation protection and no management burden

This structure provides long-term cost predictability and reliable revenue growth, ideal for investors looking to build portfolios of low-risk, cash-generating properties in high-growth MSAs like Houston.


Market Overview – Houston MSA | Economic & Population Powerhouse

The Houston MSA, home to over 7.5 million residents, is one of the most economically dynamic and fastest-growing metro areas in the United States. Its economy is anchored by energy, aerospace, healthcare, logistics, and manufacturing. Key employers include ExxonMobil, Shell, Chevron, MD Anderson Cancer Center, Baylor College of Medicine, and the Port of Houston—one of the largest ports in North America.

With no state income tax, a pro-business environment, and a relatively low cost of living, Houston attracts residents from across the U.S. and internationally. Between 2020 and 2024, the greater Houston region added over 200,000 new residents, emphasizing ongoing growth trends that support QSR demand.


Site Analysis – High‑Traffic Drive‑Thru Corridor

This Wendy’s is strategically positioned along a major suburban artery with average daily traffic counts often exceeding 35,000 vehicles. The dual-lane ingress and egress and strong signage visibility ensure excellent drive-thru performance—crucial for today’s convenience-driven consumers.

The site is part of a retail cluster featuring national co-tenants such as grocery chains, big-box stores, financial services, pharmacies, and fast-casual restaurants. With dense residential neighborhoods nearby—ranging from established subdivisions and new housing developments to master-planned communities—the location benefits from both commuter and local consumer foot traffic throughout the day and evening.


Trade‑Area Demographics

Within a 5-mile radius, this Wendy’s location serves:

  • Population: Approximately 150,000+ residents
  • Median Household Income: $75,000–$100,000, with many subsets exceeding $110,000
  • Age Demographics: A balance of families, professionals, Gen Z, millennials, and retirees

Houston’s migration patterns—especially from higher-cost coastal metros—have strengthened its income base. Submarkets such as The Woodlands, Katy, Sugar Land, Pearland, and Cypress continue to outperform in new home permits and population influx, sustaining the demand for drive-thru QSR service.


Income Growth & Inflation Protection

This investment includes built-in escalations every five years, typically in the 6–10% range. These contractual increases provide income growth and shield returns from inflation, enhancing long-term yield.

As an absolute NNN asset, Wendy’s covers all expenses—taxes, insurance, structural and mechanical repairs—leaving investors with clean, predictable returns and no exposure to operating expense fluctuations or capital needs.


Why Wendy’s in the Houston MSA?

  • Population Growth: Houston remains among the fastest-growing major metros in the U.S.
  • Diverse Economy: Energy, healthcare, aerospace, logistics, manufacturing, and international trade provide sustained employment
  • Affordable Lifestyle: Low cost of living with no personal income tax attracts new residents and supports suburban expansion
  • Drive-Thru Demand: Wendy’s drive-thru format aligns well with commuter and family-driven site traffic
  • Strong Co-Tenancy: Complementary national retailers enhance foot traffic and brand synergy
  • Inflation-Hedged Income: Scheduled escalations protect income in an inflationary environment
  • No Landlord Duties: Fully passive ownership through absolute NNN lease
  • Investment Readiness: Excellent fit for 1031 exchange buyers, REITs, family offices, and private investors seeking stable returns

Key Investment Highlights

  • Single-tenant Wendy’s on an absolute triple-net lease
  • Long-term passive income with no landlord responsibilities
  • Built-in rent escalations every five years
  • Prime suburban drive-thru site on 35,000+ ADT corridor
  • Located in Houston MSA—4th largest U.S. metro with strong growth fundamentals
  • Co-tenancy with grocery, big box, banking, and other QSRs
  • Above-average household incomes support robust performance
  • Digital ordering and delivery capabilities augment traditional drive-thru model
  • Inflation-protected structure meets portfolio diversification goals
  • Texas tax environment enhances investor cash flow

Conclusion

This Wendy’s net-lease offering in the Houston MSA represents a premier investment opportunity: long-term, predictable income; fully passive ownership; strong tenant credit; and a high-visibility drive-thru location in a high-growth Southeast market. The absolute NNN structure, rent escalations, and robust trade-area demographics combine to create a powerful investment foundation.

Whether executing a 1031 exchange, expanding a passive-income portfolio, or targeting strategic real estate allocation, this Wendy’s asset offers the perfect balance of yield, stability, and minimal oversight. Class-A QSR assets in Houston’s high-demand suburban corridors are rare—and this opportunity stands out in both quality and location.

Please contact us to request full investment materials, lease abstracts, demographic mapping, or underwriting details. Quality NNN QSR offerings like this Wendy’s are in limited supply and generate strong buyer interest.

Property details provided on this site are for general informational and illustrative purposes only. Specific availability and property status may change without notice. Please contact us to confirm current opportunities.