Whataburger

Whataburger Net Lease Investment – Houston MSA

Single-Tenant NNN Opportunity in a Core Texas Market

This offering presents the opportunity to acquire a single-tenant Whataburger net lease property in the heart of the Houston metropolitan statistical area (MSA), one of the largest and most economically diverse markets in the United States. With a long-term absolute triple-net lease in place, this investment provides stable, passive income backed by a top-tier quick-service restaurant (QSR) operator and underpinned by exceptional real estate fundamentals.

Whataburger continues to grow its footprint across Texas and the broader Sunbelt, capitalizing on high consumer demand, brand loyalty, and an adaptable format designed for operational efficiency and drive-thru volume. The Houston MSA represents one of the brand’s most mature and deeply penetrated markets, and the area’s continued growth ensures long-term tenant performance and asset value preservation.

Tenant Overview – Whataburger

Whataburger is a legacy QSR brand founded in 1950 and based in San Antonio, Texas. With nearly 1,000 restaurants across the Southern and Southwestern U.S., the brand is known for its made-to-order burgers, all-day breakfast, and commitment to quality and service. The company has expanded significantly under the support of BDT Capital Partners, a strategic investor with a long-term vision for growth through franchising and corporate development.

Whataburger locations are designed to handle high-volume, high-frequency traffic. The brand’s stores typically include dual-lane drive-thrus, interior seating, and modern digital ordering systems, enabling seamless transactions across all dayparts. With a growing emphasis on off-premises dining and mobile ordering, the Whataburger model is positioned well for long-term success.

In Texas, Whataburger is more than a QSR—it is a cultural staple. The brand’s dominance in key Texas MSAs, including Houston, Dallas, San Antonio, and Austin, is backed by exceptional unit-level performance and strong real estate site selection. Franchisees and corporate operators alike maintain a rigorous focus on operational consistency, store branding, and community engagement.

Houston MSA – A Top-Tier Market for Net Lease Investors

The Houston MSA is the fifth-largest in the country, with over 7 million residents and a continually expanding economic base. Known for its diverse industries, low cost of living, and business-friendly environment, Houston has emerged as one of the most resilient major metros in the U.S. for real estate investment.

The local economy is anchored by key sectors including energy, logistics, aerospace, manufacturing, healthcare, and finance. Major employers such as the Texas Medical Center, ExxonMobil, Chevron, United Airlines, and Memorial Hermann Health System provide job security and wage growth across all income levels.

The trade area surrounding the Whataburger site is densely populated, with more than 225,000 people within a 5-mile radius and an average household income exceeding $90,000. These strong demographics align perfectly with Whataburger’s customer base—middle-class and working families, professionals, and commuters seeking reliable and affordable food options.

Houston’s suburban expansion continues to drive demand for QSR brands, especially in outlying submarkets where new housing developments, schools, and industrial parks are being developed at scale. As housing costs in coastal markets rise, Houston’s affordability, infrastructure, and land availability continue to attract residents and businesses alike.

Absolute NNN Lease – Passive Investment Grade Asset

The property is secured by a long-term absolute NNN lease, with the tenant responsible for all taxes, insurance, maintenance, and capital expenses. This lease type provides investors with predictable, stable cash flow and zero management responsibilities. Whether for an individual seeking long-term passive income or a 1031 exchange buyer looking for a secure replacement property, this Whataburger offers an ideal investment structure.

The lease term includes periodic rental increases, ensuring income growth throughout the primary term and into the renewal options. Net lease investors focused on income stability and tenant quality will recognize this as a durable and tax-efficient addition to any portfolio.

Prime Location in a Dense Retail and Residential Corridor

Strategically positioned in a highly visible and easily accessible location, the Whataburger site enjoys exposure to traffic counts exceeding 40,000 vehicles per day. Situated on a major arterial route, the property benefits from strong regional connectivity and sustained weekday and weekend traffic from both commuters and residents.

The immediate trade area includes nationally recognized retailers such as H-E-B, Walmart, CVS, Starbucks, Home Depot, AutoZone, and Dollar Tree. This surrounding tenant mix creates consistent traffic draw and brand synergy for Whataburger and other outparcel users. The site is also proximate to schools, healthcare centers, churches, and dense residential communities, all of which contribute to repeat customer volume and high unit-level performance.

The property’s real estate fundamentals—strong visibility, multiple points of access, and a highly trafficked retail corridor—are exactly the kind of long-term attributes sought by both tenants and investors. As the Houston area continues to grow outward, well-located QSR assets like this become increasingly difficult to replace.

Texas – A Magnet for Investment and Business Expansion

Texas remains one of the most attractive states in the U.S. for business investment, population migration, and real estate development. With no state income tax, favorable corporate tax structures, and strong GDP growth, the state continues to attract both domestic and international capital. Texas cities like Houston offer high population density, land availability, and regulatory support for new construction and expansion.

Investors continue to favor Texas for its consistent job creation, infrastructure development, and affordability relative to other major markets. The state’s growing consumer base, paired with its business-friendly legal and tax structure, makes it an ideal setting for long-term net lease ownership.

Whataburger’s position as a Texas-founded brand further amplifies the strength of this offering. Locations within core Texas metros, particularly in densely developed submarkets of Houston, are among the most desirable in the net lease market today due to the brand’s embedded customer loyalty and long-term occupancy outlook.

Demographics and Consumer Base

• Within 1 mile: Strong residential density with schools, apartments, and active commercial corridors
• Within 3 miles: Growing middle-class population, consistent new home construction, and expanding infrastructure
• Within 5 miles: Over 225,000 residents and average household incomes over $90,000
• Daytime population supported by healthcare, logistics, education, and small business employment
• Surrounding rooftops include a blend of single-family homes, multifamily developments, and workforce housing

These demographic strengths ensure a stable and recurring customer base for Whataburger, particularly in a city where car travel, drive-thru convenience, and affordability are essential components of dining decisions.

Investment Highlights

• Single-tenant Whataburger property with a long-term absolute NNN lease
• Passive investment structure with no landlord responsibilities
• Prime location within Houston MSA – one of the most economically diverse markets in the U.S.
• High daily traffic volumes and strong co-tenancy from national brands
• Dense residential base and strong average household income
• Surrounding retail corridor with excellent visibility and access
• Backed by a growing tenant with private equity support and regional strength
• Located in a tax-friendly state with continued economic and population expansion

Conclusion

This Whataburger property in the Houston MSA offers investors the rare combination of tenant quality, real estate strength, and long-term income security in one of the most dynamic markets in the country. The absolute NNN lease provides true passivity, while the brand’s market strength and Texas roots ensure long-term relevance and performance.

Houston’s demographic trajectory, economic diversity, and land development pipeline continue to drive investor demand for core retail locations—particularly single-tenant assets in essential retail categories. Whataburger’s embedded presence in Texas, supported by robust consumer loyalty and institutional backing, positions this investment as an ideal fit for both private and institutional portfolios seeking stability, yield, and long-term value.