Red Robin NNN Lease
For Sale
$2,461,538
8720 IH 40 W Frontage Rd, Amarillo, TX 79124
Opportunity to purchase well established Red Robin location in Amarillo, TX
Property Size6,702 SF
Price / SF$367.28
Days on Market573
Property Features for 8720 IH 40 W Frontage Rd
General Information
Standard status
Active
Property type
Restaurants, Other retail properties, Individual retail properties, Retail properties & Spaces
Size
6,702 SF
Elevators
N/A
Investment Type
Net Lease
Building Details
Buildings
1
Stories
1
Units
1
Listing Agency:
(925) 348-1844
Listed By:
Kase
(925) 348-1844
Added: Jan 27, 2025
Changed: Mar 16
Investment Insights
Based on property information with market context.
This property features a Red Robin restaurant in Amarillo, Texas. The 6,702 square foot building has a new 15-year absolute NNN lease with zero landlord obligations. The lease is corporately guaranteed by Red Robin. The lease includes ten percent rent increases every five years throughout the initial term and four 5-year renewal options. The property is located on a hard corner within Amarillo's highest-density retail corridor, with visibility and high traffic counts. The site has exposure to 17,524 vehicles per day along Soncy Road and 87,388 vehicles per day along West Interstate Highway 40, totaling 104,912 vehicles per day from combined nearby roads. It is located near Westgate Mall, an 878,000 square foot regional outlet shopping center anchored by Dillard's, JCPenney, and Bealls. Neighboring tenants include Target, The Home Depot, Sam's Club, Kohl's, PetSmart, Mattress Firm, Party City, T-Mobile, Barnes & Noble, and Best Buy. The property is located approximately 8 miles from Downtown Amarillo and offers tax-free income due to its location in Texas.
Key Highlights
- New 15 year absolute NNN lease
- Zero landlord obligations
- Corporate guarantee
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$79,378
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.22%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,587,560
$1.6M
Cap Rate 7%
$1,133,971
$1.1M
Cap Rate 9%
$881,978
$882.0K
Market Conditions
NOI Build-Up for 6,702 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$112.6K $16.80/SF
− Vacancy
−$6.8K −$1.01/SF
EGI
$105.8K $15.79/SF
− OpEx
−$26.5K −$3.95/SF
NOI
$79.4K $11.84/SF
Area
Amarillo, TX
Vacancy
6.00%
Lease Rate
$16.80 /SF/Yr
Expense Ratio
25.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,587,560
Cap Rate 7%
$1,133,971
Cap Rate 9%
$881,978
Alternative Uses
Best Use
Specialty Retail
$1.13M
$992.2K – $1.32M
NOI $79,378 @ 7.0% cap · market cap 3.22%
Second Best
Retail
$924.9K
$809.3K – $1.08M
NOI $64,741 @ 7.0% cap · market cap 2.63%
Theoretical Best
Office A
$1.50M
$1.31M – $1.75M
NOI $104,744 @ 7.0% cap · market cap 4.26%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1
Businesses Nearby
Well-served
Demand for This Use
Explore this area
Business Placement
Demographics for 79124, TX
11,585
Population
4,676
Households
2.5
Avg Household Size
45
Median Age
39%
College-Educated
94%
High-School Grad
181.2 sq mi
ZIP Area
64
Density / Sq Mi
$110,144
Median Household Income
$64,296
Median Earnings
$1,158
Median Rent
$325,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Restaurant - Opportunity to purchase well established Red Robin location in Amarillo, TX
Where is this restaurant located?
The property is located at 8720 IH 40 W Frontage Rd Amarillo, TX.
What is the asking price?
The asking price for this property is $2,461,538.
What are key features of this property?
This property features: New 15 year absolute NNN lease; Zero landlord obligations; Corporate guarantee
