Overview
New Freddy's Restaurant Investment Opportunity
This property features a brand new Freddy’s restaurant with a 20-year absolute NNN lease, including attractive 7.50% rental escalations every 5 years and four 5-year options to renew. The tenant, Ram-Z Custard, LLC, owns and operates 74 locations, including 39 Freddy’s restaurants (including those currently under construction), making it the 6th largest Freddy’s franchisee in the U.S., and 35 Schlotzsky’s locations, making it the largest Schlotzsky’s franchisee in the country. All units back the performance of the lease. The property is a new, build-to-suit of Freddy’s latest prototype with a 14-car stack in drive-thru, slated to open July 2025. The asset is located at the southwest hard corner of Teasley Ln & Hunters Creek Rd, situated on a large approximately 1.85-acre lot with a daily traffic count exceeding 30,000 CPD. Nearby retailers include Walmart, Target, Home Depot, Lowe’s, Hobby Lobby, HomeGoods, T.J. Maxx, Ross, Burlington, Michaels, Best Buy, J. Crew Factory, Old Navy, Maurices, American Eagle, Rally House, Barnes & Noble, DSW, Ulta Beauty, Popshelf, ALDI, Kroger, Total Wine & More, Spec’s Wines, Goodwill, PetSmart, Pet Supplies Plus, Harbor Freight Tools, and Tractor Supply Co., LA Fitness, Planet Fitness, and Cinemark. It is less than 5 miles from the University of North Texas, a four-year public R1: Doctoral University offering 114 bachelor’s and 126 master’s/doctoral degrees, serving 46,180 students (Fall 2024); 5 miles from Texas Women’s University Denton, a public university with 12,623 students; 3 miles from Medical City Denton, a 228-bed acute care hospital; and 5 miles from Texas Health Denton, a 255-bed full-service hospital.
