Freestanding Wendy's Drive-Through
For Sale
$1,232,000
6827 Military Dr W, San Antonio, TX 78227
A 2018-remodeled freestanding restaurant features a NNN lease and two renewal options.
Property Size3,456 SF
Lot Size0.63 Acres
Price / SF$356.48
Days on Market22
Property Features for 6827 Military Dr W
General Information
Standard status
Active
Size
3,456 SF
Lot size
0.63 Acres
Property subtype
Restaurant
Lease Type
NNN
Net Operating Income
$77,000
Site & Location
Drive-Thru
Yes
Traffic Count
15,634 vehicles/day
Highway Access
Yes
Road Access
Yes
Additional Details
Cap Rate
5.5%
Amenities
NNN Lease w/ Zero Landlord Responsibilities
Two (2) Five-Year Renewal Options Providing Up to 10 Additional Years of Occupancy
Scheduled 10% Rent Increases Every 5 Years Throughout Renewal Periods
Corporate Lease
Freestanding Drive-Thru on ±0.63 Acres, Remodeled in 2018
Military Drive West (±15,634 VPD) w/ Access to I-410 (±96,425 VPD)Military Drive West (±15,634 VPD) w/ Access to I-410 (±96,425 VPD)
Proximate to Joint Base San Antonio-Lackland and Westover Hills Baptist Hospital (100+ Beds)
San Antonio MSA | 2.78 Million Residents | One of the Fastest-Growing Metros in the U.S.
Building Details
Building Size
3,456 SF
Year Renovated
2018
Listing Agency:
Marcus & Millichap - Los Angeles
(310) 909-2394
Listed By:
Jason Fefer · License #License(s): CA: 02100489
(310) 909-2394
Source:
Marcusmillichap
Added: Aug 2
Changed: Aug 22
Last Checked: Aug 23 at 2:36AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Marcus & Millichap - Los Angeles
Investment Insights
Based on property information with market context.
This freestanding Wendy's restaurant includes a drive-through configuration and approximately 3,456 square feet on approximately 0.63 acres. The property was remodeled in 2018 and is leased under a NNN structure with zero landlord responsibilities, a corporate guaranty, and two five-year renewal options. Scheduled 10% rent increases apply every five years during the renewal periods, and the offering reflects a 5.50% cap rate.
The restaurant fronts Military Drive West in San Antonio, with approximately 15,634 VPD. Interstate 410 is nearby with approximately 96,425 VPD, while US Highway 90, Highway 151, and Loop 1604 provide additional regional access. Area drivers identified in the property information include Joint Base San Antonio-Lackland, Westover Hills Baptist Hospital, John Jay High School, and John Paul Stevens High School.
The five-mile trade area has 271,035 residents and an average household income of $90,727. The property is located within the San Antonio MSA, which has more than 2.78 million residents.
The restaurant fronts Military Drive West in San Antonio, with approximately 15,634 VPD. Interstate 410 is nearby with approximately 96,425 VPD, while US Highway 90, Highway 151, and Loop 1604 provide additional regional access. Area drivers identified in the property information include Joint Base San Antonio-Lackland, Westover Hills Baptist Hospital, John Jay High School, and John Paul Stevens High School.
The five-mile trade area has 271,035 residents and an average household income of $90,727. The property is located within the San Antonio MSA, which has more than 2.78 million residents.
Key Highlights
- Freestanding Wendy's drive‑through restaurant remodeled in 2018
- Approximately 3,456 square feet on approximately 0.63 acres
- NNN lease with zero landlord responsibilities and corporate guaranty
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
$52,527
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
4.26%
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%
$1,050,540
$1.1M
Cap Rate 7%
$750,386
$750.4K
Cap Rate 9%
$583,633
$583.6K
Market Conditions
NOI Build-Up for 3,456 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
$72.6K $21.00/SF
− Vacancy
−$2.5K −$0.74/SF
EGI
$70.0K $20.27/SF
− OpEx
−$17.5K −$5.07/SF
NOI
$52.5K $15.20/SF
Area
San Antonio, TX
Vacancy
3.50%
Lease Rate
$21.00 /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%
$1,050,540
Cap Rate 7%
$750,386
Cap Rate 9%
$583,633
Alternative Uses
Best Use
Specialty Retail
$750.4K
$656.6K – $875.5K
NOI $52,527 @ 7.0% cap · market cap 4.26%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$881.6K
$771.4K – $1.03M
NOI $61,710 @ 7.0% cap · market cap 5.01%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
15,634 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
1,158
Businesses Nearby
Explore this area
Business Placement
Demographics for 78227, TX
46,594
Population
16,008
Households
2.9
Avg Household Size
33
Median Age
10%
College-Educated
77%
High-School Grad
19.1 sq mi
ZIP Area
2,439
Density / Sq Mi
$48,049
Median Household Income
$28,857
Median Earnings
$1,112
Median Rent
$151,300
Median Home Value
Market
Vacancy Rate% for Retail in San Antonio, TX
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Drive through restaurant - A 2018-remodeled freestanding restaurant features a NNN lease and two renewal options.
Where is this drive through restaurant located?
The property is located at 6827 Military Dr W San Antonio, TX.
What is the asking price?
The asking price for this property is $1,232,000.
What are key features of this property?
This property features: Freestanding Wendy's drive‑through restaurant remodeled in 2018; Approximately 3,456 square feet on approximately 0.63 acres; NNN lease with zero landlord responsibilities and corporate guaranty
