Olive Garden NNN Ground
For Sale
$3,368,000
1405 E Expressway 83 Mission TX 78572, Mission, TX 78572
High-performing Olive Garden with long-term ground lease in Mission, TX.
Property Size7,805 SF
Price / SF$431.52
Days on Market272
Property Features for 1405 E Expressway 83 Mission TX 78572
General Information
Standard status
Active
Size
7,805 SF
Property subtype
Retail
Net Operating Income
$160,000
Building Details
Building Size
7,805 SF
Year Built
2024
Listing Agency:
Faris Lee Investments
(949) 584-8471
Listed By:
Don MacLellan · License #CalDRE #00897784
(949) 584-8471
Source:
Farislee
Added: Nov 25, 2025
Changed: Aug 24
Last Checked: Aug 24 at 4:00AM
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 Faris Lee Investments
Investment Insights
Based on property information with market context.
This property presents an investment opportunity in a high-performing Olive Garden restaurant located in Mission, TX. The property features a 10-year ground lease, reflecting Olive Garden’s commitment, as they constructed the facility. The site is shadow-anchored by Burlington and Murdoch’s Ranch and Home Supply within a retail center. Olive Garden experienced strong opening sales and ranks among the top locations in sales. As a subsidiary of the Darden Group, with a market capitalization exceeding $20 billion and an S&P credit rating of BBB, Olive Garden achieved over $5 billion in sales in 2024. The restaurant has been a staple in the U.S. since 1982. Positioned four miles from the Anzalduas International Border Crossing, the property benefits from cross-border traffic from Monterrey and Reynosa. The location offers visibility and accessibility, supported by its proximity to McAllen. The Anzalduas International Border Crossing sees over 4.6 million vehicle crossings annually. The surrounding area features a retail landscape, with nearby stores and services. The property is near Sharyland Towne Crossing, which includes HEB, Target, and Ross, welcoming over 9 million visits annually. Additionally, the property is near the Market at Sharyland Place, home to Walmart, Kohl’s, and Dollar Tree, which recorded 4.9 million visits in the past year. The property, situated on a 1.76-acre lot, is secured by a below-market long-term NNN ground lease structure. Scheduled rental increases occur every five years. Olive Garden holds four 5-year renewal options extending to 2054. The tenant bears all property expenses. The property is located in Mission, Texas, which has a population of over 87,234 residents as of 2024.
Key Highlights
- High‑performing Olive Garden with strong opening sales and consistent top rankings.
- Long‑term (10‑year) absolute NNN ground lease with zero landlord responsibilities and scheduled rental increases every five years.
- Strategic location near the Anzalduas International Border Crossing capturing significant cross‑border traffic.
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
$113,272
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
3.36%
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%
$2,265,440
$2.3M
Cap Rate 7%
$1,618,171
$1.6M
Cap Rate 9%
$1,258,578
$1.3M
Market Conditions
NOI Build-Up for 7,805 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
$160.2K $20.52/SF
− Vacancy
−$9.1K −$1.17/SF
EGI
$151.0K $19.35/SF
− OpEx
−$37.8K −$4.84/SF
NOI
$113.3K $14.51/SF
Area
Hidalgo County, TX
Vacancy
5.70%
Lease Rate
$20.52 /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%
$2,265,440
Cap Rate 7%
$1,618,171
Cap Rate 9%
$1,258,578
Alternative Uses
Best Use
Specialty Retail
$1.62M
$1.42M – $1.89M
NOI $113,272 @ 7.0% cap · market cap 3.36%
Second Best
Retail
$1.51M
$1.32M – $1.76M
NOI $105,384 @ 7.0% cap · market cap 3.13%
Theoretical Best
Hotel Hospitality
$5.88M
$5.14M – $6.86M
NOI $411,519 @ 7.0% cap · market cap 12.22%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
76
Businesses Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Demographics for 78572, TX
78,280
Population
32,696
Households
2.4
Avg Household Size
36
Median Age
25%
College-Educated
75%
High-School Grad
53.7 sq mi
ZIP Area
1,458
Density / Sq Mi
$54,029
Median Household Income
$30,004
Median Earnings
$900
Median Rent
$121,900
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Conventional restaurant - High-performing Olive Garden with long-term ground lease in Mission, TX.
Where is this conventional restaurant located?
The property is located at 1405 E Expressway 83 Mission TX 78572 Mission, TX.
What is the asking price?
The asking price for this property is $3,368,000.
What are key features of this property?
This property features: High‑performing Olive Garden with strong opening sales and consistent top rankings.; Long‑term (10‑year) absolute NNN ground lease with zero landlord responsibilities and scheduled rental increases every five years.; Strategic location near the Anzalduas International Border Crossing capturing significant cross‑border traffic.
