Freestanding Restaurant NNN
For Sale
Contact for pricing
Pending
2111 Houston Hwy, Victoria, TX 77901
Freddy’s Frozen Custard in a 15-year NNN lease arrangement along Houston Hwy (US-59 Business).
Property Size3,552 SF
Days on Market170
Property Features for 2111 Houston Hwy
General Information
Standard status
Pending
Size
3,552 SF
Property subtype
Retail
Occupancy
100%
Lease Type
NNN
Net Operating Income
$114,999
Site & Location
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
2023
Buildings
1
Tenancy
Single
Listing Agency:
STRIVE Commercial Real Estate Advisors
Listed By:
Jennifer Pierson · License #424317-B
Source:
Crexi
Added: Mar 20
Changed: Sep 5
Last Checked: Sep 5 at 4:28PM
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 STRIVE Commercial Real Estate Advisors
Investment Insights
Based on property information with market context.
Introducing Freddy’s Frozen Custard in Victoria, Texas, offered as a for-sale NNN investment with a 15-year lease in place. The property is described as a fast-casual restaurant operated by Lone Star Custard, presented as a seasoned Freddy’s operator.
The asset is positioned near Christus Spohn Hospital and St. Joseph High School in a retail corridor along Houston Highway (US-59 Business). The location is marketed for high visibility and accessibility, with consistent traffic flow supported by its proximity to these established uses.
The lease is described as including 7.5% rent increases every five years, providing built-in inflation protection. No additional landlord responsibilities are described in the offering materials.
The asset is positioned near Christus Spohn Hospital and St. Joseph High School in a retail corridor along Houston Highway (US-59 Business). The location is marketed for high visibility and accessibility, with consistent traffic flow supported by its proximity to these established uses.
The lease is described as including 7.5% rent increases every five years, providing built-in inflation protection. No additional landlord responsibilities are described in the offering materials.
Key Highlights
- Freddy’s Frozen Custard with 15‑year NNN lease in place
- Year built: 2023
- Lease includes 7.5% rent increases every five years
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
$63,169
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
3.16%
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%
$1,263,380
$1.3M
Cap Rate 7%
$902,414
$902.4K
Cap Rate 9%
$701,878
$701.9K
Market Conditions
NOI Build-Up for 3,552 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
$88.7K $24.96/SF
− Vacancy
−$4.4K −$1.25/SF
EGI
$84.2K $23.71/SF
− OpEx
−$21.1K −$5.93/SF
NOI
$63.2K $17.78/SF
Area
Victoria County, TX
Vacancy
5.00%
Lease Rate
$24.96 /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%
$1,263,380
Cap Rate 7%
$902,414
Cap Rate 9%
$701,878
Alternative Uses
Best Use
Specialty Retail
$902.4K
$789.6K – $1.05M
NOI $63,169 @ 7.0% cap · market cap 3.16%
Second Best
—
—
no second resolved use
Theoretical Best
Multifamily LT 5
$39.02M
$34.14M – $45.53M
NOI $2,731,570 @ 7.0% cap · market cap 136.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
990
Businesses Nearby
138k
Monthly Visits Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Groceries 40%
Dining 31%
Shops & Services 28%
H-E-B
Groceries
55,739 visits/mo
0.4 miles
McDonald's
Dining
21,276 visits/mo
0.4 miles
H-E-B Fuel
Shops & Services
13,263 visits/mo
0.5 miles
TDECU
Shops & Services
10,546 visits/mo
0.3 miles
Freddy's Frozen Custard & Steakburgers
Dining
10,386 visits/mo
0.2 miles
Demographics for 77901, TX
40,062
Population
17,438
Households
2.3
Avg Household Size
35
Median Age
15%
College-Educated
76%
High-School Grad
18.1 sq mi
ZIP Area
2,213
Density / Sq Mi
$57,728
Median Household Income
$33,127
Median Earnings
$1,105
Median Rent
$133,900
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 - Freddy’s Frozen Custard in a 15-year NNN lease arrangement along Houston Hwy (US-59 Business).
Where is this conventional restaurant located?
The property is located at 2111 Houston Hwy Victoria, TX.
What is the asking price?
The asking price for this property is $2,000,000.
What are key features of this property?
This property features: Freddy’s Frozen Custard with 15‑year NNN lease in place; Year built: 2023; Lease includes 7.5% rent increases every five years
