IHOP Absolute NNN
For Sale
Contact for pricing
4400 S Medford Drive, Lufkin, TX 75901
IHOP has operated since 2000 and extended an Absolute NNN Lease in 2020, with 7+ years remaining.
Property Size5,000 SF
Price / SF$400
Days on Market54
Property Features for 4400 S Medford Drive
General Information
Standard status
Active
Size
5,000 SF
Property subtype
Retail
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$150,000
Building Details
Year Built
1998
Buildings
1
Tenancy
Single
Listing Agency:
Horvath & Tremblay
Listed By:
Bob Horvath · License #CT 756500
Source:
Crexi
Added: Jul 17
Changed: Aug 13
Last Checked: Sep 6 at 9:35PM
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 Horvath & Tremblay
Investment Insights
Based on property information with market context.
Horvath & Tremblay presents the exclusive sale of an IHOP investment property in Lufkin, Texas. IHOP has operated at the location since 2000 and extended its Absolute NNN Lease in 2020, with 7+ years remaining on the lease term.
The property is located at 4400 S Medford Drive along US Highway 59/US Highway 69, described as one of Lufkin’s premier retail and restaurant corridors. The site provides direct access to the transportation network connecting Lufkin with Houston, Nacogdoches, Tyler, and the broader East Texas region. The surrounding area includes national retailers, hotels, medical facilities, and service-oriented businesses, supporting consumer activity throughout the day. The location also benefits from proximity to major employers across manufacturing, healthcare, education, forestry, and government sectors, along with nearby hotels and regional shopping destinations.
The property is located at 4400 S Medford Drive along US Highway 59/US Highway 69, described as one of Lufkin’s premier retail and restaurant corridors. The site provides direct access to the transportation network connecting Lufkin with Houston, Nacogdoches, Tyler, and the broader East Texas region. The surrounding area includes national retailers, hotels, medical facilities, and service-oriented businesses, supporting consumer activity throughout the day. The location also benefits from proximity to major employers across manufacturing, healthcare, education, forestry, and government sectors, along with nearby hotels and regional shopping destinations.
Key Highlights
- IHOP has operated at 4400 S Medford Drive in Lufkin, TX since 2000
- Absolute NNN Lease extended in 2020, with 7+ years remaining
- Year built: 1998
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
$71,639
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
3.58%
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%
$1,432,780
$1.4M
Cap Rate 7%
$1,023,414
$1.0M
Cap Rate 9%
$795,989
$796.0K
Market Conditions
NOI Build-Up for 5,000 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
$101.4K $20.28/SF
− Vacancy
−$5.9K −$1.18/SF
EGI
$95.5K $19.10/SF
− OpEx
−$23.9K −$4.78/SF
NOI
$71.6K $14.33/SF
Area
Angelina County, TX
Vacancy
5.80%
Lease Rate
$20.28 /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%
$1,432,780
Cap Rate 7%
$1,023,414
Cap Rate 9%
$795,989
Alternative Uses
Best Use
Specialty Retail
$1.02M
$895.5K – $1.19M
NOI $71,639 @ 7.0% cap · market cap 3.58%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.41M
$1.23M – $1.64M
NOI $98,642 @ 7.0% cap · market cap 4.93%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
579
Businesses Nearby
512k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Dining 28%
Apparel 20%
Shops & Services 16%
Superstores 15%
Target
Superstores
78,168 visits/mo
0.1 miles
Ross Dress for Less
Apparel
34,297 visits/mo
0.3 miles
Five Below
Shops & Services
33,891 visits/mo
0.3 miles
The Home Depot
Home Improvements & Furnishings
32,768 visits/mo
0.2 miles
Cinemark Lufkin
Leisure
25,660 visits/mo
0.3 miles
Demographics for 75901, TX
28,373
Population
11,290
Households
2.5
Avg Household Size
38
Median Age
21%
College-Educated
83%
High-School Grad
159.1 sq mi
ZIP Area
178
Density / Sq Mi
$59,083
Median Household Income
$35,479
Median Earnings
$1,085
Median Rent
$163,600
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 - IHOP has operated since 2000 and extended an Absolute NNN Lease in 2020, with 7+ years remaining.
Where is this conventional restaurant located?
The property is located at 4400 S Medford Drive Lufkin, 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: IHOP has operated at 4400 S Medford Drive in Lufkin, TX since 2000; Absolute NNN Lease extended in 2020, with 7+ years remaining; Year built: 1998
