Texas Roadhouse NNN Investment
For Sale
Contact for pricing
Pending
4500 S Medford Dr, Lufkin, TX 75901
Single-tenant Texas Roadhouse in Lufkin, TX with NNN ground lease.
Property Size7,570 SF
Days on Market386
Property Features for 4500 S Medford Dr
General Information
Standard status
Pending
Size
7,570 SF
Property subtype
Retail
Occupancy
100%
Lease Type
Absolute Net
Investment Type
Net Lease
Net Operating Income
$126,500
Building Details
Year Built
2021
Buildings
1
Stories
1
Tenancy
Single
Listing Agency:
Forged Real Estate
(610) 608-2621
Listed By:
Marc Mandel · License #NJ
Source:
Crexi
Added: Jul 23, 2025
Changed: Aug 9
Last Checked: Aug 11 at 7:08PM
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 Forged Real Estate
Investment Insights
Based on property information with market context.
This single-tenant property in Lufkin, Texas, is leased to Texas Roadhouse. The property operates on a NNN Ground Lease with eleven years remaining. The lease includes ten percent increases every five years, including option periods. The NNN lease structure allows for a hands-off form of ownership. The property benefits from visibility along South Medford Drive, a major thoroughfare with over 50,000 vehicles per day. The Lufkin location is currently the only Texas Roadhouse within fifty miles of the property. As of Q1 2025, Texas Roadhouse's comparable restaurant sales increased by 3.5% at company restaurants compared to the same quarter in 2024. As of the end of Q1 2025, there were 629 company-owned and 99 franchise-owned Texas Roadhouse locations. Texas Roadhouse, Inc. (inclusive of subsidiaries) reported a Q1 2025 total revenue of $1.45B, up 9.6% from 2024. The property is an outparcel to the Lufkin Mall.
Key Highlights
- NNN Ground Lease with strong tenant (Texas Roadhouse) for hands‑off investment.
- Eleven years remaining on the lease with scheduled rent increases.
- Excellent visibility and high traffic location on South Medford Drive (over 50,000 VPD).
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
$108,462
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
4.72%
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%
$2,169,240
$2.2M
Cap Rate 7%
$1,549,457
$1.5M
Cap Rate 9%
$1,205,133
$1.2M
Market Conditions
NOI Build-Up for 7,570 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
$153.5K $20.28/SF
− Vacancy
−$8.9K −$1.18/SF
EGI
$144.6K $19.10/SF
− OpEx
−$36.2K −$4.78/SF
NOI
$108.5K $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%
$2,169,240
Cap Rate 7%
$1,549,457
Cap Rate 9%
$1,205,133
Alternative Uses
Best Use
Specialty Retail
$1.55M
$1.36M – $1.81M
NOI $108,462 @ 7.0% cap · market cap 4.72%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$2.13M
$1.87M – $2.49M
NOI $149,344 @ 7.0% cap · market cap 6.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
560
Businesses Nearby
488k
Monthly Visits Nearby
Balanced
Demand for This Use
Explore this area
Business Placement
Foot Traffic Nearby
Apparel 22%
Shops & Services 21%
Dining 20%
Superstores 16%
Target
Superstores
78,168 visits/mo
0.4 miles
Ross Dress for Less
Apparel
34,297 visits/mo
0.1 miles
Five Below
Shops & Services
33,891 visits/mo
0.1 miles
The Home Depot
Home Improvements & Furnishings
32,768 visits/mo
0.3 miles
dd's DISCOUNTS
Shops & Services
20,076 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 - Single-tenant Texas Roadhouse in Lufkin, TX with NNN ground lease.
Where is this conventional restaurant located?
The property is located at 4500 S Medford Dr Lufkin, TX.
What is the asking price?
The asking price for this property is $2,300,000.
What are key features of this property?
This property features: NNN Ground Lease with strong tenant (Texas Roadhouse) for hands‑off investment.; Eleven years remaining on the lease with scheduled rent increases.; Excellent visibility and high traffic location on South Medford Drive (over 50,000 VPD).
