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    The Largest CRE Database in the US with Over 1 Million Listings

    1406 Richmond Rd Wharton, TX 77488

    Sponsored
    For Sale
    $2,346,923

    High-yield NNN lease, strong tenant.

    Property size:
    2,546 SF

    Description

    Added:
    Dec 11, 2024
    Days on Market:
    411
    This exceptional investment opportunity presents a fee-simple ownership of a 2,546 square foot Chicken Express restaurant located at 1406 N Richmond Rd, Wharton, TX 77488. The property sits on a 1.06-acre lot with 33 parking spaces and boasts a 20-year absolute NNN lease commencing July 30, 2024, and expiring July 31, 2044, with four additional five-year renewal options. The lease includes annual 2% rent bumps, providing a strong hedge against inflation. The current annual net operating income (NOI) is $152,550, representing a 6.50% cap rate on the asking price of $2,346,923 ($921.81 per square foot). Built in 2007 and renovated in 2016, this Class A property is situated in a high-traffic area with over 14,000 vehicles daily on N. Richmond Rd and over 17,000 on E. Boling Highway. The location benefits from strong demographics, including over 12,500 people within a 5-mile radius with an average household income exceeding $76,000 annually. Proximity to Wharton County Junior College and significant industrial/office space further enhances the property's value. The tenant, a 10-unit operator with experience in restaurant operations, franchising, real estate, and logistics, provides a strong personal guaranty. This is a single-tenant, 100% occupied property zoned Commercial F-1. The property's location offers easy access to the major population center of Houston, Texas. This is an ideal asset for a 1031 exchange, given Texas's income tax-free status and strong economy.

    Property Features for 1406 Richmond Rd

    General Information

    Property type
    Restaurants
    Square Feet
    2,546 SF
    Class
    A
    Lot Size
    46,174 SF

    Building Details

    Year Built/Renovated
    2007/2016
    Buildings
    1
    Stories
    1
    Units
    1

    We can help!

    Listing Contact
    Randy Bell
    Randy Bell

    Learn more

    Property Insight Report

    HighLights

    • Brand‑new 20‑year absolute NNN lease with four 5‑year renewal options; zero landlord responsibilities.
    • 2% annual rent increases throughout the initial term and option periods.
    • Established Chicken Express franchisee with strong brand awareness in Texas.
    • Personal guarantee from a 10‑unit operator with extensive experience in restaurants, franchising, real estate, and logistics.
    • Long‑operating history at this location since 2007, recently rebranded in 2024.
    • 2,546 SF restaurant on a 1.06‑acre lot with 33 parking spaces and a drive‑thru.
    Property Profile Location Intelligence

    Current Use by Public Records

    Commercial real estate

    Suggested Use

    Realty agency Restaurant Law Firm Spa & Massage Dental Office Hair Salon Nail Salon Building Supply Clothing Store Gym & Fitness

    Zoning and permitted uses should be independently verified with local authorities.

    Location Insight

    • Map
    • Local Demand
    City
    Wharton
    County
    Wharton
    State
    Texas
    Longitude
    -96.098131900707
    Latitude
    29.323196603937

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    FAQs

    What type of property is this?
    Restaurant - High-yield NNN lease, strong tenant.
    Where is this restaurant located?
    The property is located at 1406 Richmond Rd Wharton, TX.
    What is the asking price?
    The asking price for this property is $2,346,923.
    What are key features of this property?
    This property features: Brand-new 20-year absolute NNN lease with four 5-year renewal options; zero landlord responsibilities.; 2% annual rent increases throughout the initial term and option periods.; Established Chicken Express franchisee with strong brand awareness in Texas.
    Request Owner's contact information
    1406 Richmond Rd Wharton, TX 77488
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

    More about this property
    1406 Richmond Rd Wharton, TX 77488
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    We can help!
    Listing Contact
    Randy Bell
    Randy Bell
    Real Estate License ID: TX 632534
    Learn more
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