623 University Dr Round Rock, TX 78665

Property Details for 623 University Dr

Property size

2,200 SF

Property type

Retail properties

Property subtype

Auto shops

Description

This exceptional investment opportunity presents a brand-new, 2,200-square-foot Valvoline auto shop in Round Rock, Texas, a thriving submarket of the Austin MSA. Located at 623 University Drive, this property boasts a prime location along a major retail thoroughfare with high daily traffic (33,000+ vehicles). The property benefits from a strong demographic profile, with over 176,000 residents within a 5-mile radius boasting an average household income exceeding $132,000. The property's strategic placement offers ideal retail synergy, surrounded by established businesses including IKEA, HEB, and numerous national restaurant chains. The investment features a 15-year absolute NNN ground lease commencing August 1, 2024, and expiring August 1, 2039, with three 5-year renewal options. The lease includes a corporate guarantee from Valvoline, Inc. (NYSE: VVV), a publicly traded company with a market capitalization of $5.73 billion, ensuring consistent rental income. The lease structure provides zero landlord responsibilities, minimizing operational burdens. Rent increases are built in, with 10% bumps every five years. The property's current net operating income (NOI) is $110,000, resulting in a 5.25% cap rate. The asking price is $2,095,238, translating to $952.38 per square foot. This property offers a secure, passive income stream in a high-growth area with excellent long-term potential. The property's proximity to major medical facilities like Baylor Scott & White and Ascension Seton hospitals, as well as Texas State University Round Rock, further enhances its desirability and long-term prospects. The ground lease has a remaining term of 15 years, mirroring the lease term with the tenant.

Location Insight

City

Round Rock

County

Travis

State

Texas

Longitude

-97.6754

Latitude

30.563