623 University Dr, Round Rock, TX 78665

Property Details for 623 University Dr

Property type

Retail properties & Spaces

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