701 Cedar St Pecos, TX 79772-4111

Property Details for 701 Cedar St

Year built

2021

Lot size

0.26 lot acres

Property size

2,831 SF

Property type

Commercial real estate

APN

3866

APU

3866

Description

This exceptional investment opportunity presents a 2,500 square foot HTeaO franchise located at 701 South Cedar Street, Pecos, Texas, 79772. The property, built in 2020, boasts a brand-new 15-year absolute triple-net (NNN) lease with a prominent drive-thru, commencing December 1, 2024, and expiring December 1, 2039. The lease includes annual rent bumps of 1.75%, ensuring consistent income growth. The current annual net operating income (NOI) is $125,000, representing a 7.00% cap rate on the asking price of $1,785,714 ($714.29 per square foot). The tenant, a franchisee of HTeaO, a leading iced tea franchise with a cost-effective business model and significant expansion plans (currently operating in six states with over 300 stores and projecting 500 by 2026), enjoys 100% occupancy. The property benefits from a strategic location on a major thoroughfare in Pecos, experiencing an average daily traffic count of 12,000 vehicles. Its proximity to Highway 20 and local schools further enhances its appeal. The lease includes four 5-year renewal options, providing long-term security and potential for future appreciation. This is a rare opportunity to acquire a stable, high-performing investment in a growing franchise within a tax-free state. The property is situated 0.5 miles from Highway 20, a major east-west interstate. Nearby national retailers include Walmart, Starbucks, and numerous fast-food chains. In January 2023, HTeaO secured a minority partnership with Crux Capital and Trive Capital, bolstering its expansion strategy and financial stability.