Texas Roadhouse Texas City

Texas Roadhouse

Address

6131 Gulf Fwy
Texas City, TX 77591

Executive Summary

Texas Roadhouse (the “Property”) is a newly constructed, freestanding building located along Gulf Freeway, the service road to Interstate 45, in Texas City, Texas. Built in 2025 on a spacious 2.80-acre parcel, the Property features ample parking, excellent ingress and egress, and strong connectivity to surrounding retail developments and the broader Galveston-Houston corridor.

The building is 100% leased to Texas Roadhouse under a newly executed ground lease with an initial 15-year term. The lease includes 10% contractual rent increases every five (5) years, along with three (3) additional five-year renewal options—each also featuring 10% rent escalations—delivering stable and predictable long-term income growth.

Investment Highlights

High-Quality Tenant - Texas Roadhouse (NASDAQ: TXRH): Publicly traded, investment-grade national restaurant chain with a strong operating history and brand recognition. Recently recognized as the #1 casual dining chain the country.

Long-Term Absolute NNN Ground Lease: 15-year absolute NNN ground lease commencing in 2025, with 10% rent escalations every 5 years and three (3) additional 5-year renewal options, each with 10% increases—offering stable, growing cash flow.

Absolute NNN Lease Structure: Truly passive investment: tenant is responsible for all operating expenses, including CAM, insurance, real estate taxes, and maintenance of both premises and common areas.

Explosive Demographic Growth: Population within a one-mile radius has grown 29.28% in the past 4 years, with an additional 28.11% growth projected by 2029, fueling long-term retail and dining demand.

Prime Location on Gulf Freeway (I-45): Strategically positioned along one of the Houston MSA’s most heavily traveled corridors, the Property offers excellent visibility and access, benefiting from steady regional and tourist traffic. Surrounded by top national anchors including Buc-ee’s, H-E-B, and Nike, the location drives consistent foot traffic and supports strong tenant performance.

Corporate Guarantee: Lease backed by Roadhouse Enterprises, Inc., a subsidiary of Texas Roadhouse, providing a secure income stream.

Strong Rent Growth: Base rent increases every 5 years—10% increase in Year 6 ($28.45 PSF) and 10% in Year 11 ($31.30 PSF)—with three 5-year renewal options escalating rents by ~10% each period.