Topgolf | 18 Years on NNN Fee Simple Lease

1901 I-2, Pharr, TX 78577, USA
$31,543,533

Description

Marcus & Millichap is pleased to present for sale this very rare Fee- Simple Absolute Net Leased Topgolf located at 1901 W I-2 Boulevard in Pharr, Texas. The subject property consists of a free-standing building comprised of 55,000 square feet of retail and entertainment space GLA) and is situated on a large 15.237-acre parcel of land.
Strategically located just off the exit of Interstate-2, a major Interstate with traffic counts exceeding 142,000 daily, the property benefits from great visibility and access given its well centralized location. The property is also situated within the area’s dense retail corridor and surrounded by a number of National and Regional retailers including but not limited to Costco, Lowe’s, Home Depot, Target, Walmart, Sam’s Club, Chick Fil A, HomeGoods, Ross, Chipotle, and many others.
The tenant, Topgolf International, has more than 18 years remaining on an absolute NNN lease. The corporate lease features approximately 10 percent rental increases every five years during the base term and each of the four, five-year option periods. This asset is a rare fee simple Topgolf allowing for depreciation. The destination-oriented retailer also benefits from a wide trade radius as the next closest Topgolf location is more than 250 Miles away.
Topgolf is a global sports entertainment chain headquartered in Dallas, Texas. Combining the competition of sport with a favorite local hangout, Topgolf is a revolutionary concept that features climate controlled hitting bays for year-round play, food, beverage, music and hundreds of HDTVs. Players at Topgolf aim for 11 giant dartboard-like targets on a 230-yard outfield. Microchipped golf balls provide players with instant feedback on each shot’s accuracy and distance. Topgolf attempts to attract guests of all ages and golf skill levels as a unique entry point for what can be a very intimidating sport.

    • Topgolf Projects to Have More than $3.2 Billion in Revenue in 2022
    • Long Term Absolute NNN Lease | 18 Years of Term Remaining
    • Corporate Guarantee | Topgolf International | Recently Merged with Callaway (NYSE: ELY)
    • Rare Fee Simple Asset Allowing for Depreciation
    • Wide Trade Radius | Nearest Location 250+ Miles Away
    • Leader in Golf and Entertainment Business
    • Dense Retail Corridor
    • Attractive 10% Increases Every 5 Years
    • Texas is a No Income Tax Free State
  • City: Pharr
  • State/county: Texas
  • Zip/Postal Code: 78577
  • Country: United States

Detail

  • Price: $31,543,533
  • Year Built: 2019

Additional details

  • CAP RATE: 6.00%
  • NOI: $1,892,612

Features