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7/30/26
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A 3.1k sf, newly constructed, single tenant Shake Shack drive thru ground lease in Richmond, TX, part of the Houston metropolitan area, sold for $5.8 mil. The deal closed at a 5.00% closing cap rate, in what we’re told marks a record low cap rate for a Shake Shack ground lease in Texas and one of the lowest Shake Shack cap rates recorded nationwide.
The Richmond Shake Shack is a 2026 build to suit featuring the brand’s latest double lane drive thru prototype. Located at 19130 W. Bellfort, the restaurant sits on 1.71 acres within Waterview Town Center, a 134 acre mixed use development anchored by Academy Sports + Outdoors, Sprouts Farmers Market and LA Fitness.
The asset is backed by a 15 year corporate absolute triple net ground lease with 10% rent increases every five years and four five year renewal options. All responsibilities — including roof, structure, parking lot, taxes, insurance and common area — are borne by the tenant.
RealSource Group’s Austin Blodgett, Senior Vice President of Investment Sales, and Jonathan Schiffer, CCIM, Senior Associate, in association with ParaSell Inc, represented the seller, Read King, a Houston based real estate development firm with more than 30 years of experience delivering high quality retail projects nationwide. The buyer, a private 1031 exchange investor from New York City, was repped by Anthony Cerrone, Director of Investments at Marcus & Millichap.
“This was a highly competitive offering from day one,” said Blodgett. “We secured an all cash, New York based 1031 buyer in under 30 days and closed shortly after Shake Shack opened for business. The combination of new construction, a corporately guaranteed long term absolute triple net ground lease, and the strength of the Richmond trade area drove exceptional investor interest. Our team has executed multiple sales within Waterview Town Center, which supported the seller’s broader break up strategy and helped achieve strong pricing for this asset.”
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