The Cheddar’s Scratch Kitchen property at 1510 E IH 2 in Donna, Texas is positioned along the IH-2/Expressway 83 corridor. The IH-2/Expressway 83 corridor carries approximately 132,801 vehicles per day at the property’s location. The property is part of the Shops at 493 power center, a 25-acre multi-phase development anchored by Walmart Supercenter. Co-tenants within the Shops at 493 include Burlington, Ross Dress for Less, dd’s Discounts, Five Below, PetSmart, and Dollar Tree. Additional national retailers in the immediate trade area include H-E-B, The Home Depot, Hobby Lobby, Lowe’s, T.J. Maxx, Ulta, Bath & Body Works, Chick-fil-A, Planet Fitness, and Dutch Bros. N D Salinas Boulevard, a key cross street, carries approximately 21,025 vehicles per day. The population within five miles of the Cheddar’s Scratch Kitchen in Donna, Texas is approximately 129,394 residents.
The average household income within one mile is approximately $71,011. Institutional demand drivers near the property include Donna ISD with more than 14,000 students, South Texas College with more than 34,000 students, and the University of Texas Rio Grande Valley with approximately 32,000 students and more than 4,454 faculty and staff. DHR Health, a major regional hospital with more than 500 beds and 3,000 employees, and Knapp Medical Center with 227 licensed beds are also nearby. The Donna–Río Bravo International Bridge, which supports more than 3.5 million annual crossings, is undergoing a $100 million expansion to add commercial truck lanes and strengthen binational trade. The McAllen–Edinburg–Mission MSA is home to more than 1 million residents and generates more than $17 billion in annual retail sales. McAllen International Airport, located approximately 18 miles west of the property, handles more than 900,000 travelers annually.
Randy Blankstein, Jimmy Goodman and John Feeney of The Boulder Group represented the buyer in the transaction. The seller was a Texas based real estate company. The buyer was a West Coast based private investor looking to purchase a single tenant net lease (STNL) asset in Texas.
The lease at the Cheddar’s Scratch Kitchen in Donna, Texas is structured as an absolute NNN ground lease. The initial lease term is 10 years. Rent commenced on September 8, 2025, and the lease expires in September 2035, leaving approximately nine years of remaining term. The tenant has four 5-year renewal options. Rental escalations of 10% occur every five years throughout both the primary term and all renewal option periods. As an absolute NNN ground lease, the landlord has zero management responsibilities or capital expenditure obligations. Texas has no state income tax, providing an additional benefit to the property owner.
Cheddar’s Casual Café, Inc., operating as Cheddar’s Scratch Kitchen, is a casual dining restaurant chain headquartered in Orlando, Florida as part of the Darden Restaurants portfolio. Founded in 1979, Cheddar’s Scratch Kitchen operates nearly 185 locations across 29 states. The brand is known for preparing more than 90 percent of its menu items from scratch daily. Darden Restaurants, the parent company of Cheddar’s Scratch Kitchen, also operates Olive Garden, LongHorn Steakhouse, and The Capital Grille, and generates approximately $12 billion in annual revenue. Darden Restaurants employs more than 200,000 people across its portfolio of brands. The parent company carries an investment-grade credit rating.
“Investor demand for net leased casual dining properties backed by strong operators continues to strengthen as buyers seek dependable income streams in high-growth Texas markets,” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “This new construction Cheddar’s Scratch Kitchen ground lease attracted significant interest due to its positioning within the Shops at 493 power center alongside Walmart Supercenter and numerous national retailers along the heavily trafficked IH-2/Expressway 83 corridor in Texas.” John Feeney, Senior Vice President of The Boulder Group, noted, “The buyer was attracted to the passive, absolute NNN ground lease structure with zero landlord responsibilities, the built-in 10% rental escalations every five years, and the benefit of acquiring an income-producing asset in a no-income-tax state like Texas.”
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high-net-worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $11 billion of single tenant net lease real estate transactions. From 2013–2025, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago and has an office in Denver.
More info: www.bouldergroup.com
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Company Name: The Boulder Group
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Phone: 8478816388
Address:3520 Lake Avenue Suite 203
City: Wilmette
State: Illinois
Country: United States
Website: https://www.bouldergroup.com/NNN-Properties-For-Sale.html
