Seguin Subway

Investment Summary

• RESOLUT RE is pleased to present 1524 N State Highway 46, a 2,332 SF freestanding Subway on 1.34 acres at the I-10 and SH 46 interchange in Seguin, Texas. Built in 2012 and offered at $900,000, the property delivers $75,600 of NOI at an 8.40% cap rate under a modified NNN lease in which the tenant reimburses property taxes and insurance and handles HVAC, parking and utilities. The lease runs through January 31, 2028 and renews automatically for up to four five-year terms unless the tenant gives notice of non-renewal. Rent increases 10% at each renewal, and the first renewal alone moves annual rent from $75,600 to $83,160, a 9.24% return on the asking price. The Tenant also holds a right of first refusal. The location is the established corner at the same intersection as the 544-acre Seguin Exchange, so the center is positioned for the traffic and employment growth now coming to the I-10 corridor.

Investment Highlights

• Interchange location. The property sits at the I-10 and SH 46 interchange with a reported 55,151 vehicles per day combined, giving a quick-service operator strong visibility to both highway and local traffic.
• Built-in rent growth. Rent steps up 10% at each renewal, from $75,600 to $83,160, $91,476, $100,624 and $110,686, which lifts the return on today’s $900,000 price to 9.24% at the first renewal.
• Tenant-reimbursed taxes and insurance. Subway reimburses property taxes and insurance and is responsible for HVAC, CAM, parking and utilities, so the landlord’s responsibilities are limited to the roof and structure.
• Next to Seguin’s largest planned development. The 544-acre Seguin Exchange will add a 750,000+ SF shopping center, hotels, medical and multifamily uses, plus a 164-acre industrial park, at this same interchange.
• Growing trade area. Esri projects population growth of 11.0% within 3 miles (30,059 to 33,510) and 10.2% within 5 miles (49,010 to 54,212) by 2031, with five-mile average household income of $99,533.
• Exchange and private-capital fit. The $900,000 price point and passive structure suit 1031 exchange buyers, local investors and private capital looking for a single-tenant asset with clear renewal economics.

Location Summary

• Seguin is the Guadalupe County seat and sits along I-10 about 35 miles east of San Antonio, within a 35 to 40 minute drive of downtown. The city lies between San Antonio and Austin on one of Texas’ busiest freight and commuter corridors, and its growth is coming from both metros.

Highlights

• Prominent interchange position. The property sits at the I-10 and SH 46 interchange, where TxDOT is widening I-10 and has proposed more improvements at the I-10, FM 78 and SH 46 intersection, which should add capacity and visibility over time.
• Seguin Exchange is next door. The 544-acre mixed-use development at this intersection is planned to include retail, restaurant, entertainment, hospitality, medical, multifamily and industrial uses, and retailers are expected to begin opening throughout 2028.
• Industrial park adds daytime workers. Lovett Industrial and NewQuest announced in July 2026 a 164-acre commerce park at the northwest corner of I-10 and SH 46 that will deliver more than 2 million SF of industrial space.
• KTH Texas anchors the new employment base. H-One’s North American subsidiary has committed at least $127 million to a 250,000 SF plant with about 173 jobs by 2031, and operations are expected to start in 2028.
• A real manufacturing economy. Seguin’s employers include Caterpillar, Schaeffler and CMC Steel Texas, and the area’s workforce is weighted toward manufacturing (23%) and services (30%), with retail trade at 22%.
• Residential supply is deep. Marketing materials for Seguin Exchange cite more than 17,000 residential units in the city’s development pipeline and 27 subdivisions under construction, which supports long-term demand for convenience and restaurant users.
• Strong incomes beyond one mile. Median household income is $67,803 within 3 miles and $76,784 within 5 miles, with a median age of 37 to 39, while the 1-mile ring is younger and lower-income ($43,527 median).
• Large drive-time trade area. The 15-minute drive-time map reaches Nolte, Hilda Siding and Morrison Falls and runs along I-10 toward Kingsbury and New Berlin, so the site draws from the county’s growth areas as well as Seguin proper.