Irvine, Calif. – January 9, 2023 – In a recent presale retail investment transaction, a buyer in a 1031 exchange acquired a 100% leased 5-tenant pad building all cash in Euless, TX.
Jeff Conover, Managing Principal and Scott DeYoung, Senior Managing Director represented the buyer, a family office from the Midwest region of the US in the transaction. Venture CRE represented the Seller.
This five-tenant 11,620 square-foot building is situated on approximately 1.68 acres of land at the northwest quadrant of State Highway 121 and Cheek-Sparger Road in Euless, TX. The property is 100% leased to both national & regional tenants Sleep Number, Salata, Jersey Mike’s, LoveSac and Total Men’s Primary Care and is an out-parcel pad building to Glade Parks Town Center.
Glade Parks Town Center is a 194-acre mixed-use development consisting of over 400 luxury urban-loft apartments, over 125 luxury single-family homes, and will feature over 800,000 square feet of retail at full completion with a mindful mix of national big-box retailers, restaurants, and entertainment and lifestyle tenants.
“This upleg 1031 property is a perfect fit for our client as it basically checked all the boxes that were necessary to move forward with the purchase. New construction, affluent demographics within a high density trade area, long term leases to national / regional tenants, 100% occupancy & ideally located in a tax-free state with a decent return” said Conover. “We traded out of the Midwest for Texas to better our position.”
Furthermore said Conover, “Given the strength of the trade area & tenants we were comfortable enough to purchase the property as a pre-sale with only 1 of the 5 tenants open for business at the time of the sale.
The transaction closed all cash, no financing at a 5.92% cap rate
About Faris Lee Investments:
Faris Lee Investments is a retail brokerage advisory firm founded in 1996 and is based in Irvine, California. The firm specializes in commercial real estate investment sales, brokerage, and advisory services. In addition, the firm provides a national marketing platform of properties for sale, asset appraisal, property valuation, debt structuring, negotiation, market research, and analysis services. Faris Lee combines underwriting and research that exceeds industry standards with a marketing strategy to transform investment potential, enhance value and provide their clients the competitive advantage needed when making investment decisions. The firm also serves as institutional advisors in the areas of acquisitions and dispositions, merchant banking, distressed asset disposition, private equity, and corporate sale-leaseback. For more information, visit www.farislee.com
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