SAN ANTONIO— Strength in the triple net lease market is expected to continue and 1031 investors have Texas on their radar according to Jones Lang LaSalle’s (JLL) Capital Markets group, who recently announced the net lease sale of three properties in San Antonio, Texas.
The properties were originally a part of Centerview Crossing Portfolio but were divided resulting in the sale of a BBVA Compass branch location, Whatabuger and Red Lobster all located in San Antonio. Matthew Berres of JLL, along with John Taylor of HFF represented the seller in all of the transactions.
“Texas is a very strong market for the triple net investment given the yields owners can achieve,” said Berres.
The retail bank branch totalling 6,464 square feet was acquired by a California-based 1031 exchange investor for $1.15 million. The property is currently 100% leased to BBVA Compass Bank since 2003 under a triple-net structure.
The 3,218 square- foot single-tenant Whataburger, a Texas-based fast food chain, was acquired by a privately-held real estate investment and development company based in Texas for $1.4 million. Whataburger’s stable credit and steady cash flow attracted the buyer says Berres. The property is subject to a long-term ground lease featuring 10% rental escalations every five years.
Lastly, a single tenant Red Lobster sold to a 1031 exchange investor from Texas for $2.4 million. The property is 7,564 square feet and was a built-to-suit subject to a long-term ground lease, with 10% rental escalations every five years. The property, along with the Whataburger property, has a five year renewal option.
Jones Lang LaSalle Capital Markets completed over 400 NNN transactions in excess of $2 billion volume in the past 12 months.