James Dwoskin, president of New York City-based ICA Realty Corp., tells GlobeSt.com that Home Depot-owned Expo Design Center's lease runs through 2024, a commitment that had about 20 would-be buyers lined up for the property at the intersection of Westheimer and Voss roads. The building, sitting on about eight acres, originally was built for Venture Stores. The Expo Design Center took over the location in 1998.
Dwoskin handled both sides of the building's sale by Florida-based Kimco Realty Corp. He says the building was on the market just a few weeks before going under contract to a buyer who used two limited partnerships to create a financially beneficial tax structure. McDonald Investments of Cleveland arranged the financing. The property traded with a 7.2% cap rate, according to Dwoskin.
The new owners have no responsibilities at the net-leased property, except to collect rent. The Expo lease, Dwoskin says, ensures that the tenant handles all maintenance.
At 6899 Griggs Rd., a 13,000-sf, net-leased Walgreens sold for about $1.6 million. The 1.3-acre development was sold by a prominent Pennsylvania doctor with a portfolio of net-leased properties. Dwoskin represented the seller of record, Houston Nachas Partners LP.
A California buyer got the national tenant and a lease that's good through 2014. Walgreens has occupied the store since March 1994. The buyer, Legacy 5 LLC, originally planned to turn around proceeds from a 1031 Exchange, according to Dwoskin. But, he adds, financing delays due to a mortgage assumption eliminated the 1031 Exchange option. The buyer, who has other Texas assets, assumed a non-prepayable mortgage and put cash on the line for a holding with a 6% cap rate, Dwoskin says.
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