The winning offer went to a Newport Beach, CA, private investor who was only chasing the one deal with his 1031 Exchange money, Albert Hernandez of Marcus & Millichap's Dallas office tells GlobeSt.com. The seller, Black Development Corp. of Honolulu, released its last asset on the mainland to a buyer in search of a single-tenant, net-leased property to replace a multifamily investment and, unlike the other bidders, one who wasn't jockeying for other properties.
Hernandez says the first five days of marketing the 975 Irving Blvd. store, positioned on 1.5 acres, brought up to 30 calls a day. The listing went under contract in three weeks and closed shortly thereafter. He represented Black Development and John Nguyen and Jonathan Mitchell, both in Marcus & Millichap's Newport Beach office, bargained the terms for the buyer, who financed the acquisition through Artesia Mortgage of Atlanta.
Hernandez says the deal closed at an 8% cap rate. The buyer also got a tenant tied to a 20-year lease with four five-year options. The Dallas Central Appraisal District has assessed the asset at close to $2 million for this year.
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