GlobeSt.com EXCLUSIVE: Triple Net Buys Lockheed Martin Building

Triple Net's latest portfolio addition comes with Lockheed Martin tied to a net lease through 2012 at 2400 W. Marshall Dr., where it's housed the fire and missile control design group for nearly two decades, Mitch Kralis, executive vice president of Red Sea Group USA, tells GlobeSt.com. "This is the kind of product that the market is really demanding," he says. "The supply of this kind of high-credit, long-term, single-tenant, net-leased asset is really one of the two or three hottest types of properties that you can buy. A good tenant and a good track record of being in the building with a good return to the investors hit right in the bull's eye."

Kralis isn't saying how much Red Sea Group made on the transfer of an asset with room to expand and a lease that was extended and restructured when the building was bought in September 2004. "We got a great price and a very good buyer," he says. "It's a great time to be a seller." The 35-year-old building is assessed at $2.4 million by Tarrant County.

Kralis says Nick Brighton of Velocity Investments LLC in Orange County, CA put the deal on Triple Net's table. "Nick has a very strong relationship with Triple Net," Kralis explains, saying the deal closed 90 days after it was shown to the 1031 exchange buyer.

The seller will flip the gain as a 1031 exchange, according to Kralis. A large property in San Jose, CA is under review to satisfy the exchange. Besides that, the one-time Dallas-based Red Sea, now headquartered in Los Angeles, has its eyes on picking up properties in Northern and Southern California, Denver, Phoenix and Seattle. The hard focus is the northern tier of its home state. "We will be there," Kralis vows. "My job is to get us there as soon as possible."