DALLAS-A 1031 exchange buyer has crossed into Texas with the $4.3-million acquisition of two retail properties sitting in Wal-Mart shadows. The fully leased duo has changed hands with a $3.1-million loan to a buyer satisfying proceeds from a land sale in the Phoenix metro.
Sue Yamaguchi of the Phoenix area acquired the properties from Brewer Development Co. of Dallas/Fort Worth, a merchant builder ready to hand off the deeds with lease-up complete, Brian Carlton, associate director of Holliday Fenoglio Fowler LP, tells GlobeSt.com. The buyer picked up an 8,500-sf, two-building asset leased to Blockbuster Video, Wing Stop and Planet Beach at 2891 Matlock Rd. in Mansfield and another two buildings, with Blockbuster and Cash Store in 6,549 sf, at 110 N. Highway 75 in Seagoville. Marshall Ballard, vice president of Dallas-based Weitzman Group, brokered the sale.
"It was an exchange so we had a timing issue," Carlton says. The buyer placed a contract when construction was underway on the Cash Store, but wouldn't close the deal until a certificate of occupancy was in hand, he adds.
Yamaguchi secured a 10-year loan from Bank of America CMBS, a conduit lender. The financing, representing a 72% loan to purchase, carried a fixed-rate interest of slightly more than 5%. "It was good pricing over the 10-year Treasury," Carlton says.
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