Sale Sets New National Cap Rate Record

DALLAS—The recent sale of a single-tenant Just Brakes store set a new national cap rate record. However, the price and cap rate were undisclosed due to Texas' status as a nondisclosure state. The 3,377-square-foot store, built in 1964 and remodeled in 2014, is situated on .21 acres, located at 6530 North Central Expressway, near Southern Methodist University.

Hanley Investment Group executive vice president Eric Wohl, along with associates Austin Blodgett and Andrew Cunningham, represented the buyer, a private investor based in Austin, TX, and the seller, a private development firm based in Chicago. According to Wohl, the property had an eight-year absolute NNN lease with a corporate guarantee and strong increases every five years.

“We were able to generate multiple qualified offers from a blend of both local and out of state investors, speaking to the quality of the asset as well as the strength of the Dallas market,” Wohl tells GlobeSt.com. “Investors seeking a secure and stable return were immediately drawn to the fundamentals of the asset. The property has visibility along a major freeway and is close proximity to a dense high-income residential neighborhood. There was also seven years of firm term remaining, backed by a corporate lease.”

Just Brakes was recently acquired by Pep Boys, the Philadelphia-based auto parts and repair company led by investor Carl Icahn. The acquisition increases the Pep Boys store count to more than 900 locations. Prior to the acquisition, Just Brakes was the largest privately owned brake specialty repair company in North America with 134 locations in 14 major markets. In a statement by Pep Boys, Just Brakes locations will be converted into Pep Boys Service & Tire Centers, offering a full range of services, such as oil changes, tire installations, brake repair and suspension work.

“The property benefits from close proximity to Southern Methodist University with 11,500 students and the George Bush Presidential Library with 340,000 annual visitors,” says Wohl. “The property also features excellent pylon visibility from 320,000 cars per day on I-75 freeway and 18,000 cars per day at the intersection of North Central Expressway and University Boulevard. The property also benefits from population in excess of 388,000 people in the five-mile trade area and average household income of more than $104,000 within a one-mile radius. This sale highlights the strong appetite investors have for quality net-lease properties in primary US markets.”

Hanley Investment Group is a real estate brokerage and advisory firm specializing in retail property sales.

DALLAS—The recent sale of a single-tenant Just Brakes store set a new national cap rate record. However, the price and cap rate were undisclosed due to Texas' status as a nondisclosure state. The 3,377-square-foot store, built in 1964 and remodeled in 2014, is situated on .21 acres, located at 6530 North Central Expressway, near Southern Methodist University.

Hanley Investment Group executive vice president Eric Wohl, along with associates Austin Blodgett and Andrew Cunningham, represented the buyer, a private investor based in Austin, TX, and the seller, a private development firm based in Chicago. According to Wohl, the property had an eight-year absolute NNN lease with a corporate guarantee and strong increases every five years.

“We were able to generate multiple qualified offers from a blend of both local and out of state investors, speaking to the quality of the asset as well as the strength of the Dallas market,” Wohl tells GlobeSt.com. “Investors seeking a secure and stable return were immediately drawn to the fundamentals of the asset. The property has visibility along a major freeway and is close proximity to a dense high-income residential neighborhood. There was also seven years of firm term remaining, backed by a corporate lease.”

Just Brakes was recently acquired by Pep Boys, the Philadelphia-based auto parts and repair company led by investor Carl Icahn. The acquisition increases the Pep Boys store count to more than 900 locations. Prior to the acquisition, Just Brakes was the largest privately owned brake specialty repair company in North America with 134 locations in 14 major markets. In a statement by Pep Boys, Just Brakes locations will be converted into Pep Boys Service & Tire Centers, offering a full range of services, such as oil changes, tire installations, brake repair and suspension work.

“The property benefits from close proximity to Southern Methodist University with 11,500 students and the George Bush Presidential Library with 340,000 annual visitors,” says Wohl. “The property also features excellent pylon visibility from 320,000 cars per day on I-75 freeway and 18,000 cars per day at the intersection of North Central Expressway and University Boulevard. The property also benefits from population in excess of 388,000 people in the five-mile trade area and average household income of more than $104,000 within a one-mile radius. This sale highlights the strong appetite investors have for quality net-lease properties in primary US markets.”

Hanley Investment Group is a real estate brokerage and advisory firm specializing in retail property sales.