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FRIENDSWOOD, TX-A strong market and two long-term triple-net leases with national tenants encouraged a San Pedro, CA investor to acquire an 11,060-sf retail building for $4.77 million or $431 per sf. The deal closed at a 6.5% cap rate.

The two-tenant building, built three years ago at 19222 Gulf Freeway, sits on out-parcel of the 1.1-million-sf Baybrook Mall. The deal marks the first Houston investment for buyer of record, Rich/Alpine LLC.

“The property’s exposure to the interstate and the fact it was an out-parcel to the mall made it a well-insulated, secure piece of real estate,” says Dennis Vaccaro, director with the Investment Advisory Group of Irvine, CA-based Faris Lee Investments. He represented the buyer and the seller, Houston-based Baybrook 1.1 LP.

Men’s Wearhouse and Verizon Wireless, the two tenants, have leases until 2013. The tenants are paying $2.25 per sf to $2.50 per sf, per month triple net.

Vaccaro tells GlobeSt.com that the facility had been marketed about 60 days, attracting a great deal of interest. “The seller has multiple projects all over Texas and felt that today’s strong market was a great time to be selling,” he explains.

Vaccaro says the buyer was selected because he had 1031 exchange funds. Additionally, the buyer was able–and willing–to pay the pre-payment penalty on an existing loan. “An assumption of the existing loan was one way to buy this property,” he adds. “The buyer was willing to pay the couple thousand dollars for the pre-payment penalty, which is another reason why he stood out.”

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