DALLAS – With 1031 Exchange funds in hand, Falcon Ridge Properties LLC has acquired Kwik Kar Lube & Tune in the Mid-Cities in a sale-leaseback agreement as its first investment in Texas.
The Idaho-based buyer's market entry is a 3,696-sf retail project on 0.4 acres at 108 W. Harwood Rd. in Hurst. The deed came with a new 15-year absolute triple net lease with renewal options.
"My client came to Texas in buying mode. An absolute net lease-back is a strong start," says Shane Benner, first vice president in the Fort Worth office of Dallas-based Bradford Commercial Real Estate Services.
Developed in 1994, the Kwik Kar is positioned at a signalized intersection near TX 183. The property is surrounded by several residential neighborhoods and close to big-box districts that are home to Walmart Supercenter, Target, Lowe's Home Improvement, Kohl's, Macy's, TJ Maxx, Dillard's and Home Depot.
"We were impressed by the operator. This location is one of three that the owner has," Benner adds, "and it reportedly the strongest growth opportunity."
The seller, Crowley Kwik Kar LLC, was represented by Matthew Mousavi and Patrick Luther of SRS National Net Lease Group in Newport Beach, Calif. The sale-leaseback deal went full circle in 41 days.
"There's been a flurry of out-of-state 1031 Exchange buyers. Part of the attraction is Texas is fully open, post-pandemic," Benner says.
As is historically true, investors like Falcon Ridge are lured to Texas for its continued growth in jobs and population as well as a business-friendly environment. Nearly 262,000 people live in Kwik Kar's five-mile trade area while the daytime workforce numbers 106,000. The average household income is $110,000 per year within one mile of the site.
"Falcon Ridge's new holding is located in the heart of the Mid-Cities, which has displayed strong demographics for decades and that's not too likely to change," Benner says.