RealSource Arranges Pre-Sales of Two Single-Tenant 7-Eleven Stores

RealSource Group, a national commercial real estate brokerage company focused on retail, healthcare and automotive properties, announced today that the firm arranged the sales of two, brand-new, single-tenant net-leased investments occupied by 7-Eleven and a fuel station in off-market transactions in Houston and Arlington, Texas.

In Houston, Vice President Austin Blodgett, in association with ParaSell, Inc., represented the seller, a private developer based in Houston, for the pre-sale of a brand new, single-tenant net-leased investment occupied by 7-Eleven, Laredo Taco Company quick-serve restaurant, and a fuel station. Chuck Klein, executive director with Cushman & Wakefield of San Diego, California, represented the buyer, a private investor based in Southern California. Although the purchase price could not be disclosed, the sale achieved a cap rate of 4.5% in the off-market transaction.

“We began marketing the single-tenant 7-Eleven while it was still in the early stage of construction and generated multiple offers within the first week of marketing,” said Blodgett. “We secured an all-cash, Southern California-based buyer who was looking for a brand-new construction 7-Eleven property in a tax-free state. One of the main selling points on this deal was that it was a build-to-suit; in this case, 7-Eleven put up nearly all of the capital necessary to build the fuel station portion of the project, which clearly showed the tenant’s commitment to this location.”

7-Eleven is located at the signalized intersection of Broadway Street and Rockhill Street at 8550 Broadway Street, with 30,000 cars per day. 7-Eleven, which opened on June 10th, occupies a 4,842-square-foot building on 1.1 acres with a new absolute, triple-net 15-year lease.

“This is a great location with excellent visibility, a large 48-foot pylon signage directly on Broadway Street, and less than 1 mile from Houston’s Hobby International Airport with over 50 million passengers annually,” noted Blodgett. “7-Eleven has little to no competition within a 3-mile radius and is in the direct driving path for rental car returns and major overnight paid parking lots at Houston Hobby Airport. The property is also within walking distance to more than 3,500 apartment units and hundreds of single-family homes.”

Blodgett adds, “Along with gas and c-store sales, 7-Eleven and the developer expect that this site will do extremely well with Laredo Taco QSR, providing a steady flow of additional income to this store.”

In Arlington, RealSource’s Blodgett, along with ParaSell, Inc., represented the seller, a private developer based in Houston. Jeremy McChesney, executive vice president with Hanley Investment Group, represented the buyer, a private investor based in Southern California. Although the purchase price could not be disclosed, the sale achieved a cap rate of 4.7% in the off-market transaction.

“We helped secure an all-cash, California-based 1031 exchange buyer who was looking for a brand-new construction 7-Eleven property for their upleg,” said Blodgett. “We negotiated that the buyer was non-contingent months before the store opened for business or started paying rent. However, due to the buyer’s 180-day exchange deadline ending before the scheduled close of escrow (which was tied to 7-Eleven’s opening and the payment of rent among other things), we structured two different closings. The first closing occurred early to meet the buyer’s 1031 exchange deadline requirement, and certain funds were held in escrow until the store opened, which triggered the second closing and final disbursement of funds.”

Blodgett added, “This was a unique loophole to get around the 180-day exchange closing deadline in a situation where construction was delayed beyond the buyer’s exchange deadline and the buyer did not want to close escrow until the store opened. We often see delays on new construction transactions, and we were able to work with the buyer to get them comfortable with this type of closing structure to make the deal work.”

The property is located at the signalized intersection of Collins Street and Blue Lake Blvd. at 4016 N. Collins Street, the main north-south corridor in the Arlington area. 7-Eleven, which opened on June 10th, occupies a 3,010-square-foot building on 1.3 acres with a new absolute, triple-net 15-year lease.

According to Blodgett, “7-Eleven is one of the most popular, recession-proof and internet-resistant net lease investments available today. In the last six months, 19 new-construction 7-Eleven deals have traded in Texas and, with the company’s growth and expansion plans in states like Texas, along with the population growth in these areas, we can expect to see a lot more of these transactions over the next year. The increased demand from buyers for new 7-Eleven builds will put pressure on cap rates to compress and pricing will continue to grow.”

Institutional Property Advisors Finalizes Multifamily Sale in Suburban Dallas

Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Village of Rowlett, a 249-unit, transit-oriented, mixed-use residential and retail development in Rowlett, Texas.

“Rowlett is the eighth-fastest growing city in the country, and Village of Rowlett is one of the city’s just five Class A multifamily assets,” said Drew Kile, IPA senior managing director. Kile and IPA’s Joey Tumminello, Will Balthrope, Taylor Hill, Michael Ware and Grant Raymond represented the seller, Catalyst Urban Development, and procured the buyer, Buchanan Street Partners. “Built in 2018, the property has been resilient through years of high supply and as deliveries leveled off, the location has proven to be the best in the submarket,” added Tumminello. “The market placed a premium on that aspect of the opportunity and the advantages it can provide long term.”

Located on President George Bush Turnpike in Rowlett’s downtown district, Village of Rowlett is within walking distance of a Dallas Area Rapid Transit station and 20 minutes from Downtown Dallas. Major employers in the Dallas-Fort Worth area include JPMorgan Chase, Uber Technologies, Allstate Insurance, Keurig Dr. Pepper and Reata Pharmaceuticals. The property has 16,588 square feet of retail, 13 live-work units, and 27 townhomes. Select units have 20-foot vaulted ceilings, covered patios and enclosed yards. Outdoor amenities include a swimming pool with sun deck, a pet park, and an urban community garden.

“IPA covers every submarket in the Metroplex and all markets in Texas with one multifamily team and this was an important factor in the completion of this closing,” added Balthrope.

Institutional Property Advisors Finalizes Multifamily Sale in Suburban Dallas

Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced today the sale of Village of Rowlett, a 249-unit, transit-oriented, mixed-use residential and retail development in Rowlett, Texas.

“Rowlett is the eighth-fastest growing city in the country, and Village of Rowlett is one of the city’s just five Class A multifamily assets,” said Drew Kile, IPA senior managing director. Kile and IPA’s Joey Tumminello, Will Balthrope, Taylor Hill, Michael Ware and Grant Raymond represented the seller, Catalyst Urban Development, and procured the buyer, Buchanan Street Partners. “Built in 2018, the property has been resilient through years of high supply and as deliveries leveled off, the location has proven to be the best in the submarket,” added Tumminello. “The market placed a premium on that aspect of the opportunity and the advantages it can provide long term.”

Located on President George Bush Turnpike in Rowlett’s downtown district, Village of Rowlett is within walking distance of a Dallas Area Rapid Transit station and 20 minutes from Downtown Dallas. Major employers in the Dallas-Fort Worth area include JPMorgan Chase, Uber Technologies, Allstate Insurance, Keurig Dr. Pepper and Reata Pharmaceuticals. The property has 16,588 square feet of retail, 13 live-work units, and 27 townhomes. Select units have 20-foot vaulted ceilings, covered patios and enclosed yards. Outdoor amenities include a swimming pool with sun deck, a pet park, and an urban community garden.

“IPA covers every submarket in the Metroplex and all markets in Texas with one multifamily team and this was an important factor in the completion of this closing,” added Balthrope.

RMR Mortage Trust Closes on $27.4 Million Refinancing of Plano Office Building

RMR Mortgage Trust has announced the closing of a $27.4 million first mortgage floating-rate bridge loan to refinance 500 N. Central Expressway in Plano, Texas, a five-story, 237,000 square foot, multi-tenant office property. RMRM’s manager, Tremont Realty Capital, was introduced to the transaction by Jones Lang LaSalle Incorporated, which advised the sponsor, MoxieBridge.

An initial advance of approximately $24.6 million was funded at closing with future advances of up to $2.8 million available for tenant improvements, leasing commissions and capital expenditures. The loan is structured with a three-year initial term and two one-year extension options, subject to the borrower meeting certain requirements.

Tom Lorenzini, President of RMRM, made the following statement:

“We continue to expand and diversify RMRM’s portfolio with the closing of this first mortgage whole loan. This loan fits squarely within our principal investment objective of investing in high quality loans secured by middle market and transitional commercial real estate supported by well capitalized sponsors and cash-flowing properties. RMRM is well positioned for continued portfolio growth with numerous attractive opportunities in our pipeline and ample liquidity available for investment.”