Category: Property Sale

Sam House, who recently joined Secure Net Lease, completed the sale of Marketplace at Craig Ranch in McKinney, TX. Secure Net Lease is a nationally-recognized brokerage firm, which according to Costar, has sold more retail property in Texas since 2019 than any other company. The 11,827-square-foot retail shopping center is located in the booming Craig Ranch corridor of McKinney, TX within the Dallas-Fort Worth Metroplex.

Secure Net Lease’s Sam House represented the seller, a Texas-based developer. The buyer was a Texas investor that sought to increase its retail market share in the Dallas-Fort Worth Metroplex.

“This asset appealed to investors seeking long-term, sustainable cash flow,” said House. “Yet, an investor can realize significant upside via built-in step rent structures in this 2018-built retail center in a high growth market surrounded by an affluent customer base.” House procured 11 offers for the Marketplace at Craig Ranch and successfully navigated a host of hurdles ranging from contractor issues, capital markets complexities and differing perspectives between buyers and sellers, including an initial buyer that was under contract but dropped out when they were unable to secure financing, noted House.

Marketplace at Craig Ranch is comprised of a single building that is configured with six tenant spaces. The property is strategically situated on 1.54 acres at 4701 S. Custer Road adjacent to newly constructed multifamily and residential homes in a high-income and high-growth submarket. Its superior location, ease of access and strong visibility allows the growing consumer base convenient access to the center. The Marketplace at Craig Ranch is 100% occupied and features long-term, regional credit leases with a weighted average lease term of 6.4 years.

“The closing of this transaction in a tight timeline can be credited to our aggressive marketing outreach campaign, strong local relationships, and collaboration with the brokerage community to produce several highly competitive back-up offers,” said House. “Ultimately, we landed on a local private investor who came in as an all-cash buyer at a 5.35% cap rate and was able to close quickly just under the seller’s full list price.”

McKinney is an affluent city northeast of Dallas and is one of the fastest-growing cities in the country. McKinney has added more than 100,000 new residents in the last decade. The area also has one of the highest median household incomes in the Dallas-Fort Worth Metroplex, coming in at just over $100,000. McKinney has emerged as a top target for developers, investors and tenants looking to take advantage of the favorable demographics in this area of the Dallas-Fort Worth Metroplex.

About Us Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single and multi-tenant retail investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

Ultimately, we landed on a local private investor who came in as an all-cash buyer at a 5.35% cap rate and was able to close quickly just under the seller’s full list price.

Dallas – Secure Net Lease arranged a 1031 Exchange sales transaction involving 7 Brew Coffee and a prime coffee QSR location next to the campus of Texas Tech University in Lubbock, Texas. The nationally-recognized brokerage firm who since 2019 has sold more retail property in Texas, according to Costar, brought together a 1031 Exchange buyer and the developer of the 2023-built, drive-thru site that is ground leased to 7 Brew Coffee, a fast-expanding national QSR chain.

Secure Net Lease’s Kyle Varni represented the developer that sold the site to a Santa Fe, NM-based 1031 Exchange buyer. The site is located at 1415 University Ave. the main road for the more than 1,800-acre college campus, and less than a mile from the 60,454-seat Jones AT&T Stadium, where the Texas Tech Red Raider football team plays.

Kyle Varni said, “Interest was strong for this rare coffee QSR location because the site was adjacent to a major college campus with over 40,000 students, sits in a difficult barrier to entry market and 7 Brew Coffee is quickly emerging as a favorite brand for the younger demographic. The buyer was in a large 1031 Exchange and had attended Texas Tech, so he was exceptionally familiar with the strength of the real estate.”

Arkansas-based 7 Brew is a member of a new group of retailers that have expanded their menus beyond coffees to encompass custom, hand-crafted specialty drinks like smoothies, chillers, teas, and premium energy drinks. Unlike most coffee chains, 7 Brew’s unique business model centers solely on drive-thru business, with no interior sit-down space in their compact 500-square-foot stands.

“This prime site adjacent to a major college campus generated several offers and we were able to create a competitive bidding environment that resulted in achieving a price that was more aggressive than all other 7 Brew Coffee properties listed on the market,” said Varni. “The 7 Brew coffee retailer was early in its expansion when we first brought this property to market. Since then, the tenant now has more than 20 locations open and operating. It is growing fast and ranks as one of the bigger franchisees in the entire 7 Brew chain.”

Secure Net Lease is marketing several additional locations in the $1 million to $2 million price range that sit on prime real estate ideal for high performing stores.

Lubbock is the 10^th most populous city in Texas and is nicknamed “The Hub” due to it  serving as the economic, educational, and health care hub of the multi-county region. Lubbock was ranked as the 11^th best place to live in Texas by BestPlaces, and offers a low cost of living and a strong economy.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

we were able to create a competitive bidding environment that resulted in achieving a price that was more aggressive than all other 7 Brew Coffee properties listed on the market

Recent convenience-store sales activity has pushed Secure Net Lease past $2 billion in C-store sales. The nationally-recognized brokerage that specializes in investment real estate throughout the United States, has closed escrow on 440 convenience-stores in 23 states encompassing the top retailers in the nation including Wawa, 7-Eleven, Sheetz, Nouria, QuikTrip, Circle K, GPM, Chevron, Shell, ARCO, Food City, Holiday Station, Kum & Go, Murphy USA, Mountain Express, Marathon, Thorntons, Speedway, Allsup’s, Yesway, Valero, and EG Group America.

The Dallas-based firm completed the sale of two newly constructed 7-Eleven stores, one in Lumberton, NC and another in Stafford, VA. Secure Net Lease’s Matt Scow represented the seller in the transactions. These deals reflect the long-standing partnership Secure Net Lease has built with the developer, which has resulted in 174 net lease property sales transactions totaling $590 million, including 95 convenience-stores.

“These latest sales involve new construction 7-Elevens with 15-year corporate leases. The East Coast buyer was seeking solid C-Store assets to fulfil their 1031 exchange and take advantage of bonus depreciation,” said Scow. “Secure Net Lease worked successfully with all the parties including buyer’s agent, lender and tenant to facilitate an on time and same day closing for both properties in two different states.”

Secure Net Lease C-Store Niche

Secure Net lease has researched roughly one-third of the estimated 150,000 C-stores in the U.S., which includes over 237 concepts and 22,000 unique convenience-store landlords the firm regularly contacts. “Our database is amazing. Many of the buyers I’ve procured over the years have come from it. Anytime I get a new C-store listing, I’ll spend the first few weeks calling through landlords of the same tenant or who own other stores in the area,” says Ed Benton who joined the Secure Net Lease team in 2017. Once a competitor of Secure Net Lease, Benton is now one of its top producing agents.

Industry Trends

Banks and drug stores once held the position as the darling of the net lease sales industry. But online shopping and mobile banking has changed the retail landscape. Convenience-stores have filled that void. C-store leases are often guaranteed by multi-billion-dollar corporations, they tend to perform well in a down economy, and have been largely unaffected by e-commerce.

“There has also been an overflow of new store growth and M&A activity in the C-store space during the last several years, which leads to more real estate sales,” says John Beckman, who recently joined Secure Net Lease, acclaimed for his specialized advisory services in the convenience and gas station space, with a focus on M&A and sale-leasebacks.

“Convenience and gas station properties benefit from bonus depreciation,” says Bob Moorhead, Secure Net Lease Managing Partner, who has built close relationships with 7-Eleven corporate level real estate executives based in the Dallas Fort Worth area. “In addition to keeping up with the latest 7-Eleven expansion plans,” says Moorhead, “these relationships have been instrumental in getting the crucial sales-reporting language added to leases for bonus depreciation buyers.”

Other Notable Secure Net Lease Transactions

• Secure Net Lease facilitated one of Texas’ largest convenience-store transactions on record between Yesway and Allsup’s. The firm completed a $237-million sale leaseback involving 76 Allsup’s convenience-store locations in multiple states. The Allsup’s Portfolio sale leaseback was an integral component of a larger nearly $1-billion acquisition transaction between Yesway and Allsup’s Convenience Stores. Press Release: https://securenetlease.com/secure-net-lease-closes-record-237-million-multi-state-c-store-portfolio/
• Secure Net Lease’s Joe Caputo and Anthony Pucciarello have listed and sold 31 QuikTrip sale-leaseback locations, totaling $153 million, throughout the Midwest and Southeast. “Initially this business was split between several other brokerage firms, but we earned our way in to being their go-to team for sale-leaseback listings,” says Caputo.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

There has also been an overflow of new store growth and M&A activity in the C-store space during the last several years, which leads to more real estate sales.

Secure Net Lease, a nationally-recognized brokerage that specializes in investment real estate throughout the United States, executed the sale of a nearly 147,000-square-foot retail asset occupied by Home Depot in Plano, Texas. Secure Net Lease’s Kyle Varni and John Packwood coordinated with both the seller and buyer’s team in the off-market transaction. The seller was an international investor and the buyer owns several properties in DFW but is based in Ohio.

Secure Net Lease’s Varni said, “The acquisition allowed the buyer to achieve its goal of deploying capital into very high quality real estate with a strong credit tenant. Growing up in Plano, I was extremely familiar with the direct trade area and the strength of the underlying real estate. The acquisition allowed the buyer to achieve its goal of deploying capital generated in an unrelated investment into a big-box retail property involving a high credit tenant with underlying real estate. Our collaborative team was also able to help the seller achieve its cash-out objective on an asset with a short-term lease.”

Secure Net Lease has tracked this property since 2022. The seller at the time had a larger pre-payment penalty which required a buyer to pay a very aggressive cap rate to make sense for the seller. Now that we are in a higher interest rate environment, the pre-payment penalty became less of a hurdle. Our team procured a buyer that made a very aggressive all cash offer from a proven buyer that led to a smooth and successful transaction.

“Despite the price point exceeding $10 million and short term remaining on the lease, the Secure Net Lease team secured a buyer willing to pay an aggressive cap rate. This success was driven by our understanding that Home Depot’s rent was well below market value,” explained Packwood of Secure Net Lease. “This transaction stands as a significant accomplishment, particularly amidst a challenging market environment. It underscores the value of our extensive network of contacts, resources, and collaborative team efforts.”

The absolute NNN ground lease involves a roughly 10.6-acre retail site within the Dallas MSA at 1801 West Parker Road in Plano. The property was built in 2006 as a freestanding, single-tenant Home Depot store, which had less than three years remaining on its lease. The high visibility site is situated on a signalized hard corner at West Parker and Custer Road, features high traffic counts, and is surrounded by a dense population base of ultra-affluent consumers. The property is also near a wide array of major retailers including Walmart, Kroger, Valero, Wendy’s, Starbucks, O’Reilly, Raceway, Dollar Tree, and NTB, to name a few.

About Secure Net Lease

Secure Net Lease is a nationally recognized brokerage firm with offices in Dallas, TX and Los Angeles, CA that specializes in the acquisition and disposition of investment real estate. With over 100 years of collective experience, over $7.4B in sales, and transaction history in 48 states, Secure Net Lease consistently ranks among the top 10 of all brokerage firms nationally within their niche. Secure Net Lease works with developers, tenants, private and institutional owners to achieve market-setting cap rates for single- and multi-tenant net lease investments across the nation. Historically, 88% of Secure Net Lease offerings are new construction leased to nationally known tenants with 10+ years remaining on the primary term.

Despite the price point exceeding $10 million and short term remaining on the lease, the Secure Net Lease team secured a buyer willing to pay an aggressive cap rate.