Secure Net Lease Executes Sale of Freestanding Home Depot in Plano, TX
SNL John Packwood and Kyle Varni facilitate off-market transaction
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.
