SNL Brews Up 1031 Exchange for 7 Brew Coffee QSR Near Texas Tech
Kyle Varni leading the way in 7 Brew Coffee net lease sales
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 10th 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 11th 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
