Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of 11410 Gulf Freeway in Houston, Texas. The property includes a freestanding, 2,800-square-foot retail store leased to AT&T as well as an income-generating billboard leased by Outfront Media. Stan Johnson Company’s Evan Altemus represented the 1031 exchange buyer, an individual investor from Sugar Land, Texas. The seller, represented by EDGE Realty, was a private investor also based in Texas. The property sold for approximately $1.6 million reflecting a 7.29 percent cap rate.
“The local buyers wanted a property within the Greater Houston area with COVID-19-resistant tenants,” said Altemus, Associate Director in Stan Johnson Company’s Dallas, Texas office who specializes in representing buyers and sellers of multi-tenant properties nationally. “The credit quality of AT&T was appealing to the buyer, but the supplemental income from the property’s billboard was a critical aspect. The investor was targeting a traditional multi-tenant property, but this asset checked several boxes for them, as they looked to reduce risk while still providing good cash flow and debt terms.”
Adjacent to Almeda Mall, the property is situated on 0.36 acres with prominent visibility from Interstate 45, which is the highest trafficked interstate in the city. The retail building was constructed in 2010 and features a long-term net lease with option periods and rent increases.