Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has announced the sale of a freestanding retail property located at 2625 50th Street in Lubbock, Texas. The 3,025-square-foot building is leased to two tenants: AT&T and Rita’s Donuts. Stan Johnson Company’s Evan Altemus represented the Texas-based private buyer who acquired the asset in a 1031 exchange for approximately $1.0 million. The property was sold by NetCo Investments Inc., a developer from Santa Monica, California. The cap rate was not disclosed.
“The buyer had been looking for an asset with a higher cash flow and cap rate but decided to acquire something lower risk due to COVID-19,” said Altemus, Associate Director in Stan Johnson Company’s Dallas, Texas office. “Overall, deals with less risk located in markets with a lower impact from the pandemic have been in high demand from buyers since last March.”
Originally built in 1986, the dual-tenant property sits on a 0.36-acre outparcel to Home Depot, adjacent to a highly visible shopping center anchored by Dollar Tree and Ross Dress for Less. Both AT&T and Rita’s Donuts feature net leases with regular rent increases.
“The buyer liked the asset because it was on a major thoroughfare in Lubbock in front of a Home Depot, which has been doing well through the pandemic,” Altemus added. “The motivation behind this transaction is a great example of the type of deals getting done in this environment.”