Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a single-tenant retail property located at 10225 South Highway 6 in Sugar Land, Texas. The 14,380-square-foot property is fully leased to Pep Boys Auto. Stan Johnson Company’s Mark Lovering exclusively represented the seller, an individual investor from The Woodlands, Texas. The asset was purchased by a private equity fund based in Irving, Texas as a part of their 1031 exchange. The property sold for approximately $4.9 million reflecting a 6.60 percent cap rate.
“Pep Boys discontinued its retail lines at all locations, including this site, in first quarter 2021, as the company plans to shift out of retail to concentrate on repairs and tire sales – things that can’t be sold easily by online competitors,” said Lovering, Associate Director in Stan Johnson Company’s Chicago, Illinois office. “This corporate strategy is one we expect to see other automotive service tenants with a larger retail line implement. Although Pep Boys no longer uses about 30 percent of the building, we were able to secure an aggressive cap rate for our client, and the outcome was successful for both sides.”
The property was built in 2013 on 1.5 acres with superb visibility on Highway 6 which sees nearly 50,000 vehicles per day. Area tenants include Home Depot, CVS Pharmacy, ALDI and Whataburger, among many others. The property is located just 17 miles southwest of downtown Houston.