Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a freestanding retail property leased to Firestone Complete Auto Care. The 3,400-square-foot building is located at 1681 Southwest Wilshire Boulevard in Burleson, Texas. Stan Johnson Company’s Mark Lovering represented the buyer, a Houston, Texas-based private investor. The seller was a developer based in Dallas, Texas. The asset was purchased in a 1031 exchange for approximately $4.2 million at a sub-5.0 percent cap rate.
“The lack of new development and amount of private capital chasing quality assets has compressed cap rates for investment grade retail tenants like Firestone,” said Lovering, Associate Director in Stan Johnson Company’s Chicago, Illinois office. “Within the last 60 days, we’ve seen cap rates for new 15-year Firestone leases compress between 20 and 25 basis points. Lack of new supply and the flood of private capital have helped fuel record-low cap rates in this first quarter of 2021.”
The newly constructed property features a long-term absolute triple net lease. The asset sits on 1.02 acres and is located approximately 30 minutes south of downtown Fort Worth, Texas. Neighboring tenants include Goodwill, Burger King and Kroger, among other national retailers.