June 27, 2019 – SRS Real Estate Partners’ National Net Lease Group has completed the $4,266,000 ground lease sale (land ownership) of a 3,750-square-foot single-tenant property fully occupied by In-N-Out Burger located at 2525 W. Mockingbird Lane in Dallas. The closing cap rate was the lowest cap rate for any single-tenant net leased asset in the state of Texas over the last 12 months.
SRS’ National Net Lease Group Managing Principals Patrick Luther and Matthew Mousavi represented the seller, a nationally recognized developer. The all-cash buyer was a private investor from California.
Situated on 1.04 acres, In-N-Out opened it doors at the newly constructed asset in February 2019 and has a 20-year, corporate guaranteed absolute triple-net lease in place.
“This was an extremely rare opportunity to acquire a prime single-tenant asset with In-N-Out – one of the nation’s most popular and recognized burger chains,” said Mousavi. “Additionally, the property is in a prime, irreplaceable location at the entrance to Dallas Love Field Airport, and featured a low rent compared to other high profile QSR developments in the corridor, providing for strong, long-term intrinsic value for the investor.”
“Due to the uniqueness of the property and brand name reputation of the tenant, we received multiple offers, ultimately selecting an all-cash investor from California,” added Luther.
The In-N-Out Burger property is strategically located near the signalized intersection of Maple Ave. and W. Mockingbird Lane, which has more than 46,400 combined vehicles passing by daily. In addition to being adjacent to Dallas Love Field, the asset is ideally positioned next to the new West Love Development, a $320 million mixed-use project that will feature 1,100 luxury apartment units, the Aloft and Element Hotel, 1.1 million square feet of office space, and 31,000 square feet of retail space, providing exceptional crossover customer traffic. Additionally, the asset is part of a dense retail corridor with nearby national tenants including The Home Depot, Lowe’s Home Improvement, LA Fitness, CVS Pharmacy, and Family Dollar, among others.
SRS’ National Net Lease Group successfully completed more than 300 sales in 2018, across 35 states nationwide, and has over $1 billion in assets currently listed for sale.