February 6, 2020 – SRS Real Estate Partners’ National Net Lease Group has completed the $5.25 million sale of a 12,048-square-foot, two-tenant restaurant property located on 2.13 acres at 5005 SH-121 in The Colony, TX. The property is fully occupied by Knockout Sports Bar + Grill and Osaka Sushi and is adjacent to Topgolf within a dense retail corridor.
SRS’ National Net Lease Group First Vice President Brian Wolfman and Managing Principals Patrick Luther and Matthew Mousavi represented the seller, Arizona-based SimonCRE, a full-service commercial real estate developer. The 1031 exchange buyer was a private partnership from Texas and was represented by Tom Sterquell and Dillon Cook of Range Realty Advisors, LLC. The property closed at a cap rate of 6.87 percent and a price per square foot of $436.
“Both of the restaurant tenants recently signed new 10-year leases and opened for business in this newly redeveloped property,” said Wolfman. “We secured a number of offers and executed a quick, 35-day closing with a local, all-cash buyer.”
“We received interest from a wide range of investors located from coast to coast,” added Mousavi. “Investment property in Texas and the DFW market specifically, is one of the top targets for out of state investors.”
“We saw this as a tremendous redevelopment opportunity in a strong, dense retail trade area,” said Joshua Simon, Founder and CEO of SimonCRE. “As a developer, all of the fundamentals made sense and this project was a pleasure to be a part of.”
The property is within a one-mile radius of national retailers including Walmart Super Center, Target, Home Depot, Floor & Decor, and PetSmart, among others. Additionally, a 2.2 million-square-foot Nebraska Furniture Mart which sees nearly nine million shoppers per year is located less than one-mile from the asset.