Eight Single-Tenant Net-Leased Assets Sell in Nine Months

Hanley Investment Group Real Estate Advisors and Florin Capital Real Estate LLC recently arranged the sales of eight single-tenant net-leased investments occupied by Louetta Automotive and Tire Service in the Houston metro area. Louetta Automotive is now operating as Sun Auto Tire & Service, backed by private equity firm Leonard Green & Partners. The individual sales were completed in a nine-month period for a combined total value of $20.7 million.

“We maximized value by selling each of the eight locations to eight separate private investors. We procured multiple offers for each of these well-located properties and most of them were sold to out-of-state 1031 exchange buyers who were willing to pay a premium for a new long-term absolute triple-net lease,” said Jeff Lefko, executive vice president, Hanley Investment Group. “By selling the locations individually versus as a whole, we achieved 50 basis points lower cap rate while giving the seller flexibility in finding upleg 1031 exchanges. In today’s market, where supply is extremely limited, it is beneficial for a seller to have multiple exchanges that they can close at their leisure as opposed to one big exchange where properties have to be identified 45 days after large disposition occurs.”