Boulder Group Closes Sale of Harley-Davidson-Leased Property in Texas
- Mar 06, 2020
The Boulder Group has brokered the $5.9 million sale of a 20,000-square-foot retail building in Sherman, Texas. President Randy Blankstein and Senior Vice President Jimmy Goodman worked on behalf of the Texas-based seller. The new owner is a private West Coast investor.
Located at 4000 N. Highway 75, the property is an outparcel to a Target-anchored shopping center and is close to several other retailers such as a Walmart Supercenter, Home Depot, Cinemark, Lowe’s, Sam’s Club, Kohl’s and ALDI. The asset serves some 50,000 people within a 5-mile radius, with a projected growth rate of 8.8 percent over the next five years.
The building is leased to Texoma Harley-Davidson, with five years remaining on the contract. The Harley-Davidson lease is absolute NNN and has no landlord responsibilities. Additionally, there are two five-year renewal options with 10 percent rental escalation in each option. The asset generates a rent-to-sale ratio of below 4 percent.
According to Blankstein, investors who seek higher yields are acquiring shorter term-leased assets with quality real estate fundamentals. At the beginning of the year, Blankstein was also involved in the sale of a 7-Eleven in Lower Manhattan.