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Follow on Google News | ![]() Two Single-Tenant Pep Boys in Dallas MSA Purchased by California BuyersBy: Hanley Investment Group Real Estate Advisors In Frisco, Texas, Hanley Investment Group's Executive Vice President Eric Wohl and Associate Andrew Cunningham, CCIM, arranged the sale of a single-tenant Pep Boys. Built in 2008 on a 0.90-acre outparcel to Lowe's, the 3,780-square- The property is leased to a wholly owned subsidiary of Pep Boys, Inc. (owned by Icahn Enterprises) "We procured nine offers on the property and closed escrow at 99 percent of the list price," said Wohl. "Although we cannot disclose the sale price or actual cap rate, due to the quality of the property, its location and long-term absolute triple-net lease, the property traded at an all-time record-low cap rate for a Pep Boys sold outside of California." In Arlington, Texas, Hanley Investment Group's Associate Austin Blodgett and Wohl arranged the sale of a single-tenant Pep Boys (formerly a Just Brakes) at 3031 S. Cooper Street. The 5,382-square- Blodgett and Wohl represented the seller, a private investor from New Orleans. The 1031 exchange buyer, a private investor based in southern California, was represented by Gary Metzler of Metzler Enterprises LLC. "This property is minutes from the University of Texas at Arlington (43,000 students) and The Parks at Arlington Mall (22 million visitors annually)," said Blodgett. "This property benefits from over 85,000 cars per day on Highway 157 and features highly visible pylon signage. The Dallas MSA is a commuter market as everything is spread resulting in commuters making good use of their vehicles to get around. We were able to get a California investor to understand this, which is ultimately how they became comfortable with the asset." The five-mile trade area has a population in excess of 343,000 and average household income of more than $72,000. The city of Arlington is the seventh most populous city in Texas with 400,000 people, and the 50th most populous city in the United States. "There continues to be a rise in popularity of the do-it-yourself auto restoration and repairs," noted Wohl. "People are holding their vehicles longer as the quality and technology of newer vehicles continues to increase their lifespan." Blodgett adds, "Single-tenant, absolute, triple-net leased auto parts and service stores remain an attractive investment that is resistant to economic turmoil and is a viable alternative for investors seeking high-quality single-tenant net-leased investments with little to no maintenance." Pep Boys Auto, founded in 1921, operates in the automotive aftermarket industry, providing services, tires, parts, and accessories throughout the United States and Puerto Rico. With more than 9,000 service bays in approximately 1,000 locations in 35 states and Puerto Rico, Pep Boys is one of the longest-running and world's largest automotive parts retail chains. In January 2017, Pep Boys acquired Just Brakes, a 134-store automotive repair and maintenance chain. Just Brakes is now a wholly owned subsidiary of Pep Boys. Pep Boys is owned by Icahn Automotive Group LLC, which was formed by its parent, Icahn Enterprises L.P., to invest in and operate businesses involved in aftermarket parts distribution and service. About Pontus Capital Pontus is a private real estate investment firm that acquires and manages long-term triple-net leased properties to creditworthy tenants nationwide in partnership with institutions, family offices and accredited investors. Pontus principals have acquired over $4 billion of net-lease properties over the last 20 years, primarily through sale-leaseback and portfolio transactions. See http://www.pontuscapital.com/ About Hanley Investment Group Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $6 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit https://hanleyinvestmentgroup.com/ End
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