Riley Sharman, vice president in Northmarq’s Houston office, arranged the $1.65 million 1031 exchange for a freestanding single-tenant retail space fully leased to Mission BBQ. The property features a corporate guaranty from Mission BBQ, the growing privately-owned fast-casual restaurant chain. Sharman represented the 1031 exchange buyer, a Florida-based private investor. The seller was a New York-based developer.
“The Florida-based buyer capitalized on a strip center sale in Deer Park, TX (Houston MSA) in June and then exercised a 1031 tax-deferred exchange into a newly constructed, 10-Year, NNN ground lease with Mission Barbecue (over 100 locations nationwide),” said Sharman. “He was attracted to the irreplaceable location being an outparcel to a major mall on the busiest thoroughfare in Bowling Green, KY and envisions a long-term hold.”
The freestanding restaurant is located at 2631 Scottsville Rd. in an out-lot of the Greenwood Mall with tenants such as Dillard’s and Belk. The 3,375 sq. ft. property is situated with frontage along the main thoroughfare between Greenwood Mall and downtown Bowling Green. Located in a fast-growing market, the single-tenant retail property benefits from Greenwood Mall’s 4.1 million annual visitors and approximately 37,600 vehicles per day on Scottsville Rd. The tenant operates on a long-term absolute triple net ground lease.