In back-to-back acquisitions, SkyWalker Property Partners LLC has acquired two retail properties in Texas for the portfolios of its two new funds, Cash Flow Fever and When Opportunity Knocks.
Cash Flow Fever’s property is a 5,359-square foot building that sits on slightly more than one acre at 4850 Benbrook Blvd./U.S. Highway 377, located off Interstate 20 in Benbrook. The property is leased for the long-term to its longtime occupant, Fort Worth Automotive.
When Opportunity Knocks is the new owner of a 7,220-square foot former Luby’s restaurant, developed in the 1960s on nearly 1.8 acres at 2124 Boca Chica Blvd. in Brownsville. The property, now being marketed as a ground lease opportunity, is positioned in front of a high-performing H-E-B grocery store at one of the busiest intersections in the city.
“We are driven by opportunity. It’s just a coincidence that both funds’ recent buys are retail,” says Clint Holland, acquisitions director for Arlington-based SkyWalker Property Partners.
SkyWalker Property and partner, Dallas developer Kelly Hampton, closed the deal in direct talks with San Antonio-based Luby’s Fuddrucker Restaurant LLC. Southwest Bank in Fort Worth provided financing for the buyer of record, Brownsville Sugar LLC.
“Our plan is to ground lease it to a quick-service, fast-food chain. And it’s no surprise that there’s already interest in the property,” says Holland, who represented the buyer.
The Benbrook acquisition – a single-story building developed in 1986 – was sourced and closed by Wayne Burgdorf, vice president of Arlington-based Coldwell Banker Commercial Advisors DFW, on behalf of the buyer of record, Don’t Fear The Repair LLC. The seller, Banco North America, was represented by an independent broker, Teresa Von Illyes of Benbrook.
“We have feelers out all over Dallas-Fort Worth for good cash-flowing properties to buy for this fund,” Burgdorf said. “The Benbrook property was appealing because the tenant has been there a long time and it’s located just south of the Weatherford traffic circle.”
The southwest Fort Worth property is positioned close to several major arteries feeding into the city. Fort Worth Automotive inked a new triple-net lease prior to the closing, further strengthening its destiny for the Cash Flow Fever fund. Acquisition criteria require in-place cash flow, the ability to leverage at favorable terms and managed lease renewals.
SkyWalker’s When Opportunity Knocks fund is targeting underperforming assets with purchase prices significantly below replacement value. Criteria also include properties with high vacancy, deferred maintenance and below-market rents.