In back-to-back acquisitions, SkyWalker Property Partners LLC of Arlington 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 on slightly more than one acre at 4850 Benbrook Blvd./U.S. Highway 377 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 in Brownsville. Developed in the 1960s on nearly 1.8 acres, the property is now being marketed as a ground lease opportunity. It is located 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,” said Clint Holland, acquisitions director for SkyWalker Property Partners.
The Benbrook property, a one-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 property is close to several major arteries feeding into southwest Fort Worth. Fort Worth Automotive signed 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 Property and partner, Dallas developer Kelly Hampton, closed the Brownsville 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,” said Holland, who represented the buyer.
SkyWalker’s When Opportunity Knocks fund targets underperforming assets with purchase prices significantly below replacement value. Criteria also include properties with high vacancy, deferred maintenance and below-market rents.
SNAP KITCHEN TAKES SPOT
IN RIVER PARK CENTER
Austin-based Snap Kitchen Investments LLC has filled the only vacancy in the 500,638-square foot River Park Business Center, inking a long-term lease for 29,751 square feet of as-is space once occupied by its now-bankrupt competitor.
Snap Kitchen, a one-stop healthy meal shop, is developing a central kitchen at 15600 Trinity Blvd. in Fort Worth to serve all of Texas. The new location is 50 percent kitchen and freezer/cooler space and the balance, Class A distribution, all formerly leased to My Fit Foods.
“Prospects were coming out of the woodwork as soon as word got out about My Fit Foods. I had 25 calls before I could put the space on the inventory list,” said Michael W. Spain, executive vice president and managing partner of Dallas-based Bradford Commercial Real Estate Services.
Spain and Clint Manning, Bradford’s market director, represented the landlord, SCG River Park Business Center LP of Columbia, Maryland. The brokers negotiated directly with Snap Kitchen.
Snap Kitchen has set up shop in a 145,400-square-foot structure, the smaller of the two-building River Park Business Center. “I’ve only had two vacancies in that project since I’ve been leasing it – and it was the same space,” Spain said.
River Park Business Center, developed in 2006, is situated just west of Dallas Fort Worth International Airport and is visible from Trinity Boulevard. SCG River Park Business Center has owned the property since 2014.
Snap Kitchen, founded in 2010, operates more than 40 shops in Texas, Illinois and Pennsylvania in addition to sites inside select Whole Foods grocery stores. The grab-and-go entrepreneur offers breakfast, lunch and dinner options, beverages and snacks with strong appeal to millennials and the wellness-conscious crowd, according to a Bradford news release. In a new partnership, Snap Kitchen’s products will soon be available at Starbucks, starting with five cafes in Houston and then expanding to other regions. Snap Kitchen has a location at 2828 West Seventh St. in Fort Worth and a Southlake location.
SALE
JLL has completed the sale of the Victory Shops at Royal shopping center, 411 East Royal Lane in Irving, on behalf of Victory Group’s CEO, Tony Ramji, to a major out-of-market investor.
JLL Associate Rose Meza led the sales efforts. Steve Music with Steve Music Co. represented the buyer.
The sale includes 15,472 square feet of retail space and the 1.5 acres on which the shopping center is situated.
LEASES
Tidal Hardware LLC has leased 8,067 square feet of industrial flex space in Westfork Business Center, Building 1, 1475 Avenue S, Grand Prairie, from DCT-TX 2004 RN Portfolio I LP. Michael W. Spain and Jim Ferris of Bradford Commercial Real Estate Services represented the landlord. Sarah Ozanne of Stream Realty Partners represented the tenant.
Aurora Remodeling LLC has leased 5,250 square feet at 2516 Minnis Drive, Suite 110 and 120 in Haltom City, for a new office/warehouse. Aurora restores and refurbishes mobile homes. Chris L. Stewart of Vasseur Commercial Real Estate Inc. represented the landlord, M&N Joint Venture.
Send real deals to Robert Francis at rfrancis@bizpress.net