The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction Advance Auto Parts property located at 1313 FM 685 in Pflugerville, TX for $2,279,734.
The brand new 6,895 Advance Auto Parts building is located within a dominant retail corridor across the street from a Walmart Supercenter. There are over 65,000 people living within a three mile radius of the property earning average annual household incomes in excess of $91,000. The average annual rate of population growth is projected to be in excess of 2.8%.
Advance Auto Parts has 15 years remaining on their absolute net lease. The lease features 9% rental escalations in each renewal option period. Advance Auto Parts is an investment grade rated tenant with a Standard & Poor’s rating of BBB-.
“The current uncertainty in the dollar store sector has led some investors to look at different types of net lease properties including auto parts stores, which often feature long term leases to investment grade tenants with rental escalations.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “The market for new construction net leased auto parts stores remains active as these assets are in high demand among private investors.”
