RICHMOND, Texas – RealSource Group, a national commercial real estate brokerage company focused on retail, healthcare, automotive and education properties, announced today the sale of a brand new, single-tenant net-leased investment occupied by Black Rock Coffee Bar at the Waterview Town Center in Richmond, Texas. The purchase price and cap rate on this sale could not be disclosed.
RealSource’s Senior Vice President of Investment Sales, Austin Blodgett, along with ParaSell, Inc., represented the seller, a private developer based in Houston. The buyer was a private investor based in Orange County, California, and was represented by Chris Lind of Marcus & Millichap in Phoenix, Arizona.
“We brought this to the market as a presale, months before the store opened for business and generated multiple offers within the first few days of marketing,” Blodgett said. “We created a competitive bid environment and selected an exchange buyer who was trading out of an auto parts store in Phoenix and was looking for a long-term, absolute triple-net investment in a tax-free state like Texas.”
Blodgett adds, “The seller was pleased that we generated multiple offers and closed escrow above our asking price.”
Black Rock Coffee Bar is a national boutique coffee shop that is known for its premium roasted coffees, teas, smoothies and flavorful blended energy drinks. The company hit a milestone in November and opened its 100th store in the U.S. in Chandler, Arizona. Founded as a family-owned and operated business in Oregon in 2008, Black Rock Coffee Bar has retail locations in seven states.
Black Rock Coffee Bar is located at 19205 W. Bellfort Street in Richmond and occupies an 1,887-square-foot building with a drive-thru on 0.57 acres. Black Rock Coffee Bar has a long-term, absolute triple-net lease and opened in mid-December.
Waterview Town Center is a new shopping center with approximately 525,000 square feet of retail. Co-tenants include LA Fitness, Academy Sports, At Home, 7-Eleven, Quick Quack Car Wash, Valvoline, Chick-fil-A, Chipotle Mexican Grill, Texas Roadhouse, Whataburger, and more. A newly completed 850,000-square-foot Amazon distribution center is located across the street.
A new 300-unit residential development, Synergy at Waterview, is slated to open in the first quarter of 2022 directly behind the shopping center. The property is also adjacent to Aliana, Houston’s second top-selling master-planned community including Aliana (4,000 homes), Harvest Green (2,000 homes), Fieldstone (1,500 homes), and many more.
“This is an affluent area with strong demographics,” noted Blodgett. “Within a one-mile radius, the population has increased by a whopping 90% since 2000 and the current annual average household income is approximately $120,000, and the area is still growing with all the new residential units being added.”
In late September, RealSource and ParaSell arranged the sale of a new single-tenant net-leased investment occupied by LA Fitness Signature Club at the Waterview Town Center. Although the purchase price could not be disclosed, the sale achieved a cap rate of 6.60%, with less than a full primary lease term.
“The net lease market nationwide, and especially in Texas, remains red hot,” said Blodgett. “We are seeing records being set with numerous different tenants as cap rates continue to compress across the board. Quick-serve restaurants and coffee chains are trading in higher volumes and at lower cap rates.”
Blodgett continues, “In 2020, 740 QSRs sold nationwide compared to more than 1,000 in 2021, which is over a 25% increase. This is directly correlated to the increased demand in the QSR space as well as the continued growth of QSR brands nationwide. In 2022, we expect this trend to continue with more transaction volume as well as cap rate compression for the smaller, fast-growing brands like Black Rock Coffee. We believe that cap rates will begin to normalize for the larger, corporate QSR chains as those cap rates dropped significantly lower over the last year.”