CORONA DEL MAR, Calif. – Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced today that the firm has arranged the sales of eight single-tenant, net-leased investments occupied by Louetta Automotive and Tire Service in the Houston metro area, Texas. Louetta Automotive is now operating as Sun Auto Tire & Service, backed by private equity firm Leonard Green & Partners. The individual sales were completed in a nine-month period for a combined total value of $20,712,000.
“We maximized value by selling each of the eight locations to eight separate private investors. We procured multiple offers for each of these well-located properties and most of them were sold to out-of-state 1031 exchange buyers who were willing to pay a premium for a new long-term, absolute triple-net lease,” said Jeff Lefko, executive vice president, Hanley Investment Group.
“By selling the locations individually versus as a whole, we achieved 50 basis points lower cap rate while giving the seller flexibility in finding upleg 1031 exchanges,” Lefko said. “In today’s market, where supply is extremely limited, it is beneficial for a seller to have multiple exchanges that they can close at their leisure as opposed to one big exchange where properties have to be identified 45 days after large disposition occurs.”
Lefko continues, “There are many occasions where a multi-unit retailer owns their own real estate and sells their business to a larger (better credit) operator and, as part of the transaction, the retailer gets to keep the real estate with a new long-term lease in place (with the larger operator). In this type of situation, the real estate is often at its peak value the day the business transaction closes. We have figured out the best way help these owners accomplish their goals by maximizing value on certain locations that should be sold while advising which locations are best to keep in the owner’s portfolio as a long-term hold. The Louetta sales are a good example of this.”
In the city of Cypress, Texas, Hanley Investment Group arranged the sale of a 5,186-square-foot single-tenant building occupied by Louetta Automotive and Tire Service (GB Auto Service, Inc.) at 16324 Mueschke Rd. in Harris County. Built in 2012 on 1.11 acres at the intersection of Schiel Rd. and Mueschke Rd., the property has excellent accessibility and visibility along Mueschke Rd. with 109 feet of frontage along Mueschke Rd. The property is also surrounded by high-end master-planned communities and attracts Tomball residents from the north, according to Lefko. Hanley Investment Group’s Lefko and Executive Vice President Bill Asher, in association with Peter W. Ellis of Florin Capital Real Estate, LLC of San Antonio, Texas, represented the seller, Louetta Leasing, L.P. of Cypress, Texas. The buyer was a private investor from the San Diego area and was represented by Thomas Kelley of Marcus & Millichap in San Diego, California.
Also, in the city of Cypress, Hanley Investment Group arranged the sale of a newly renovated 3,920-square-foot single-tenant building occupied by Louetta Automotive and Tire Service (GB Auto Service, Inc.) at 11916 Barker Cypress Rd. at the intersection of Barker Cypress Rd. and Queenston Blvd., near Highway 290. Built in 2005 on 0.50 acres and renovated in 2020, the property is located in a high traffic and dense retail location in a growing area with new development, according to Lefko. Hanley Investment Group’s Lefko and Asher, in association with Florin Capital Real Estate’s Ellis, represented the seller, Louetta Leasing, L.P. The buyer was a private investor based in Las Vegas, Nevada.
At 17932 Huffmeister Rd. in Cypress, Hanley Investment Group arranged the sale of a 7,380-square-foot single-tenant Louetta Automotive and Tire Service (GB Auto Service, Inc.) at the intersection of Huffmeister Rd. and Cypress Rosehill Rd. The building was built in 2004 on 0.90 acres and is surrounded by master-planned communities and businesses. Hanley Investment Group’s Lefko, Asher and Senior Associate Dylan Mallory, in association with Florin Capital Real Estate’s Ellis, represented the seller, Louetta Leasing, L.P. Mallory also represented the buyer, a private investor based in Los Angeles, California.
In Atascocita, Hanley Investment Group arranged the sale of a 6,361-square-foot single-tenant Louetta Automotive and Tire Service (GB Auto Service, Inc.) at 7625 FM 1960 Rd. East located in the Lake Houston area in Harris County. The building was built on approximately 0.50 acres in 2003 at the intersection of FM 1960 Rd. East and West Lake Houston Pkwy. Hanley Investment Group’s Lefko and Asher, in association with Florin Capital Real Estate’s Ellis, represented the seller, Louetta Leasing, L.P. and the buyer, a private investor based in Orange County, California.
In Houston, Hanley Investment Group arranged the sale of a 4,500-square-foot single-tenant Louetta Automotive and Tire Service (GB Auto Service, Inc.) at 11930 Louetta Rd. in Harris County. The building was built on 0.60 acres in 2001 and Louetta has nearly 20 years of operating history at this location, which benefits from high traffic and great visibility, according to Lefko. Hanley Investment Group’s Lefko and Asher, in association with Florin Capital Real Estate’s Ellis, represented the seller, Louetta Leasing, L.P. The buyer, a private investor based in California, was represented by Deborah Ewing of The Fuller Group in Vancouver, Washington.
Hanley Investment Group arranged the sale of a 4,378-square-foot single-tenant Louetta Automotive and Tire Service (GB Auto Service, Inc.) at 8330 Cypresswood Dr. in Spring, about 20 miles north of Houston in north Harris County. Built in 2009 on 0.96 acres at the intersection of Cypresswood Dr. and Champion Forest Dr., the tenant has a long history at this site. The property benefits from dense, affluent demographics and high visibility, noted Lefko. Hanley Investment Group’s Lefko and Asher, in association with Florin Capital Real Estate’s Ellis, represented the seller, Louetta Leasing, L.P. of Cypress, Texas. The buyer was a private investor based in California.
In the city of Katy, near the signalized intersection of FM 1463 Rd. and Corbitt Rd. in Fort Bend County, Hanley Investment Group arranged the sale of a 7,500-square-foot single-tenant property occupied by Louetta Automotive and Tire Service (GB Auto Service, Inc.). The property, which was built in 2014, is located at 4019 FM 1463 on 0.96 acres and benefits from the affluent, densely populated, surrounding residential neighborhoods, notes Lefko. Hanley Investment Group’s Lefko and Asher, in association with Florin Capital Real Estate’s Ellis, represented the seller, Louetta Leasing, L.P. of Cypress, Texas. The buyer, a private investor based in the Portland, Oregon area, was represented by James Bell of Marcus & Millichap in Houston.
Hanley Investment Group arranged the sale of a 5,800-square-foot single-tenant property occupied by Louetta Automotive and Tire Service (GB Auto Service, Inc.) at 632 N. Egret Bay Blvd. in League City in Galveston County. The property was built in 2000 on 0.92 acres at the intersection of Egret Bay Blvd. and FM 518 Rd. East in the NASA/Clear Lake submarket. Hanley Investment Group’s Lefko and Asher, in association with Florin Capital Real Estate’s Ellis, represented the seller, Louetta Leasing, L.P. of Cypress, Texas. The buyer, a private investor based in the Western U.S, was represented by Deborah Ewing of The Fuller Group in Vancouver, Washington.
Hanley Investment Group has sold or has in escrow 30 single-tenant auto repair and service centers in the last 24 months, valued at over $77 million.
