Hanley Investment Group Real Estate Advisors, a real estate brokerage and advisory firm specializing in retail property sales, has recently facilitated the sale of a newly constructed, single-tenant net lease investment property in Huntsville, Alabama. The property is occupied by Strickland Brothers 10 Minute Oil Change and is situated within a new Publix-anchored shopping center, The Shoppes at Redstone Square.
The sale was orchestrated by Hanley Investment Group’s Executive Vice Presidents, Jeff Lefko and Bill Asher, in collaboration with ParaSell, Inc. They represented the seller and developer, N3 Real Estate of Southlake, Texas. On the buyer’s side, a private investor based in metro Macon, Georgia, was represented by Andy Shipp, CCIM of Sovereign Partners LLC in Conyers, Georgia.
“We successfully facilitated the sale by procuring an all-cash Southern U.S.-based 1031 exchange buyer, negotiating a quick 14-day due diligence period, and achieving a cap rate of 6.16%, the lowest-cap rate nationwide for a single–tenant net lease Strickland Brothers to sell in 2023,” said Lefko. “The sale is significant because it demonstrates the buyer’s significant interest in Strickland Brothers credit, and it shows that the cap rate spread between a Strickland Brothers and Jiffy Lube or Valvoline is minimal.”
The newly constructed building, spanning 1,725 square feet and leased to Strickland Brothers, is located on a 0.74-acre pad at 2312 Zierdt Road. Strickland Brothers commenced operations in February 2023 and now operates under a corporate guaranteed lease with no landlord responsibilities. The lease structure is an absolute triple-net arrangement with 10% rent increases every five years, featuring an initial lease term of 15 years and four five-year renewal options.
According to Jeff Lefko, Strickland Brothers has experienced substantial growth, expanding to over 200 locations across 27 U.S. states. The brand has gained recognition as one of the fastest-growing franchises in the country, securing notable rankings in various franchise industry lists, including Entrepreneur’s 2023 Franchise 500.
In 2022, Strickland Brothers became part of Accelerated Brands, headquartered in Winston-Salem, North Carolina. Accelerated Brands oversees several aftermarket automotive brands within the Quick Lube and Car Wash sectors, collectively generating over $240 million in system sales and servicing approximately three million vehicles annually.