$5M Plus Nets Kohl's-Leased Asset

GRAND PRAIRIE, TX-An Indianapolis-based investment group has paid $5.3 million in cash for an 87,159-sf retail building leased for the long term to Kohl’s. The deal closed in seven days.

“We went in on a short timeframe. People know us,” Joseph Acker, in-house attorney for Sandor Development Co. He tells GlobeSt.com that the Menomonee Falls, WI-based Kohl’s Corp. has 15 years left on its lease plus options for 3865 S. Carrier Pkwy.–and the plan is to get the tenant to exercise an early option. “If they don’t execute, we’ve still got a good building and a good location,” he stresses. Its neighbors are Target, Home Depot and Starbucks.

Acker says the inherited lease has several “good rent bumps.” The seller of the 10.8-acre asset is Dallas-based Greenway Investment Co., which was represented by Sean Byrne of the Byrne Co., also in Dallas. Greenway developed the out-parcel in 1999.

Acker says Sandor used 1031 exchange funds from the sale of a shopping center in Indianapolis, but it wasn’t on a short fuse to close the deal. “We had a fair amount of time left. We had no reason to wait,” he says. “We had done all our due diligence and we were ready to close.”