HOUSTON, TX - [December 28, 2023] - Blue West Capital has completed the sale of a single tenant, absolute net lease Tide Cleaners located at 5507 Renwick Drive in Houston, TX for $3,100,000. Tom Ethington and Josh Lorenzen, of Blue West Capital, represented the seller, a Houston-based investor and business operator. The buyer was a Houston-based family.
This Tide Cleaners property is located in Gulfton, a dense neighborhood 7.5 miles southwest of downtown Houston. Located directly off Interstate 69, the property sits in a dense industrial corridor. The property features a long-term lease with scheduled rent increases to hedge against inflation. It is also located in an affluent area with an average annual household income of $121,581 within 3 miles. The combination of excellent demographics, submarket industrial demand, and an industry-leading tenant make this a strong investment.
This location has operated as a dry-cleaning facility for 21 years. The current operator has used Green Earth Cleaning solutions since its opening, protecting it from environmental issues. The Tide Cleaners brand remains strong with continual growth in Texas and nationwide. They are an industry leader in the dry-cleaning services sector and are ranked as the #1 dry-cleaning franchise brand in the U.S. (according to 2022 Entrepreneur Franchise 500).
We are seeing more and more business owners taking advantage of the sale-leaseback method to invest more capital back into their businesses. We worked with the seller to come up with favorable lease terms that would support the business while also making it a strong investment for the buyer. We expect to see more sale-leasebacks come to market as the process becomes more well known among business owners.
Tom Ethington, Managing Partner
PR Contact
Josh Lorenzen
(720) 821-2520
Josh@BlueWestCapital.com
Related News: Sale-Leaseback Transactions Proving To Be an Attractive Option in Current Interest Rate Environment
Looking ahead to 2024, the current environment with higher interest rates than the past 15 years may stimulate additional sale-leaseback transactions as corporations use their ability to offer investors lengthy lease terms and bond-like income in exchange for extracting operating capital from their real estate footprints. Go to article.
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