Fiesta Mart 3230 Martin Luther King Jr Blvd

DB2RE INVESTMENT SALES is pleased to present the opportunity to acquire the extremely rare single-tenant net lease Fiesta Mart and covered land play (the “Property”) at 3230 Martin Luther King Junior Boulevard in Dallas, Texas. The 50,447 square foot grocery store is located on ± 3.95 AC within the heart of Dallas’ Fair Park market. Fair Park, home to the #1 tourist attraction in Texas, the State Fair of Texas, is one of the primary infill markets within the core of Dallas that is ripe for tremendous growth over the next several years. The Property provides both prospective investors and developers with a rare infill covered land play that boasts ± 3.95 AC of land, prime for immediate redevelopment, in addition to a no hassle absolute net lease that generates $200,000 in net income annually from a credit tenant. In 2021, Fiesta generated ± $12.87MM in sales ($247,500 per week) equating to a 3.00% occupancy cost. Operating at this location since 2011, Fiesta was purchased by Bodega Latina Corporation, a Chedraui company, the Mexican grocer conglomerate (MSE: CHDRAUI).
Currently, Fiesta has ± 1.5 years remaining on their current term with two (2) five-year renewal options bumping to $250K and $275K for each option. In 2020, due to the ongoing gentrification in the area, Fiesta negotiated an ongoing 6 month termination option, which they may elect at any time. With a well below market rate of $3.96 NNN, the sooner Fiesta terminates, the better!! In the meantime, Ownership can be patient and take advantage of the tremendous growth the core of Dallas is experiencing. Offered well below replacement cost, the ability to purchase at a strategic basis and reposition through lease- up, redevelopment or an owner-user sale offers ownership an extremely rare value-add opportunity. The absolute net lease structure is ideal for passive ownership as virtually no management is required. Furthermore, the guaranteed revenue stream backed by Chedraui ensures guaranteed coverage with a positive cash-on-cash return until full maximization of the value can be unlocked upon Fiesta’s departure.