AutoZone Ground Lease

Challenge

Our team was engaged to identify and acquire a replacement property for a repeat client completing a 1031 exchange. The assignment required locating a single-tenant net-leased asset that met the client's investment criteria within the constraints of the exchange timeline.

Action

We focused our search on ground-leased, single-tenant retail properties with stable national tenants. The AutoZone at 344 W Mariposa Rd in Nogales, AZ fit the profile: a 6,000 SF building constructed in 2006, occupied by a national auto parts retailer on a ground lease structure. We guided the client through due diligence and negotiation, drawing on our familiarity with their goals as a repeat client to move efficiently through the acquisition process.

Result

• Secured the property at $1,331,000 ($222/SF) as a 1031 exchange replacement asset
• Delivered a ground-leased, single-tenant retail investment with a national tenant in place
• Successfully completed the acquisition on behalf of a repeat client within the exchange requirements