https://www.jointeamchandler.com1031 Doctor LOVES automotive deals like this Firestone Tire in Chandler Arizona. Chandler is a suburb of Phoenix with incredible growth happening from the microchip industry and defense contracting just to name a few. The income is high and demographics are exactly what you want to see. This Firestone deal is exactly what the 1031 Doctor ordered and there is little to no risk, and mainly upside to this property. The lease payment is dramatically below market and the price point of $2.8m represents a below replacement cost acquisition where you are hopeful the tenant leaves so that you can relet the building for much greater returns. Not that you want firestone to leave but you only have to wait 13 years before you can get a handsome increase in rents from the existing tenant. The tire industry is experiencing higher than normal demand in areas like this due to the fact the electric vehicles go through tires much quicker than ICE engines. https://www.firestone.com
This location in front of the major mall represents the type of location retailers like Firestone vie for and I have no doubt there were competitive alternatives to the developer. I would grade this deal an A+ and cannot think of, or find any, red flags to report. I would offer a 6% cap just in case the seller is motivated by a quick all cash offer from a 1031 buyer, but I think the 1031 money out there is on the same page that I am, so the deal isn’t going to last.
The 1031 Doctor helps high-income professionals-such as doctors, lawyers, and business owners- navigate and analyze NNN investments during a 1031 exchange. On this channel, I break down real deals across the country, including gas stations, fast-food properties, and single-tenant net-leased investments. learn how an industry veteran picks out the red flags and finds the hidden opportunities where most people miss the clues. Subscribe for daily insights, deal breakdowns, and real-world strategies. We offer a 24-hour turnaround to analyze any NNN investment nationwide for $299.00. https://www.1031doctor.com