Texas Roadhouse
1031 Exchange for Private Investor
Our private client investor was referred to us to source a passive investment after having sold an apartment building in San Francisco they had owned for over 10 years. The client was overwhelmed with property management, costly building updates, mandated retro-fittings ordered by the city, and decided to 1031 exchange into an asset with little to no management.
We began the methodical process of our exclusive buyside advisory work, reviewing a few hundred properties and narrowing the list down to approximately 50 assets that met the client’s qualifications. ACE brought the client’s attention to an off-market Texas Roadhouse restaurant located in West Des Moines, Iowa through a direct broker relationship.
Although the client had never considered Des Moines or Iowa as an investment market to target, they were attracted to the high-quality, mature market, master-planned Wes Des Moines/Jordan Creek/Waukee neighborhoods, presence of insurance and bank headquarters, and the high volume of new development occurring throughout the region.
The Texas Roadhouse was a 13-year ground leased investment resulting in absolutely no management. The lease was secured by top-tier publicly traded credit, in addition to securing strong real estate in the form of a corner outparcel to a successful Walmart Supercenter.
ACE sourced a small loan as part of the acquisition to satisfy the exchange.
“My wife and I were very impressed by the concierge treatment Michael provided, from sourcing assets to choose from, to quarterbacking the diligence process, to lining up a small loan to close on the asset, and even making sure we had a local manger close by to periodically send photos and check on the property."
— San Francisco Bay Area Client