1031 Diary II: Boost Mobile, 4403 W. Commerce
A Story of Long-Term Success: The 1031 Exchange
4403 W. Commerce, San Antonio TX: Another Beck-Reit 1031 Acquisition
We acquired 4403 W Commerce in December of 2020 after selling 2707 Rogge Lane. The Rogge property was an East Side shopping center near the Mueller that required a gut renovation. We had it leased up and were working through our redevelopment plans when Austin’s growth out-paced us and a bigger fish came with an offer we couldn’t refuse.
Similar to our 8808 Barker Cypress acquisition, we felt like we could sell high in the Austin market and move our gains into a safe and stable NNN investment elsewhere.
4403 W. Commerce
2,489 Sqft
Built in 1992
NNN 5-Year Lease w/ 5-Year Option to Extend
6.4% Cap Rate
Traffic Count 20,454 VPD
SAVY INVESTING: LOOKING FOR SITE & SITUATION
4403 W. Commerce caught our eye because of its simple, sturdy block construction, parking lot, NNN and personally guaranteed lease, and 6%+ cap rate.
We also took into account the property’s situation within West San Antonio. As evidence by the map below, the property is in a good position for long-term success. It’s located close to a University and established neighborhood community. It provides an essential service that fits the budget of surrounding residents. It’s within close proximity to similar essential and community-focused businesses along a major thoroughfare.
Once we determined the building was structurally sound and the existing tenant financially capable, it was on to closing. We’ll be holding on to this building for the foreseeable future and expect minimal management efforts.
