Description

DuWest Realty Investment Services is pleased to offer for sale Uncle Julio’s in Arlington, Texas (“the Property”). The Property is comprised of a well-known regional operator (9 locations in Texas/35+ across the U.S.) that’s been at this location since 2017 and is currently 100% occupied with about 3 years left on initial term. Built in 2017, the tenant entered into a 10-year long initial lease term with four, five year options remaining with 10% rental increases. Located in arguably one of the fastest growing DFW submarkets, Arlington has seen rapid development as tenants clamor to capture the captive residential and daytime population audience. Ideally situated in south Arlington along highly trafficked I-20 (195,167 VPD) corridor, Uncle Julio’s is located within an established retail corridor. The Property serves as a key dining destination with a well-known and trusted Tex-Mex restaurant provider. The Property boasts strong corporate level credit and embedded cash flow growth in future options. The lower than average submarket rents coupled with the tenant’s personal investment into their space makes this tenant more secure and the chances of renewing higher. If the tenant were not to renew in 3 years, the under market rent provides the new investor an opportunity to capitalize on the second generation restaurant demand for Arlington and the ability to re-tenant at a higher rate. This favorable rent positioning in the market poises the asset for consistent performance and value appreciation during new ownership’s investment term. Uncle Julio’s is well positioned to retain long-term value with a strong tenant in a desirable Dallas Fort Worth submarket.