2 sale-leasebacks completed in TX

Real Estate Weekly, Feb 10, 1993

Helmsley-Spear, Inc. has announced the sale of two newly-constructed Kmart department store properties located in Texas.

The all-cash transactions were completed by a leading New York investment group for in excess of $9 million. David R. Topping, vice president of Helmsley-Spear, represented the owner.

The sale involved both a 96,000-square-foot store located in Mission, Tex. and a 91,000-square-foot store in McAllen, Texas. The properties were sold subject to long-term, triple-net leases with Kmart Corporation.

A sale-leaseback provides an owner with a predictable stream of income over a long term and additionally releases the owner from any management liability. A triple-net lease allows the tenant/user long-term operating control of the property as well as the responsibility for payment of taxes, capital improvements, maintenance and repairs.