SRS Real Estate Partners Facilitates $3.88 Million Ground Lease Sale of Circle K Property in Odessa
TL;DR
SRS Real Estate Partners secured a $3.88 million ground lease sale for a Circle K property, offering investors cash-flowing assets with no landlord responsibilities and scheduled rental increases.
SRS Capital Markets facilitated the sale of a 1.7-acre Circle K property with a 15-year corporate-guaranteed lease, completing a 1031 tax-deferred exchange for the buyer.
This ground lease sale supports the development of a larger retail community including Ford’s Garage and multi-family housing, enhancing local economic growth and amenities.
SRS has sold over half of new construction Circle K properties nationally since 2023, with $1.5 billion in deal volume this year alone.
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SRS Real Estate Partners has completed the $3.88 million ground lease sale of a Circle K property located at the northwest corner of SR-54 and Asturian Parkway in Odessa, Florida. The transaction involved the land ownership of a 1.7-acre site featuring a 5,200-square-foot property with a new 15-year corporate-guaranteed lease in place.
SRS Capital Markets Senior Managing Principal Patrick Nutt and Executive Vice President & Principal William Wamble represented the seller, a Florida-based private developer. The buyer was a private investment entity controlled by family members residing in California and Florida, with the purchase executed to complete a 1031 tax-deferred exchange, a strategy that allows investors to defer capital gains taxes by reinvesting proceeds from property sales into similar assets.
The Circle K property is part of a larger retail development that will include Ford's Garage, a three-tenant retail property, planned multi-family units, office space, and additional commercial components. This comprehensive development approach enhances the property's long-term value and stability within the growing Odessa market.
Patrick Nutt emphasized the investment appeal of ground-leased Circle K assets, stating they are considered a gold standard for investors seeking cash-flowing properties with no landlord responsibilities and scheduled rental increases. Nutt noted that SRS has been highly active with the Circle K brand, having sold more than half of the new construction Circle K properties nationally since 2023.
The transaction reflects broader trends in commercial real estate investment, particularly the demand for properties with strong corporate guarantees and predictable income streams. Ground leases provide investors with stable returns while transferring property maintenance and operational responsibilities to the tenant, making them attractive for passive investment strategies.
This sale contributes to SRS Capital Markets' significant transaction volume, which has exceeded $1.5 billion through more than 400 transactions nationwide this year. The firm currently has over 845 properties actively on the market with a total market value surpassing $3.7 billion, demonstrating its substantial presence in the commercial real estate sector. The successful completion of this transaction underscores the continued investor confidence in essential retail properties and the effectiveness of 1031 exchange strategies in portfolio management.
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