Just Sold: Cheddar’s Scratch Kitchen in Tampa, FL

Ground + Space today announced the sale of a Cheddar’s Scratch Kitchen property in Tampa, Florida. Michael Zimmerman exclusively marketed the property, which received multiple offers and was finally sold to an all-cash 1031 buyer. Founded in 1979, Cheddar’s Scratch Kitchen is now owned by Darden Restaurants, Inc. (NYSE: DRI).

This property is a prime example of a stable, income-producing asset that requires no landlord maintenance. The Tire Choice’s Ground lease features a corporate guarantee, multiple five-year renewal options and scheduled rental increases. This asset is prominently positioned along North Dale Mabry Highway and benefits from extraordinary traffic counts in excess of 74,500 vehicles per day.

Cheddar’s Scratch Kitchen sits near numerous national retailers, including Outback Steakhouse, Barnes & Noble, Dunkin’, Starbucks and Carrabba’s Italian Grill. The property is also near the Publix-anchored Carrollwood Shopping Center. The area immediately surrounding the property is within the Greater Tampa Bay area and has seen population growth over the past decade of nearly 45 percent. The proximity of The Port of Tampa and Tampa International Airport make the area an easily accessible, popular destination in Florida for tourists and business visitors alike.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. During these uncertain times, Ground + Space remains dedicated to providing best-in-class services and results to our clients. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. Contact us today to find out more!

COVID-19 Impact on CRE

As the nation works to combat the effects of COVID-19 (the novel coronavirus), there does appear to be some relief in sight for those with commercial real estate investments. In early April, the Internal Revenue Service (IRS) released extended guidance on its earlier decision to extend the country’s tax payment deadline to July 15, 2020. This additional guidance will allow individuals in 1031 exchanges extra time to do identify a replacement property.

What is a 1031 exchange?

Simply put, a 1031 exchange allows investors of commercial property to transfer ownership from one space to another without having to pay taxes. This vehicle for investment allows investors to make real capital gains on their commercial real estate property via exchanging properties that increase in value over time.

How is COVID-19 impacting 1031 exchanges?

Under the new IRS guidance, investors now have more time to both identify and acquire replacement properties within a 1031 exchange. Previously, an investor had 45 days to complete the identification and acquisition processes. The new deadline guidance is as follows:nIf the identification deadline falls between April 1, 2020 and July 15, 2020, the new deadline is July 15, 2020. Likewise, if the 180-day purchase deadline falls between April 1, 2020 and July 15, 2020, the new deadline is July 15, 2020.

The altered guidance will impact both investors and brokers working through the 1031 exchange process. The deadline extensions will help investors avoid some of the immediate impacts of the various shelter-in-place orders. Likewise, there is not as much pressure on investors to identify properties that will close quickly, as opposed to properties that meet specific investment goals.

How can Ground + Space help?

The team at Ground + Space remain committed to providing best-in-class services to our clients during the COVID-19 pandemic and beyond. For more information and customized guidance on how you can leverage your investment for tax incentives, please reach out to Michael Zimmerman and Brett Sheldon.

Are you in a 1031 exchange or interested in maximizing your return on a commercial real estate investment? Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. Contact one of our team members today to find out more about our current listings. Also, you can sign up for our mailing list to stay updated on all we have to offer.