| Purchase Price | $2,820,000 |
|---|---|
| Annual Rental Income | $210,000 |
| Cap Rate | 7.45% |
| Lease Term | 14 Years |
| City | Wichita Falls |
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Harbor Freight Tools – Wichita Falls, Texas | Net Lease Investment in a Resilient Texas Metro
This offering presents a compelling opportunity to acquire a net-leased investment property backed by Harbor Freight Tools, a nationally recognized and rapidly expanding value-focused hardware and tool retailer. The asset is located in Wichita Falls, Texas, a stable and strategically positioned regional metro area serving as a hub for North Central Texas. The tenant operates under a long-term lease structure with limited or no landlord responsibilities, and the location is supported by strong market fundamentals including dense working-class demographics, regional employment anchors, and a favorable tax and regulatory environment.
Harbor Freight Tools continues to execute an aggressive national expansion plan targeting middle-income, service-based metros like Wichita Falls—areas with a high concentration of tradespeople, military contractors, and homeowners who seek affordable, quality tools and equipment. This site offers long-term stability through a corporate-backed lease, passive income potential for investors, and alignment with Harbor Freight’s core customer base.
Whether for 1031 exchange, cash preservation, or long-term hold within a diversified real estate portfolio, this single-tenant asset represents a durable, recession-resistant investment in the heart of Texas.
Tenant Overview – Harbor Freight Tools
Founded in 1977, Harbor Freight Tools is a privately held, nationally recognized discount tool and equipment retailer headquartered in Calabasas, California. It operates over 1,400 retail stores in 48 states and serves more than 40 million customers annually. The company has cultivated a strong reputation among professional tradespeople, contractors, and DIY homeowners by offering high-quality tools at low prices.
Key operational facts:
Harbor Freight’s growth strategy focuses on locating stores in underserved trade areas where it can capture value-conscious consumers and underserved professional markets. Its ability to succeed in tertiary and secondary metros has helped differentiate it from competitors, contributing to its long-term retail sustainability.
Lease Overview – Corporate-Backed Net Lease with Minimal Landlord Obligation
The property is leased directly to Harbor Freight under a net lease structure, offering a passive income profile that minimizes investor involvement. These leases are generally backed by Harbor Freight’s corporate entity, which carries a strong private credit profile and a history of store profitability.
Typical lease terms include:
This lease format is especially appealing to investors who seek stable, long-term income with little to no oversight or capital expenditure risk. It aligns well with retirement planning, 1031 exchanges, estate planning, and other passive investment strategies.
Market Overview – Wichita Falls, Texas
Wichita Falls is a mid-sized city located in North Central Texas, near the Oklahoma border, with a metro population approaching 150,000. The city functions as a regional economic hub for multiple surrounding counties and supports a strong base of healthcare, education, light industrial, and military employment.
Economic and demographic highlights:
The city continues to benefit from both organic population growth and demand spillover from the larger DFW region. Its affordability, central location, and essential infrastructure attract working-class and middle-income families, which represent the core customer base for Harbor Freight.
Submarket Characteristics – Local Retail Trade Area
Harbor Freight stores thrive in regional retail trade areas surrounded by middle-income consumers, commercial contractors, auto repair shops, and small business operators. The Wichita Falls location is situated in a retail-heavy corridor with high daily traffic counts, strong visibility, and proximity to grocery, discount, and home improvement co-tenants.
Typical submarket and trade area features include:
The property’s location allows Harbor Freight to serve both consumer walk-ins and high-volume repeat business from local tradespeople, mechanics, handymen, and service professionals. This consistent, year-round demand makes the site highly resistant to economic downturns or retail cannibalization.
Property Features – Retail-Oriented, Efficient Layout
Harbor Freight’s typical site layout is built for efficiency, low overhead, and customer accessibility. Stores are typically located in existing or repurposed box retail buildings with open interior layouts that support easy navigation and high SKU density.
Common physical attributes include:
These physical traits support the operational model of rapid fulfillment, frequent customer visits, and repeat contractor traffic, contributing to long-term tenant viability.
Investment Considerations – Why Harbor Freight in Wichita Falls Works
This net-leased Harbor Freight offering combines tenant quality, market fundamentals, and lease structure in a way that checks the boxes for both private and institutional buyers.
Key investment highlights:
Harbor Freight continues to grow store count annually by 60 to 100 locations and specifically targets metros like Wichita Falls that offer low competition, strong contractor density, and low real estate acquisition costs. This store fits that profile and reflects the tenant’s disciplined market strategy.
Conclusion
This Harbor Freight Tools property in Wichita Falls, Texas offers investors the opportunity to acquire a passive income-producing asset occupied by a national credit tenant. The combination of a corporate net lease, strong real estate fundamentals, and an essential-use retail category provides excellent long-term value stability. Located in a strategic Texas market with recession resilience and expanding population, the asset is well-positioned to deliver consistent returns and tenant longevity.
As institutional capital continues to chase net lease retail for its income stability and risk-adjusted returns, demand for brand-aligned assets like this will only increase. Whether for generational wealth planning, portfolio diversification, or exchange placement, this offering stands out as a secure, predictable, and scalable investment in one of the most landlord-friendly states in the country.