The Boulder Group Arranges Sale of PNC Bank Ground Lease

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant PNC Bank Ground Lease located at 6616 Crossings Drive SE in Walker, Michigan (Grand Rapids MSA) for $1,490,000.

The 42,055 square foot PNC Bank property is strategically positioned at a signalized intersection along Kalamazoo Avenue. Kalamazoo Avenue is a primary north-south thoroughfare in the trade area. The property is benefitted by its immediate proximity to Michigan Highway 6 (the Paul B. Henry Freeway) which experiences traffic volumes of approximately 55,000 vehicles per day. The PNC Bank is centrally located within a vibrant retail corridor which features Target, Meijer, Walgreens, Rite Aid, Staples and Family Fare Supermarket.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest based real estate investment company.  The buyer was a Midwest based private investment group.

There are 22 years remaining on the original 30 year PNC Bank ground lease. The ground lease expires in February 2039 and features 10% rental escalations in the primary term and in each renewal option period. There are absolutely no landlord responsibilities. PNC is the fifth largest bank in the United States (total branches) with more than 2,700 branches and 7,400 ATM machines. PNC Bank is an investment grade rated company (S&P: A-) and is a publicly traded company on the New York Stock Exchange (Symbol: PNC).

“The market for long term ground leases remains active as these assets are highly sought after amongst private investors” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “While the majority of single tenant investment activity is focused on core markets, we are starting to see investors focus primarily on the quality of the tenant.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $4 billion of single tenant net lease real estate transactions. From 2011-2016, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com

The Boulder Group Publishes Net Lease Big Box Research Report

The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the recent activity in the National Net Lease Big Box Market.

Highlights from the report are as follows:

• A 42 basis point increase in cap rates for big box properties from the fourth quarter of 2015 to the fourth quarter of 2016
  
  
• Investment grade big box properties are priced at a 15 basis point premium over non-investment grade big box properties
  
  
• Big box properties are priced at a 31 basis point discount when compared to the entire net lease retail market

The full report can be viewed online at http://www.bouldergroup.com/media/pdf/Q4-2016-Net-Lease-Big-Box-Report.pdf

 

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $4 billion of single tenant net lease real estate transactions. In 2011-2016, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. More information on the firm can be found on The Boulder Group’s website at www.bouldergroup.com

The Boulder Group Arranges Sale of Triple Net Lease Dollar General

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction Dollar General located at 21080 Highway 167 in Dry Prong, Louisiana for $1,326,031.

The 9,014 square foot Dollar General building is strategically located along Louisiana Highway 167 which is the primary north-south thoroughfare in the trade area. The property is located approximately ten miles north of Alexandria. The Alexandria MSA has a population of 155,000 people.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a local Louisiana based developer.  The purchaser was a Southwest private partnership.

The Dollar General lease has 14 years remaining and expires November 2016. The absolute triple net lease features no landlord responsibilities and 10% rental escalations in each of the three 5-year renewal option periods.  Dollar General is an investment grade rated company with a Standard & Poor’s rating of BBB. As of March 23, 2016, Dollar General operated 12,483 stores located in 43 states.

 “New construction properties with long term leases to investment grade tenants with rental escalations are the most sought after net lease product” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “The market for new construction net leased dollar stores remains active as these assets are in high demand among private investors.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $4 billion of single tenant net lease real estate transactions. From 2011-2016, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com

The Boulder Group Arranges Sale of Single Tenant Net Leased Walgreens

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 1703 Park Avenue in Muscatine, Iowa for $3,639,000.

The 15,120 square foot Walgreens property is strategically located at the signalized intersection of Park Avenue and Harrison Street.  Park Avenue is the primary north-south thoroughfare in the area. The property features multiple points of ingress and egress and is easily accessible in all directions.  The Property is surrounded by a number of national retailers ranging from fast food restaurants such as McDonald’s and Wendy’s to shopping destinations like Hy-Vee and Younkers, consistently attracting customers to the area.

Randy Blankstein and John Feeney of The Boulder Group represented the buyer in the transaction; a Midwest based private real estate investor.  The seller was a real estate investment trust.

There are approximately 12 years remaining on the Walgreens lease which expires in July 2028. The lease features eight 5-year renewal option periods. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB.

“The market for Walgreens properties remains active as investors are attracted to investment grade rated companies with long term leases.” said Randy Blankstein, President of The Boulder Group.  John Feeney, Vice President of The Boulder Group, added, “Net lease properties with longstanding operating histories are highly sought after amongst the investment community.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $4 billion of single tenant net lease real estate transactions. From 2011-2016, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com

The Boulder Group Arranges Sale of Triple Net Leased Dollar General

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction Dollar General located at 9443 Highway 1 in Natchez, Louisiana for $1,484,000.

The 9,014 square foot Dollar General building is strategically located along Louisiana Highway 1 which is the primary north-south thoroughfare in the trade area. The property is located approximately forty miles north of Alexandria.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a local Louisiana based developer.  The purchaser was a southern based private investor.

The Dollar General was constructed in 2015. There are fourteen years remaining on the Dollar General lease which expires on May 31, 2030. The lease features 10% rental escalations in each of the three 5-year renewal option periods. This absolute triple net lease features no landlord responsibilities. Dollar General is an investment grade rated company with a Standard & Poor’s rating of BBB. As of March 23, 2016, Dollar General operated 12,483 stores located in 43 states.

“The market for new construction net leased dollar stores remains active as these assets are in high demand among private investors” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “New construction properties with long term leases to investment grade tenants with rental escalations are the most sought after net lease product.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $3 billion of single tenant net lease real estate transactions. From 2010-2015, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by CoStar and Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com

The Boulder Group Publishes 4th Quarter Net Lease Market Research Report

The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the 4th quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

• Cap rates for net leased retail properties increased for the first time since Q3 2013
  
  
• Cap rates for net leased office remained at last quarter's level while industrial properties increased by 3 basis points
  
  
• Overall property supply of retail, office and industrial net lease assets decreased by approximately 8% from Q3 2016 to Q4 2016

The full report can be viewed online at http://www.bouldergroup.com/media/pdf/2016-Q4-Net-Lease-Research-Report.pdf

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $4 billion of single tenant net lease real estate transactions. In 2011-2016, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. More information on the firm can be found on The Boulder Group’s website at www.bouldergroup.com  

The Boulder Group Arranges Sale of Single Tenant Net Lease First Mid-Illinois Bank Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant First Mid-Illinois Bank & Trust property located at 300 South Division Street in Carterville, Illinois for $1,075,000.

The 2,602 square foot building is strategically positioned just off of the signalized intersection of Division Street and Grand Avenue. Division Street is the primary north-south thoroughfare in the trade area while Grand Avenue is a primary east-west thoroughfare.  The First Mid-Illinois Bank & Trust property is located approximately two miles northeast of the John A. Logan College which is part of the Illinois Community College System with approximately 7,500 students. There are over 26,000 people living within a five mile radius of the property.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest based private investment trust. The purchaser was a Midwest based 1031 Exchange investor.

There are approximately six years remaining on the net lease which expires in October 2022. The lease features annual rental escalations and zero landlord responsibilities. The bank was first chartered in 1865 and has since grown into a more than $2 billion community-focused organization that provides financial services through a network of 46 banking centers in 33 Illinois communities. First Mid-Illinois Bank & Trust is a publicly traded company (NASDAQ: FMBH).

“Net lease properties with high yields due to shorter term leases are highly sought after amongst the investment community.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Single tenant assets leased to banks are difficult to find priced in the million dollar range.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $3 billion of single tenant net lease real estate transactions. From 2010-2015, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by CoStar and Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com