Net Lease: January 2012

Wednesday, January 25, 2012

The Boulder Group Arranges Sale of a Single Tenant Net Leased CVS Property in Trotwood, Ohio

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CVS property located at 1001 East Main Street in Trotwood, OH for $1,950,000.

CVS is the sole occupant of the 10,722 square foot retail building that was developed in 1996. The property is located on a 1.18 acre parcel at the northeast corner of Main Street and Olive Road in Trotwood, OH. The property is benefitted by its position on a hard corner of a signalized intersection. The property has curb cuts for ingress and egress on both Main Street and Olive Road. Nearby retailers include Target, The Home Depot, Lowe’s, Kmart and Burlington Coat Factory. The property features a newly renewed twenty five year lease with CVS in a location with a proven sales history.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Texas based investment firm, in the transaction. The buyer was a New York based 1031 exchange investor.

CVS has a new twenty-five year double net lease at this property. CVS is a publicly traded company on the New York Stock Exchange (CVS), with a market capitalization of $50 Billion. CVS is an investment grade rated company with a Standard & Poor’s rating of BBB that has over 7,300 stores nationwide.

“The market for CVS properties remains active as investors are attracted to investment grade tenanted properties with long term stable income streams” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “1031 exchange buyers continue to pay a premium for assets that meet their dollar requirements. This twenty-five year leased CVS property generated an abundance of activity due to the fact it was priced near $2 million.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in 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 more than $1.2 billion of net lease real estate transactions through several real estate cycles. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com

Friday, January 20, 2012

The Boulder Group Arranges Sale of an Advance Auto Parts Property in Machesney Park, Illinois (Rockford MSA)

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Advance Auto Parts property located at 1535 West Lane Road in Machesney Park, IL for $1,520,000.

Advance Auto Parts is the sole occupant of the 6,124 square foot retail building that was developed in 2011. The property is located on a 30,685 square foot parcel and is part of the 26 acre Willow Creek Retail Center developed by The Orput Companies. Machesney Park is located in the northwest portion of the Rockford MSA. Rockford is the third largest city in Illinois and the largest city outside of the Chicago MSA. The property featured a newly constructed building combined with a long term lease in a prime location within the retail trade area.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, Orput Companies, in the transaction. The buyer was a California based private investment firm.

Advance Auto Parts had fourteen years of lease term remaining on an original fifteen year double net lease with a rental escalation in the primary term. Advance Auto Parts is a publicly traded company on the New York Stock Exchange (AAP), with a market capitalization of $4 Billion. Advance Auto Parts is an investment grade rated company with a Standard & Poor’s rating of BBB- that has over 3,500 stores nationwide.

“The market for net leased Advance Auto Parts properties remains strong as investors are attracted to investment grade tenanted properties with long term leases” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “There are limited property options for the private buyers seeking investment grade companies with new fifteen year leases, therefore there was tremendous activity for this asset and the property closed at full asking price.”

Thursday, January 19, 2012

The Boulder Group Arranges the Sale of a Single Tenant Net Lease Pamida Property in Sisseton, SD

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Pamida property located at 1712 Highway 10 in Sisseton, South Dakota for $2,009,000.

Pamida is the sole occupant of the 32,000 square foot retail building that was developed in 2008. The property is located at the southeast corner of Highway 10 and Sherman Street in Sisseton, SD. Sisseton is a city on the Lake Traverse Indian Reservation in Roberts County, South Dakota. The property features a recently constructed Pamida that combines a long term lease with a store that has strong sales volumes.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction; the seller was a Midwest based developer and the buyer was a private buyer based in California.

Pamida has twelve years of lease term remaining on an original fifteen year triple net lease. Pamida is a regional retailer that was founded in 1963 and has over 200 stores nationwide. The company has sales of over $800 million in 2010 and is owned by the private investment firm of Sun Capital partners. The company recently merged with Shopko in 2012.

“The Midwest net lease market remains strong for corporately guaranteed single tenant properties with ten or more years of lease term remaining.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “As there is a lack of newly developed lower yielding core assets in the market, net lease investors are diversifying portfolios in order to take advantage of the yields derived from non-investment grade tenants in secondary and tertiary markets.“

The Boulder Group Arranges Sale of a Single Tenant Net Leased Walgreens Property in Moore, Oklahoma (Oklahoma City MSA)

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 1229 North Eastern Avenue in Moore, OK for $3,482,000.

Walgreens is the sole occupant of the 15,120 square foot retail building that was developed in 2001. The property is located on a 1.41 acre parcel at the southeast corner of 12^th Street and Eastern Avenue in Moore, OK. Moore is located in the northwest portion of Cleveland County and located about 12 miles south of Oklahoma City. The property featured an attractive high yield for a net leased Walgreens asset combined with close proximity to Interstate 35 and a prime location on the hard corner of a signalized intersection in the Oklahoma City MSA.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, an Oklahoma developer, in the transaction. The buyer was a Midwest based high net worth individual.

Walgreens has ten years of lease term remaining on an original 20 year double net lease. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $39.9 Billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A that has over 7,700 stores nationwide.

“The market for higher yielding net leased Walgreens remains active as investors are attracted to investment grade tenanted properties in locations that have strong renewal probability” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “There has been a recent increase in demand for vintage Walgreens with strong sales allowing investors to achieve higher yields and diversify their net lease portfolios.”

Monday, January 16, 2012

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 4^th quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

Net lease property cap rates compressed across the board
The majority of net lease investors surveyed believe volume will be up at least 5% this year
Drugstore, Bank and Ground Leased properties remain sought after assets
The supply of net leased assets continues to increase

The full report can be viewed online at http://www.bouldergroup.com/research.html

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 more than $1.2 billion of net lease real estate transactions through several real estate cycles. 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

Wednesday, January 4, 2012

Triple Net Leased Walgreens Property in Mount Pleasant, SC Sale Arranged by The Boulder Group

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 2903 North Highway 17 in Mount Pleasant, SC for $7,375,000.

Walgreens is the sole occupant of the 14,500 square foot retail building that was developed in 2011. The property is located at the northwest corner of Highway 17 and Highway 41 in Mount Pleasant, SC in the eastern suburbs of the Charleston MSA. Mount Pleasant is an affluent suburb of Charleston and average household incomes within three miles of this property are $124,000. The property features a newly constructed Walgreens that combines zero landlord responsibilities with a new twenty-five year lease.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer; a 1031 exchange investor based in Chicago, in the transaction. The seller was a southeast based developer.

Walgreens has twenty five years of lease term remaining on triple net lease. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $39.9 Billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A that has over 7,700 stores nationwide. “The market for newly constructed Walgreens remains active as investors remain focused on long term leased investment grade tenanted properties.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “1031 exchange investors continue to pay a premium for single tenant Walgreens properties as they are considered one of the most stable single tenant real estate investment options. “

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in 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 more than $1.2 billion of net lease real estate transactions through several real estate cycles. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com