Net Lease: June 2012

Friday, June 29, 2012

The Boulder Group Arranges the Sale of a Net Leased Walgreens Property in El Reno, OK (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 1550 SW 27^th Street in El Reno, OK for $4,887,000.

Walgreens is the sole occupant of the 13,650 square foot retail building that was developed in 2009. The property is located on a 1.6 acre parcel in the primary retail trade area of El Reno, OK. Walgreens is located directly across from a Wal-Mart Supercenter. The property is less than one-quarter mile from a full interchange with Interstate 40 where traffic volumes are in excess of 26,000 vehicles per day. The property is fully leased to Walgreens with twenty-two years of lease term remaining.

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

Walgreens has twenty-two years of lease term remaining on an original 25 year lease. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $27 Billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A.

“The net leased Walgreens market remains active as investors are attracted to investment grade rated companies with over 20 years of lease term remaining” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Private buyers are continually paying premiums for long term leased Walgreens properties due to the stable income stream the properties offer as an alternative investment.”

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 $1.4 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

Thursday, June 28, 2012

The Boulder Group Arranges Sale of a Triple Net Leased Budget Rent a Car Property in Oak Lawn, Illinois (Chicago MSA)

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Budget Rent a Car property located at 8940 S. Cicero Avenue in Oak Lawn, IL for $1,135,000.

Budget is the sole occupant of the 2,500 square foot retail building that was developed in 1985. The property is located on a 29,519 square foot parcel along Cicero Avenue in Chicago, IL. Cicero Avenue is a heavily trafficked roadway with 48,000 vehicles passing the property daily. The property has over 230 feet of frontage along Cicero Avenue. The property is fully leased to Budget Rent a Car with four years of lease term remaining and has two renewal option terms remaining.

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

Budget Rent a Car has four years of lease term remaining on an original fifteen year lease. The Avis Budget Group is a publicly traded company on the NASDAQ Stock Market (CAR), with a market capitalization of $1 Billion. The Avis Budget Group has 10,000 locations and employs 28,000 people.

“The market for single tenant properties with shorter term leases is becoming more active as investors are attracted to the high yield these properties generate” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “While single tenant properties are selling in all types of locations; core markets, like Chicago, are at the forefront of investor demand.”

Wednesday, June 13, 2012

The Boulder Group Arranges Sale of a $68.7 million Walgreens Portfolio (9 Properties) on the East Coast

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens portfolio consisting of nine properties located on the east coast for $68,700,000. The properties are located in Connecticut, Massachusetts, New Hampshire and New Jersey.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private investment company, in the transaction. The buyer, a Midwest based institutional investment firm, was represented in-house.

The portfolio included the following Walgreens properties:

1. 980 Farmington Avenue in Berlin, CT (Hartford MSA)

2. 1036 West Main Street in Branford, CT

3. 880 North Montello Street in Brockton, MA (Boston MSA)

4. 1 Glenwood Avenue in Dover, NH

5. 17 Crystal Avenue in Derry, NH

6. 897 Main Street in Melrose, MA (Boston MSA)

7. 20 West Kings Highway in Mount Ephraim, NJ (Philadelphia MSA)

8. 1131 US Highway 46 in Ledgewood, NJ (New York MSA)

9. 500 Egg Harbor Road in Sewell, NJ (Philadelphia MSA)

The Boulder Group generated multiple offers for this portfolio due to the high demand for core net leased properties combined with the long term Walgreens leases. This portfolio attracted an abundance of investors as this was a rare opportunity to purchase a highly concentrated portfolio in one region leased to an investment grade tenant. The majority of the interest was among high net worth individuals, international investors, 1031 exchange trade buyers, and institutions. Ultimately an institutional investor was the most aggressive bidder as the portfolio provided an ideal acquisition for their existing criteria.

“This portfolio represented a rare opportunity for an investor to acquire a large portfolio of long term triple net leased Walgreens properties and we were able to achieve a sale price within one percent of the asking price.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Walgreens properties with over 20 years of lease term are one of the most sought after assets in the single tenant net lease market, and we had strong demand for this portfolio.”