The Boulder Group Arranges Sale of a Single Tenant Trader Joe’s at a Record Cap Rate

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a single tenant Trader Joe’s in the Milwaukee MSA located at 2705 West Bluemound Road, Brookfield, Wisconsin for $4,782,609. The single tenant Trader Joe’s asset sold for a 5.75% cap rate, which is the lowest cap rate transaction for a freestanding Trader Joes in 2012.

Trader Joe’s is the sole occupant of the 12,500 square foot retail building that was developed in 2012 as an outparcel to a new Target. The property is located on a 1.80 acre parcel in Underwood Crossing; a newly constructed Target anchored shopping center in Brookfield, Wisconsin. The property is located along Bluemound Road, a primary east-west thoroughfare that experiences traffic volumes in excess of 41,000 vehicles per day. The regional trade area also features two regional malls, Brookfield Square Mall and Mayfair Mall, totaling over 2 million square feet featuring anchor tenants Macy’s, Sears, Bed Bath & Beyond and PetSmart. Brookfield is a well-populated area with approximately 250,000 people living within five miles of the subject property. Residents living within one mile of the subject property enjoy average household income in excess of $100,000.

Trader Joe’s is a privately held chain of specialty grocery stores with over 375 locations in 31 states.  The company is owned by a trust set up by Theo Albrecht, a founder of German grocery chain Aldi. The newly developed Trader Joe’s has a primary lease term of ten years.

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

“Trader Joe’s is one of the only private companies that is able to achieve a cap rate below 6%, due to their unique business model and historically high gross sales per square foot.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Activity for this asset was above average as grocery related single tenant assets in major markets are in the greatest demand.”

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

The Boulder Group Arranges Sale of a Chase Bank Ground Lease in the Chicago MSA

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a single tenant Chase Bank ground lease located at 4001 167^th Street, Country Club Hills, Illinois for $2,290,000

Chase is the sole occupant of the 4,342 square foot retail building that was developed in 2006. The property is located on a 1.25 acre parcel at the southwest corner of South Pulaski Road and West 167^th Street in Country Club Hills, Illinois. The intersection of Pulaski and 167^th experiences traffic volumes in excess of 30,000 vehicles per day. The property is benefitted by its strategic location as an outparcel to a Wal-Mart Supercenter. The lease had 24 years remaining at the time of sale and features multiple rental escalations in the primary term.

Chase Bank is an investment grade rated company with a Standard & Poor’s rating of A+ and has over 5,500 stores nationwide. Chase has twenty-four years of lease term remaining on an original 30 year triple net ground lease. Chase is a publicly traded company on the New York Stock Exchange (JPM), with a market capitalization of $151 billion.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller; a Midwest based private partnership, in the transaction. The buyer was a Colorado based private individual in a 1031 exchange.

 “The market for bank ground leases with investment grade tenants remains strong as investors are attracted to the typical long term leases with rental escalations.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Core market single tenant assets with solid real estate fundamentals continue to be in the greatest demand.”

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

As Institutions Enter the Space, Competition Heats Up for Larger-Size Net Lease Deals

 Randy Blankstein, President of net lease advisory firm The Boulder Group discusses the net lease market.


http://nreionline.com/video/net-lease/randy-blankstein/

The Boulder Group Awarded Disposition Assignment of A Net Leased Walgreens Portfolio Valued at $49 Million

The Boulder Group, a national single tenant net lease investment brokerage firm, has been selected as the exclusive advisor for the sale of a Walgreens portfolio consisting of six properties. The properties are located in Massachusetts, Maine, Minnesota, Ohio and South Carolina. The portfolio is being offered on a “free and clear” basis.

The investment sales team will be led by Randy Blankstein and Jimmy Goodman of The Boulder Group who are marketing the portfolio on behalf of a private investment company. The single tenanted portfolio is listed for sale with an asking price of $49 million and there is no debt that needs to be assumed. Each property is fully leased to Walgreens on a long term basis with an average lease term of 21 years.

The portfolio includes the following Walgreens properties:

1.   4755 West Broad Street, Columbus, OH (Columbus MSA)

2.   720 Main Street, Clinton, MA

3.   32 Main Street, Lakeville, MA (Boston MSA)

4.   268 Main Street, Belfast, ME

5.   1537 Charleston Hwy, West Columbia, SC (Columbia MSA)

6.   1112 Civic Center Drive, Rochester, MN

“This portfolio represents a rare opportunity for an investor to acquire a large portfolio of long term triple net leased Walgreens properties” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “We anticipate similar strong demand for this portfolio as The Boulder Group was the exclusive advisor for a Walgreens portfolio disposition valued at $68.7 million that sold in June 2012.”

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 $1.4 billion of net lease real estate transactions through several real estate cycles. More information on the firm can be found at www.bouldergroup.com