The Boulder Group Arranges Sale of an Associated Bank Ground Lease in Machesney Park, IL

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a single tenant Associated Bank ground lease located at 622 Machesney Road, Machesney Park, Illinois for $1,180,000.

Associated Bank is the sole occupant of the 3,358 square foot retail building that is located on a 1.08 acre parcel. The property is located within Machesney Park Town Center, a JCPenney, Big Lots, Burlington Coat Factory and Bergner’s anchored shopping center. Associated Bank had a long standing operating history as this location as Associated Bank had exercised all of its prior lease renewal options. The ground lease was extended an additional twenty years and features multiple rental escalations in the primary term.

Associated Bank is an investment grade rated company with a Standard & Poor’s rating of BBB+ and has over 240 locations. Associated Bank has twenty years of lease term remaining on an original twenty-one year triple net ground lease. Associated Bank is a publicly traded company on the NASDAQ (ASBC), with a market capitalization of $2 billion.

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

“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, “High net worth individuals are attracted to net leased assets as they over a more favorable return then most financial securities.”

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 $1.6 billion of net lease real estate transactions through several real estate cycles. The firm was ranked in the Top 10 companies in the nation for single tenant retail transactions in 2012 by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com

The Boulder Group Arranges Sale of a TCF Bank Ground Lease in the Minneapolis MSA

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a single tenant TCF Bank ground lease located at 6501 Richfield Parkway, Richfield, Minnesota for $2,869,000.

TCF Bank is the sole occupant of the 4,500 square foot retail building that was developed in 2007. The property is located on a 1.01 acre parcel within Cedar Point Commons, a Target and Home Depot anchored shopping center. Cedar Point Commons is located off Highway 77 at the intersection of 66th Street and Richfield Parkway. The property is located approximately two miles north of the Mall of America and an IKEA in a dense area with over 300,000 people living within five miles of the property. There are high barriers to entry in the area as the land directly across Highway 77 is used for the Minneapolis/St. Paul International Airport. The lease had fifteen years remaining at the time of sale and features multiple rental escalations in the primary term.

TCF Bank is an investment grade rated company with a Standard & Poor’s rating of BBB- and has over 430 locations. TCF Bank has fifteen years of lease term remaining on an original twenty year triple net ground lease. TCF Bank is a publicly traded company on the New York Stock Exchange (TCB), with a market capitalization of $2 billion.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller; a Midwest based private developer. The buyer was a West Coast based family trust.

“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 $1.6 billion of net lease real estate transactions through several real estate cycles. The firm was ranked in the Top 10 companies in the nation for single tenant retail transactions in 2012 by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com

The Boulder Group Arranges Sale of a Single Tenant Dollar General Property in the Austin MSA

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a net leased Dollar General property located at 8017 Bronco Lane in Lago Vista, Texas for $770,000.

The 9,014 square foot building is located in a high income area for a Dollar General, as residents earn on average $70,000 annually. The property is located along Bronco Lane and benefits from its location off Ranch Road, a primary thoroughfare in Lago Vista. Nearby retailers include CVS, Ace Hardware and a Lowe’s Market grocery store. Lago Vista is a growing area as evidenced by the city’s approval of a $29.6 million bond for a new high school which will be completed in 2014. The building is leased to Dollar General on a net lease basis with four years of lease term remaining. Dollar General is an investment grade rated company with a Standard & Poor’s rating of BBB- and has over 9,300 stores nationwide.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The buyer was a private partnership based in Texas and the Seller was a Chicago based high net worth individual.

“The market for net leased Dollar Generals is robust as investor demand for investment grade rated properties priced below one million dollars exceeds the supply” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Cap rates for Dollar General properties are at an all-time low as their Standard and Poor’s rating was recently increased to BBB-.”

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 firm was ranked in the Top 10 companies in the nation for single tenant retail transactions in 2012 by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com

Net Lease Market Research Report Released

The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the 1st quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

• Cap rates remain new historic lows across all net lease sectors
• Net lease property supply decreased by more than 17% from Q4
• 70% of active net lease participants expect cap rates to remain unchanged or decline by the end of 2013

The full report can be viewed online at http://www.bouldergroup.com/NLQ1.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 more than $1.4 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 

The Boulder Group Arranges Sale of a Bank of America 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 Bank of America ground lease located at 28301 Diehl Road, Warrenville, Illinois for $3,400,000.

Bank of America is the sole occupant of the 4,500 square foot retail building that was developed in 2003. The property is located on a 1.62 acre parcel within a 650 acre mixed use development. The property is located along Diehl Road and benefits from its location near a Super Target, 30 screen Regal Cinema and Lifetime Fitness. The property is located within an affluent area where residents enjoy household income in excess of $116,000 annually. The lease had eleven years remaining at the time of sale and features multiple rental escalations in the primary term.

Bank of America is an investment grade rated company with a Standard & Poor’s rating of A- and has over 2,600 stores nationwide. Bank of America has eleven years of lease term remaining on an original twenty year triple net ground lease. Bank of America is a publicly traded company on the New York Stock Exchange (BAC), with a market capitalization of $131 billion.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller; a high net-worth individual in the transaction. The buyer was a Chicago 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 firm was ranked in the Top 10 companies in the nation for single tenant retail transactions in 2012 by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com