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.”
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