Net Lease: May 2013

Thursday, May 30, 2013

The Boulder Group Arranges Sale of a Fifth Third 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 Fifth Third Bank ground lease located at 240 Skokie Boulevard in Northbrook, Illinois for $3,925,000.

Fifth Third Bank is the sole occupant of the 4,100 square foot retail building that was developed in 2004. The property is located on a 1.17 acre parcel along Skokie Boulevard, which experiences traffic volumes in excess of 21,000 vehicles per day. Additionally, the property is located one-quarter mile from the Lake Cook Road and Interstate 94 interchange. Interstate 94 experiences traffic volumes in excess of 126,000 vehicles per day. Northbrook is an affluent northern Chicago suburb with above average household incomes. Fifth Third also benefits from having multiple drive-thru lanes and a drive-thru ATM. The property is located in the primary retail trade area in close proximity to multiple national tenants. The Village Square of Northbrook Shopping Center is located directly across from the property and features retailers Trader Joe’s, Nordstrom Rack, Saks Fifth Avenue (Off 5^th), Loehmann’s, Marshalls and PetSmart. The lease had fifteen years remaining at the time of sale and features multiple rental escalations in the primary term. Furthermore, the regional mall, Northbrook Court, is less than a mile west of the property and is anchored by Neiman Marcus, Macy’s and AMC Theaters.

Fifth Third Bank is a publicly traded company on the NASDAQ (FITB), with a market capitalization of $14 billion. Fifth Third Bank is an investment grade company with a Standard & Poor’s rating of BBB.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both the buyer and seller in the transaction; The seller was a Midwest based private partnership and the buyer was an east coast based 1031 Exchange investor.

“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

Thursday, May 16, 2013

The Boulder Group Publishes Net Lease Bank Research Report

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

Highlights from the report are as follows:

Net Lease Bank Ground Lease properties cap rates continue to compress
Bank Ground Lease cap rates are lowest in the net lease market
Wells Fargo properties command the best pricing among all banks

The full report can be viewed online at http://www.bouldergroup.com/2013 Net Lease Bank Report.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 $1.6 billion of net lease real estate transactions through several real estate cycles. In 2012, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by Real Capital Analytics. 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

Thursday, May 9, 2013

The Boulder Group Arranges Sale of a Net Leased Family Dollar Property in Jeffersonville, OH

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a net leased Family Dollar property located at 300 State Street in Jeffersonville, Ohio for $768,000.

The 8,000 square foot building is located along State Street and benefits from its location near Interstate 71. State Street has a direct access interchange with Interstate 71. The Prime Outlets Jeffersonville are located approximately three miles from the property and include retailers Coach, Kate Spade, J.Crew, Polo Ralph Lauren, Nike Factory, and Pottery Barn. The building is leased to Family Dollar on a net lease basis with four years of lease term remaining. Family Dollar is an investment grade rated company with a Standard & Poor’s rating of BBB- and has over 7,400 stores nationwide.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the purchaser in the transaction. The buyer was a private purchaser based in California and the seller was a private real estate fund.

“The market for net leased Family Dollar properties 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 Family Dollar properties are at an all-time low as their absolute dollar amount per property is attractive to multiple types of investors within the net lease sector.”

Tuesday, May 7, 2013

The Boulder Group Arranges the Sale of an $2.3 Million Single Tenant Net Leased Home Depot Office Building in the Dallas MSA

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a net leased Home Depot office building located at 2951 Kinwest Parkway, Irving, Texas for $2,230,000.

The 18,583 square foot Home Depot property was built in 1985 and renovated in 2006 & 2012. The property is located in the upscale development of Las Colinas which contains 23 million square feet of office space, as well as 1.3 million square feet of retail, 8.9 million square feet of light industrial, 4,220 hotel rooms, 4,630 single family homes and 13,900 multifamily homes. The lease features multiple 10% rental escalations in the primary term of the lease. The building is fully leased to Home Depot on a net lease basis with approximately six years of lease term remaining.

Home Depot is an investment grade rated company with a Standard & Poor’s rating of A- and has a market cap of $105 billion. Home Depot has approximately six years remaining on an original eight year net lease. Home Depot is a publicly traded company on the New York Stock Exchange (HD), with a market capitalization of $105 billion.

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

“The market for single tenant office buildings leased to investment grade rated tenants remains robust as these assets are in high demand among investors.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Despite the shorter lease term of this asset, the transaction was fulfilled due to the credit quality of the tenant and its prime location in a major market.”