Net Lease: June 2013

Tuesday, June 25, 2013

The Boulder Group Arranges Sale of a $17.6 Million Single Tenant Shopko Portfolio in Wisconsin

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Shopko portfolio consisting of two properties located in the Midwest for $17,625,000. The properties are located in Sussex (Milwaukee MSA) and Green Bay in Wisconsin.

Each of the properties are fully leased to Shopko on a long term basis. The portfolio offered investors the opportunity to obtain multiple assets with long term leases and rental escalations at an attractive yield. Shopko is the sole occupant of the two 80,000 square foot properties which were developed for Shopko in 2009. Both properties are located on eight acres and leased on a net lease basis with approximately 16 years of lease term remaining. The leases have 10% rental escalations in the primary terms as well as each of option the periods. Shopko and its affiliates are a chain of 300+ retail stores that provide quality name-brand merchandise along with pharmacy and optical services.

The portfolio included the following Shopko properties:

1. 2320 Lineville Road, Green Bay, WI

2. N66 W 25201 County Highway VV, Sussex, WI (Milwaukee MSA)

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

“The Midwest net lease market remains strong for corporately guaranteed single tenant properties with ten or more years of lease term remaining.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “There has been an increase in demand for long-term leased non-investment grade properties, as they generate higher yields than the typical core net lease assets.”

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

Friday, June 14, 2013

Randy Blankstein, President of the Boulder Group, to Speak at National Net Lease Investment Conference

Randy Blankstein, President of national net lease advisory firm The Boulder Group, will be a featured speaker at the National Net Lease Investment Conference in Chicago on July 30th, 2013.

He will be moderating a panel discussing the Single tenant development outlook. Other topics being discussed at the 2^nd Annual Net Lease Investment Conference include a sale leaseback market overview, Joint venture equity for NNN developers, single tenant retailer expansion plans, Research insights on the single tenant market and DST ownership structures.

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 over $1.6 billion of single tenant net lease real estate transactions. 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. The firm’s website is www.bouldergroup.com

Wednesday, June 5, 2013

The Boulder Group Arranges the Sale of a Sonic Drive-In Ground Lease in Columbus, OH

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a single tenant Sonic ground lease located at 3290 Olentangy River Road, Columbus, Ohio for $975,000.

Sonic is the sole occupant of the 1,620 square foot building located on a 1.17 acre parcel. The property is located along Olentangy River Road, a primary north-south thoroughfare in the area which travels south through the Ohio State University campus. Olentangy River Road runs parallel to Olentangy Freeway, which experiences traffic volumes in excess of 71,000 vehicles per day creating constant traffic near the site. Nearby national retailers along Olentangy River Road include Kohl’s, Kroger, Big Lots and PNC Bank. The University of Ohio State campus and numerous student housing apartments are located less than one-half mile from the property, and the population is in excess of 311,000 within five miles of the property.

The building is leased on a triple net lease basis with approximately ten years of lease term remaining. The lease has 10% rental escalations every five years including the option periods. Sonic is a publicly traded company on the NASDAQ (SONC) with over 3,500 locations in 43 states.

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

“The market for net leased properties priced under $1 million remains robust as these assets are in high demand among private investors.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “As there is a limited amount of assets leased to credit tenants available, some net lease investors are seeking higher yielding assets like quick service restaurants leased to secondary credits.”