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