The Boulder Group Arranges Sale of a Net Leased Bank of America Property in Chicago

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 located at 2163 North Clybourn Avenue in the Lincoln Park neighborhood of Chicago, Illinois for $6,940,000.

Bank of America is the sole occupant of the 9,471 square foot retail building that was developed in 2004. The property is located within the Clybourn Corridor, a densely populated and dominant retail area located in Chicago’s north side neighborhood of Lincoln Park. Residents living with one mile of the property enjoy household incomes of approximately $120,000 annually. Bank of America is located near the intersection of Clybourn Avenue and Southport Avenue less than one-half mile east of Interstate 90. Retailers located nearby the subject property in the Clybourn Corridor include Costco, Dominick’s, Target, Home Depot, Menard’s, T.J. Maxx, Kohl’s, Best Buy, Marshalls, and Sports Authority. The property features a 24-car parking lot, a rare feature for an infill Chicago asset. The lease had twelve years remaining at the time of sale and features multiple rental escalations in the primary term and in the option periods.

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 twelve years of lease term remaining on an original twenty year net lease. Bank of America is a publicly traded company on the New York Stock Exchange (BAC), with a market capitalization of $157 billion.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer and seller in the transaction. The seller was a high net-worth individual based in the Midwest. The buyer was a Miami based private individual in a 1031 exchange.

“The market for bank properties with investment grade tenants remains strong as investors are attracted to 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 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 2011 and 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 company’s website address is www.bouldergroup.com

The Boulder Group Arranges Sale of a Net Leased Walgreens Property in Houston, Texas

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 9350 Highway 6 South in Houston, Texas for $5,150,000.

Walgreens is the sole occupant of the 15,020 square foot retail building that was developed in 2001. The property is located on a 1.92 acre parcel at the northeast corner of Bissonnet Street and Highway 6 South in Houston. Highway 6 South is a major thoroughfare in the area and experiences traffic counts in excess of 56,400 vehicles per day. The property benefits from its position on a hard corner of a signalized intersection across the street from a Kroger anchored shopping center. Additionally, the immediate area includes Home Depot and LA Fitness. The property is fully leased to Walgreens with over seventeen years remaining on the primary lease term.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Midwest investor, in the transaction. The buyer was a high net worth individual based in Texas.

Walgreens has over seventeen years of lease term remaining on the primary term of the lease. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $51 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB and has over 8,500 locations nationwide.

“The market for Walgreens properties remains active as investors are attracted to investment grade rated companies with long term leases” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “While single tenant properties are selling in all types of locations; core markets, like Houston, are at the forefront of investor demand.”

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 2011 and 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 Boulder Group Arranges Sale of a Net Leased Kroger Property in Ottawa, Illinois

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Kroger property located at 2701 Columbus Street in Ottawa, Illinois for $2,712,000.

The 44,038 square foot property was built in 1982 and is located in the primary retail trade area of Ottawa. The property is located along Columbus Street, a primary thoroughfare in the area, which experiences traffic volumes in excess of 18,000 vehicles per day. There are multiple signalized points of ingress and egress along Columbus Street, which provides consistent traffic at the site. Kroger is located within the regional trade area which features a Wal-Mart Supercenter and a site that Menard’s has targeted for a future location. Ottawa is located 80 miles southwest of downtown Chicago. Ottawa is home to Starved Rock Park, an Illinois State Park, which experiences more than two million visitors annually.

This is a proven location for Kroger since 1982 and they are committed to the area as evidenced by the recent execution of their second renewal option. The building is leased to Kroger on a triple net basis with four years remaining. Kroger is a publicly traded company on the New York Stock Exchange (KR) with a market capitalization of $13 billion. Kroger is an investment grade rated company with a Standard & Poor’s rating of BBB.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller; an Illinois limited partnership, in the transaction. The buyer was a California limited liability company.

“The market for net leased properties with shorter term leases remains active as investors are attracted to the higher yield these assets generate” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Single tenant grocery stores with proven sales are in high demand.” 

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 2011 and 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 Boulder Group Arranges the Sale of a Single Tenant McDonald’s Ground Lease in Springfield, IL

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a single tenant McDonald’s ground lease located at the intersection of Wabash Avenue & Archer Elevator Road in Springfield, Illinois for $978,260.

McDonald’s property is located on a 1.26 acre parcel and the building was constructed in 2013. The property is located along Wabash Avenue, a primary east-west thoroughfare in the area, which has a direct access interchange with Interstate 72 less than one mile from the property. Nearby retailers include AMC Theaters, Buffalo Wild Wings, and multiple car dealerships. Residents living within three miles of the property have annual household income in excess of $87,000.

McDonald’s has a new twenty year ground lease with rental escalations throughout the lease term. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD) with a market capitalization of $100 billion. McDonald’s is an investment grade rate company with a Standard & Poor’s rating of A and has over 33,000 restaurants nationwide.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the purchaser in the transaction; an east coast based high net worth individual. The seller was an Illinois based developer.

“The market for McDonald’s ground leases remains active as investors are attracted to investment grade tenanted properties with long term leases under $2 million dollars.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “The lack of newly developed single tenant properties has caused cap rates to decrease for assets similar to this particular McDonald’s transaction.”

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. In 2011 and 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 company’s website address is www.bouldergroup.com

The Boulder Group Arranges Sale of a Net Leased Aaron’s (NYSE: AAN) Property in Hutchinson, KS

                 

 The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Aaron’s property located at 1418 East 4^th Avenue in Hutchinson, Kansas for $1,241,000.

Aaron’s is the sole occupant of the 7,200 square foot retail building that was developed in 2011. The lease was corporately guaranteed by Aaron’s Inc., an investment grade rated company with a NAIC 2 rating. The property is positioned at a signalized intersection along the primary thoroughfare in the area. Hutchinson is the largest city within Reno County and serves as a retail trade destination for surrounding cities. The Hutchinson Mall, anchored by JCPenney, Dillard’s and Jo-Ann Fabrics, is located less than one mile from the property. Other nearby retailers include Wal-Mart Supercenter, Target, Home Depot, Lowe’s and the Mall 8 Theater. The property is leased to Aaron’s Inc. on a net lease basis with approximately thirteen years of lease term remaining. The lease features 7.5% rental escalations every five years.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a private investment firm based in the Midwest. The buyer was a Texas based investment partnership.

Aaron’s had thirteen years remaining on the initial lease term at the point of sale. Aaron’s is a publicly traded company on the New York Stock Exchange (AAN), with a market capitalization over $2 billion. Aaron’s is an investment grade rated company with a NAIC 2 rating.

“The market for net leased properties like this Aaron’s remains strong as investors are attracted to long term leases with rental escalations to investment grade tenants” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “While the majority of single tenant investment activity is focused on core markets, we are starting to see investors focus primarily on the quality of the tenant rather than the top tier locations.”

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