Net Lease: November 2013

Friday, November 22, 2013

The Boulder Group Arranges Sale of a Net Leased 7-Eleven Property in Chicago, Illinois

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased 7-Eleven property located at 3005 North Pulaski Road in Chicago, IL for $1,623,500.

7-Eleven is the sole occupant of the 3,200 square foot retail building that was developed in 2013. The property is located on an 11,389 square foot parcel at the northeast corner of North Pulaski Road and Wellington Avenue in Chicago, IL. Interstate 94 is located one mile east of the property and experiences traffic counts in excess of 273,000 vehicles per day. The property is fully leased to 7-Eleven with ten years of lease term remaining and a 10% rental escalation in 2018.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller; a Midwest based developer, in the transaction. The buyer was a in a 1031 exchange.

7-Eleven has ten years of lease term remaining on a brand new lease that commenced October 2013. 7-Eleven is an investment grade rated company with a Standard & Poor’s rating of AA- and has over 8,600 locations nationwide and over 50,000 locations worldwide.

“The market for properties occupied by investment grade rated companies with rental escalations in the lease remain in the highest demand amongst all types of investors” 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 Chicago, 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. www.bouldergroup.com

Wednesday, November 20, 2013

Randy Blankstein, President of the Boulder Group, to Speak at ICSC N3 Triple Net Lease Conference

Randy Blankstein, President of national net lease advisory firm The Boulder Group, will be a featured speaker at the ICSC N3 Triple Net Lease Conference in Dallas on March 4th, 2014.

He will be moderating a panel discussing the Single Tenant Net Lease Market Overview and Forecast. The panel will be a wide ranging macro level discussion by the industries foremost leaders to explain where the single tenant net lease industry stands and how it will change the commercial real estate investment landscape moving forward. The panel will cover cap rate trends, industry consolidation and the fundraising environment for the net lease sector.

Friday, November 15, 2013

The Boulder Group Arranges Sale of a Net Leased CVS Property in Dunkirk, New York

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CVS property located at 175 East 4^th Street in Dunkirk, NY for $3,485,000.

CVS is the sole occupant of the 10,125 square foot retail building that was developed in 2000. The property is located on a 35,980 square foot parcel at the corner of East 4^th Street and Main Street in Dunkirk, NY. The property is located less than two miles north of Interstate 90 along one of the area’s primary thoroughfares. The property is fully leased to CVS with 25 years of lease term remaining. There are four 5-year renewal options remaining.

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

CVS has 25 years of lease term remaining on their recently extended lease. CVS is a publicly traded company on the New York Stock Exchange (CVS), with a market capitalization of $77 billion. CVS is an investment grade rated company with a Standard & Poor’s rating of BBB+ and has over 7,500 locations nationwide.

“The market for net leased CVS properties with over 20 years of lease term remaining 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, “Cap rates remain at historically low levels for single tenant pharmacy assets leased to Walgreens and CVS with twenty or more years of lease term.”

Thursday, November 7, 2013

The Boulder Group Arranges Sale of a Net Leased Best Buy Property in Fredericksburg, Virginia

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Best Buy property located at 1541 Carl D Silver Parkway in Fredericksburg, Virginia for $6,300,000.

Best Buy is the sole occupant of the 46,457 square foot retail building that is located within the Washington D.C. MSA. The property is located on a 4.1 acre parcel in a primary retail trade area that is densely populated with many of the nation’s largest big-box retailers. The property backs up to Interstate 95 and has signage that is visible to the 141,000+ vehicles that pass per day. The property is fully leased to Best Buy with three and a half years of lease term remaining. There are three 5-year renewal options.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the both parties in the transaction. The seller is a private real estate firm based in Chicago. The buyer was an investment firm based in the southwest.

Best Buy has over three years of lease term remaining at a low rent. Best Buy is a publicly traded company on the New York Stock Exchange (BBY), with a market capitalization of $15 billion. Best Buy employees over 145,000 people and has over 1,400 locations in the United States.

“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, “Real estate fundamentals like low rental rates in core areas play an important role in evaluating short-term leased properties.”

Monday, November 4, 2013

The Boulder Group Arranges Sale of an AutoZone Ground Lease in Milwaukee, WI

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant AutoZone ground lease located at 6015 West Forest Home Avenue in Milwaukee, Wisconsin for $925,000.

AutoZone is the sole occupant of the property that was developed in 2004. The property is located on a 27,007 square foot parcel at the southwest corner of the signalized intersection of West Forest Home Avenue and South 60^th Street in Milwaukee. The property is located one mile north of Interstate 894/43, which experiences traffic volumes in excess of 115,000 vehicles per day. The property is fully leased to AutoZone with eleven years of lease term remaining and has two 10% rental escalations remaining during the primary term of the lease.

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

AutoZone has eleven years of lease term remaining on an original 20 year ground lease. AutoZone is a publicly traded company on the New York Stock Exchange (AZO), with a market capitalization of $15 billion. AutoZone is an investment grade rated company with a Standard & Poor’s rating of BBB and has over 5,000 locations nationwide.

“The market for 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 offer a more favorable return then most financial securities.”