Tuesday, December 17, 2013

The Boulder Group Arranges Sale of a Single Tenant Dollar General Portfolio

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Dollar General portfolio consisting of three properties located throughout Kansas for $2,000,000. The properties are located in St. John, Meade, and Coldwater.  

Each of the properties are fully leased to Dollar General with 5.5-6.5 years of lease term remaining. The portfolio offered investors the opportunity to obtain multiple assets with investment grade credit in one state. Dollar General is the sole occupant of the three properties, averaging 9,036 square feet. Two of the properties were constructed in 2009 while the other was built in 2010. All three properties are located on a one acre parcel. Each of the properties has three 5-year renewal option periods with 10% escalations. Dollar General is an investment grade rated company (S&P: BBB-) and is publicly traded on the New York Stock Exchange (DG) with a market capitalization in excess of $19 billion.

The portfolio included the following Dollar General properties:

1.   202 North US Highway 281, St. John, Kansas, 67576
2.   603 West Carthage Street, Meade, Kansas, 67864
3.   501 South Central Avenue, Coldwater, Kansas, 67029

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller; a private real estate investor in the Midwest. The buyer was a private individual.

“The Midwest net lease market remains strong for corporately guaranteed single tenant properties regardless of  where they are located.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Cap rates for Dollar General 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.”

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.