Net Lease: January 2014

Thursday, January 30, 2014

The Boulder Group Arranges Sale of a Triple Net Leased Walgreens Property for $12.3 Million

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant triple net leased Walgreens property located at 603 Uniondale Avenue in Uniondale, New York for $12,350,000.

Walgreens is the sole occupant of the 12,827 square foot retail building that was developed in 2012. The development of this Walgreens required a difficult assemblage of five separately owned land parcels that began in 2009, three years prior to the store opening. The property is located in a dense infill area of Long Island on a 52,085 square foot parcel at the southeast corner of Uniondale Avenue and Jerusalem Avenue. Uniondale Avenue is the only north-south thoroughfare that runs through the community and the property experiences traffic counts in excess of 38,000 vehicles per day. There are over 560,000 people living within five miles of the property earning an annual average household income in excess of $105,000. The property is fully leased to Walgreens with over 23 years of primary lease term remaining.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a New York based development firm, in the transaction. The buyer was a private partnership based in New York.

Walgreens has 23 years of primary lease term remaining on an original 25 year lease that commenced October 2012. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $56 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB and they operate over 8,560 locations.

“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 the New York MSA, 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. From 2011-2013, 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.

http://bouldergroup.com/NNN-Properties-For-Sale.html

Tuesday, January 28, 2014

The Boulder Group Arranges Sale of a Net Leased PNC Bank Property in the Atlanta MSA

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased PNC Bank property located at 210 Jonesboro Road in McDonough, GA for $2,150,000.

PNC Bank is the sole occupant of the 4,128 square foot retail building that was developed in 2003. The property is located on a 47,480 square foot parcel at the northwest corner of Jonesboro Road and McDonough Parkway approximately thirty miles south of downtown Atlanta. Jonesboro Road is the primary east-west thoroughfare in the trade area and has a full access interchange with Interstate 75 less than 2.5 miles away. There are many national retailers located in the immediate area including Kroger, Walgreens, and Chase Bank.

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

PNC Bank has over five years of lease term remaining. PNC Bank is a publicly traded company on the New York Stock Exchange (PNC), with a market capitalization of $42 billion. PNC Bank is an investment grade rated company with a Standard & Poor’s rating of A- and has over 2,700 locations nationwide.

“The market for properties occupied by major banks remains active as investors are attracted to investment grade rated companies” 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.”

Friday, January 24, 2014

The Boulder Group Arranges Sale of a Net Leased Best Buy Property in the Los Angeles MSA

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Best Buy property located at 23000 Savi Ranch Parkway in Yorba Linda, California for $6,600,000.

Best Buy is the sole occupant of the 46,449 square foot retail building that is located within the Los Angeles MSA. The property is located on a 4.0 acre parcel in a primary retail trade area that is densely populated with many of the nation’s largest big-box retailers. Some retailers in the immediate vicinity include Costco, Kohl’s, Home Depot, Target, and Dick’s Sporting Goods. The Best Buy is adjacent to Riverside Freeway 91, which experiences traffic counts in excess of 300,000 vehicles per day. The property is located in affluent Orange County with average household income in excess of $134,800 within three miles of the Best Buy. There are four years remaining on the net lease which also features three 5-year renewal option periods.

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

Best Buy has four years of lease term remaining with three 5-year renewal option periods. Best Buy is a publicly traded company on the New York Stock Exchange (BBY), with a market capitalization of $12 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.”

Thursday, January 23, 2014

Single Tenant NNN Properties for Sale

$250+ million of exclusively listed single tenant NNN properties for sale by The Boulder Group

http://bouldergroup.com/NNN-Properties-For-Sale.html

Monday, January 20, 2014

Sale of Trophy Chicago Walgreens Property Sets Cap Rate Record

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant triple net leased Walgreens property located at 6121 North Broadway Street in Chicago, Illinois for $13,025,000. The property was sold at a 4.87% cap rate, the lowest cap rate ever recorded for a Walgreens property according to Real Capital Analytics.

Walgreens is the sole occupant of the 14,820 square foot retail building which was developed by Crossroads Development Partners in 2013. This brand new build-to-suit Walgreens replaces an older in-line store which was previously located on the site under a 35 year lease that was expiring in August 2015. Walgreens desired to stay at this location and benefit from a new prototype store. In the immediate vicinity, Crossroads Development Partners is currently developing a single tenant LA Fitness and a single tenant Physicians Immediate Care.

The property is located in a dense infill area of Chicago on the northeast corner of North Broadway Street and West Glenlake Avenue. There are two CTA (Chicago Transit Authority) “L” Train stops in close proximity to the property. Additionally, Loyola University is located within a few blocks of the property and there are over 358,000 people living within three miles.

“This project, which I began pursuing in 2004, is a success for all parties and is the result of a collaboration among many stakeholders including Walgreens, Mid-America Real Estate Corp., Alderman Harry Osterman and the Edgewater community.” said Michael Nortman, President of Crossroads Development Partners, LLC.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, Crossroads Development Partners, in the transaction. The buyer was a Massachusetts based limited partnership in a 1031 exchange.

The Walgreens lease has over 24 years remaining with fifty years of renewal options. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $56 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB and has over 8,500 locations nationwide.

“The property’s superior infill location within a core market allowed The Boulder Group to achieve a historic cap rate for this sale” 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.”

http://www.bouldergroup.com

About Crossroads Development Partners

Crossroads Development Partners, LLC is a boutique commercial real estate investment, management, and development company with expertise in property operations, entitlements, construction management, financial underwriting, and development. Crossroads Development Partners is particularly focused on maintaining and creating value at the property level to maximize returns to stakeholders. The company’s hands-on approach to operating income-producing real estate differentiates Crossroads Development Partners from competitors. Crossroads currently has over $200,000,000 in various stages of development including retail, apartments and office properties located in Florida and Illinois.

http://www.xrdevelopment.com

Crossroads’ affiliated management company, SVN Crossroads Management, LLC managed the property and oversaw the construction. SVN Crossroads provides property management, asset management, construction management and owner’s representation and consulting services on a variety of commercial real estate assets throughout the Chicagoland area and in selected markets nationwide. Currently, the portfolio of assets under management is over 2 million square feet.

http://www.svncrossroads.com

Wednesday, January 15, 2014

The Boulder Group Arranges Sale of a Net Leased Merchant’s Tire & Auto Center in Chesapeake, Virginia

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a newly constructed single tenant net leased Merchant’s Tire & Auto Center property located at 215 Hillcrest Parkway in Chesapeake, Virginia for $3,045,000.

Merchant’s Tire is the sole occupant of the 6,922 square foot retail building that was developed in 2013. The property is located along the Chesapeake Expressway and is an outparcel to a Walmart Supercenter. The Merchant’s Tire is located in an affluent area with average household incomes in excess of $108,000 annually within three miles of the property. There are 25 years remaining on this net lease that features rental escalations every five years throughout the primary term.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer and seller in the transaction. The seller was a North Carolina based developer and the buyer was a California family partnership in a 1031 exchange.

Merchant’s Tire has 25 years remaining on the recently signed net lease that expires on October 31, 2038. Merchant’s Tire is part of the TBC Retail Group that includes NTB, Merchant’s Tire & Auto Centers, and Big O Tire stores. Together, there are more than 1,200 locations in 41 states plus Washington D.C. and Alberta & British Columbia, Canada. TBC Retail Group functions as an independent company of Sumitomo Corporation of America, the largest subsidiary of Sumitomo Corporation which is one of Japan’s major integrated trading and investment business enterprises.

“The market for new construction net leased auto parts stores remains active 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, “Properties featuring long term leases with multiple rental escalations throughout the primary term remain in the forefront of investor demand.”

Tuesday, January 14, 2014

The Boulder Group Arranges Sale of a McDonald’s Ground Lease in Illinois

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant McDonald’s ground lease located at 3151 South Dirksen Parkway in Springfield, IL for $766,080.

McDonald’s is the sole occupant of the property that was developed in 1975. The property is located on a 37,409 square foot parcel along South Dirksen Parkway. The property benefits from its proximity to the signalized intersection of South Dirksen and Stevenson Drive, which has a combined traffic count in excess of 32,000 vehicles per day. The property is located one-quarter mile from the Interstate 55 exit ramp. The property is fully leased to McDonald’s with over four years of lease term remaining.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction. The seller was a private trust based in the Midwest and the buyer was an investor based in Philadelphia.

McDonald’s has four years of lease term remaining on a ground lease that commenced in 1975. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD), with a market capitalization of $96 billion. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of A and they have over 34,000 locations.

“The market for McDonalds’s ground leased properties remains active 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 long term core assets on the market, some net lease investors are seeking assets like quick service restaurants with shorter term leases.”

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. For 2011-2013, 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

Thursday, January 2, 2014

The Boulder Group Publishes 4th Quarter Net Lease Market Research Report

The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the 4th quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

Cap rates for net lease retail and office properties reached their lowest point in the past decade
Overall property supply of net lease assets decreased by 12% compared to last quarter
Median national asking vs. closed cap rate spread increases for the first time in 2013.

The full report can be viewed online at http://www.bouldergroup.com/NLQ4.pdf

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 2011-2013, 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. More information on the firm can be found on The Boulder Group’s website at www.bouldergroup.com