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.”
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. www.bouldergroup.com