Triple Net Leased Office Building For Sale

The Boulder Group is pleased to exclusively market for sale a single tenant net leased, Class A office/education building tenanted by Brown Mackie College (NASDAQ: EDMC) located in South Bend, Indiana. The 47,537 square foot Brown Mackie College office building was built in 2009 on a 6.08 acre parcel along a primary east-west thoroughfare in South Bend. Brown Mackie College is owned by Education Management Corporation. Education Management Corporation is a publicly traded company on the NASDAQ (EDMC) with a market capitalization in excess of $600 million. Goldman Sachs owns 43% of EDMC. The lease is fully guaranteed by Education Management Corporation with over five years of lease term remaining in the primary term.

The Brown Mackie College property is ideally located in the heart of the South Bend combined statistical area that has a total population in excess of 720,000 residents. There are over 230,000 people living within seven miles of the property earning average annual household incomes of approximately $60,000. The University of Notre Dame is located less than two miles to the west of the subject property. Notre Dame is one of the country’s premiere universities with approximately 12,000 students. The property is located just off of the signalized intersection of West Douglas Road and Grape Road. Grape Road is the dominant retail corridor in the trade area and home to many of the nation’s largest retailers as well as University Park Mall. University Park Mall is an 820,000 square foot mall located less than a mile north of Brown Mackie College and is owned by Simon Property Group. The mall is anchored by Macy’s, JCPenney, Sears, and Barnes & Noble. Other notable retailers in the immediate vicinity include SuperTarget, Walmart Supercenter, Sam’s Club, Meijer, Whole Food’s, Kohl’s, Lowe’s, and Home Depot.

The Brown Mackie College property will benefit from the extension and rerouting of Douglas Road that recently was completed. Douglas Road now begins at the Indiana Toll Road from the west and runs all the way through town.  This improvement will allow traffic exiting the toll road to have direct access to the property that is three miles to the east of the exit.

The Brown Mackie College in South Bend offers courses in the fields of nursing, healthcare & wellness, business & technology, and veterinary technology. The Brown Mackie College is well positioned for future success in the South Bend market due to the strength and prominence of the local health care industry. Healthcare and education are the two driving forces and leading employers in the South Bend region. Memorial Health System is the largest employer in the area and in 2012 merged with Elkhart General Hospital to form the Beacon Health System.  

Brown Mackie College is a system of for-profit colleges located in the United States. The colleges offer bachelor’s degrees, associate degrees and certificates in programs including early childhood education, information technology, health sciences and legal studies. Brown Mackie is owned and operated by Education Management Corporation. Education Management Corporate is a publicly traded company that trades on the NASDAQ (EDMC) with a market capitalization in excess of $600 million. EDMC has 110 campuses throughout the United States and Canada and over 120,000 enrolled students.

There are over five years remaining on the Education Management Corporation (NASDAQ: EDMC) guaranteed lease that expires in August 2019. This triple-net lease has two 5-year renewal options with rental escalations in each option.

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

The Boulder Group Arranges Sale of a Net Leased Tractor Supply Property in the Baton Rouge MSA

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Tractor Supply Company property located at 246 Florida Avenue SE in Denham Springs, LA for $3,615,369.

Tractor Supply Company is the sole occupant of the newly constructed 19,097 square foot retail building that was completed in 2013. The property is located on a 5.84 acre parcel approximately two miles north of Interstate 12. The property is located in a strong retail corridor near a Walmart.  The property is fully leased to Tractor Supply Company with fifteen years of lease term remaining and 5% rental escalations every five years.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Southeast based real estate investment company, in the transaction. The buyer was a private real estate investment company.

Tractor Supply Company has fifteen years of lease term remaining. Tractor Supply Company is a publicly traded company on the New York Stock Exchange (TSCO), with a market capitalization of $10 Billion. Tractor Supply Company operates over 1,200 locations in 47 states.

“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.” 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.”

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

The Boulder Group Arranges the Sale of a McDonald’s Ground Lease in Harrisonburg, Virginia

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant McDonald’s ground lease located along East Market Street in Harrisonburg, VA for $1,350,000.

The McDonald’s property is strategically located along East Market Street less than a half mile from Interstate 81. The new construction McDonald’s property is located across the street from Valley Mall, which is anchored by JCPenney, Belk, Dick’s Sporting Goods, and Target.  The property is fully leased to McDonald’s and will have twenty years of lease term remaining upon rent commencement. The lease features 10% rental escalations every five years throughout the primary lease term and renewal option periods.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer and the seller in the transaction. The buyer was a trust in a 1031 exchange and the seller was a Southeast based development company.

McDonald’s will have twenty years of lease term remaining upon rent commencement. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD), with a market capitalization of $93 billion. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of A and has over 34,000 locations worldwide.

“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, “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.”

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

The Boulder Group Arranges Sale of a Net Leased Northwestern Memorial Hospital Medical Office Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Northwestern Memorial Hospital property located at 350 South Waukegan Road in Deerfield, IL for $7,250,000.

Northwestern Memorial Hospital is the sole occupant of the 16,737 square foot medical office building that was developed in 2013. The property is located on a 1.87 acre parcel along Interstate 94 in an affluent suburb. There are approximately 170,000 people living within a five mile radius earning annual household incomes in excess of $132,000.  The property is fully leased to Northwestern Memorial Hospital with fourteen years of lease term remaining and 2.5% annual rental escalations.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Chicago based real estate firm, in the transaction. The buyer was a high net worth individual located in California in a 1031 exchange.

Northwestern Memorial Hospital has fourteen years of lease term remaining on an original 15 year lease. The lease features 2.5% annual rental escalations and two 5-year renewal options. Northwestern Memorial Hospital is one of the Country’s premier academic medical center hospitals. Northwestern Memorial Healthcare is an investment grade rated company with a Moody’s rating of Aa2.

“The market for net leased medical office in Chicago and other core markets remains robust as these assets are in high demand among 1031 Exchange investors.” 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 $1.7 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

Single Tenant NNN Chipotle For Sale

The Boulder Group is pleased to exclusively market for sale a single tenant Chipotle property located in Milwaukee, Wisconsin. Chipotle has successfully operated at this located since 2003 and recently extended their lease an additional 10 years. Chipotle is committed to the site as evidenced by their recent lease extension which expires July 2023 with 12.5% rental escalations every five years. Chipotle is a publicly traded company on the New York Stock Exchange with a market capitalization in excess of $16 billion.

The Chipotle property is located along South 27^th Street, a heavily trafficked north-south thoroughfare approximately five miles southwest of downtown Milwaukee. South 27^th Street experiences traffic counts in excess of 31,000 vehicles per day. Additionally, the property benefits from its proximity to the signalized intersection of West Oklahoma Avenue and South 27^th Street, which experiences traffic counts in excess of 52,000 vehicles per day. Furthermore, Aurora St. Luke’s Medical Center, the number one ranked hospital in Milwaukee, is located at the heavily trafficked intersection. Aurora St. Luke’s Medical Center is a 710-bed facility with over 130,000 annual visitors (27,610 inpatient surgeries, 41,028 outpatient surgeries, & 61,734 emergency room visits).

The property is located within a densely populated area with over 400,000 people living within five miles. The Chipotle is well positioned in a prime retail corridor across the street from a Walmart Supercenter and Walgreens, creating constant traffic flow near the site. Other retailers in the immediate vicinity include Kohl’s, Pick ‘n Save, Chase Bank, PNC Bank, CVS, Michael’s, Marshalls, and OfficeMax.

Chipotle recently opted to extend their original lease to ensure their presence at this location for ten additional years. The newly extended lease expires on July 25, 2023 and features rare 12.5% rental escalations every five years throughout the primary term and renewal option period. Chipotle is a publicly traded company (NYSE: CMG) with a market capitalization in excess of $16 billion and has over 1,500 locations.

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

Triple Net Lease Rite Aid (Sublet) Property For Sale

The Boulder Group is pleased to exclusively market for sale a single tenant Rite Aid property located in the Atlanta MSA fully leased to Rite Aid. Rite Aid is no longer operating at this location and the property is currently being sublet to Dollar General. The property benefits from its location along Athens Highway, a heavily trafficked roadway, and the Kroger grocery store across the street. Dollar General has been successfully operating at this location since 2010. Store sales for Dollar General have increased by 18.5% from 2011 to 2013.

The property is located at the signalized intersection of Athens Highway and Rosebud Road. This intersection benefits from traffic counts in excess of 50,000 vehicles per day creating steady traffic flow near the property. The property has two points of ingress and egress, one along Athens Highway and the other on Rosebud Road. The property is located across the street from a Kroger anchored shopping center. There are over 112,000 people living within five miles of the property earning household incomes of approximately $80,000. The property is positioned between Atlanta and Athens along US Highway 78 approximately 25 and 35 miles from each respective city’s downtown.

Rite Aid’s original lease term was for 20 years and the lease expires in October 2016. Rite Aid is a publicly traded company on the New York Stock Exchange (RAD), with a market capitalization of $4.5 Billion.  Rite Aid has over 4,600 locations and employs 55,000 people. Dollar General’s sublease term is for 6 years and the sublease expires in October 2016. Dollar General is a publicly traded company on the New York Stock Exchange (DG), with a market capitalization of $19 Billion. 

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

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The Boulder Group Publishes Net Lease Auto Parts Research Report

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

Highlights from the report are as follows:

• Cap rate compression for the net lease auto parts store properties
• AutoZone and O'Reilly Auto Parts tenanted properties experienced the most cap rate compression within the sector
• Auto parts store properties are priced at a 63 basis point premium when compared to the entire net lease retail market
  
  

The full report can be viewed online at http://www.bouldergroup.com/Net-Lease-Auto-Parts-Store-Research-Report.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 more than $1.6 billion of net lease real estate transactions through several real estate cycles. 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. More information on the firm can be found on The Boulder Group’s website at www.bouldergroup.com