NEW NET LEASE LISTING | Starbucks | Chicago | 10 Year Lease Extension | 6.50% Cap Rate | Rental Escalation

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Starbucks property located in a densely populated part of Chicago, Illinois. The 1,696 square foot retail building was developed in 2004 at a heavily trafficked signalized intersection. Starbucks is committed to this location as evidenced by their recent decision to extend the lease for an additional ten years. Starbucks is an investment grade rated company with a Standard and Poor’s rating of A-.

The Starbucks property is located at the signalized intersection of South Stony Island Avenue and East 71st Street approximately ten miles south of downtown Chicago. South Stony Island Avenue is a primary north-south thoroughfare with traffic counts in excess of 42,000 vehicles per day and is the only road with access to the Chicago Skyway Toll Road (Interstate 90) in Illinois. The property is located approximately one-half mile north from Interstate 90 and two miles east of Interstate 94, which experiences traffic counts in excess of 34,000 and 250,000 respectively. Additionally, there is a Metra train stop located across the street from the Starbucks property. Metra is the commuter rail division that serves the Chicago metropolitan area and over 80 million people per year. The Starbucks is located in a densely populated urban infill part of the city with over 250,000 people living within three miles and over 515,000 people living within five miles. The University of Chicago, one of the countries’ most prestigious universities and home to approximately 15,000 total students, is located ten blocks to the north of the Starbucks.

Starbucks is committed to this location as evidenced by their decision to recently extend the lease for an additional ten years. The closest Starbucks location to the subject property is over 2.5 miles away. Furthermore, the closest Starbucks location with a drive thru is located over 4.5 miles away. There is a Bank of America located adjacent to the Starbucks property. Other retailers in the immediate vicinity include Jewel-Osco, Family Dollar, PNC Bank, Fifth Third Bank, Walgreens, Save-A-Lot, and AutoZone.

There are 10 years remaining on the recently extended Starbucks lease that expires July 31, 2024. The lease features an 8.3% rental escalation in the primary term and 7.5% in each renewal option period. There are four 5-year renewal options remaining. Starbucks is an investment grade rated company (S&P: A-) and is publicly traded (NASDAQ: SBUX) with a market capitalization in excess of $53 billion. 

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

The Boulder Group Arranges Sale of a Net Leased CITGO Gas Station Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CITGO gas station property located at 200 Fabyan Parkway in Batavia, IL for $4,273,250.

The property is located at the signalized intersection of Fabyan Parkway and North Washington Avenue, which experiences traffic counts in excess of 37,000 vehicles per day. The site has two points of ingress and egress and is easily accessible by vehicles traveling on Fabyan Parkway or North Washington Avenue. CITGO is the sole occupant of the 2.01 acre property that was originally developed in 1999. There are ten years remaining on this absolute net lease that expires in February 2024.

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 an East Coast based private investment firm.

CITGO has ten years remaining on their lease that expires in February 2024 and features 1.75% annual rental escalations. There are four 5-year renewal options. The guarantor of the lease is GasMart USA, a privately held company that operates 108 gas stations in seven states.

“The market for net lease properties in top tier MSAs 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, “There has been an increase in demand for long-term leased non-investment grade properties in top tier markets, as they generate higher yields than typical credit net lease assets.”

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

The Boulder Group Arranges the Sale of a PNC Bank Ground Lease in the Peoria MSA

 The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant PNC Bank ground lease located at 1996 Freedom Parkway in Washington, Illinois for $1,172,571. This is the third PNC Bank property that The Boulder Group sold in 2014.

PNC Bank is the sole occupant of the 3,501 square foot building that is located on a 1.34 acre outparcel to Walmart Supercenter and Menards. The property benefits from its location at the signalized intersection at the entrance to the development. The property is located along US 24 and within a prime retail corridor that features retailers such as Walmart Supercenter, Menards, Kroger, Tractor Supply, AutoZone, Advance Auto Parts, and Dollar General. This is a successful PNC Bank location as evidenced by the superior branch deposits that are in excess of $100 million. There are over 14 years remaining on the ground lease that expires in December 2028 and features rare 14% rental escalations every five years throughout the primary term and renewal option periods.

PNC Bank is an investment grade rated company with a Standard & Poor’s rating of A- and they have over 2,700 locations. PNC Bank has nineteen years of lease term remaining on an original twenty year ground lease. PNC Bank is a publicly traded company on the New York Stock Exchange (PNC) with a market capitalization of $45 billion.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The seller was a Midwest based individual and the buyer was a private investor from the West Coast.

“The market for bank ground leases is at historic low levels 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, “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.”

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.

http://www.bouldergroup.com  

The Boulder Group Publishes Net Lease Bank 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 Bank Market.

Highlights from the report are as follows:

• Cap rates for bank ground lease properties reached their historic low
• Bank ground leases are commanding a 200 basis point premium over the retail net lease market
• Bank ground leases with twenty or more years of lease term remaining experienced compression of 52 basis points

The full report can be viewed online at http://www.bouldergroup.com/Net-Lease-Bank-Ground-Lease-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 $1.7 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 

The Boulder Group Arranges Sale of a McDonald’s Ground Lease in Farmington Hills, MI (Detroit MSA)

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a brand new McDonald’s ground lease located along Grand River Avenue in the Detroit MSA for $1,350,000.

McDonald’s is the sole occupant of the property that features a 4,500 square foot building. The 1.39 acre parcel is located along Grand River Avenue, which experiences traffic counts in excess of 21,000 vehicles per day. The property is benefited by its close proximity to the signalized intersection of Grand River Avenue and Drake Road, which creates consistent traffic near the site.  There are many national retailers nearby including O’Reilly Auto Parts, Panera Bread, Rite Aid, and Bank of America.  The property is fully leased to McDonald’s with twenty years of lease term remaining and escalating rents in both the primary term and renewal option periods.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Chicago based investment firm. The buyer was a high net worth investor in a 1031 exchange based in California.

McDonald’s has twenty years of lease term remaining on an original 20 year ground lease that commenced November 2013. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD), with a market capitalization of $95 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 $1.7 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/

The Boulder Group Arranges Another Low Cap Rate Walgreens Transaction for $11 Million in the Chicago Area

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant triple net leased Walgreens property located at the southeast corner of West 95^th Street and South Pulaski Road in Evergreen Park, Illinois for $10,833,333.

The property sale ranks in the Top 5 of lowest cap rates ever recorded for a Walgreens property priced over $5 million according to Real Capital Analytics. This is the second transaction ranked in the Top 5 that the Boulder Group has sold in the past four months.

According to a recent research report published by The Boulder Group, cap rates for Walgreens and CVS properties reached their historic low in the first quarter of 2013. Cap rates for Walgreens properties compressed by 15 basis points from the third quarter of 2013 to the first quarter of 2014. The full net lease drug store report can be accessed via http://www.bouldergroup.com/Net-Lease-Drug-Store-Research-Report.pdf

The Evergreen Park Walgreens will be the sole occupant of the 14,820 square foot retail building that is estimated to open in July 2014. This Walgreens is a relocation of a previously successful mid-block store that had excellent sales. The property is located in a densely populated area at a heavily trafficked intersection that experiences traffic counts in excess of 69,000 vehicles per day. Located across the street from the Walgreens is a Target, Home Depot, and Jewel-Osco anchored development. The property is fully leased to Walgreens and will have 20 years of primary lease term remaining upon commencement. The lease features rare rental escalations in the primary term and renewal option periods.

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

Walgreens will have 20 years of primary lease term remaining upon commencement and the lease features rare rental escalations in the primary term and renewal option periods. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $66 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 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 $1.7 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. http://www.bouldergroup.com  

The Boulder Group Arranges Sale of a Net Leased CVS Property in the Birmingham MSA

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CVS property located at 2901 Morgan Road Southeast in Bessemer, AL for $5,879,083.

CVS is the sole occupant of the 10,880 square foot retail building that was developed in 2003. The property is located on a 1.9 acre parcel at the signalized intersection of Morgan Road Southeast and Parkwood Road. The property is located approximately 20 miles southwest from downtown Birmingham in the immediate vicinity of Interstate 459.  The CVS is located within an affluent area with the average annual household income in excess of $104,000. The property is fully leased to CVS with ten years of lease term remaining with a rental escalation in the primary term.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Midwest based high net worth individual. The buyer was a private real estate investment company.

CVS has ten years of lease term remaining on an original 20 year lease. There is a rental escalation in the primary term and in each renewal option period. CVS is a publicly traded company on the New York Stock Exchange (CVS), with a market capitalization of $89 Billion. CVS is an investment grade rated company with a Standard & Poor’s rating of BBB+ and they have over 7,000 locations.

“Properties leased to investment grade rated tenants with scheduled rental escalations, like this CVS, will continue to be sought after as a hedge against inflation.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Well located 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

NEW NET LEASE LISTING | ALCO (NASDAQ: ALCS) | 9.25% Cap Rate | $917,500 | Low Rent to Sales Ratio | NNN

The Boulder Group is pleased to exclusively market for sale a single tenant net leased ALCO Stores, Inc. (“ALCO”) property located in Nashville, Illinois. The property is ideally located along the region’s primary north-south thoroughfare approximately two miles south of Interstate 64. This is a successful ALCO location as evidenced by the consistent percentage rent that the retailer has paid over the past five years. ALCO is a publicly traded company on the NASDAQ (ALCS) and has been operating since 1901. ALCO offers customers a wide variety of general merchandising products to consumers in smaller communities with limited access to other regional or national full-line retail chains. Today, ALCO operates over 200 stores in 23 states. There are approximately six years remaining on this absolute net lease.

The ALCO property is located along Illinois Route 127, a primary north-south thoroughfare in the region that experiences traffic counts in excess of 10,000 vehicles per day. Illinois Route 127 is the roadway that connects residents of Nashville to Interstate 64. Interstate 64 has direct access to St. Louis which is approximately 50 miles northwest of the property.

The ALCO benefits from a long standing operating history at this location and a strong brand recognition in the community. This ALCO location has above average store sales and has paid consistent percentage rent for the past five years. Additionally, this store has a rent-to-sales ratio significantly below five percent.     

There are approximately six years remaining on this absolute net lease that expires in January 2020. The tenant has paid consistent percentage rent over the past five years. The lease has four 5-year renewal options. ALCO Stores, Inc. is a publicly traded company on the NASDAQ (ALCS) with over 200 locations in 23 states.

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

The Boulder Group Arranges Sale of a Net Leased Shopko Hometown in Wisconsin

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Shopko Hometown property located at 598 West Lucas in Ellsworth, Wisconsin for $2,350,000.

Shopko Hometown is the sole occupant of the 32,100 square foot retail building that was developed in 2008. The property is located on the southwest corner of West Crosstown Road and Highway 65, which is the primary thoroughfare in the area. Interstate 94 is only 19 miles north, and the new River Falls bypass provides access to the entire Twin Cities metro area. There are ten years remaining on this net lease.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The seller was a Midwest based developer and the buyer was a private investor from Wisconsin in a 1031 exchange.

Shopko Hometown’s lease has ten years remaining and expires in May 2024. There are three 5-year renewal option periods. Shopko is a privately held company with annual sales of approximately $3 billion. Shopko operates approximately 330 stores located in 21 states. 

“The Midwest net lease market remains strong for corporately guaranteed single tenant properties with ten or more years of lease term remaining” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “There has been an increase in demand for long-term leased non-investment grade properties, as they generate higher yields than the typical core net lease assets.”

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