The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant zero cash flow CVS property located at 4909 Paramount Boulevard in Lakewood, CA for $2,255,512.
Zero cash flow properties refer to a high quality real estate investment with debt that is fully amortizing and is coterminous with the primary term of the lease. After the primary term of the lease is completed, the investor owns the property free and clear after only having to make a relatively small initial investment.
This property was sold with the in place fully amortizing zero cash flow debt. CVS is the sole occupant of the 12,000 square foot retail building that is located at the heavily trafficked signalized intersection of Paramount Boulevard and Del Amo Boulevard. The area is densely populated with over 31,000 people living within one mile and over 700,000 people living within five miles.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction. The seller was a Florida based real estate corporation and the buyer was an East Coast based Real Estate Company.
CVS has twelve years of primary lease term remaining. 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 operate over 7,000 locations.
“Zero cash flow properties are useful for estate planning purposes and are an excellent alternative to zero coupon bonds” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Investors seek zero cash flow properties as it allows one to buy a CVS or related asset with a substantially small down payment.”
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.