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.
