The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant IHOP property located at 5670 Northridge Drive in Gurnee, Illinois for $2,210,000.
The corporately guaranteed IHOP property is located along Interstate 94 in a dominant retail trade area. The IHOP is an outparcel to Six Flags Great America, a 304-acre theme park that attracts visitors from throughout the region. Gurnee Mills, a 1.8 million square foot indoor mall that features Bass Pro Shops, Macy’s, Kohl’s, T.J. Maxx, Burlington Coat Factory, and Sears, is located across the Interstate. Interstate 94 experiences traffic counts in excess of 95,000 vehicles per day. The IHOP lease has approximately two years remaining.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction, a private individual based in Florida. The purchaser was a Chicago based real estate investor in a 1031 Exchange.
There are less than two years remaining on the corporately guaranteed IHOP lease that expires February 29, 2016. The lease is triple net and features no landlord responsibilities. IHOP is a subsidiary of DineEquity. DineEquity is publicly traded (NYSE: DIN) with a market capitalization of $1.67 billion.
“The market for net lease properties in top MSAs remains active as these assets are in high demand among private investors partly due to the strong residual value that they typically have upon lease expiration.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “As there is a limited amount of long term core assets on the market, some net lease investors are seeking assets with shorter term leases in strong retail corridors.”
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.