The Boulder Group, a net leased investment
brokerage firm, has completed the sale of a single
tenant trophy Walmart ground lease located at 5630 West Touhy Avenue in Niles,
IL for $9,685,000. The property was sold at the lowest cap rate ever recorded
for a single tenant Walmart property transaction above $5 million according to
Real Capital Analytics.
The
Walmart property is located within an affluent area just north of Chicago. The
Walmart anchors Pointe Plaza, a 330,000 square foot development that also
features Ross Dress For Less, Walgreens, Fresh Farms International Market,
Dress Barn and Babies R’ Us. Directly across the street from Pointe Plaza is
Village Crossing, a 450,000 square foot development that features Dick’s
Sporting Goods, AMC Theaters, Best Buy, Michael’s, Bed Bath & Beyond and
many other national retailers. Jewel-Osco is also located across the street
from the Walmart. Average household incomes within a one mile radius are in
excess of $107,000 annually. Additionally, there are approximately 700,000
people living within five miles. The Walmart is well located within one of the
dominant retail destinations of Chicago’s northern suburbs.
Randy Blankstein
and Jimmy Goodman of The Boulder Group represented the buyer and the seller in
the transaction. The seller was a Midwest based real estate development and
investment company. The purchaser was a high net worth individual from
California in a 1031 Exchange.
Walmart has
approximately nine years remaining on their ground lease that expires February
29, 2024. The ground lease features a 10% rental escalation in the first
renewal option period and 5% rental escalations in the remaining options.
Walmart is an investment grade rated company (S&P: AA) and is publicly
traded with a market capitalization in excess of $267 billion.
“Trophy
net lease properties in irreplaceable retail
locations tenanted by investment grade rated companies are highly sought after
amongst the investment community and command a substantial premium” 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 $2.1 billion of single tenant net lease
real estate transactions. From 2011-2014, 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
