Net Lease: December 2015

Monday, December 28, 2015

The Boulder Group Arranges Sale of Net Leased Aurora Health Care Medical Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Aurora Health Care medical property located at 5818 West Capitol Drive in Milwaukee, WI for $3,634,603.

The Aurora Health Care property is strategically located at the signalized intersection of Capitol Drive and 60th Street which experiences traffic volumes of 48,000 vehicles per day. The property is positioned as an outparcel to the Midtown Center. The Midtown Center is anchored by Walmart and Pick ‘N Save and also features Planet Fitness, Firestone, Foot Locker, GNC, Rue 21 and Starbucks. The surrounding area is densely concentrated providing for high barriers to entry.

There are over 11 years remaining on the recently extended Aurora Health Care lease which expires in April 2027. The lease features 15% rental escalations every five years throughout the primary term and renewal option periods. Aurora Health Care is an investment grade rated company with a Moody’s rating of A2. Aurora Health Care operates this location as a doctor’s office with a focus on internal medicine, family practice and obgyn. There are currently five doctors practicing out of this location and as of August 2015, they are no longer taking new patients due to the popularity of this facility.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest based real estate investment company. The purchaser was an East Coast based real estate investment fund.

“Properties featuring rental escalations throughout the lease term continue to be highly sought after amongst the investor community as they provide an inflationary hedge” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “We are seeing many investors turn their attention to medical properties as they are highly resistant to e-commerce.”

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 $3 billion of single tenant net lease real estate transactions. From 2010-2014, 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

Tuesday, December 22, 2015

The Boulder Group Arranges Sale of a GSA Net Leased Office Building

The Boulder Group, a net leased investment brokerage firm, has completed the sale of an office building that is leased to the Federal Bureau of Investigation located at 980 Sandhill Road in Reno, NV for $6,400,000.

The 31,169 square foot two-story office building is located in one of the leading office submarkets in Reno. The building was constructed in 2005 and is located on a 1.77 acre land parcel. The Property is located about nine miles south of Interstate-80 and one mile east of Interstate-580/Highway 395 at the South Meadows interchange. The Reno-Tahoe International Airport is about five miles north of the Property.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the purchaser in the transaction. The purchaser was a Midwest based real estate investment company and the seller was a West Coast based real estate development company.

There are over ten years remaining on the FBI lease which expires in March 2026. The FBI leases occupies approximately 66% of the total office building.

“Demand for net lease GSA properties remains active as investors are aggressively pursuing assets with investment grade rated tenants” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “The purchaser was attracted to this property due to its prime location and longevity of properties leased by the GSA.”

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 $3 billion of single tenant net lease real estate transactions. From 2010-2014, 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

Friday, December 18, 2015

The Boulder Group Arranges Sale of Single Tenant Net Leased Rite Aid

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Rite Aid property located at 8110 Mallard Creek Road in Charlotte, North Carolina for $4,320,000.

The Rite Aid property is strategically located at the signalized intersection of North Carolina Highway 24 and Mallard Creek Road. The Rite Aid is positioned across the street from a Harris Teeter grocery store and approximately three miles from the University of North Carolina-Charlotte. There are over 174,000 people living within a five mile radius of the property.

Randy Blankstein and John Feeney of The Boulder Group represented the purchaser and seller in the transaction. The purchaser was a Midwest based private investor in a 1031 Exchange and the seller was an East Coast based developer.

There are approximately five years remaining on the Rite Aid lease which expires in September 2020. The absolute triple net lease features four 5-year renewal option periods. Rite Aid is a publicly traded company with a market capitalization in excess of $8 billion.

“Well located single tenant assets with solid real estate fundamentals continue to be in the greatest demand.” said Randy Blankstein, President of The Boulder Group. John Feeney, Vice President of The Boulder Group, added, “Net lease properties with strong residual real estate value are highly sought after amongst the investment community.”

Thursday, December 17, 2015

The Boulder Group Arranges Sale of Net Leased Family Dollar Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Family Dollar property located at 12610 South Ashland Avenue in Calumet Park, IL for $857,500.

The 11,000 square foot Family Dollar building is located along Ashland Avenue and is strategically positioned just north of the signalized intersection of Ashland Avenue and 127th Street. This intersection experiences traffic volume in excess of 44,000 vehicles per day. The surrounding area is densely populated with approximately 148,000 people living within a three mile radius earning average household income in excess of $56,000 annually. Retailers located in the immediate trade area include Aldi, Ultra Foods, Walgreens, Advance Auto, Sherwin Williams, McDonald’s, Burger King and Wendy’s.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Chicago based private partnership. The purchaser was a Northeast based private individual.

There are over three years remaining on the Family Dollar lease which expires June 31, 2019. The lease features three 5-year renewal option periods with 10% rental escalations in each. Family Dollar is a wholly owned subsidiary of Dollar Tree, a publicly traded company (NASDAQ: DLTR) with a market capitalization in excess of $18 billion.

“Single tenant properties below one million continue to be coveted amongst private investors” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Core market 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 $3 billion of single tenant net lease real estate transactions. From 2010-2014, 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

Monday, December 7, 2015

The Boulder Group Arranges Sale of Net Lease Panera Ground Lease

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction Panera ground lease located at 2911 Highway 121 in Euless, TX for $2,650,000.

The brand new Panera is strategically positioned as an outparcel to the 194 acre Glade Parks development. Glade Parks features Belk, Dick’s Sporting Goods, Dave & Busters, Michael’s and many other national retailers. The property is located along Texas State Highway 121 which experiences traffic volumes in excess of 131,000 vehicles per day.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both the seller and the purchaser in the transaction. The purchaser was a private investor from Florida in a 1031 Exchange and the seller was a Midwest based developer.

The Panera ground lease is for 15 years and features 10% rental escalations every five years. The lease commences in November 2015.

“The market for long term ground leases remains active as these assets are highly sought after amongst private investors.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “The demand for net lease properties in income tax-free states such as Texas is increasing amongst private investors.”

Friday, December 4, 2015

The Boulder Group Arranges the Sale of a Net Leased Culver’s

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Culver’s located at 1430 East Algonquin Road in Schaumburg, IL for $2,250,000.

The 49,919 square foot Culver’s property is positioned as an outparcel to an Aldi anchored shopping center. The property is benefited by its location within a strong regional retail trade area that features IKEA, Costco, and the Woodfield Mall. The Woodfield Mall is 2.1 million square feet and attracts over 27 million visitors annually. The 4,500 square foot Culver’s building is located just off of the signalized intersection of East Algonquin Road and North Meacham Road. This heavily traffic signalized intersection experiences traffic volumes in excess of 65,000 vehicles per day.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest based developer. The purchaser was a high net worth individual.

The Culver’s lease has over 15 years remaining and expires on December 23, 2030. The lease features annual rental escalations of 1.75% and two 10-year renewal option periods. Culver’s is a privately owned and operated fast food restaurant chain with over 500 locations in 22 states. The Culver’s franchise program is tremendously successful and has only had one failed franchisee in 30 years of operation.

“The market for well-located net lease properties in top MSAs remains active as these assets are in high demand amongst private investors” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Properties featuring long term leases with annual rental escalations throughout the primary term continue to remain at the forefront of investor demand.”

Wednesday, December 2, 2015

The Boulder Group Publishes Net Lease Medical 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 Medical Market.

Highlights from the report are as follows:

A 22 basis point decrease in cap rates for net lease medical properties from the third quarter of 2014 to the third quarter of 2013
Investment grade tenants make up 40% of the net lease medical market
Net lease medical properties are commanding a 15 basis point premium over the net lease market

The full report can be viewed online at http://www.bouldergroup.com/Net-Lease-Medical-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 over $3 billion of single tenant net lease real estate transactions. In 2010-2014, 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. More information on the firm can be found on The Boulder Group’s website at www.bouldergroup.com

Tuesday, December 1, 2015

The Boulder Group Arranges Sale of a Single Tenant Net Leased CVS Portfolio

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CVS portfolio consisting of two properties located within the Charlotte MSA for $5,158,000.

The portfolio consists of two short term CVS properties which were originally constructed in 1998. The properties are positioned at strategic signalized intersections with approximately 100,000 people living within five miles of each. Both properties feature low rent-to-sale’s ratios and leases which expire on January 31, 2019. Each lease features rental escalations in the renewal option periods.

The portfolio included the following CVS properties:

1. 1850 West Franklin Boulevard, Gastonia, NC

2. 1803 South New Hope Road, Gastonia, NC

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both the seller and purchaser in the transaction. The seller was an East Coast based developer and the purchaser was a private investment fund.

“This portfolio offered the investor the rare opportunity to acquire two short term CVS properties with strong rent-to-sale’s ratios in the same MSA” 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.”