Net Lease: February 2016

Monday, February 29, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Walgreens in the City of Chicago

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 3019 W Peterson Avenue in Chicago, IL for $9,250,000.

The Walgreens property is strategically positioned just off of the heavily trafficked signalized intersection of Peterson Avenue and Lincoln Avenue which experiences traffic volumes in excess of 68,000 vehicles per day. The immediate area is densely concentrated providing for high barriers to entry. There are approximately 55,000 people living within a one mile radius of the property. Additionally, there are over 955,000 people living within a five mile radius of the property earning average annual household incomes in excess of $77,000. The Walgreens property is centrally located in a retail corridor which features Home Depot, Ross Dress For Less, Office Depot, Bank of America, Fifth Third Bank, Chase Bank and many other national & local retailers.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both the seller and purchaser in the transaction. The seller was a Midwest based private real estate investor and the purchaser was a 1031 Exchange investor based on the West Coast.

There are approximately 15 years remaining on the absolute triple net Walgreens lease which expires on October 31, 2030. This Walgreens location boasts exceptional reported store sales and operates as a 24-hour location. Walgreens is a wholly owned subsidiary of Walgreens Boots Alliance, Inc. which is an investment grade rated company (S&P: BBB) with a market capitalization in excess of $84 billion.

“Established properties with proven operating histories continue to garner significant investor interest.” 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 $3 billion of single tenant net lease real estate transactions. From 2010-2015, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com

Friday, February 19, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Jiffy Lube

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Jiffy Lube property located at 660 North Grandstaff Drive in Auburn, IN for $594,110.

The Jiffy Lube property is located approximately twenty miles north of Fort Wayne. The property is benefitted by its location within Auburn’s primary retail trade area. National retailers located in in the immediate vicinity include Walmart Supercenter, Home Depot, Kroger, CVS, Wells Fargo Bank, Starbucks, Dollar General, McDonald’s, AutoZone and Advance Auto Parts. There are over 25,000 people living within a five mile radius of the property.

Randy Blankstein and John Feeney of The Boulder Group represented the seller in the transaction; a Northeast based real estate investment company. The purchaser was a private individual in a 1031 Exchange based on the West Coast.

There are approximately 16 years remaining on the Jiffy Lube lease which features 1.5% annual rental escalations. The lease is absolute triple net and the tenant is an experienced Jiffy Lube operator. As of October 2014, this location began offering customers additional services (such as brakes, tires, light repairs, ect) that are expected to increase business.

“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, “Properties featuring long term leases with rental escalations throughout the primary term remain at the forefront of investor demand.”

Friday, February 12, 2016

Randy Blankstein, President of The Boulder Group, to Speak at ICSC N3 Triple Net Lease Conference in Dallas

Randy Blankstein, President of national net lease advisory firm The Boulder Group, will be a featured speaker at ICSC’s N3 Triple Net Lease Conference in Dallas on March 8th, 2016. Randy will be speaking on the Deal Makers Panel.

The Deal Makers Panel will feature a wide-ranging, macro-level discussion by the national net lease industry leaders to explain how the single tenant net lease industry differs in 2016 from the previous year. The panel will discuss cap rate trends, investors shifting focus by product sectors and the market impact should 1031 exchange rules change.

About Randy Blankstein

Randy Blankstein is the founder and President of The Boulder Group a boutique investment real estate services company that specializes in single tenant net leased properties. Randy is recognized nationally as a leader in the net lease market, and has personally arranged over $3 billion in net lease related acquisitions and dispositions in his 26 year real estate career.

Randy received honorable mention for the 2014 Net Lease Executive of the Year by Commercial Property Executive Magazine.

Randy was ranked by CoStar as the number one net lease broker in the nation for 2015.

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 2010-2015, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. The firm’s website is www.bouldergroup.com

Thursday, February 11, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Verizon Wireless

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Verizon Wireless property located at 6501 Wilkinson Blvd in Belmont, North Carolina for $1,392,400.

The Verizon Wireless property is strategically located at the signalized intersection of Wilkinson Boulevard and North Main Street which experiences traffic counts in excess of 35,000 vehicles per day. Interstate 85 is located approximately one-quarter mile north of the property and experiences traffic counts in excess of 119,000 vehicles per day. The surrounding trade area features numerous national retailers including Walmart Supercenter, Lowe’s, Aldi, Walgreens, CVS, McDonald’s, Advance Auto Parts, Bank of America and Wells Fargo.

Randy Blankstein and John Feeney of The Boulder Group represented the seller in the transaction; an East Coast based real estate investment company. The purchaser was a North Carolina based real estate developer.

Verizon Wireless has over ten years remaining on their lease which expires in May 2026. The net lease features annual rental escalations throughout the primary term. The guarantor of the lease is ABC Phones of North Carolina, Inc. which operates over 600 locations in 31 states.

“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.”

Wednesday, February 10, 2016

The Boulder Group Arranges Sale of Single Tenant Net Lease Dollop Coffee Retail Condominium in Chicago

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net lease Dollop Coffee retail condominium located at 1000 North Damen Avenue in Chicago, IL for $405,000.

The 1,600 square foot retail condominium is strategically located at the signalized intersection of Damen Avenue and Augusta Boulevard. Dollop Coffee is the first floor retail condominium of a brand new, high end multi-unit residence. The state-of-the-art building will be one of the first LEED certified, multi-unit residences in the area. The property is located approximately one-quarter mile north of a new Mariano’s grocery. The surrounding area is densely populated with over 65,000 people living within a one mile radius.

Jimmy Goodman and John Feeney of The Boulder Group represented the seller in the transaction; a Midwest based real estate development and investment firm. The purchaser was a Chicago based real estate investor.

The new Dollop Coffee lease is for five years and features annual rental escalations throughout the primary term and renewal option periods. Dollop Coffee is an expanding neighborhood coffee shop chain that features locally sourced products. This Dollop Coffee location will be among the largest and the first-ever bakery/coffee shop hybrid. Dollop will utilize this location to bake pastries to supply all of their Chicagoland locations.

“Properties priced below $1 million that are located in top MSA’s achieve significant interest amongst private investors” said Jimmy Goodman, Partner of The Boulder Group. John Feeney, Vice President 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.”

Friday, February 5, 2016

The Boulder Group’s Sale of Net Leased LA Fitness Sets Cap Rate Record

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a trophy single tenant LA Fitness property located at 6107 North Broadway in Chicago, IL for $9,500,000. The Boulder Group has once again set a new CoStar record with the closing of this trophy LA Fitness property. According to CoStar, the 5.63% cap rate represents the lowest sold cap rate ever recorded for a single tenant LA Fitness property.

The LA Fitness property is strategically located along North Broadway Street at a signalized intersection. The property is strategically located within two blocks of two different CTA Red Line “L” stations. The Red line is the most used “L” line in the city. The LA Fitness is benefitted by its close proximity to Loyola University Chicago. Loyola University is home to over 15,000 students. The surrounding area is densely populated with over 70,000 people living within a one mile radius. A new Whole Foods is located adjacent to the property immediately to the south and a brand new Walgreens is located adjacent, which recently signed a new 25 year lease and built a flagship store at the location further illustrating the strength of the immediate area.

The 22,000 square foot state of the art fitness facility consists of two levels. The free-standing building was fully renovated in 2014 by Crossroads Development. The LA Fitness benefits from the presence of on-site parking; a rare feature for properties located within the city of Chicago.

In the immediate vicinity to the LA Fitness property, Crossroads Development recently developed a single tenant trophy Walgreens and a Physicians Immediate Care property. “Developing in Edgewater has been a successful venture for us and for the neighborhood,“ said Crossroads principal Michael Nortman. “Additionally, the Buyer has retained our management group to manage the property post-closing, which is something we’ve been successful doing in over 90% of properties sold in our portfolio.”

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction which was Crossroads Development. The purchaser was a high net worth individual based on the West Coast in a 1031 Exchange.

LA Fitness has over 13 years remaining on their lease which expires in June 2029. The lease features 10% rental escalations every five years and in each renewal option period. LA Fitness is the dominant market leader in the Chicago MSA with approximately 40 locations in the area. LA Fitness is a privately held company with over 600 locations across the country.

“The property’s superior infill location within a core market allowed The Boulder Group to achieve a historic cap rate for this sale” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Investors continue to aggressively target properties located in top MSA’s with long term leases and rental escalations.”

www.bouldergroup.com

About Crossroads Development Partners

Crossroads Development Partners, LLC is a boutique commercial real estate investment, management, and development company with expertise in property operations, entitlements, construction management, financial underwriting, and development. Crossroads Development Partners is particularly focused on maintaining and creating value at the property level to maximize returns to stakeholders. The company’s hands-on approach to operating income-producing real estate differentiates Crossroads Development Partners from competitors. Crossroads currently has over $200,000,000 in various stages of development including retail, apartments and office properties located in Florida and Illinois.

http://www.xrdevelopment.com

Monday, February 1, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Florida Walgreens

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 2075 US Highway 1 South in St. Augustine, Florida for $3,150,000.

The 15,525 square foot Walgreens is strategically positioned at the signalized intersection of US Highway 1 South and Southpark Boulevard which experiences traffic counts in excess of 47,000 vehicles per day. The Walgreens is positioned across the street from the Flagler Hospital which is a 335-bed acute care hospital that consistently ranks in the top 5% of hospitals nationally. Retailers located in the immediate trade area include JCPenney, Belk, Walmart Supercenter, Target, Home Depot, Hobby Lobby and many others.

Randy Blankstein and John Feeney of The Boulder Group represented the buyer in the transaction; a Midwest based private investor in a 1031 Exchange. The seller was a Florida based developer.

There are over four years remaining on the Walgreens lease which expires May 31, 2019. Walgreens has operated at this location since 1994 and recently exercised a renewal option. This Walgreens store features a double drive thru and operates as a 24 hour location. Walgreens is an investment grade rated company with a Standard and Poor’s rating of BBB.

“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.”