The Boulder Group Publishes Net Lease Bank Ground Lease 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 Bank Ground Lease Market.

Highlights from the report are as follows:

• A 40 basis point increase in cap rates for bank ground lease properties from the first quarter of 2015 to the first quarter of 2016
  
  
• Median remaining lease term of bank ground leases on the market is 11 years compared to 15 years in 2013
  
  
• A 20% increase in supply of on market bank ground lease properties in the first quarter of 2016 when compared to the prior year
  
  The full report can be viewed online at http://www.bouldergroup.com/media/pdf/ResearchReport-Q12016-BankGroundLease.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 2010-2015, 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. More information on the firm can be found on The Boulder Group’s website at www.bouldergroup.com  

The Boulder Group Arranges Sale of Net Lease Family Dollar

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction Family Dollar located at 3211 Old McDuffie Road in Augusta, GA for $1,490,000.

The newly constructed Family Dollar is located at the signalized intersection of Old McDuffie Road and Barton Chapel Road. There are approximately 50,000 people living within a three mile radius of the property. The property is located approximately seven miles south of the Augusta National Golf Club.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the purchaser in the transaction; a Midwest based individual in a 1031 Exchange. The seller was a Southeast based real estate development company.

The new Family Dollar lease is for fifteen years and expires September 30, 2031. The absolute triple net lease features no landlord responsibilities and a 10% rental escalation in the primary term. The lease features 10% rental escalation in each of the six 5-year renewal option periods. Family Dollar Stores, Inc. is the second largest dollar store chain in the United States, operating 8,100 stores across 46 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.  Jimmy Goodman, Partner of The Boulder Group, added, “The market for new construction net leased dollar stores remains active as these assets are in high demand among private investors.”

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 CoStar and Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com

The Boulder Group Arranges Sale of Single Tenant Net Leased Shopko Hometown

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Shopko Hometown property located at 110 Watters Drive in Dwight, Illinois for $2,115,000.

The 26,254 square foot Shopko Hometown property is strategically located along Interstate 55 approximately 75 miles southwest of downtown Chicago. There are approximately 6,000 people living within a five mile radius earning average annual household incomes in excess of $61,000.  Following the Shopko and Pamida merger, the building was converted to a Shopko Hometown.

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

Shopko Hometown has approximately 8 years remaining on their lease which expires in May 2024. The absolute net lease features three 5-year renewal option periods. Shopko is a privately owned $3 billion retailer with 323 stores in 21 states.

“The Midwest net lease market remains strong for corporately guaranteed single tenant properties” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “There has been an increase in demand for non-investment grade properties as they generate higher yields than the typical core net lease assets.”

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

Randy Blankstein, President of The Boulder Group, to Chair Net Lease Summit Conference

To register for the Net Lease Summit Conference, please visit  http://www.cvent.com/events/2nd-annual-net-lease-summit/event-summary-8f7161afc756477282d0bb6311e1f37e.aspx

The Boulder Group Arranges Sale of Net Lease ALDI Ground Lease

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant ALDI ground lease located at 5811 High Street in Portsmouth, VA for $3,280,000.

The ALDI property is strategically located in the Norfolk MSA across the street from a Harris Teeter grocery anchored center and adjacent to a brand new CVS. The property is located along High Street which is a primary east-west thoroughfare in the trade area. There are over 65,000 people living within a three mile radius of the property.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; an East Coast based real estate development company. The purchaser was an international investor based in Germany.

The new ALDI ground lease is for twenty years and rent commenced in November 2015. The ground lease features rental escalations throughout the primary term and absolutely no landlord responsibilities. There are five 5-year renewal option periods.

“Ground leases featuring long term leases with multiple rental escalations 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, “Due to their limited supply and favorable implied credit, new construction ALDI ground leases are highly sought after amongst the investment community.”

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 CoStar and Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com

The Boulder Group Arranges Sale of Net Lease Buffalo Wild Wings Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net lease Buffalo Wild Wings property located at 404 Marshall Road in Superior, CO for $2,158,852.

The 5,507 square foot Buffalo Wild Wings is strategically positioned as an outparcel to a Costco and SuperTarget anchored development. Additional retailers located in the immediate trade area include Whole Foods, Home Depot, Lowe’s, TJ Maxx, Ross Dress For Less, Regal Cinemas and Michaels. The surrounding area is affluent with average annual household incomes in excess of $101,000 within a three mile radius. The property is located along Highway 36 which connects Denver to Boulder. 

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

There are over 3 years remaining on the corporately guaranteed Buffalo Wild Wings lease which expires in September 2019. The lease features 1% annual rental escalations and four 5-year renewal option periods. Buffalo Wild Wings is a publicly traded company with a market capitalization of $3 billion.

“Net lease properties with strong residual real estate value are highly sought after amongst the investment community.” 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 for higher yields.”

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

The Boulder Group Publishes 1st Quarter Net Lease Market Research Report

The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the 1st quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

• Cap rates for net leased retail and industrial properties compressed reaching new historic lows
  
  
• Overall property supply of retail, office and industrial net lease assets decreased by 3% from Q4 2015 to Q1 2016
  
  
• Recently constructed properties tenanted by AutoZone, DaVita and Fresenius experienced the greatest cap rate compression

The full report can be viewed online at http://bouldergroup.com/media/pdf/2016-Q1-Net-Lease-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 2010-2015, 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