Net Lease: May 2016

Tuesday, May 31, 2016

The Boulder Group Publishes Net Lease Casual Dining 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 Casual Dining Market.

Highlights from the report are as follows:

Cap rates for net lease casual dining sector were 5.75% in the first quarter of 2016
Casual dining properties are priced at a 43 basis point premium when compared to the entire net lease retail market
Corporately leased casual dining properties are priced at a 65 basis point premium over franchisee leased properties

The full report can be viewed online at http://www.bouldergroup.com/media/pdf/2016-Net-Lease-Casual-Dining-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 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

Thursday, May 19, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Walgreens in Chicago’s Bucktown Neighborhood

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 2001 Milwaukee Avenue in Chicago, IL for $11,275,000.

The Bucktown Walgreens property is positioned at the heavily trafficked signalized intersection of Milwaukee Avenue and Armitage Avenue which experiences traffic counts in excess of 30,000 vehicles per day. The property is located just west of Western Avenue which is the primary north-south thoroughfare in the immediate trade area. The surrounding area is densely concentrated providing significant barriers to entry. The Western CTA Blue Line “L” Station is located one block south of the Walgreens and experiences over 1,500,000 rail entries per year. Additionally, the Bloomingdale Trail, also known as “The 606”, substantially enhanced the property and the surrounding area. The Bloomingdale Trail is an elevated multi-use recreational trail and park that was completed in 2015 and is a popular attraction for walkers, runners, and bikers. The trail is located just south of the Walgreens property.

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 a local private investor in a 1031 Exchange.

There are over 15 years remaining on the Walgreens lease which expires December 31, 2031. The absolute triple net lease features no landlord responsibilities. This Walgreens location has exceptional reported store sales. 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 $85 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

The Boulder Group Arranges Sale of Bank of America Ground Lease

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Bank of America Ground Lease located at 1400 Waukegan Road in Glenview, IL for $6,900,000.

The Bank of America property is strategically positioned at the heavily trafficked signalized intersection of Lake Avenue and Waukegan Road which experiences traffic volumes of 60,000 vehicles per day. The surrounding area is affluent with average annual household incomes within a one mile radius in excess of $157,000. The Bank of America is strategically positioned in the area’s primary retail trade area. Surrounding retailers in the immediate area include Walgreens, Trader Joe’s, Jewel-Osco, Ace Hardware, Staples and Starbucks.

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

The Bank of America ground lease has over 13 years remaining and expires in December 2029. The ground lease features 10% rental escalations every five years throughout the primary term and renewal option periods. Bank of America is an investment grade rated tenant with a Standard & Poor’s rating of A-.

“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, “Investors continue to aggressively target properties located in top MSA’s with long term leases and rental escalations.”

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

Tuesday, May 10, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Walgreens

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 5555 Edmondson Pike in Nashville, Tennessee for $6,926,345.

The 15,680 square foot Walgreens building is strategically located at the signalized intersection of Old Hickory Boulevard and Edmondson Pike. The property features multiple points of ingress and egress and is easily accessible in all directions. The Walgreens is benefitted by its location within a retail destination that features Publix, Kroger, Walmart Neighborhood Market, Fifth-Third Bank, McDonald’s and Starbucks. The surrounding area is densely populated with approximately 70,000 people living within a three mile radius earning average annual household incomes in excess of $85,000.

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

There are thirteen years remaining on the recently extended Walgreens lease which expires in April 2029. This is a proven Walgreens store with an exceptional sales history and Walgreens operates this location as a 24-hour store. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB.

“Established properties with proven operating histories continue to garner significant investor interest.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Vice President of The Boulder Group, added, “Net lease properties with strong residual real estate values are highly sought after amongst the investment community, especially those located in income tax-free states.”