The Boulder Group Arranges Sale of a Single Tenant Net Lease US Bank Office Building

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant US Bank office property located at 615 East Michigan Street in Milwaukee, WI for $14,000,000.

The US Bank office is directly adjacent and connected by a sky-walk to the U.S. Bank regional headquarters building in the central business district of Milwaukee.  The office houses USBancorp’s Fund Services unit, a subsidiary of U.S. Bank.  The fund services unit is a highly profitable business unit, currently in the top three in mutual fund servicing business with roughly a 24% market share.  The property is located along the Interstate 794 interchange. 

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction.  The purchaser was a Midwest based partnership in a 1031 Tax Exchange. The seller was Oak Street Real Estate Capital, a Chicago based private equity firm.  Seller was steadfast in successfully closing the transaction.  The transaction had multiple issues to overcome and Seller’s persistence got the property back on track with astute structuring and superb execution.

The US Bank lease expires in December 2026 and features 2% annual rental escalations throughout the primary term. US Bank is a publicly traded company on the New York Stock Exchange (USB) with a market capitalization in excess of $73.5 Billion.

“The market for properties occupied by major banks remains active as investors are attracted to investment grade rated companies” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “There are limited single tenant office properties available in core downtown markets, creating cap rate compression for credit tenanted 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 CoStar and Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com

The Boulder Group Publishes Net Lease Dollar Store 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 Dollar Store Market.

Highlights from the report are as follows:

• Overall cap rates for Dollar General, Family Dollar and Dollar Tree properties experienced an increase in cap rates of 15 basis points
  
  
• New construction Family Dollar properties represent the lowest cap rate in the sector
  
  
• Dollar stores are priced at a 47 basis point discount when compared to the entire net lease retail market

The full report can be viewed online at http://www.bouldergroup.com/media/pdf/Net-Lease-Dollar-Store-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 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 Triple Net Leased Dollar General

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction Dollar General located at 4180 University Parkway in Natchitoches, LA for $1,362,000.

The 9,014 square foot Dollar General building is strategically located along University Parkway which experiences traffic counts in excess of 16,000 vehicles per day. University Parkway is the primary east-west thoroughfare in the trade area and connects Natchitoches to Interstate 49 to the west. Retailers located in the immediate area include McDonald’s, Burger King, Popeyes, Wendy’s, RaceWay, MidSouth Bank, Brookshires, Hampton Inn, Holiday Inn Express, Comfort Suites and Fairfield Inn & Suites.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Dollar Store developer. The purchaser was a private investor in a 1031 Exchange based on the West Coast.

The Dollar General lease has over 13 years remaining and expires on October 31, 2029. The absolute triple net lease features no landlord responsibilities and three 5-year renewal option periods. The lease features a 3% rental escalation in Year 11 and a 10% rental escalation in each renewal option period. Dollar General is an investment grade rated company with a Standard & Poor’s rating of BBB. As of March 23, 2016, Dollar General operated 12,483 stores located in 43 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 Net Lease Starbucks Ground Lease

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction Starbucks ground lease located at 103 Mitchell Drive in Hendersonville, NC for $2,250,000.

The property is strategically located along Four Seasons Boulevard which is a primary thoroughfare in the area and features traffic volumes in excess of 32,000 vehicles per day. The property is located in close proximity to Interstate 26. Retailers located in the immediate trade area include Lowe’s, Home Depot, Sears, JCPenney, Belk’s and TJ Maxx.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the purchaser in the transaction; a private northeast based real estate company. The seller was a Southeast based real estate developer.

The brand new Starbucks ground lease is for twenty years and features 10% rental escalations every five years. The lease features four 5-year renewal option periods. Starbucks is an investment grade rated tenant with a Standard & Poor’s rating of A-.

“The market for long term ground leases located in strong retail corridors 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, “Due to their limited supply, new construction Starbucks 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 both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago.  www.bouldergroup.com

Single Tenant Net Lease Volume Declines in 2016

Single Tenant Net Lease Volume Declines in 2016

The Boulder Group Arranges Sale of Net Lease Applebee’s Neighborhood Grill & Bar

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Applebee’s Neighborhood Grill & Bar (Applebee’s) property located at 811 S. Irby Street in Florence, SC for $2,050,000. The City of Florence is the largest city in Northeastern South Carolina and was recently named among America’s top fifty cities for business relocation and expansion by Expansion Management Magazine.

                                                                          

The 3,552 square foot freestanding Applebee’s sits on approximately 1.462 acres off of U.S. Route 52, a strategic highway through central South Carolina, and is in close proximity of several national and regional tenants including Autozone, Jiffy Lube, Piggly Wiggly and CVS.  Applebee’s is the largest casual and family dining concept in America, both in terms of number and market share.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the purchaser in the transaction; a Midwest based investment firm.

There are over four years remaining on the Applebee’s lease which expires in December 2020. The lease features a 1.5% rental escalation.

“The market for net lease QSR properties remains active as these assets are in high demand among private investors.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Short term leases with strong real estate fundamentals allow investors to achieve 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 Arranges Sale of Single Tenant Net Leased American Mattress

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant American Mattress located at 751 East Lincoln Highway in New Lenox, IL for $1,545,000.

The 4,000 square foot American Mattress building was constructed in 2015 and is located along East Lincoln Highway, the primary east-west thoroughfare in the trade area that connects the property to Interstate 80. The American Mattress is strategically positioned as an outparcelto the New Lenox Town Center which was developed in 2010. The New Lenox Town Center is a Walmart Supercenter anchored development that also features retailers Ross Dress For Less, TJ Maxx, Goodwill, Aldi, AutoZone, Discount Tire, PepBoys, Chase Bank and Physicians Immediate Care. Additional retailers located in the immediate trade area include Lowe’s, Target, LA Fitness, Michael’s, Walgreens, Portillo’s and Bank of America.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a West Coast based developer. The purchaser was a Midwest based 1031 Exchange investor.

The new American Mattress lease is for ten years, with an expiration date of December 31, 2025, with two 5-year renewal option periods. American Mattress is a family owned and operated company that has served the Chicagoland area for over 25 years. American Mattress is the largest mattress retailer in the Chicago MSA.

“While single tenant properties are selling in all types of locations; core markets, like Chicago, are at the forefront of investor demand,” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Properties that are valued around below $2 million are receiving the most activity from high net worth individuals and 1031 exchange buyers.”

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 LabCorp Office Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant LabCorp office property located at 150 Spring Lake Drive in Itasca, IL for $6,250,000. Itasca is located in the Chicago MSA west of the Chicago O’Hare International Airport.

The 40,150 square foot LabCorp building is positioned on a 3.37 acre parcel within the Spring Lake Business Park. The Spring Lake Business Park also features the corporate headquarters of Knowles Corporation which is a publicly traded company (NYSE: KN) with a market capitalization of $1.5 billion. The property is benefitted by its location within the O’Hare industrial submarket which has a market vacancy 22% lower than the entire Chicago MSA. The property is benefitted by its location along Interstate 290/355 which experiences traffic volumes in excess of 225,000 vehicles per day. Chicago O’Hare International Airport, which is the 8th busiest airport in the world, is located approximately ten miles east of the property. The surrounding area is densely populated with over 225,000 people living within a five mile radius. The immediate area is affluent with average annual household incomes within a one mile radius in excess of $107,000. 

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest based development firm. The purchaser was a local Midwest investment company.

There are over eight years remaining on the LabCorp lease which expires in December 2024. The lease features a 5% rental escalation in the primary term and rental escalation in each renewal option period. The building underwent a $7.2 million renovation which included a new roof, new HVAC units, new parking lot and new buildout designed to meet the needs of LabCorp. The building also features two loading docks. LabCorp is publicly traded on the New York Stock Exchange, LH, with a market capitalization in excess of $14 billion. LabCorp is an investment grade rated tenant with a Standard & Poor’s rating of BBB.

“The market for net lease properties in major MSAs remains active as these assets are in high demand among private investors.” 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 related office 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 2010-2015, 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 Net Lease Quick Service Restaurant 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 QSR Market.

Highlights from the report are as follows:

• QSR properties are commanding a 48 basis point premium over the retail net lease market
  
  
• Chick-Fil-A ground leases represent the lowest cap rates in the sector
  
  
• Cap rates for corporately guaranteed properties are asking a 35 basis point premium over franchisee guaranteed properties

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