Net Lease: September 2016

Friday, September 30, 2016

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

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Rite Aid property located at 8230 Cazenovia Road in Manlius, New York for $3,800,000.

The 12,795 square foot Rite Aid property is strategically positioned along Cazenovia Road which is a primary north-south thoroughfare in the trade area. The Rite Aid is positioned just south of the signalized intersection of Cazenovia Road and Enders Road. The surrounding area is affluent with average household incomes of $150,000 within a one mile radius of the property. This Rite Aid store is a strategically located property with the closest Walgreens positioned over 11 miles away.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; an East Coast based partnership of high net worth individuals. The purchaser was an East Coast based investor in a 1031 Exchange.

There are over ten years remaining on the Rite Aid lease which expires in February 2027. The lease features a 7% rental escalation in the first renewal option period and 10% rental escalations in each of the remaining five renewal option periods. Rite Aid operates approximately 4,600 stores in 31 states of the United States and the District of Columbia. The company sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products.

“Net lease Rite Aid properties are highly sought after amongst high yield investors.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Established properties with proven operating histories continue to garner significant investor interest.”

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, September 23, 2016

The Boulder Group Arranges Sale of Net Lease Jiffy Lube Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Jiffy Lube property located at 3115 South Street in Lafayette, Indiana for $910,000.

The Jiffy Lube property is located at the southwest corner of the heavily trafficked signalized intersection of South Street and South Earl Avenue. South Street is the primary east-west thoroughfare that connects Lafayette to Interstate 65. The Jiffy Lube is located in close proximity to Purdue University, which has an enrollment in excess of 39,000 students. The property is benefitted from its’ location within a dominant retail corridor that features Home Depot, Target, Lowe’s, Hobby Lobby, TJ Maxx, Sam’s Club, and Chase Bank.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction. The seller was a Midwest based private partnership while the buyer was a private REIT.

There are over 6 years remaining on the corporately guaranteed Jiffy Lube lease which expires October 31, 2022. The absolute triple net lease features 3% rental escalations in each of the three 5-year renewal option periods. Jiffy Lube is a subsidiary of Shell Oil Co. with over 2,000 locations. Shell Oil Co. is an investment grade rated company with a Standard & Poor’s rating of A.

“Jiffy Lube properties with solid real estate fundamentals continue to be in strong demand.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Shorter term leases with corporate guarantees offer higher yields that are accretive to many investor types.”

The Boulder Group Arranges Sale of Single Tenant Net Leased Orscheln Farm & Home

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Orscheln Farm & Home property located at 1311 Business Highway 61 South in Bowling Green, MO for $2,440,000.

The Orscheln Farm & Home property is strategically located along Missouri Route 161 which is the primary east-west thoroughfare in the trade area. The property is located immediately to the west of US Route 61 which is the primary north-south thoroughfare in the trade area and connects Bowling Green to St. Louis to the south. The recently constructed property is located across the street from a Walmart Supercenter. Additional retailers located within the immediate trade area include McDonald’s, Taco Bell, Dollar General, Subway, Hardee’s, DQ Grill, US Cellular and Country Market.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer and seller in the transaction. The Seller was a Midwest based real estate partnership and the purchaser was an Midwest based REIT.

This Orscheln Farm and Home property is a relocation of a previously successful store. There are approximately 18 years remaining on the lease which expires in July 2034. The lease features 7.5% rental escalations every five years throughout the primary term and in each of the four 5-year renewal option periods. Orscheln Farm & Home is a chain store with 172 locations in Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, and Oklahoma. Orscheln Farm & Home supplies agricultural goods for farm, home, ranch and suburban customers.

“Properties featuring long term leases with rental escalations throughout the primary term remain at the forefront of investor demand.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Investors are particularly attracted to properties where the tenant has a long operating history and commitment to the location.”

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

Thursday, September 22, 2016

The Boulder Group Arranges Sale of Trophy CVS Pharmacy at Record Cap Rate

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction CVS Pharmacy ground lease located at 2501 N. Field Street in Dallas, Texas for $14,890,000. The property sold at a 4.60% cap rate which is the lowest cap rate for a CVS sale in 2016 according to CoStar.

The CVS Pharmacy is located in the Victory Park area of downtown Dallas. Victory Park is a 75-acre mixed-use development surrounding the American Airlines Center, which is home to the Dallas Mavericks and Dallas Stars. Victory Park features more than 165,000 square feet of retail, restaurant and entertainment space, 621,000 square feet of Class-A office space, the 252-room W Dallas – Victory Hotel, more than 1,700 residential units and the Perot Museum of Nature & Science.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer in the transaction; a southeast based real estate company. The seller was a Texas based real estate company which was represented by Landes Fairmont.

The subject CVS Pharmacy is one of the only single-story buildings in the Victory Park area, sitting a block east from American Airlines Center. There are more than $1.5 Billion in commercial projects under construction or planned within a mile radius of the subject CVS. More recently, Victory Park and Cinepolis USA, a luxury concept movie theatre, announced plans to open an eight-screen, 700 seat theater just steps away from the subject CVS. Future plans also include a multi-level, mixed-use space for residential and retail components as well as additional parking.

There are twenty-five years remaining on the CVS Pharmacy absolute triple net lease with a 7.5% rental escalation in year twenty-one. The CVS lease features six 5-year renewal option periods with 5% rental escalations in each. CVS is a publicly traded company with a market capitalization in excess of $104 billion CVS is an investment grade rated tenant with a Standard & Poor’s rating of BBB+.

“The property’s superior infill location within a core market allowed The Boulder Group to achieve an aggressive cap rate for this sale” 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 Dallas, are at the forefront of investor demand.”

Tuesday, September 20, 2016

Exclusive Buyer Requirement | Single Tenant Net Lease Restaurant Portfolios

The Boulder Group is exclusively representing a repeat client looking to acquire single tenant restaurant portfolios entailing the following acquisition criteria:

Type: Single tenant restaurant portfolios (casual dining and quick service)
Tenants: Will consider all national tenants, however there is a preference for Arby's, Applebee's, Buffalo Wild Wings, Burger King, KFC, Taco Bell, Pizza Hut and Wendy's
Cap Rate: 5.75% minimum
Location: Nationwide
Remaining Lease Term: 5+ years
Misc: All cash buyer | Will review sale leaseback opportunities

Please send any potential properties to John Feeney (John@bouldergroup.com)

Monday, September 19, 2016

Meet Single Tenant Net Lease Firm The Boulder Group | ICSC Chicago Deal Making | October 19-20 | Booth 301

Stop by booth 301 at ICSC Chicago

Friday, September 16, 2016

The Boulder Group Arranges Sale of a Single Tenant Net Lease Movie Theater Portfolio

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased movie theatre portfolio consisting of three properties located in North Carolina for $15,973,000.

The portfolio consists of three long term leased movie theaters with over 16 years remaining tenanted by Coastal Cinemas, Creekside Cinemas, and Spring Lane Cinemas. The absolute triple net leases feature annual rental escalations and no landlord responsibilities. Each of the properties is located in strategic retail locations with minimal competition in the surrounding trade areas.

The portfolio includes the following movie theaters:
• The Creekside Stadium 10
o 605 E Bluemont Road, Mount Airy, NC 27030
• The Spring Lane Stadium 10
o 1351 Douglas Drive, Sanford, NC
• The Coastal Stadium 10
o 5200 Bridger Road, Shallotte, NC

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction; The buyer was a high net worth individual in a 1031 exchange and the seller was an institutional investment firm.

The movie theatre leases expire in January 2033 and features 1.75% annual rental escalations throughout the primary term. The lease guarantor currently operates 25 theatres and 256 screens in New Jersey, New York Pennsylvania, West Virginia, Tennessee, North Carolina, South Carolina, Georgia, and Florida.

“This portfolio offered the investor the opportunity to acquire three entertainment assets all in one geographic region” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Theaters and other entertainment facilities offer investors attractive yields as opposed to typical investment grade retail related 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 Arranges Sale of a Single Tenant Net Lease of Movie Theater Portfolio

The portfolio consists of three long term leased movie theaters with over 16 years remaining tenanted by Coastal Cinemas, Creekside Cinemas, and Spring Lane Cinemas. The absolute triple net leases feature annual rental escalations and no landlord responsibilities. Each of the properties is located in strategic retail locations with minimal competition in the surrounding trade areas.

The portfolio includes the following movie theaters:

· The Creekside Stadium 10

605 E Bluemont Road, Mount Airy, NC 27030

· The Spring Lane Stadium 10

1351 Douglas Drive, Sanford, NC

· The Coastal Stadium 10

5200 Bridger Road, Shallotte, NC

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction; The buyer was a high net worth individual in a 1031 exchange and the seller was an institutional investment firm.

The movie theatre leases expire in January 2033 and features 1.75% annual rental escalations throughout the primary term. The lease guarantor currently operates 25 theatres and 256 screens in New Jersey, New York Pennsylvania, West Virginia, Tennessee, North Carolina, South Carolina, Georgia, and Florida.

“This portfolio offered the investor the opportunity to acquire three entertainment assets all in one geographic region” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Theaters and other entertainment facilities offer investors attractive yields as opposed to typical investment grade retail related 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

Tuesday, September 13, 2016

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 307 Highway 5 in Logansport, LA for $1,113,685.

The 9,014 square foot Dollar General building is strategically located along Highway 5 which is the primary north-south thoroughfare in the trade area. The surrounding trade area features Dairy Queen, Whataburger, Subway, Brookshire Brothers, Community Bank of Louisiana, Farmers State Bank and Family Dollar.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a local Louisiana based developer. The purchaser was a Southwest private partnership.

The Dollar General lease has 14 years remaining and expires on July 31, 2030. The absolute triple net lease features no landlord responsibilities and 10% rental escalations in each of the three 5-year renewal option periods. 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.

“New construction properties with long term leases to investment grade tenants with rental escalations are the most sought after net lease product” 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

Friday, September 9, 2016

The Boulder Group Arranges Sale of Single Tenant Triple Net Leased Insurance Auto Auctions

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Insurance Auto Auctions, Inc. (IAAI) property located at 891 Ballardsville Road in Eminence, Kentucky for $5,619,000. IAAI is one of the leading North American salvage auto auctions with the largest facility footprint, strong buyer base and high auction returns.

The 30 acre Insurance Auto Auctions, Inc. property is strategically located along Ballardsville Road which is the primary east-west thoroughfare in the trade area. The property is located less than 40 miles east of downtown Louisville, less than 60 miles north of downtown Lexington and roughly 75 miles south of Cincinnati. The property serves customers nationwide but in particular Louisville, Cincinnati and Lexington.

Since first opening the Eminence location in November 2015, IAAI has served both dealer buyers and public buyers. The company operates 171 locations nationwide and is one of three business divisions of KAR Auction Services, a publicly traded company with a market capitalization in excess of $5.5 billion.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Southwest based private developer. The purchaser was an institutional investor based on the East Coast.

There are approximately 19 years remaining on the IAAI absolute tripe net lease that expires in November 2035. The lease features annual consumer price index and three 5-year renewal options.

“The market for industrial net lease properties remains active as these assets are in high demand among both institutional and private investors.” 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 strategic location, positioned to serve three strong markets.”

Thursday, September 8, 2016

The Boulder Group Arranges Sale of Net Lease Starbucks Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Starbucks property located at N65 W24950 Main Street in Sussex, Wisconsin for $1,075,000.

The Starbucks property is located at the intersection of Highway 164 and Main Street on the western edge of the Village of Sussex. The property is shadow-anchored by a highly successful Pick 'n Save grocery store and shares common site access with a North Shore Bank branch. The property benefits from excellent visibility and simple access.

Randy Blankstein and John Feeney of The Boulder Group represented the buyer in the transaction; a Northeast based partnership in a 1031 Tax Exchange. The seller was a private Midwest based real estate partnership.

There are over six years remaining on the Starbucks lease that expires February 28, 2023. The property is fully guaranteed by Starbucks Corporation and has a 4.5% rental escalation in March 2018. Starbucks is an investment grade rated tenant with a Standard & Poor’s Rating of A-.

“Single tenant Starbucks properties continue to be in great demand with private investors.” said Randy Blankstein, President of The Boulder Group. John Feeney, Vice President of The Boulder Group, added, “Properties with corporately guaranteed leases and rental escalations throughout remain at the forefront of investor demand because they provide investors with an inflationary hedge.”