Net Lease

Friday, September 28, 2012

The Boulder Group Arranges Sale of a $4.9 million single tenant CVS Portfolio in the Southeastern United States

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CVS portfolio consisting of three properties located in Georgia and Tennessee for $4,885,000.

Each of the properties are fully leased to CVS on a short-term basis. The properties offered investors the rare opportunity to obtain a drug store portfolio with an investment grade tenant at an attractive yield.

CVS is a publicly traded company on the New York Stock Exchange (CVS), with a market capitalization of $50 Billion. CVS is an investment grade rated company with a Standard & Poor’s rating of BBB+ that has over 7,300 stores nationwide.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private investment group, in the transaction. The buyer was an East Coast based institutional investment firm.

The portfolio included the following three CVS properties:

1. 9920 Jones Bridge Road, Alpharetta, GA (Atlanta MSA)

2. 1021 1^st Street E, Vidalia, GA

3. 3700 Kings Lane, Nashville, TN

The Boulder Group generated multiple offers for this portfolio due to the high demand for net leased drug store properties combined with the high yield available due to the short term of the leases.

“The market for net leased portfolios leased to investment grade tenants is strong as the availability of quality single tenant portfolios remain limited.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Short term single tenant properties leased to CVS are in high demand due to the high renewal probability and the attractive yield.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in 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 more than $1.4 billion of net lease real estate transactions through several real estate cycles. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com

Friday, September 14, 2012

The Boulder Group Arranges Sale of a Single Tenant CVS Property in Elberton, Georgia (Atlanta MSA)

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant CVS property located 232 Elbert Street, Elberton, GA for $2,200,000.

CVS is the sole occupant of the 10,125 square foot retail building that was developed in 1999. The property is located along the primary retail thoroughfare in Elberton. The CVS property is benefitted by its position on a hard corner of a signalized intersection. The CVS has a drive-thru and is a strong performing store with a low rent to sales ratio.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the both parties in the transaction; the seller was a South Carolina based partnership and the buyer was private ownership entity based in Florida.

CVS has seven years remaining on the initial lease. CVS is a publicly traded company on the New York Stock Exchange (CVS), with a market capitalization of $50 Billion. CVS is an investment grade rated company with a Standard & Poor’s rating of BBB+ that has over 7,300 stores nationwide.

“The market for CVS properties remains active as investors are attracted to investment grade tenanted properties with stable income streams” said Jimmy Goodman, Partner of The Boulder Group. Randy Blankstein, President of The Boulder Group, added, “Top tier metropolitan areas, such as Atlanta, remain in the highest demand for single tenant investors.”

Thursday, September 6, 2012

The Boulder Group Arranges Sale of a Single Tenant Walgreens Property in Chicago, Illinois

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a triple net leased Walgreens property located at 2345 West 103^rd Street, Chicago, Illinois for $7,500,000

The 13,650 square foot Walgreens was built in 2004 and is located in Chicago, Illinois. The building is situated along a heavily trafficked thoroughfare in a dense infill area of Chicago. The property is located in a primary retail trade area near retailers Wal-Mart, Sam’s Club, Carson Pirie Scott and Aldi. The building is leased to Walgreens on a net lease basis with 17 years of lease term remaining and is located on a hard corner of a signalized intersection. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB and has over 8,200 stores nationwide.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller; a Midwest based partnership, in the transaction. The buyer was a west coast based institution and was self-represented.

Walgreens has seventeen years of lease term remaining on an original 25 year triple net lease. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $30 Billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB and has over 8,200 stores nationwide.

“The market for net leased Walgreens remains strong as investors are attracted to investment grade tenanted properties with long term leases.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Core market single tenant assets with solid real estate fundamentals continue to be in the greatest demand.”

Tuesday, September 4, 2012

The Boulder Group Arranges Sale of a Single Tenant Dollar General Property in Mooresville, North Carolina

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a triple net leased Dollar General property located at 218 East Plaza Drive in Mooresville, North Carolina for $1,472,786

The 9,026 square foot Dollar General was built in 2011 and is located along a heavily trafficked thoroughfare. The building is leased to Dollar General on a net lease basis with 14 years of lease term remaining. The property is located across the street from a Big Lots anchored shopping center and other nearby retailers. Dollar General is an investment grade rated company with a Standard & Poor’s rating of BBB- and has over 9,300 stores nationwide.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a southeast based developer, in the transaction. The buyer was a private net leased investment fund and self-represented.

“The market for newly developed triple net leased Dollar Generals is robust as investor demand for long term leased properties priced below two million dollars exceeds the supply.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Expect activity for single tenant leased Dollar General properties in prime locations to increase as their Standard and Poor’s rating was recently increased to BBB-.”

Tuesday, August 21, 2012

The Boulder Group Arranges Sale of a $16.35 million Single Tenant GSA Property in Bloomington, Illinois

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant GSA property located at 1201 North Mitsubishi Motorway in Bloomington, IL for $16,350,000.

The 133,512 square foot GSA property is fully occupied by the Internal Revenue Service and was developed in 2008. The property is located on a 9.78 acre parcel along Mitsubishi Motorway in Bloomington, Illinois and is benefitted by its high end construction that meets the strict building standards of the U.S. Government. The GSA property is mission critical to the IRS as it is the only of its kind in the United States. The mission of the IRS National Distribution Center is to provide order fulfillment services and distribution of published products to internal and external customers of the IRS. The GSA consolidated three other national IRS distribution centers to this centrally located facility in 2008.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private partnership based in Colorado. The buyer was self-represented and purchased the property to fulfill a 1031 exchange.

The GSA lease had eleven years remaining on the primary term at the time of the sale. The GSA is an investment grade tenant with a Standard & Poor’s rating of AA+. The GSA has approximately 106,000 employees and leases over 354,000,000 square feet of space nationwide.

“Demand for institutional quality net lease properties remains active as investors are aggressively pursuing investment grade tenanted properties over $10 million dollars.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Newly constructed GSA assets are in high demand as they have a historic renewal probability of over 90%.”

Randy Blankstein, President of the Boulder Group, to Speak at Interface Net Lease Conference

Randy Blankstein, President of national net lease advisory firm The Boulder Group, will be a featured speaker at the Interface Net Lease Conference in New York on September 11th, 2012. His panel will be discussing if the net lease investment market will continue to experience cap rate compression.

The Interface Net Lease conference will cover investment and financing trends and discuss market conditions in the NNN and sale leaseback space. The conference will also focus on the development pipeline for new NNN deals, bring together a group of retailers to offer a tenant's perspective on the market, and offer informal roundtable discussions on special niche topics in the net lease market.

Wednesday, July 11, 2012

The Boulder Group Publishes 2nd 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 2nd quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

Net lease property cap rates compressed in the retail sector
Supply increased sharply in the retail and industrial sectors
Ground Leases and Bank properties remain the most sought after assets

The full report can be viewed online at http://www.bouldergroup.com/q2rr.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 more than $1.4 billion of net lease real estate transactions through several real estate cycles. 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