Net Lease: net lease. net leased

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Monday, August 15, 2016

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

Monday, August 1, 2016

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

Thursday, June 30, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Advance Auto Parts

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Advance Auto Parts property located at 1200 West Chicago Avenue in East Chicago, Indiana for $1,530,000. East Chicago is a suburb of Chicago located in Northwest Indiana.

The newly constructed Advance Auto Parts property is strategically located along West Chicago Avenue which is a primary east-west thoroughfare in the trade area. The surrounding area is densely concentrated with commercial buildings and residential homes. The Advance Auto Parts property is ideally situated in a densely populated area with over 82,000 people living within a three mile radius. The immediate trade area features many local and national retailers including Walgreens, PNC Bank, Strack & Van Til Grocers, McDonald’s, Dollar General, Burger King and Citizen Financial Bank.

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

There are approximately 14 years remaining on the new Advance Auto Parts lease that expires in March 2030. The lease features 7.5% rental escalation in each renewal option period. Advance Auto Parts is the largest retailer of automotive replacement parts and accessories in the United States and is an investment grade rated company (S&P: 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, “The market for new construction net leased auto parts stores remains active as these assets offer investors long term leases to investment grade rated tenants.”

Thursday, May 19, 2016

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

Wednesday, April 27, 2016

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

Tuesday, March 15, 2016

The Boulder Group Releases Initial Video of Net Lease Video Series

The initial video features John Feeney, Vice President of The Boulder Group, providing his insights into the rapidly expanding dollar store segment of the net lease market.

The video can be seen at the below link

https://www.youtube.com/watch?v=0aSiWJcUiRg

Wednesday, January 27, 2016

The Boulder Group Arranges Sale of Net Leased CVS Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CVS property located at 4037 Glenwood Road in Decatur, Georgia for $3,600,000.

The 10,125 square foot CVS is located in the Atlanta MSA and was originally constructed in 1999. The property is located just off of the heavily trafficked signalized intersection of Glenwood Road and Columbia Drive. Glenwood Road is a primary east-west thoroughfare in the area while Columbia Drive is a primary north-south thoroughfare in the area. The surrounding area is densely populated with over 242,000 people living within a five mile radius earning average annual household incomes of approximately $60,000.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; an East Coast based real estate institution. The purchaser was a high net worth family trust.

There are over 21 years remaining on the recently extended CVS lease that expires January 31, 2037. CVS has successfully operated at this location since 1999 and recently executed a new 25 year lease extension demonstrating their commitment to this location. The CVS lease features five 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 market for well-located net lease properties in top MSAs remains active as these assets are in high demand amongst private 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.”

www.bouldergroup.com

Tuesday, January 26, 2016

The Boulder Group Publishes Net Lease Big Box Market 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 Big Box Market.

Highlights from the report are as follows:

· A 63 basis point decrease in cap rates for big box properties from the fourth quarter of 2014 to the fourth quarter of 2015

· Investment grade big box properties are priced at a 155 basis point premium over non-investment grade big box properties

· Big box properties are priced at a 17 basis point premium when compared to the entire net lease retail market

The full report can be viewed online at http://www.bouldergroup.com/Net-Lease-Big-Box-Research-Report.pdf

About The Boulder Group

Friday, December 4, 2015

The Boulder Group Arranges the Sale of a Net Leased Culver’s

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Culver’s located at 1430 East Algonquin Road in Schaumburg, IL for $2,250,000.

The 49,919 square foot Culver’s property is positioned as an outparcel to an Aldi anchored shopping center. The property is benefited by its location within a strong regional retail trade area that features IKEA, Costco, and the Woodfield Mall. The Woodfield Mall is 2.1 million square feet and attracts over 27 million visitors annually. The 4,500 square foot Culver’s building is located just off of the signalized intersection of East Algonquin Road and North Meacham Road. This heavily traffic signalized intersection experiences traffic volumes in excess of 65,000 vehicles per day.

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

The Culver’s lease has over 15 years remaining and expires on December 23, 2030. The lease features annual rental escalations of 1.75% and two 10-year renewal option periods. Culver’s is a privately owned and operated fast food restaurant chain with over 500 locations in 22 states. The Culver’s franchise program is tremendously successful and has only had one failed franchisee in 30 years of operation.

“The market for well-located net lease properties in top MSAs remains active as these assets are in high demand amongst private investors” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Properties featuring long term leases with annual rental escalations throughout the primary term continue to remain 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 2010-2014, 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

Monday, August 11, 2014

The Boulder Group Arranges Sale of a Triple Net Leased Burger King Property Located in Chicago

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Burger King property located at 2345 South Pulaski Road in Chicago, Illinois for $2,385,000.

Burger King is the sole occupant of the 2,980 square foot building that was developed in 2009. The property is located at the intersection of South Pulaski Road and 24th Street. South Pulaski is a primary north-south thoroughfare in Chicago. Pulaski Road has a full access interchange with Interstate 55 one and one-half miles south of the property. The Burger King is positioned as an outparcel to a recently developed multi-tenant shopping center anchored by Advance Auto Parts and DaVita Dialysis. Burger King’s original 20 year lease expires in December 2029 and features 5% rental escalations every five years throughout the primary term and renewal option periods.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The seller was a Chicago based private partnership and the purchaser was a high net worth individual based in New York.

Burger King has over 15 years remaining on their triple net lease that expires in December 2029. The lease features 5% rental escalations every five years throughout the primary term and renewal option periods. The lease is guaranteed by Heartland Midwest LLC, a wholly owned subsidiary of Heartland Food Corporation, which is the second largest Burger King franchisee in the United States.

“Core market single tenant properties 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, “Properties with rental escalations throughout the lease term are at the forefront of investor demand because they provide investors with an inflationary hedge.

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 $1.7 billion of single tenant net lease real estate transactions. From 2011-2013, 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

Friday, May 9, 2014

The Boulder Group Arranges Another Low Cap Rate Walgreens Transaction for $11 Million in the Chicago Area

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant triple net leased Walgreens property located at the southeast corner of West 95^th Street and South Pulaski Road in Evergreen Park, Illinois for $10,833,333.

The property sale ranks in the Top 5 of lowest cap rates ever recorded for a Walgreens property priced over $5 million according to Real Capital Analytics. This is the second transaction ranked in the Top 5 that the Boulder Group has sold in the past four months.

According to a recent research report published by The Boulder Group, cap rates for Walgreens and CVS properties reached their historic low in the first quarter of 2013. Cap rates for Walgreens properties compressed by 15 basis points from the third quarter of 2013 to the first quarter of 2014. The full net lease drug store report can be accessed via http://www.bouldergroup.com/Net-Lease-Drug-Store-Research-Report.pdf

The Evergreen Park Walgreens will be the sole occupant of the 14,820 square foot retail building that is estimated to open in July 2014. This Walgreens is a relocation of a previously successful mid-block store that had excellent sales. The property is located in a densely populated area at a heavily trafficked intersection that experiences traffic counts in excess of 69,000 vehicles per day. Located across the street from the Walgreens is a Target, Home Depot, and Jewel-Osco anchored development. The property is fully leased to Walgreens and will have 20 years of primary lease term remaining upon commencement. The lease features rare rental escalations in the primary term and renewal option periods.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Midwest based developer, in the transaction. The buyer was a Massachusetts based limited partnership in a 1031 exchange.

Walgreens will have 20 years of primary lease term remaining upon commencement and the lease features rare rental escalations in the primary term and renewal option periods. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $66 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB and they operate over 8,560 locations.

“The market for Walgreens properties remains active as investors are attracted to investment grade rated companies with long term leases” 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 $1.7 billion of single tenant net lease real estate transactions. From 2011-2013, 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. http://www.bouldergroup.com

Tuesday, December 17, 2013

The Boulder Group Arranges Sale of a Single Tenant Dollar General Portfolio

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Dollar General portfolio consisting of three properties located throughout Kansas for $2,000,000. The properties are located in St. John, Meade, and Coldwater.

Each of the properties are fully leased to Dollar General with 5.5-6.5 years of lease term remaining. The portfolio offered investors the opportunity to obtain multiple assets with investment grade credit in one state. Dollar General is the sole occupant of the three properties, averaging 9,036 square feet. Two of the properties were constructed in 2009 while the other was built in 2010. All three properties are located on a one acre parcel. Each of the properties has three 5-year renewal option periods with 10% escalations. Dollar General is an investment grade rated company (S&P: BBB-) and is publicly traded on the New York Stock Exchange (DG) with a market capitalization in excess of $19 billion.

The portfolio included the following Dollar General properties:

1. 202 North US Highway 281, St. John, Kansas, 67576

2. 603 West Carthage Street, Meade, Kansas, 67864

3. 501 South Central Avenue, Coldwater, Kansas, 67029

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller; a private real estate investor in the Midwest. The buyer was a private individual.

“The Midwest net lease market remains strong for corporately guaranteed single tenant properties regardless of where they are located.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Cap rates for Dollar General properties are at an all-time low as their absolute dollar amount per property is attractive to multiple types of investors within the net lease sector.”

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 $1.6 billion of single tenant net lease real estate transactions. In 2011 and 2012, 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

Wednesday, October 2, 2013

The Boulder Group Arranges Sale of a Triple Net Leased Walgreens Property in the San Francisco MSA

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant triple net leased Walgreens property located at 4520 Balfour Road in Brentwood, California for $7,000,000.

Walgreens is the sole occupant of the 14,490 square foot retail building that was developed in 2003. The property is located on over two acres at the southeast corner of Balfour Road and Walnut Boulevard in Brentwood, California. This signalized intersection experiences traffic volumes in excess of 30,000 vehicles per day. The property is located within an affluent area and is positioned in a strong retail corridor directly across from a Food Maxx grocery anchored center. The property is fully leased to Walgreens with fifteen years of primary lease term remaining as well as ten five-year renewal options.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a family partnership based on the West Coast, in the transaction. The buyer was a high net worth individual located in California in a 1031 exchange.

Walgreens has fifteen years of lease term remaining on an original twenty-five year lease. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $51 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB and has over 8,500 locations nationwide.

“The market for Walgreens properties remains active as investors are attracted to investment grade rated companies with long term leases” 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 San Francisco, 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 $1.6 billion of single tenant net lease real estate transactions. In 2011 and 2012, 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.