Net Lease Market Research Report Released

The Boulder Group’s Research Department has released a new research report providing comprehensive numbers and analysis of the 1st quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

• Cap rates remain new historic lows across all net lease sectors
• Net lease property supply decreased by more than 17% from Q4
• 70% of active net lease participants expect cap rates to remain unchanged or decline by the end of 2013

The full report can be viewed online at http://www.bouldergroup.com/NLQ1.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 

Net Lease Retail Cap Rates Hit Five Year Low

Cap rates for the single tenant net leased market continued to remain near historic lows in in the fourth quarter of 2012. Most notably, cap rates for net leased retail properties declined by 25 basis points and are experiencing a premium in excess of 75 basis points over both office and industrial net lease properties.

Supply issues remain to be at the forefront of the net lease market as new construction is limited and there is a lack of existing supply of long-term net leased properties. In the fourth quarter there was a 12.5% decline in supply of retail net lease assets. One of the primary factors contributing to the lack of supply and new construction is that tenants are able to achieve low rents by backfilling second generation retail space. Furthermore, the current interest rate environment has enabled property owners to refinance and hold properties at historically low rates rather than sell.

The limited supply has caused the median asking versus closed cap rate spread for net leased retail properties to decline an additional seven basis points in comparison to last quarter. Properties located in top tier metropolitan areas remain in the highest demand and are experiencing the greatest cap rate compression. Some of the most notable cap rate compression was for properties occupied by 7-Eleven, McDonald’s and AutoZone which experienced 20, 25 and 25 basis point declines respectively in the fourth quarter due to the tenants’ investment grade rating and quality long-term lease structures.

The national retail net lease market should remain active in 2013 due to the stability and financing availability of this asset class. Core assets with investment grade tenants will remain in the highest demand, maintaining low cap rates for these assets. Cap rates will remain near current levels in 2013 as buyer demand remains high and new development remains limited.

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 $1.4 billion of single tenant net lease real estate transactions through several real estate cycles. The firm was ranked in the Top 10 companies in the nation for single tenant retail transactions in 2012 by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago.

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The Boulder Group Arranges the Sale of a Net Leased Orscheln Farm & Home Property in Gothenburg, Nebraska

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a net leased Orscheln Farm & Home property located at 718 4^th Street in Gothenburg, Nebraska for $1,450,000.

The 22,960 square foot property was built in 2008 and is located in Gothenburg, Nebraska. The property is positioned at the corner of East 4^th Street and Highway 47. Highway 47 is the primary thoroughfare in the area and has a full access interchange with Interstate 80 one-half mile away from the property. The property benefits from the strong agricultural economy in Gothenburg. Farming and ranching accounts for the majority of the economy in Gothenburg and the farming community accounts for 25% of the total alfalfa production in the total United States. The property is leased to Orscheln Farm & Home on a net lease basis with approximately sixteen years of lease term remaining. The lease features 10% rental escalations every five years. Orscheln Farm & Home has 156 locations across the United States and supplies agricultural goods for farm, home, ranch and suburban customers.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a private investment firm based in Omaha.   The buyer was an Omaha based 1031 exchange investor.

“The market for net leased properties with long term leases remain in high demand among private investors.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “While the majority of single tenant investment activity is focused on core markets, we are starting to see some opportunistic investors pursue second and third tier markets in order to achieve higher yields.”

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

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.

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 firm’s website is www.bouldergroup.com

Triple Net Lease Brokerage Firm

Triple Net Lease Brokerage Firm


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Net Leased Advisory Firm Executive Profile

Net Leased Advisory Firm President Profile

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The Boulder Group Completes Sale Leaseback of Triple Net Leased Chili’s Property for $1.6 Million

The Boulder Group, a single tenant investment real estate services firm, completed the sale of a triple net leased property in Kansas City, MO for $1.6 million. The 1.56 acre parcel contains a 5,738 square foot building that is leased to Chili’s on a 20 year lease.

The property is located just off I-29 and is in close proximity to Wal-Mart, Lowe’s, Hobby Lobby, Dillard’s, Dick Sporting Goods and CVS. The property address is 8350 NW Roanridge Road in Kansas City, MO.

Randy Blankstein of The Boulder Group represented the buyer, a Chicago based private investor. The Chili’s franchisee, the seller, was represented by Eric Gonsher of The R.H. Johnson Company.

“In addition to providing a high yield combined with a long term lease the property has excellent real estate fundamentals” said Randy Blankstein. “The location just off of the interstate combined with the properties position within the retail trade corridor makes this location irreplaceable”

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 participated in the acquisition and disposition of more than $1.1 billion of net lease real estate transactions through several real estate cycles. www.bouldergroup.com

Net Leased Firm The Boulder Group Profile

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Net Lease Group on Linkedin

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