Net Lease

Wednesday, November 20, 2013

Randy Blankstein, President of the Boulder Group, to Speak at ICSC N3 Triple Net Lease Conference

Randy Blankstein, President of national net lease advisory firm The Boulder Group, will be a featured speaker at the ICSC N3 Triple Net Lease Conference in Dallas on March 4th, 2014.

He will be moderating a panel discussing the Single Tenant Net Lease Market Overview and Forecast. The panel will be a wide ranging macro level discussion by the industries foremost leaders to explain where the single tenant net lease industry stands and how it will change the commercial real estate investment landscape moving forward. The panel will cover cap rate trends, industry consolidation and the fundraising environment for 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. The firm’s website is www.bouldergroup.com

Friday, November 15, 2013

The Boulder Group Arranges Sale of a Net Leased CVS Property in Dunkirk, New York

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CVS property located at 175 East 4^th Street in Dunkirk, NY for $3,485,000.

CVS is the sole occupant of the 10,125 square foot retail building that was developed in 2000. The property is located on a 35,980 square foot parcel at the corner of East 4^th Street and Main Street in Dunkirk, NY. The property is located less than two miles north of Interstate 90 along one of the area’s primary thoroughfares. The property is fully leased to CVS with 25 years of lease term remaining. There are four 5-year renewal options remaining.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer in the transaction, a private individual based in the Midwest. The seller was a Texas based investment firm.

CVS has 25 years of lease term remaining on their recently extended lease. CVS is a publicly traded company on the New York Stock Exchange (CVS), with a market capitalization of $77 billion. CVS is an investment grade rated company with a Standard & Poor’s rating of BBB+ and has over 7,500 locations nationwide.

“The market for net leased CVS properties with over 20 years of lease term remaining remains robust 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, “Cap rates remain at historically low levels for single tenant pharmacy assets leased to Walgreens and CVS with twenty or more years of lease term.”

Thursday, November 7, 2013

The Boulder Group Arranges Sale of a Net Leased Best Buy Property in Fredericksburg, Virginia

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Best Buy property located at 1541 Carl D Silver Parkway in Fredericksburg, Virginia for $6,300,000.

Best Buy is the sole occupant of the 46,457 square foot retail building that is located within the Washington D.C. MSA. The property is located on a 4.1 acre parcel in a primary retail trade area that is densely populated with many of the nation’s largest big-box retailers. The property backs up to Interstate 95 and has signage that is visible to the 141,000+ vehicles that pass per day. The property is fully leased to Best Buy with three and a half years of lease term remaining. There are three 5-year renewal options.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the both parties in the transaction. The seller is a private real estate firm based in Chicago. The buyer was an investment firm based in the southwest.

Best Buy has over three years of lease term remaining at a low rent. Best Buy is a publicly traded company on the New York Stock Exchange (BBY), with a market capitalization of $15 billion. Best Buy employees over 145,000 people and has over 1,400 locations in the United States.

“The market for net leased properties with shorter term leases remains active as investors are attracted to the higher yield these assets generate” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Real estate fundamentals like low rental rates in core areas play an important role in evaluating short-term leased properties.”

Monday, November 4, 2013

The Boulder Group Arranges Sale of an AutoZone Ground Lease in Milwaukee, WI

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant AutoZone ground lease located at 6015 West Forest Home Avenue in Milwaukee, Wisconsin for $925,000.

AutoZone is the sole occupant of the property that was developed in 2004. The property is located on a 27,007 square foot parcel at the southwest corner of the signalized intersection of West Forest Home Avenue and South 60^th Street in Milwaukee. The property is located one mile north of Interstate 894/43, which experiences traffic volumes in excess of 115,000 vehicles per day. The property is fully leased to AutoZone with eleven years of lease term remaining and has two 10% rental escalations remaining during the primary term of the lease.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private partnership based in the Midwest. The buyer was a high net worth individual in a 1031 exchange.

AutoZone has eleven years of lease term remaining on an original 20 year ground lease. AutoZone is a publicly traded company on the New York Stock Exchange (AZO), with a market capitalization of $15 billion. AutoZone is an investment grade rated company with a Standard & Poor’s rating of BBB and has over 5,000 locations nationwide.

“The market for ground leases with investment grade tenants remains strong as investors are attracted to the typical long term leases with rental escalations.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “High net worth individuals are attracted to net leased assets as they offer a more favorable return then most financial securities.”

Wednesday, October 30, 2013

The Boulder Group Publishes Net Lease Drug 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 Drug Store Market.

Highlights from the report are as follows:

A significant decrease in cap rates for Walgreens, CVS and Rite Aid
The supply of Walgreens and CVS properties on the market increased by 76%
New construction Walgreens and CVS assets experienced cap rate compression of 25 basis points.

The full report can be viewed online at http://www.bouldergroup.com/NLDS.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. 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. More information on the firm can be found on The Boulder Group’s website at www.bouldergroup.com

Tuesday, October 22, 2013

The Boulder Group Arranges Sale of a Net Leased Walgreens Property in McAllen, Texas

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 2300 Pecan Boulevard in McAllen, TX for $2,284,000.

Walgreens is the sole occupant of the 13,029 square foot retail building that was developed in 1993. The property is located on a 1.57 acre parcel at the northwest corner of Pecan Boulevard and North 23^rd Street in McAllen, TX. The property is located one-half of a mile from South Texas College (31,000 students). The property is fully leased to Walgreens with five years of lease term remaining and five 5-year renewal options remaining.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, an East Coast institution, in the transaction. The buyer was a private Midwest based investor.

Walgreens has five 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 net leased Walgreens properties with shorter term leases and strong sales remains active as investors are attracted to the higher yield these assets generate” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Investors seeking higher yields are focusing on short term leased properties with investment grade rated tenants.”

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.

Tuesday, October 8, 2013

The Boulder Group Arranges Sale of a Net Leased CVS Property in Bluffton, Indiana

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CVS property located at 1203 South Main Street in Bluffton, Indiana for $3,100,000.

CVS is the sole occupant of the 10,125 square foot retail building that was developed in 1999. The property is located within the Fort Wayne MSA on the southeast corner of Main Street and Spring Street in Bluffton, Indiana. The property is positioned along the primary north-south thoroughfare of the area 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. The property is fully leased to CVS with over seven years of primary lease term remaining and there is a rental escalation in 2014.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private partnership based in the Midwest, in the transaction. The buyer was a high net worth individual in a 1031 Exchange.

CVS had seven years remaining on the initial lease term at the point of sale. CVS is a publicly traded company on the New York Stock Exchange (CVS), with a market capitalization of $71 billion. CVS is an investment grade rated company with a Standard & Poor’s rating of BBB+ that has over 7,400 stores nationwide.

“The market for CVS properties with shorter term leases remains active as investors are attracted to investment grade rated companies at higher yields” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Single tenant properties below $5,000,000 are in the greatest demand amongst private investors and 1031 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 $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.