Single Tenant NNN Properties for Sale

$250+ million of exclusively listed single tenant NNN properties for sale by The Boulder Group

http://bouldergroup.com/NNN-Properties-For-Sale.html

Sale of Trophy Chicago Walgreens Property Sets Cap Rate Record

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant triple net leased Walgreens property located at 6121 North Broadway Street in Chicago, Illinois for $13,025,000. The property was sold at a 4.87% cap rate, the lowest cap rate ever recorded for a Walgreens property according to Real Capital Analytics.

Walgreens is the sole occupant of the 14,820 square foot retail building which was developed by Crossroads Development Partners in 2013. This brand new build-to-suit Walgreens replaces an older in-line store which was previously located on the site under a 35 year lease that was expiring in August 2015. Walgreens desired to stay at this location and benefit from a new prototype store. In the immediate vicinity, Crossroads Development Partners is currently developing a single tenant LA Fitness and a single tenant Physicians Immediate Care.

The property is located in a dense infill area of Chicago on the northeast corner of North Broadway Street and West Glenlake Avenue. There are two CTA (Chicago Transit Authority) “L” Train stops in close proximity to the property. Additionally, Loyola University is located within a few blocks of the property and there are over 358,000 people living within three miles.

“This project, which I began pursuing in 2004, is a success for all parties and is the result of a collaboration among many stakeholders including Walgreens, Mid-America Real Estate Corp., Alderman Harry Osterman and the Edgewater community.” said Michael Nortman, President of Crossroads Development Partners, LLC.  

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

The Walgreens lease has over 24 years remaining with fifty years of renewal options. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $56 billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB and has over 8,500 locations nationwide.

“The property’s superior infill location within a core market allowed The Boulder Group to achieve a historic 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 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 $1.6 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  

About Crossroads Development Partners

Crossroads Development Partners, LLC is a boutique commercial real estate investment, management, and development company with expertise in property operations, entitlements, construction management, financial underwriting, and development. Crossroads Development Partners is particularly focused on maintaining and creating value at the property level to maximize returns to stakeholders. The company’s hands-on approach to operating income-producing real estate differentiates Crossroads Development Partners from competitors.  Crossroads currently has over $200,000,000 in various stages of development including retail, apartments and office properties located in Florida and Illinois.

http://www.xrdevelopment.com

Crossroads’ affiliated management company, SVN Crossroads Management, LLC managed the property and oversaw the construction. SVN Crossroads provides property management, asset management, construction management and owner’s representation and consulting services on a variety of commercial real estate assets throughout the Chicagoland area and in selected markets nationwide. Currently, the portfolio of assets under management is over 2 million square feet.

http://www.svncrossroads.com

The Boulder Group Arranges Sale of a Net Leased Merchant’s Tire & Auto Center in Chesapeake, Virginia

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a newly constructed single tenant net leased Merchant’s Tire & Auto Center property located at 215 Hillcrest Parkway in Chesapeake, Virginia for $3,045,000.

Merchant’s Tire is the sole occupant of the 6,922 square foot retail building that was developed in 2013. The property is located along the Chesapeake Expressway and is an outparcel to a Walmart Supercenter. The Merchant’s Tire is located in an affluent area with average household incomes in excess of $108,000 annually within three miles of the property. There are 25 years remaining on this net lease that features rental escalations every five years throughout the primary term.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer and seller in the transaction. The seller was a North Carolina based developer and the buyer was a California family partnership in a 1031 exchange.

Merchant’s Tire has 25 years remaining on the recently signed net lease that expires on October 31, 2038. Merchant’s Tire is part of the TBC Retail Group that includes NTB, Merchant’s Tire & Auto Centers, and Big O Tire stores. Together, there are more than 1,200 locations in 41 states plus Washington D.C. and Alberta & British Columbia, Canada. TBC Retail Group functions as an independent company of Sumitomo Corporation of America, the largest subsidiary of Sumitomo Corporation which is one of Japan’s major integrated trading and investment business enterprises.

“The market for new construction net leased auto parts stores 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, “Properties featuring long term leases with multiple rental escalations throughout the primary term remain in 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. 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

The Boulder Group Arranges Sale of a McDonald’s Ground Lease in Illinois

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant McDonald’s ground lease located at 3151 South Dirksen Parkway in Springfield, IL for $766,080.

McDonald’s is the sole occupant of the property that was developed in 1975. The property is located on a 37,409 square foot parcel along South Dirksen Parkway. The property benefits from its proximity to the signalized intersection of South Dirksen and Stevenson Drive, which has a combined traffic count in excess of 32,000 vehicles per day. The property is located one-quarter mile from the Interstate 55 exit ramp.  The property is fully leased to McDonald’s with over four years of lease term remaining.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction.  The seller was a private trust based in the Midwest and the buyer was an investor based in Philadelphia.

McDonald’s has four years of lease term remaining on a ground lease that commenced in 1975. McDonald’s is a publicly traded company on the New York Stock Exchange (MCD), with a market capitalization of $96 billion. McDonald’s is an investment grade rated company with a Standard & Poor’s rating of A and they have over 34,000 locations.

“The market for McDonalds’s ground leased properties 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, “As there is a limited amount of long term core assets on the market, some net lease investors are seeking assets like quick service restaurants with shorter term leases.”

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. For 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

The Boulder Group Publishes 4th 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 4th quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

• Cap rates for net lease retail and office properties reached their lowest point in the past decade
• Overall property supply of net lease assets decreased  by 12% compared to last quarter
• Median national asking vs. closed cap rate spread increases for the first time in 2013.

The full report can be viewed online at http://www.bouldergroup.com/NLQ4.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 $1.6 billion of single tenant net lease real estate transactions. In 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. More information on the firm can be found on The Boulder Group’s website at www.bouldergroup.com  

The Boulder Group Arranges Sale of a Wells Fargo Ground Lease in Houston, TX

The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a single tenant Wells Fargo ground lease located at 2005 Taylor Street, Houston, TX for $3,940,000.

Wells Fargo is the sole occupant of the 4,017 square foot retail building that was developed in 2006. The property is located on a 32,947 square foot parcel within a Super Target anchored retail trade area. The property is located approximately two miles northwest of downtown Houston in a dense area with over 168,000 people living within three miles of the property. The lease had thirteen years remaining at the time of sale and features multiple rental escalations in the primary term.

Wells Fargo is an investment grade rated company with a Standard & Poor’s rating of A+ and has over 9,000 locations. Wells Fargo has thirteen years of lease term remaining on an original twenty year triple net ground lease. Wells Fargo is a publicly traded company on the New York Stock Exchange (WFC), with a market capitalization of $230 billion.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the purchaser; a California based partnership in a 1031 Exchange. The seller was a Texas based real estate firm.

“The market for bank 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, “Core market single tenant assets with solid real estate fundamentals continue to be in the greatest 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. The company’s website address is www.bouldergroup.com

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