Net Lease

Friday, June 27, 2014

The Boulder Group Arranges the Sale of a Chipotle Ground Lease in the Richmond MSA

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Chipotle ground lease located at 8955 Staples Mill Road in Richmond, Virginia for $1,630,000.

The 2,215 square foot Chipotle was recently developed in 2013. The 56,715 square foot property is an outparcel to a Target anchored development. The Chipotle ground leased area is 27,007 square feet providing the purchaser with a value add opportunity with the remaining 29,708 square feet of developable land. The property is located along Staples Mill Road, a heavily trafficked north-south thoroughfare that leads to downtown Richmond. A 124,000 square foot Kroger anchored shopping center is currently being developed across the street. There are over 180,000 people living within a five mile radius earning average household incomes in excess of $80,000.

Chipotle has nine years of lease term remaining on their ground lease that features 10% rental escalations every five years in the primary term and renewal options. Chipotle is a publicly traded company (NYSE: CMG) with a market capitalization in excess of $18 billion.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The seller was a real estate partnership based in North Carolina and the buyer was a German based investor.

“The market for net lease properties in Top 50 MSAs 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, “Despite not having a credit rating, Chipotle leased properties are trading at cap rates comparable to investment grade tenanted properties.”

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

Wednesday, June 25, 2014

The Boulder Group Arranges Sale of a Single Tenant Zero Cash Flow CVS Property in the Los Angeles MSA

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant zero cash flow CVS property located at 4909 Paramount Boulevard in Lakewood, CA for $2,255,512.

Zero cash flow properties refer to a high quality real estate investment with debt that is fully amortizing and is coterminous with the primary term of the lease. After the primary term of the lease is completed, the investor owns the property free and clear after only having to make a relatively small initial investment.

This property was sold with the in place fully amortizing zero cash flow debt. CVS is the sole occupant of the 12,000 square foot retail building that is located at the heavily trafficked signalized intersection of Paramount Boulevard and Del Amo Boulevard. The area is densely populated with over 31,000 people living within one mile and over 700,000 people living within five miles.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction. The seller was a Florida based real estate corporation and the buyer was an East Coast based Real Estate Company.

CVS has twelve years of primary lease term remaining. CVS is a publicly traded company on the New York Stock Exchange (CVS), with a market capitalization of $89 billion. CVS is an investment grade rated company with a Standard & Poor’s rating of BBB+ and they operate over 7,000 locations.

“Zero cash flow properties are useful for estate planning purposes and are an excellent alternative to zero coupon bonds” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Investors seek zero cash flow properties as it allows one to buy a CVS or related asset with a substantially small down payment.”

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

Monday, June 23, 2014

The Boulder Group Arranges the Sale of a Burger King Ground Lease in the Rockford, IL MSA

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Burger King ground lease located at 630 Machesney Road in Machesney Park, Illinois for $880,000.

Burger King is the sole occupant of the 3,501 square foot retail building that is located on a 1.34 acre parcel. Burger King has a long standing operating history at this property and is committed to this location as evidenced by their recent execution of a new twenty year lease. The property is located at a signalized intersection along a primary north-south thoroughfare with traffic counts in excess of 25,000 vehicles per day. Rockford is the largest city in Illinois outside of the Chicago MSA.

Burger King has nineteen years of lease term remaining on their ground lease that features 10% rental escalations every five years. The lease is guaranteed by a successful local franchisee that has been operating at this location since 1986.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The seller was a Midwest based real estate investor and the buyer was a private investor in a 1031 exchange.

“The market for net leased properties priced under $1 million 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, “Passive investors are purchasing ground leases as an inflationary hedge, as most ground leases provide rental escalations throughout the lease term.”

http://www.bouldergroup.com

Thursday, June 19, 2014

The Boulder Group Arranges Sale of a Net Leased Chipotle Property in Milwaukee

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Chipotle property located at 3232 South 27^th Street in Milwaukee, WI for $1,824,000.

Chipotle is the sole occupant of the 2,295 square foot retail building that was awarded the Mayor’s Design Award for its outstanding architecture. The property is located along South 27^th Street, a heavily trafficked north-south thoroughfare approximately five miles southwest of downtown Milwaukee. South 27^th Street experiences traffic counts in excess of 31,000 vehicles per day. The property is located within a densely populated area with over 400,000 people living within five miles. A Walmart Supercenter and Walgreens anchored development is located across the street from the property. There are approximately 10 years remaining on the Chipotle lease that was recently extended.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private investor based in Chicago. The buyer was an investor in a 1031 exchange from California.

Chipotle has approximately 10 years remaining on their net lease that was recently extended. The lease features a 12.5% rental escalation in the primary term and renewal option period. Chipotle is a publicly traded company (NYSE: CMG) with a market capitalization in excess of $16 billion.

“The market for net lease properties in Top 50 MSAs 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, “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

www.bouldergroup.com

Monday, June 9, 2014

The Boulder Group Arranges Sale of Triple Net Leased Walgreens Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant triple net leased Walgreens property located at 28895 West Highway 120 in Lakemoor, Illinois for $6,725,000. Lakemoor is a growing community within the Chicago MSA which experienced a double in population since 2000.

Walgreens is the sole occupant of the 14,820 square foot retail building that was completed in October 2013. The property is located at a signalized intersection along Highway 120, the primary east-west roadway in the immediate area. The intersection of Highway 120 and Darrell Road experiences traffic counts in excess of 30,000 vehicles per day. The Walgreens lease has 25 years remaining, a rare feature for a new construction Walgreens property.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both the seller and buyer in the transaction. The seller was a Midwest based developer and the buyer was a private investor in a 1031 exchange.

Walgreens has approximately 25 years of primary lease term remaining on their lease that commenced in November 2013. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $71 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 most investors are attracted to Walgreens properties, investors in 1031 exchanges have been amongst the most successful in purchasing these properties because of the premium that they are willing to pay.”

http://www.bouldergroup.com

Thursday, May 29, 2014

NEW NET LEASE LISTING | Starbucks | Chicago | 10 Year Lease Extension | 6.50% Cap Rate | Rental Escalation

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Starbucks property located in a densely populated part of Chicago, Illinois. The 1,696 square foot retail building was developed in 2004 at a heavily trafficked signalized intersection. Starbucks is committed to this location as evidenced by their recent decision to extend the lease for an additional ten years. Starbucks is an investment grade rated company with a Standard and Poor’s rating of A-.

The Starbucks property is located at the signalized intersection of South Stony Island Avenue and East 71st Street approximately ten miles south of downtown Chicago. South Stony Island Avenue is a primary north-south thoroughfare with traffic counts in excess of 42,000 vehicles per day and is the only road with access to the Chicago Skyway Toll Road (Interstate 90) in Illinois. The property is located approximately one-half mile north from Interstate 90 and two miles east of Interstate 94, which experiences traffic counts in excess of 34,000 and 250,000 respectively. Additionally, there is a Metra train stop located across the street from the Starbucks property. Metra is the commuter rail division that serves the Chicago metropolitan area and over 80 million people per year. The Starbucks is located in a densely populated urban infill part of the city with over 250,000 people living within three miles and over 515,000 people living within five miles. The University of Chicago, one of the countries’ most prestigious universities and home to approximately 15,000 total students, is located ten blocks to the north of the Starbucks.

Starbucks is committed to this location as evidenced by their decision to recently extend the lease for an additional ten years. The closest Starbucks location to the subject property is over 2.5 miles away. Furthermore, the closest Starbucks location with a drive thru is located over 4.5 miles away. There is a Bank of America located adjacent to the Starbucks property. Other retailers in the immediate vicinity include Jewel-Osco, Family Dollar, PNC Bank, Fifth Third Bank, Walgreens, Save-A-Lot, and AutoZone.

There are 10 years remaining on the recently extended Starbucks lease that expires July 31, 2024. The lease features an 8.3% rental escalation in the primary term and 7.5% in each renewal option period. There are four 5-year renewal options remaining. Starbucks is an investment grade rated company (S&P: A-) and is publicly traded (NASDAQ: SBUX) with a market capitalization in excess of $53 billion.

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

Thursday, May 22, 2014

The Boulder Group Arranges Sale of a Net Leased CITGO Gas Station Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased CITGO gas station property located at 200 Fabyan Parkway in Batavia, IL for $4,273,250.

The property is located at the signalized intersection of Fabyan Parkway and North Washington Avenue, which experiences traffic counts in excess of 37,000 vehicles per day. The site has two points of ingress and egress and is easily accessible by vehicles traveling on Fabyan Parkway or North Washington Avenue. CITGO is the sole occupant of the 2.01 acre property that was originally developed in 1999. There are ten years remaining on this absolute net lease that expires in February 2024.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest based high net worth individual. The buyer was an East Coast based private investment firm.

CITGO has ten years remaining on their lease that expires in February 2024 and features 1.75% annual rental escalations. There are four 5-year renewal options. The guarantor of the lease is GasMart USA, a privately held company that operates 108 gas stations in seven states.

“The market for net lease properties in top tier MSAs 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, “There has been an increase in demand for long-term leased non-investment grade properties in top tier markets, as they generate higher yields than typical credit net lease assets.”