Net Lease

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

Tuesday, May 10, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Walgreens

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 5555 Edmondson Pike in Nashville, Tennessee for $6,926,345.

The 15,680 square foot Walgreens building is strategically located at the signalized intersection of Old Hickory Boulevard and Edmondson Pike. The property features multiple points of ingress and egress and is easily accessible in all directions. The Walgreens is benefitted by its location within a retail destination that features Publix, Kroger, Walmart Neighborhood Market, Fifth-Third Bank, McDonald’s and Starbucks. The surrounding area is densely populated with approximately 70,000 people living within a three mile radius earning average annual household incomes in excess of $85,000.

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

There are thirteen years remaining on the recently extended Walgreens lease which expires in April 2029. This is a proven Walgreens store with an exceptional sales history and Walgreens operates this location as a 24-hour store. Walgreens is an investment grade rated company with a Standard & Poor’s rating of BBB.

“Established properties with proven operating histories continue to garner significant investor interest.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Vice President of The Boulder Group, added, “Net lease properties with strong residual real estate values are highly sought after amongst the investment community, especially those located in income tax-free states.”

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

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

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

Monday, April 25, 2016

The Boulder Group Arranges Sale of Net Lease Family Dollar

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction Family Dollar located at 3211 Old McDuffie Road in Augusta, GA for $1,490,000.

The newly constructed Family Dollar is located at the signalized intersection of Old McDuffie Road and Barton Chapel Road. There are approximately 50,000 people living within a three mile radius of the property. The property is located approximately seven miles south of the Augusta National Golf Club.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the purchaser in the transaction; a Midwest based individual in a 1031 Exchange. The seller was a Southeast based real estate development company.

The new Family Dollar lease is for fifteen years and expires September 30, 2031. The absolute triple net lease features no landlord responsibilities and a 10% rental escalation in the primary term. The lease features 10% rental escalation in each of the six 5-year renewal option periods. Family Dollar Stores, Inc. is the second largest dollar store chain in the United States, operating 8,100 stores across 46 states.

“Well located single tenant assets 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, “The market for new construction net leased dollar stores remains active as these assets are in high demand among private investors.”

Friday, April 22, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Shopko Hometown

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Shopko Hometown property located at 110 Watters Drive in Dwight, Illinois for $2,115,000.

The 26,254 square foot Shopko Hometown property is strategically located along Interstate 55 approximately 75 miles southwest of downtown Chicago. There are approximately 6,000 people living within a five mile radius earning average annual household incomes in excess of $61,000. Following the Shopko and Pamida merger, the building was converted to a Shopko Hometown.

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

Shopko Hometown has approximately 8 years remaining on their lease which expires in May 2024. The absolute net lease features three 5-year renewal option periods. Shopko is a privately owned $3 billion retailer with 323 stores in 21 states.

“The Midwest net lease market remains strong for corporately guaranteed single tenant properties” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “There has been an increase in demand for non-investment grade properties as they generate higher yields than the typical core net lease assets.”

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

Thursday, April 21, 2016

Randy Blankstein, President of The Boulder Group, to Chair Net Lease Summit Conference

To register for the Net Lease Summit Conference, please visit http://www.cvent.com/events/2nd-annual-net-lease-summit/event-summary-8f7161afc756477282d0bb6311e1f37e.aspx

Wednesday, April 6, 2016

The Boulder Group Arranges Sale of Net Lease ALDI Ground Lease

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant ALDI ground lease located at 5811 High Street in Portsmouth, VA for $3,280,000.

The ALDI property is strategically located in the Norfolk MSA across the street from a Harris Teeter grocery anchored center and adjacent to a brand new CVS. The property is located along High Street which is a primary east-west thoroughfare in the trade area. There are over 65,000 people living within a three mile radius of the property.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; an East Coast based real estate development company. The purchaser was an international investor based in Germany.

The new ALDI ground lease is for twenty years and rent commenced in November 2015. The ground lease features rental escalations throughout the primary term and absolutely no landlord responsibilities. There are five 5-year renewal option periods.

“Ground leases featuring long term leases with multiple rental escalations continue to be highly sought after amongst the investor community as they provide an inflationary hedge” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Due to their limited supply and favorable implied credit, new construction ALDI ground leases are highly sought after amongst the investment community.”