Net Lease

Wednesday, October 5, 2016

The Boulder Group Arranges Sale of Triple Net Lease Goodwill Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Goodwill property located at 2001 Progressive Parkway in Platteville, Wisconsin for $1,650,000.

The Goodwill property is positioned along US Route 151 adjacent to a Walmart Supercenter and Menards Hardware. Additional retailers located in the immediate area include Ashley Furniture, Aldi, McDonald’s, Dollar Tree and Millennium Cinema.

Randy Blankstein and John Feeney of The Boulder Group represented both parties in the transaction. The seller and buyer were both Midwest based private partnerships.

There are 2 years remaining on the Goodwill lease which expires November 30, 2018. The absolute triple net lease features 3% annual rental escalations in in the primary term and the two 5-year renewal option periods. Goodwill is a nonprofit retail store that provides job training, employment placement services, and other community-based programs for people who have barriers preventing them from otherwise obtaining a job.

“Goodwill is a tenant that has increasingly attracted attention from private investors” said Randy Blankstein, President of The Boulder Group. John Feeney, Vice President of The Boulder Group, added, “Shorter term leases offer higher yields that are accretive to many investor types.”

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

Tuesday, October 4, 2016

The Boulder Group Arranges Sale of Net Lease Starbucks Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Starbucks property located at 13945 Highway 13 Frontage Road in Savage, Minnesota for $1,475,000.

The 1,925 square foot Starbucks building is strategically located along Minnesota State Highway 13 in an affluent area in the Minneapolis-St. Paul MSA. Minnesota State Highway 13 is the primary north-south thoroughfare in the trade area. The average household incomes within a one mile radius of the Starbucks property exceed $127,000 annually. The Starbucks is benefitted by its location within a strong retail trade area that is anchored by a SuperTarget, Cub Foods, Rainbow Foods, Walgreens and OfficeMax.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a West Coast private partnership. The purchaser was a Midwest private partnership.

This is a proven Starbucks location as evidenced by the tenant’s recent execution of an early ten year lease extension. There are over 10 years remaining on the Starbucks lease which expires on July 31, 2026. The lease features rental escalations every five years and three 5-year renewal option periods. Starbucks is an investment grade rated company (S&P: A-) and is publicly traded (NASDAQ: SBUX) with a market capitalization in excess of $86 billion.

“Single tenant Starbucks properties continue to be in great demand with private investors.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Properties with corporately guaranteed leases and rental escalations throughout remain at the forefront of investor demand because they provide investors with an inflationary hedge.”

The Boulder Group Publishes 3rd 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 3rd quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

Cap rates for net leased retail properties reached a new historic low level
Cap rates for net leased office and industrial properties decreased by 17 and 12 basis points respectively
Overall property supply of retail, office and industrial net lease assets increased by 2% from Q2 2016 to Q3 2016

The full report can be viewed online at http://www.bouldergroup.com/media/pdf/2016-Q3-Net-Lease-Research-Report.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

Friday, September 30, 2016

The Boulder Group Arranges Sale of Single Tenant Net Leased Rite Aid Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Rite Aid property located at 8230 Cazenovia Road in Manlius, New York for $3,800,000.

The 12,795 square foot Rite Aid property is strategically positioned along Cazenovia Road which is a primary north-south thoroughfare in the trade area. The Rite Aid is positioned just south of the signalized intersection of Cazenovia Road and Enders Road. The surrounding area is affluent with average household incomes of $150,000 within a one mile radius of the property. This Rite Aid store is a strategically located property with the closest Walgreens positioned over 11 miles away.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; an East Coast based partnership of high net worth individuals. The purchaser was an East Coast based investor in a 1031 Exchange.

There are over ten years remaining on the Rite Aid lease which expires in February 2027. The lease features a 7% rental escalation in the first renewal option period and 10% rental escalations in each of the remaining five renewal option periods. Rite Aid operates approximately 4,600 stores in 31 states of the United States and the District of Columbia. The company sells prescription drugs and a range of other merchandise, including over-the-counter medications, health and beauty aids, personal care items, cosmetics, household items, food and beverages, greeting cards, seasonal merchandise, and other every day and convenience products.

“Net lease Rite Aid properties are highly sought after amongst high yield investors.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Established properties with proven operating histories continue to garner significant investor interest.”

www.bouldergroup.com

Friday, September 23, 2016

The Boulder Group Arranges Sale of Net Lease Jiffy Lube Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Jiffy Lube property located at 3115 South Street in Lafayette, Indiana for $910,000.

The Jiffy Lube property is located at the southwest corner of the heavily trafficked signalized intersection of South Street and South Earl Avenue. South Street is the primary east-west thoroughfare that connects Lafayette to Interstate 65. The Jiffy Lube is located in close proximity to Purdue University, which has an enrollment in excess of 39,000 students. The property is benefitted from its’ location within a dominant retail corridor that features Home Depot, Target, Lowe’s, Hobby Lobby, TJ Maxx, Sam’s Club, and Chase Bank.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented both parties in the transaction. The seller was a Midwest based private partnership while the buyer was a private REIT.

There are over 6 years remaining on the corporately guaranteed Jiffy Lube lease which expires October 31, 2022. The absolute triple net lease features 3% rental escalations in each of the three 5-year renewal option periods. Jiffy Lube is a subsidiary of Shell Oil Co. with over 2,000 locations. Shell Oil Co. is an investment grade rated company with a Standard & Poor’s rating of A.

“Jiffy Lube properties with solid real estate fundamentals continue to be in strong demand.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Shorter term leases with corporate guarantees offer higher yields that are accretive to many investor types.”

The Boulder Group Arranges Sale of Single Tenant Net Leased Orscheln Farm & Home

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Orscheln Farm & Home property located at 1311 Business Highway 61 South in Bowling Green, MO for $2,440,000.

The Orscheln Farm & Home property is strategically located along Missouri Route 161 which is the primary east-west thoroughfare in the trade area. The property is located immediately to the west of US Route 61 which is the primary north-south thoroughfare in the trade area and connects Bowling Green to St. Louis to the south. The recently constructed property is located across the street from a Walmart Supercenter. Additional retailers located within the immediate trade area include McDonald’s, Taco Bell, Dollar General, Subway, Hardee’s, DQ Grill, US Cellular and Country Market.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer and seller in the transaction. The Seller was a Midwest based real estate partnership and the purchaser was an Midwest based REIT.

This Orscheln Farm and Home property is a relocation of a previously successful store. There are approximately 18 years remaining on the lease which expires in July 2034. The lease features 7.5% rental escalations every five years throughout the primary term and in each of the four 5-year renewal option periods. Orscheln Farm & Home is a chain store with 172 locations in Arkansas, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, and Oklahoma. Orscheln Farm & Home supplies agricultural goods for farm, home, ranch and suburban customers.

“Properties featuring long term leases with rental escalations throughout the primary term remain at the forefront of investor demand.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Investors are particularly attracted to properties where the tenant has a long operating history and commitment to the location.”

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 2010-2014, 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

Thursday, September 22, 2016

The Boulder Group Arranges Sale of Trophy CVS Pharmacy at Record Cap Rate

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction CVS Pharmacy ground lease located at 2501 N. Field Street in Dallas, Texas for $14,890,000. The property sold at a 4.60% cap rate which is the lowest cap rate for a CVS sale in 2016 according to CoStar.

The CVS Pharmacy is located in the Victory Park area of downtown Dallas. Victory Park is a 75-acre mixed-use development surrounding the American Airlines Center, which is home to the Dallas Mavericks and Dallas Stars. Victory Park features more than 165,000 square feet of retail, restaurant and entertainment space, 621,000 square feet of Class-A office space, the 252-room W Dallas – Victory Hotel, more than 1,700 residential units and the Perot Museum of Nature & Science.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer in the transaction; a southeast based real estate company. The seller was a Texas based real estate company which was represented by Landes Fairmont.

The subject CVS Pharmacy is one of the only single-story buildings in the Victory Park area, sitting a block east from American Airlines Center. There are more than $1.5 Billion in commercial projects under construction or planned within a mile radius of the subject CVS. More recently, Victory Park and Cinepolis USA, a luxury concept movie theatre, announced plans to open an eight-screen, 700 seat theater just steps away from the subject CVS. Future plans also include a multi-level, mixed-use space for residential and retail components as well as additional parking.

There are twenty-five years remaining on the CVS Pharmacy absolute triple net lease with a 7.5% rental escalation in year twenty-one. The CVS lease features six 5-year renewal option periods with 5% rental escalations in each. CVS is a publicly traded company with a market capitalization in excess of $104 billion CVS is an investment grade rated tenant with a Standard & Poor’s rating of BBB+.

“The property’s superior infill location within a core market allowed The Boulder Group to achieve an aggressive 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 Dallas, are at the forefront of investor demand.”