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 leased retail properties increased for the first time since Q3 2013
  
  
• Cap rates for net leased office remained at last quarter's level while industrial properties increased by 3 basis points
  
  
• Overall property supply of retail, office and industrial net lease assets decreased by approximately 8% from Q3 2016 to Q4 2016

The full report can be viewed online at http://www.bouldergroup.com/media/pdf/2016-Q4-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 $4 billion of single tenant net lease real estate transactions. In 2011-2016, 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  

The Boulder Group Arranges Sale of Single Tenant Net Lease First Mid-Illinois Bank Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant First Mid-Illinois Bank & Trust property located at 300 South Division Street in Carterville, Illinois for $1,075,000.

The 2,602 square foot building is strategically positioned just off of the signalized intersection of Division Street and Grand Avenue. Division Street is the primary north-south thoroughfare in the trade area while Grand Avenue is a primary east-west thoroughfare.  The First Mid-Illinois Bank & Trust property is located approximately two miles northeast of the John A. Logan College which is part of the Illinois Community College System with approximately 7,500 students. There are over 26,000 people living within a five mile radius of the property.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest based private investment trust. The purchaser was a Midwest based 1031 Exchange investor.

There are approximately six years remaining on the net lease which expires in October 2022. The lease features annual rental escalations and zero landlord responsibilities. The bank was first chartered in 1865 and has since grown into a more than $2 billion community-focused organization that provides financial services through a network of 46 banking centers in 33 Illinois communities. First Mid-Illinois Bank & Trust is a publicly traded company (NASDAQ: FMBH).

“Net lease properties with high yields due to shorter term leases are highly sought after amongst the investment community.” said Randy Blankstein, President of The Boulder Group.  Jimmy Goodman, Partner of The Boulder Group, added, “Single tenant assets leased to banks are difficult to find priced in the million dollar range.”

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

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 Family Dollar located at 110 West Oak Street in Fairbury, IL for $1,314,088.

The 2015 constructed Family Dollar is strategically located along the trade areas primary east-west thoroughfare, West Oak Street.  The Family Dollar lease has roughly fourteen years remaining on their lease. The 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.

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

Family Dollar was acquired by Dollar Tree and is a wholly owned subsidiary of Dollar Tree. Dollar Tree is publicly traded on the NASDAQ (DLTR).  Family Dollar is the second largest dollar store chain in the United States, operating over 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.”

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

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

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a McDonald’s ground lease located at 6126 Hickory Flat Highway in Canton, Georgia for $1,370,000.

The 4,024 square foot McDonald’s is strategically positioned on Hickory Flat Highway, the primary artery connecting Cherokee County and Fulton County.  The location has multiple points of ingress and egress and offers excellent visibility from the heavily trafficked intersection of Hickory Flat Highway & E. Cherokee Drive (approximately 24,000 VPD).  The property is located across the street of the Hickory Flat Village anchored by Publix Supermarket, Wells Fargo Bank, Advanced Auto Parts and GNC.  Other retailers in the area include Kroger Supermarket, CVS Pharmacy and many other restaurants.  The property features a double drive-through.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction, a private real estate trust. The buyer is an east coast private investor.

McDonald’s has approximately 9 years remaining on their 20 year lease which expires April 30, 2025.  This triple net ground lease features a 10% rent escalation in May 2020 and four 5-year renewal option periods with 10% escalations.  McDonald’s is a publicly traded company on the New York Stock Exchange (MCD) and an investment grade rated company with a Standard & Poor’s rating of BBB+.

“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, “The market for McDonald’s ground leases remains active as investors are attracted to investment grade tenanted properties with long 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 $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

The Boulder Group Publishes Net Lease Medical 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 Medical Market.

Highlights from the report are as follows:

• Overall cap rates for net lease medical properties remained unchanged from the third quarter of 2015 to the third quarter of 2016
• Investment grade tenants make up only 35% of the net lease medical sector
• Medical properties are priced at a 21 basis point discount when compared to the entire net lease market

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

The Boulder Group Arranges Sale of Net Lease Athletico Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Athletico Physical Therapy property located at 8905 South Commercial Avenue in Chicago, Illinois for $1,025,000. The Athletico Physical Therapy property is located in a densely populated area with significant barriers to entry.

The 4,535 square foot Athletico Physical Therapy building is located on a corner at the intersection of South Commercial Avenue and 89th Street. The property is benefitted by its proximity to the Advocate Trinity Hospital which is located approximately one mile west.  Retailers located in the immediate trade area include Walgreens, CVS, Chase Bank, Bank of America, US Bank, MB Financial Bank and McDonald’s. The surrounding area is densely populated with over 26,000 people living within a one mile radius of the property.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest real estate investment company. The purchaser was a west coast real estate investment company.

The new Athletico Physical Therapy lease is for ten years and rent is estimated to commence in October 2016. The lease features a 10% rental escalation in the primary term and in each of the two 5-year renewal option periods.  Athletico Physical Therapy is in the field of physical therapy, orthopedic rehabilitation, sports medicine and athletic training. Athletico began in Chicago in 1991 and today has over 330 facilities, employs over 4,000 clinical and administrative staff, and offers more than 40 specialty rehabilitation, outreach, and fitness services.

“The market for net lease properties in major MSAs 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, “We are seeing many investors turn their attention to medical related office properties as they are highly resistant to e-commerce.”

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

The Boulder Group Arranges Sale of a Net Lease Best Buy Property

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Best Buy property located at 6502 Grape Road in South Bend, Indiana for $9,009,000.

The Best Buy is strategically positioned in a regional retail trade area approximately three miles from the prestigious University of Notre Dame. The University of Notre Dame has a total enrollment of approximately 12,000 students and there are approximately 160,000 people living within a five mile radius of the property.  The Best Buy is located along the area’s primary north-south thoroughfare directly across the street from a 920,000 square foot regional mall.  Retailers in the immediate area include Walmart Supercenter, Sam’s Club, Costco, Whole Foods, Target, Home Depot, Lowe’s, Meijer, Menards, Kohl’s, Dick’s Sporting Goods and many others.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest real estate investment company. The purchaser was a west coast real estate investment company.

There are approximately seven years remaining on the Best Buy lease which expires March 20, 2023. The absolute triple net lease features a 3% rental escalation in the primary term and in each renewal option period. Best Buy is a leading retailer of technology and electric products with over 1,700 locations worldwide. Best Buy is an investment grade rated company with a Standard & Poor’s rating of BBB-.

“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 play an important role in evaluating short-term leased 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 $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