Net Lease

Tuesday, August 21, 2012

The Boulder Group Arranges Sale of a $16.35 million Single Tenant GSA Property in Bloomington, Illinois

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant GSA property located at 1201 North Mitsubishi Motorway in Bloomington, IL for $16,350,000.

The 133,512 square foot GSA property is fully occupied by the Internal Revenue Service and was developed in 2008. The property is located on a 9.78 acre parcel along Mitsubishi Motorway in Bloomington, Illinois and is benefitted by its high end construction that meets the strict building standards of the U.S. Government. The GSA property is mission critical to the IRS as it is the only of its kind in the United States. The mission of the IRS National Distribution Center is to provide order fulfillment services and distribution of published products to internal and external customers of the IRS. The GSA consolidated three other national IRS distribution centers to this centrally located facility in 2008.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private partnership based in Colorado. The buyer was self-represented and purchased the property to fulfill a 1031 exchange.

The GSA lease had eleven years remaining on the primary term at the time of the sale. The GSA is an investment grade tenant with a Standard & Poor’s rating of AA+. The GSA has approximately 106,000 employees and leases over 354,000,000 square feet of space nationwide.

“Demand for institutional quality net lease properties remains active as investors are aggressively pursuing investment grade tenanted properties over $10 million dollars.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Newly constructed GSA assets are in high demand as they have a historic renewal probability of over 90%.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in 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 more than $1.4 billion of net lease real estate transactions through several real estate cycles. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com

Randy Blankstein, President of the Boulder Group, to Speak at Interface Net Lease Conference

Randy Blankstein, President of national net lease advisory firm The Boulder Group, will be a featured speaker at the Interface Net Lease Conference in New York on September 11th, 2012. His panel will be discussing if the net lease investment market will continue to experience cap rate compression.

The Interface Net Lease conference will cover investment and financing trends and discuss market conditions in the NNN and sale leaseback space. The conference will also focus on the development pipeline for new NNN deals, bring together a group of retailers to offer a tenant's perspective on the market, and offer informal roundtable discussions on special niche topics in the net lease market.

Wednesday, July 11, 2012

The Boulder Group Publishes 2nd 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 2nd quarter activity in the National Net Lease Market.

Highlights from the report are as follows:

Net lease property cap rates compressed in the retail sector
Supply increased sharply in the retail and industrial sectors
Ground Leases and Bank properties remain the most sought after assets

The full report can be viewed online at http://www.bouldergroup.com/q2rr.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 more than $1.4 billion of net lease real estate transactions through several real estate cycles. 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, June 29, 2012

The Boulder Group Arranges the Sale of a Net Leased Walgreens Property in El Reno, OK (Oklahoma City MSA)

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens property located at 1550 SW 27^th Street in El Reno, OK for $4,887,000.

Walgreens is the sole occupant of the 13,650 square foot retail building that was developed in 2009. The property is located on a 1.6 acre parcel in the primary retail trade area of El Reno, OK. Walgreens is located directly across from a Wal-Mart Supercenter. The property is less than one-quarter mile from a full interchange with Interstate 40 where traffic volumes are in excess of 26,000 vehicles per day. The property is fully leased to Walgreens with twenty-two years of lease term remaining.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, an Oklahoma based developer, in the transaction. The buyer was a high net worth individual based in South Dakota.

Walgreens has twenty-two years of lease term remaining on an original 25 year lease. Walgreens is a publicly traded company on the New York Stock Exchange (WAG), with a market capitalization of $27 Billion. Walgreens is an investment grade rated company with a Standard & Poor’s rating of A.

“The net leased Walgreens market remains active as investors are attracted to investment grade rated companies with over 20 years of lease term remaining” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Private buyers are continually paying premiums for long term leased Walgreens properties due to the stable income stream the properties offer as an alternative investment.”

Thursday, June 28, 2012

The Boulder Group Arranges Sale of a Triple Net Leased Budget Rent a Car Property in Oak Lawn, Illinois (Chicago MSA)

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant Budget Rent a Car property located at 8940 S. Cicero Avenue in Oak Lawn, IL for $1,135,000.

Budget is the sole occupant of the 2,500 square foot retail building that was developed in 1985. The property is located on a 29,519 square foot parcel along Cicero Avenue in Chicago, IL. Cicero Avenue is a heavily trafficked roadway with 48,000 vehicles passing the property daily. The property has over 230 feet of frontage along Cicero Avenue. The property is fully leased to Budget Rent a Car with four years of lease term remaining and has two renewal option terms remaining.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Midwest based partnership in the transaction. The buyer was a high net worth individual located in Canada.

Budget Rent a Car has four years of lease term remaining on an original fifteen year lease. The Avis Budget Group is a publicly traded company on the NASDAQ Stock Market (CAR), with a market capitalization of $1 Billion. The Avis Budget Group has 10,000 locations and employs 28,000 people.

“The market for single tenant properties with shorter term leases is becoming more active as investors are attracted to the high yield these properties generate” 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.”

Wednesday, June 13, 2012

The Boulder Group Arranges Sale of a $68.7 million Walgreens Portfolio (9 Properties) on the East Coast

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net leased Walgreens portfolio consisting of nine properties located on the east coast for $68,700,000. The properties are located in Connecticut, Massachusetts, New Hampshire and New Jersey.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private investment company, in the transaction. The buyer, a Midwest based institutional investment firm, was represented in-house.

The portfolio included the following Walgreens properties:

1. 980 Farmington Avenue in Berlin, CT (Hartford MSA)

2. 1036 West Main Street in Branford, CT

3. 880 North Montello Street in Brockton, MA (Boston MSA)

4. 1 Glenwood Avenue in Dover, NH

5. 17 Crystal Avenue in Derry, NH

6. 897 Main Street in Melrose, MA (Boston MSA)

7. 20 West Kings Highway in Mount Ephraim, NJ (Philadelphia MSA)

8. 1131 US Highway 46 in Ledgewood, NJ (New York MSA)

9. 500 Egg Harbor Road in Sewell, NJ (Philadelphia MSA)

The Boulder Group generated multiple offers for this portfolio due to the high demand for core net leased properties combined with the long term Walgreens leases. This portfolio attracted an abundance of investors as this was a rare opportunity to purchase a highly concentrated portfolio in one region leased to an investment grade tenant. The majority of the interest was among high net worth individuals, international investors, 1031 exchange trade buyers, and institutions. Ultimately an institutional investor was the most aggressive bidder as the portfolio provided an ideal acquisition for their existing criteria.

“This portfolio represented a rare opportunity for an investor to acquire a large portfolio of long term triple net leased Walgreens properties and we were able to achieve a sale price within one percent of the asking price.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Walgreens properties with over 20 years of lease term are one of the most sought after assets in the single tenant net lease market, and we had strong demand for this portfolio.”

Wednesday, May 23, 2012

The Boulder Group Arranges Sale of a Triple Net Leased Bank of America Property in Chicago, Illinois

The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant triple net leased Bank of America property located at 3010 South Kedzie Avenue in Chicago, IL for $3,875,000.

Bank of America is the sole occupant of the 6,500 square foot retail building that was developed in 2003. The property is located on a 35,000 square foot parcel at the southwest corner of Kedzie Avenue and West 30^th Street in Chicago, IL. The property is located three-quarters of a mile north of Interstate 55 in a densely populated area. The property is fully leased to Bank of America with eleven years of lease term remaining and has two rental escalations remaining in the primary term of the lease.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Midwest developer, in the transaction. The buyer was a high net worth individual located in California in a 1031 exchange.

Bank of America has eleven years of lease term remaining on an original 20 year lease. Bank of America is a publicly traded company on the New York Stock Exchange (BAC), with a market capitalization of $79 Billion. Bank of America is an investment grade rated company with a Standard & Poor’s rating of A- and has over 2,600 locations nationwide.

“The market for properties occupied by major banks remains active as investors are attracted to investment grade rated companies with rental escalations in the leases” 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 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 more than $1.2 billion of net lease real estate transactions through several real estate cycles. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com

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