Net Leased Transactions Total $10.5M

Net Lease Press Releases

Calkain Cos, Has Closed over $4 Billion in Net Lease Transactions.

HOUSTON- Calkain Cos. has arranged the $6.25 million sale of a 21,518-square-foot retail property in Houston that is leased to WellsFargo. The lease term is 15 years. Andrew Fallon and Jerry Burg of Calkain Cos. represented the international buyer in the 1031 exchange.

FLORIDA- Calkain Companies recently completed two net lease transactions with an aggregate total exceeding $4,000,000. Patrick Nutt,Managing Director of Calkain’s South Florida office, was the lead broker in both sales. The properties consisted of a Dunkin Donuts in Palmetto, FL which sold for $903,225. A single tenant facility leased by Citibank was also purchased for $3,155,000. Both locations are occupied by long term net leases which were purchased as passive investment vehicles.

The second deal location is the Tampa, FL suburb of Brandon along Providence Road. The 4,576 square foot retail property is leased on a long term, absolute-net basis by Citibank through 2022. When Citibank corporately retreated from their retail banking facilities throughout the Tampa MSA, they subsequently sub-leased the property to emerging Mongolian restaurant chain, Genghis Grill. The purchaser, a family partnership, completed the transaction as part of a 1031 exchange. Calkain represented the seller, a Florida Limited Liability Corporation. Assisting Nutt and Zimmerman in the sales transaction was Calkain Associate, Scott Black.

The transactions, while unrelated, represented repeat clients for Calkain. “We have a great culture within Calkain, one that creates a special emphasis on the advisory role a broker plays in any transaction,” relayed Nutt. “Each client has a unique need, and we do our best to understand that need first and foremost, and I think that truly is a difference that brings clients back.”

www.calkain.com

Record Low 4.6% Cap Rate for Ground Lease

 Net Lease Press Releases 

Calkain companies completes Sarasota FL net-lease transaction at record low cap rate rookie broker leads transaction process with a 4.6% return

Calkain Companies’ Associate, Stephen Counts, exclusively represented the seller in the disposition of a Ground Lease to the Tregate Condominium Association. The 2 acre parcel, located at 2220 Stickney Point Road in Sarasota, Florida was originally a citrus grove leased to the condominium association for 99 years. At the time of sale, there were 59 years remaining on the lease term. With a sale price of only $183,000, it was only a fraction of the property value. Therefore, the buyer was willing to accept an overly low return for their investment due to the very high intrinsic real estate value. Calkain’s client inherited the property, which had purchased the property over 40 years ago.

Calkain Companies is a boutique commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net leased transactions. While licensed to conduct business in many states, nationally, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast and Northeast United States. Additional information about the firm and listings may be found at www.calkain.com.

NNN IHOP in Leesburg, VA Sold!!

Net Lease Press Releases

Calkain Companies recently completed the sale of a NNN IHOP in Leesburg, VA. The restaurant has been operating in this location since 1997 and was purchased by a private investor from the Washington, DC area. This IHOP is located in a popular Wal-Mart shopping center on the Route 15 Bypass just off the Dulles Toll Road approximately 45 minutes from our Nation’s Capital.

Betty Friant, Vice President of Calkain Realty Advisors, identified the asset and ultimately procured the transaction. “Realizing the lack of available opportunities for high quality single tenant assets in Virginia, this asset never hit the market,” explains Friant. She continues, “It was solely due to the efforts of Calkain that the transaction occurred. With only 5 years remaining on the lease, the seller was happy to find a buyer.” The transaction closed in the past thirty days.

Calkain Companies is a boutique commercial real estate brokerage firm, which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net-leased transactions. While licensed to conduct business in many states, nationally, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast and Northeast United States. Additional information about the firm and listings may be found at www.calkain.com.

Net Lease Economic Report

Net Lease Press Releases News

RESTON, VA-Earlier this year, locally-based Calkain Cos., and New York-based Chandan Economics announced a new mission: they would partner to provide research in one of the few areas of commercial real estate.

Hipp: "Given where Treasuries are headed, people are looking for yield."

That day is here. The two firms are getting set to release their first report and have given GlobeSt.com an exclusive sneak preview.  The report covers trends in the macro economy with an eye on how these impact the net lease space.

It has found that the fit-and-start nature of the recovery has reinforced the appeal of net lease assets especially those with long term, high quality tenants. In addition, the sector is grappling by a lack of supply. The result of these multiple trends, not surprisingly, is that cap rates are low and getting lower. Namely, net lease cap rates declined by five basis points to just over 7.2% in the first quarter on average.

These rates, of course, fluctuate based on geography and tenant type. California and the Northeast, for example, claim the lowest cap rates.

The report also notes there is stronger investor demand for bank branches, pharmacies, and the best-performing fast food chains. Bank branches registered average cap rates of 6.1% in Q1, for example--100 basis points lower than the 7.1% average cap rate for pharmacies. Investors, however, can be counted on to show a high degree of sophistication in their acquisitions not only across classes of tenants but specific tenants, as well. Sam Chandan, president and chief economist of Chandan Economics, tells GlobeSt.com. “Some pharmacy and bank branches are trading at sharply lower cap rates than their peers, even after controlling for variation in property quality and time to lease maturity.” For these most coveted assets, he says, debt yields are lower, as well, meaning that lenders perceive many of the same differences as relates to credit risk.

The most aggressive cap rates Jonathan Hipp, CEO of Calkain, says he has seen has been in the mid 4s for “McDonald’s-type credit.”  Expect compression to continue, he tells GlobeSt.com. “Given where Treasuries are headed, people are looking for yield. Also, there is so much buyer interest in this product now we have gotten to the point where we almost don’t need new buyers. What we would like to have is more products.”

Not that the demand-supply imbalance will give investors pause, Hipp adds. “With everything going on, from the uncertain employment picture to the European debt crisis, at end of day people are still cautious on the economy. With the right combination of credit, location and length of lease it is a great time to be a seller in the net lease market.”

Or even a buyer, he says—but with a caveat. In this environment, current buyers should beware that an eventual exit strategy could happen in a period of higher interest rates and a diminishing flight to quality.

Source: GlobeSt.com

Triple Net leases Dollar General Stores Sold

Net lease press releases

                    Dollar General Stores Totaling $2.54MM

  

 Calkain Companies, a national real estate investment brokerage firm, recently completed the sale of two (2) net lease investment properties occupied by Dollar General(NYSE: DG.) Both stores were located in Virginia towns: Madison and Ferrum. The purchaser was a regional real estate development and management company based in the Northeast. The two properties were recently developed as part of Dollar General’s built-to-suit program, and the stores have brand new 15-year triple net leases, which provide passive income for the new owner.

Calkain’s Andrew Fallon, Associate, facilitated the transaction, providing exclusive representation to the Seller, who developed the assets. The dollar store segment remains a bright spot of the retail industry. Fallon comments, “In order to continue capturing market share, the dollar store companies, including Dollar General, are relocating to free-standing stores in existing markets and opening new stores in new markets.” The Madison and Ferrum stores were both new stores in new markets for Dollar General, and Calkain’s marketing efforts were met with high demand. Fallon continues, “These new stores offer real estate investors an opportunity to own hard assets with bond-like characteristics based on the long-term net leases signed by stable corporate tenants.” Those characteristics attracted multiple offers for the assets, and allowed the buyer to utilize favorable financing for the acquisition.

DollarGeneral Corporation is the nation’s largest small-box discount retailer, with more than 9,300 stores and 2010 sales in excess of $13.04 Billion. Dollar General ranks among the largest retailers of top-quality brands made by America's most-trusted manufacturers, such as Procter & Gamble, Kimberly Clark, Unilever, Kellogg's, General Mills and Nabisco.

Calkain is a full service real estate investment brokerage firm with a national scope focusing on single and multi tenant retail, industrial, hotel and office net-leased transactions as well as asset management, tax planning, and advisory services.  Calkain has offices in Reston, VA (Washington, DC), Tampa, FL, Bethesda, MD, Wilmington, DE and Boston, MA.  Additional information about the firm and its listings may be found at www.calkain.com

Triple Net Lease Rite Aid Sold

Net Lease Press Releases

                    

Triple Net Lease Brokers $2.3MM Purchase

of Net Lease Rite Aid

Calkain Companies, a national real estate investment brokerage firm, successfully completed a net lease transaction in which a private client acquired a property leased to and operated as a Rite Aid (NYSE: RAD) pharmacy. The $2.3MM property was located in Gastonia, NC and the purchaser was a private, mid-Atlantic real estate investor. The 10,900 sf pharmacy building is leased to Rite Aid under a long-term, triple net lease, which provides passive income for the investor.

Calkain’s Andrew Fallon, Associate, facilitated the transaction, providing exclusive representation to the Buyer. Pharmacies have long been a desired segment of the net lease market, but Rite Aid properties have been scrutinized given the company’s operating performance.  Fallon worked closely with the buyer and indicated that, “the investor did extensive due diligence on this Rite Aid location, ensuring that the store was busy, had excellent sales, and was on a strong corner.” The property is located at a signalized corner across the street from a Walgreens, one of Rite Aid’s main competitors. Fallon continues, “Within the net lease market, Rite Aid’s are offering an inflated return to investors based on the perceived credit risk associated with the tenant.” Even with the perceived risk, the purchaser was able to secure competitive financing for the acquisition.

Rite Aid operates approximately 4,700 pharmacies in 31 states and the District ofColumbia. Rite Aid is the largest drug store chain on the East Coast and the third largest drugstore chain in the county.

Calkain is a full service real estate investment brokerage firm with a national scope focusing on single and multi -tenant retail, industrial, hotel and office net-leased transactions as well as asset management, tax planning, and advisory services.  Calkain has offices in Reston, VA (Washington, DC), Tampa, FL, Bethesda, MD, Wilmington, DE and Boston, MA.  Additional information about the firm and its listings may be found at www.calkain.com

Sale Leaseback Transaction of Firehouse Subs in Florida

Net Lease Press Releases

High Traffic Franchise Provides Attractive Investment

Calkain Companies, a national commercial real estate investment brokerage firm facilitated a sale leaseback transaction of Firehouse Subs in Pinellas Park, FL in the Tampa/Clearwater MSA. The purchaser was a private South Florida investor seeking a passive, incoming-producing asset to complete a 1031 exchange.

Calkain Associate Teal Henderson represented the seller, a local business group involved in Firehouse Subs franchising and national hoteliers. This 2020+/- sf asset is located in a major retail corridor which was previously owned and operated by a multi-unit Firehouse Subs franchisee. The intrinsic real estate strength, along with higher than average unit store sales and a new favorable triple net, 10 year lease with annual increases and multiple options, made this asset an attractive investment for the buyer. This sale-leaseback illustrates the win-win scenario for the business owner seeking to release capital and investors seeking stable and passive triple net investment opportunities.

Sale-leaseback transactions offer the following benefits:

Monetize 100% of the fair market value of your real estate versus traditional value limitations in mortgage financing.

No change in operational control of the real estate.

Company controls the terms of the lease including rent, lease and renewal terms.

Excellent source of alternative financing in today's difficult credit environment.

Alternative to debt financing for build-to-suit projects.

Typically short transaction closing process.

Enhances the company's liquidity.

Calkain Companies is a boutique commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net-leased transactions. While licensed to conduct business in many states, nationally, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast and Northeast United States. Additional information about the firm and listings may be found at www.calkain.com.