Sale of Multi-Tenant NNN Investment in Spring Hill, FL

Net Lease Press Releases

Calkain Companies, a national net lease commercial real estate firm, recently brokered the sale of a multi-tenant, NNN investment in Spring Hill, Florida. The two-tenant investment property is situated on 1.08+/- acres with high visibility to busy US HWY 19, just 30 minutes North of Tampa. It is occupied by Pet Supermarket, based out of Sunrise, Florida. BBB- rated, Humana Marketplace, headquartered in Kentucky is also a tenant.

The site is a 9000+/-sf building divided into 7000+/-sf for Pet Supermarket and 2000+/-sf for Humana. Pet Supermarket renewed their lease for 7 years with structured increases and options and Humana exercised their 2 year option. The seller, an experienced private owner and long-time client of Calkain, was looking to liquidate to secure other opportunities. The property sold for $1.61MM which is a 8% cap rate to a private Florida based buyer completing a 1031 exchange.

Calkain Associate, Teal Henderson, who was recently tapped to open the new Midwest office in St. Louis, MO from Tampa, exclusively represented the private seller and provided marketing and transaction support services throughout the sales process. The property was initially introduced to the market with quickly expiring leases. Henderson commented, "We quickly recognized the hurdle of the current lease terms being unfavorable along with the tertiary and lesser known Florida location of Spring Hill. We counseled the seller in reaching out to the tenants and restructuring with more attractive terms. Then after successful negotiations, we re-introduced the property on the market and generated a quick contract. A private buyer interested in a Florida property with an investment grade tenant with ties to the medical industry purchased the asset." As a NNN ground lease, this investment requires that the tenant pay for real estate taxes, insurance, and maintenance expenses, which effectively provides the landlord with a passive, bond-like income stream through commercial real estate ownership. The transaction occurred within the last 15 days and will be recorded in the public records.

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, Northeast and a new office opening in the Midwest. Additional information about the firm and listings may be found at www.calkain.com.

NNN Net Lease CVS Pharmacy Sold

Net Lease Press Releases

NNN Net Lease CVS Pharmacy in Washington, DC Trades for $14.5 million

Calkain NNN Investment Advisors recently completed the sale of a NNN investment property in Washington, DC. The purchaser, a private 1031 investor, seeking a stable, credit rated, income-producing asset. The sale, closing at over $1,154 per square foot, broke the record previously set by Calkain for a NNN investment sale.

Rick Fernandez, Managing Director of Calkain Urban retail  Investment Advisors, represented the seller in the transaction and Calkain Managing Director, Jerry Burg, represented the buyer on the purchase of the CVS on Columbia Road in Adams Morgan. “The Adams Morgan CVS is well situated in a grocery anchored, dense, high traffic, urban location within a diverse residential and retail community,” explained Fernandez. “The investor understood that this CVS not only provided a stable income stream backed by a strong credit rated corporate tenant, but also a highly adaptable asset with rock solid generational value,” continued Burg.

The seller reviewed multiple offers from across the country before closing with a private investor who was working with Burg to identify $35MM in NNN investment properties for a 1031 exchange. The transactions 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.

Investment Retail Property in Columbia, MD

Net Lease Press Releases

  Net lease real estate brokerage firm, recently brokered the sale of long-term triple net lease investment

Calkain Companies, a national net lease real estate brokerage firm, recently brokered the sale of a newly developed, multi-tenant investment retail property in Columbia, MD. The Shoppes at Dobbin Center, a 4,722 square foot three tenant building, was developed by a local group and leased to Starbucks, Radio Shack, and Spa #1 Nails. All of the tenants signed long-term triple net leases with structured rent increases and renewal options. The purchasers were a private group interested in diversifying investments into stable, income-producing real estate.

Calkain’s Andrew Fallon, Assistant Vice President, exclusively represented the seller, and provided marketing and transaction support services throughout the sales process. After working with the seller over the course of the development process, the property was introduced to the marketplace in 1Q 2012. Fallon explains the circumstances, “The property was under LOI and moving to contract the day it was introduced to the marketplace.” Fallon continued, “The seller was able to take advantage of the heated market and compressed cap rate environment given the combination of low interest rates, investor flight to quality, and the laws of supply and demand.” The buyer was a Washington, DC based investor seeking a passive, income-producing property as a family investment.

The characteristics of the property and net lease terms were extremely appealing to the purchasers and other prospective buyers. Calkain received multiple offers for the property, which is extremely well located in the Columbia, MD sub-market. The Shoppes at Dobbin Center was a redevelopment of a dense in-fill parcel in front of a Wal-Mart and adjacent to other national retailers including Chick-fil-a, McDonald’s, and Wendy’s. Further, the net lease structure associated with these corporate leases requires that the tenant pay for real estate taxes, insurance, and maintenance expenses – which effectively provides the landlord with a passive, bond-like income stream through commercial real estate ownership.

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 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