3 Net Lease Transactions with Private Buyers

Net Lease Press Releases

Andrew Fallon of Calkain Companies, a national real estate investment brokerage firm, successfully completed three separate net lease transactions in which private clients acquired passive real estate investment properties. Two of the properties were located in Virginia and one in Tampa, FL. The properties acquired were leased on a long-term, triple net basis to the national tenants 7-Eleven Inc. and Childtime Learning Centers. Calkain's Andrew Fallon, Assistant Vice President, facilitated each transaction providing client representation and advisory services to the buyers, who each had different investment objectives and motivation.

7-Eleven, Norfolk, VA A Northern Virginia real estate investor, who was seeking passive income from a credit tenant, purchased a NNN ground lease in Virginia Beach, VA. The 0.81 acre property is leased to 7-Eleven, Inc. for a term of 20 years with structured rent increases. The tenant made significant improvements to the property in 2007, including a 3,000 square foot convenient store and a 1,600 square foot pump island canopy with four MPDs. As a NNN ground lease, this investment requires that 7-Eleven pay for real estate taxes, insurance, and maintenance expenses.

Childtime Learning Center, Midlothian, VA Calkain provided advisory and transaction support services to a private Northern Virginia investor who was interested in acquiring a net lease child care facility. The investor purchased a well-positioned, single-story daycare center located near the Chesterfield Towne Center in Midlothian, VA. The 6,380 square foot property is leased to and operated by Childtime Learning Center, who provides a corporate guaranty for the lease obligations. The existing and established tenancy, coupled with the location and low rent attracted the investor interest.

Confidential Property, Tampa, FL As part of a 1031 exchange purchase, Calkain's private investor client acquired a retail building leased and occupied solely by an national, investment-grade tenant. The developer-seller fully renovated the property in 2011 to accommodate the tenant, who will operate under a 10-year NNN lease which will provide passive income to the investor. Calkain's Managing Director, Patrick Nutt represented the developer-seller in the transaction.

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.


www.calkain.com

Net Lease Cap Rates Press Releases

Net Lease Press Releases 

Net lease cap rates fell by 25 basis points in 2011. The primary drivers of this trend are lack of product (especially high quality product) and an ease in lending conditions.


Construction of new net lease product continues to flow at a trickle while financing has become more available – with local and regional banks competing with insurance companies for credit tenant deals. Investors have shown the willingness and ability to invest but are hindered by lack of product to satiate their demand. This lack of supply and increase in demand has forced prices up and cap rates down – many would argue that 2012 promises to be a seller’s market in 2012.


 It is worth noting that these numbers illustrate the average trend in net lease cap rates and the net lease market itself is highly diverse depending upon tenant, lease terms and location. Though these factors have always been significant, their effects have recently compounded. Investors have shown a preference for high quality tenants in prime – urban and suburban – locations and are willing to pay some of the highest prices in recent years to obtain them. Cap rates in prime markets can be up 125bps lower than the charted averages of many segments. However, investors are increasingly showing interest in properties containing lower credited tenants or located in secondary locations – exchanging risk for higher returns. 


Net lease investments continue to gain traction as an alternative investment instrument for cash flow and yield investors.


Read full report here.

Net Lease Press Releases: Net Leased Dollar General Sold

Net Lease Press Releases: Net Leased Dollar General Sold: Net Lease Press Releases $1.34MM Sale of Richmond, VA Dollar General Store Calkain Companies’, a national real estate investment broke...

Net Leased Dollar General Sold

Net Lease Press Releases


$1.34MM Sale of Richmond, VA Dollar General Store


Calkain Companies’, a national real estate investment brokerage firm, recently sold a Dollar General (NYSE: DG) net lease investment property located in Richmond, VA. The transaction closed within the past 30 days, and illustrated the compressing cap rates within the net lease segment of the market. The seller was a regional real estate development and management company based in the Southeast. As a preferred developer for Dollar General, the same seller used Calkain to procure similar sales in Madison, VA and Ferrum, VA within the past 60 days. These Dollar General 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.

Not actual site.

Calkain’s Andrew Fallon, Associate, facilitated the transaction, providing exclusive representation to the Seller, who developed the site for Dollar General. The Richmond store was highly sought-after given its in-fill location, surrounding demographics, and the favorable lease structure. Fallon comments, “As Dollar General continues to roll out new stores in new markets, it’s rare to find a brand new in-fill location with such strong demographics in major markets.” The buyer was a Virginia-based investor seeking stable income as a passive real estate owner. Continued Fallon, “The 15-year triple net lease with Dollar General’s guaranty provided a strong income stream for the buyer, who will have limited to no management responsibilities”. The buyer financed the purchase using a regional bank.

In July 2011, S&P raised Dollar General’s credit rating to BB+, the top rung before entering investment-grade territory and Moody’s raised its rating on the company to Ba2, which is two steps below investment grade on its scale. Dollar General 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.

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.

NNN Walgreen in Dartmouth Close for $5.8 million

Net Lease Press Releases

Virginia-based REIT Gladstone Commercial Corp. has acquired the leasehold interest in a newly constructed, 16,340-square-foot retail building in Dartmouth for $5.8 million.

The site is primarily leased to drugstore operator the WalgreenCo. and is a new, build-to-suit retail location for Walgreens, which has leased the property for 75 years with rights to terminate in years 26-75, according to a statement.

"This acquisition continues our plan for growth in 2011 and we are pleased to add our first retail property to our substantial list of quality investments," Gladstone President and Chief Investment Officer Chip Stelljes said in a statement.

Gladstone Commercial Corp. is a publicly-traded REIT focused on investing in and owning triple-net leased industrial, commercial, medical and retail real estate properties.  The company currently owns 70 properties.

Triple (NNN) Net Leased Walgreen in Texas Close for $7.3 million

NNN Lease Press Releases

Net leased Walgreens sells for $7.3 million in McKinney, Texas

McKINNEY, Texas - In a quick-moving, all-cash close, a private family trust from California has paid $7.3 million for a 14,820-square-foot store, net leased until 2033 to Walgreens.

Jim Casale, principal in the San Diego office of Lee & Associates, represented the buyers. Brad and Gavin Kam of Net Lease Realty Advisors in Dallas marketed the property for the sellers, JK 720 Custer LLC. The Walgreen build-to-suit delivered in 2008 at 8996 Stacy Rd. in the 2,500-acre Craig Ranch. The Deerfield, Ill.-based pharmacy chain's long-term lease includes options.


http://dallasrealestate.citybizlist.com

NNN Net Leased Chili's Properties Sold

Net Lease Press Releases

Calkain Companies, a national real estate investment brokerage firm, recently completed the sale of an investment property ground leased to Chili’s on a long-term, NNN basis. The purchaser was a private investor seeking a passive, incoming-producing asset. The property is located at The Peterson Companies’ Virginia Gateway Center in Gainesville, VA.

Rick Fernandez, Managing Director of Calkain Urban Investment Advisors, the urban market division of Calkain Companies, represented the buyer in the transaction. “Chili’s solid sales history at this location and the strong real estate fundamentals at the site met the buyer’s acquisition criteria,” explained Fernandez.

The transaction closed within the last thirty days and is recorded in the public record. 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.

A triple net lease (Net-Net-Net or NNN) is a lease agreement on a property where the tenant or lessee agrees to pay all real estate taxes, building insurance.

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.