The market for single-tenant net lease retail properties had a steady year in 2016, despite some hesitation related to world, economic and political events. Entering 2017, investment sales brokers are seeing a lot of demand from exchange buyers and a variety of properties coming to market. For the first time in a long stretch, cap rates have adjusted slightly. That, in turn, has caused supply — tight for many years — to loosen slightly and make more desirable properties more attainable for some buyers. On the sell side, some large institutions are balancing their portfolios by shedding some properties so …
Ft. Lauderdale, FL – Calkain’s Managing Partner, Patrick Nutt has recently completed the $1,575,000 sale of the Dunkin’ Donuts asset located at 17951 Gunn Highway in Odessa, FL. The out of state 1031 Exchange buyer was attracted to the NNN lease, new construction with a franchise guaranty.
Typical with most Dunkin’ Donuts buildings, this asset was well-situated at a hard signalized intersection in a strong retail corridor. With a strong, high profile tenant, this type of NNN asset will continue to draw attention from buyers as a solid investment to place cash, or in the case here, a 1031 exchange.…
Herndon, VA – Calkain’s Executive Managing Director, Andrew Fallon has recently completed the sale of two Dollar General stores, one in Halifax, VA and one in Petersburg, VA. Both properties were similar in size, approximately 9,000 +/- square feet and are 100% leased to Dollar General Corporation. Developed as new build-to-suit stores in 2012, each location has just under 11 years left on the leases, and both were true NNN structures with no landlord responsibilities. The Halifax, VA store sold for $1,241,555, a 6.75% cap rate, while the store in Petersburg, VA sold for $1,410,000, a 6.55% cap rate.
Atlanta, GA – Calkain Companies’ team of Patrick Nutt, Managing Partner, Sheree Strome and Keelee Peterson, both Associate Directors, have recently sold a property in Sumter, South Carolina occupied by Walgreens (NYSE:WBA) pharmacy. Walgreens occupies this location under a long-term 15 year lease on an absolute NNN basis. The property is located on Pinewood Road near the intersection of McCrays Mill Road.
Calkain’s marketing efforts generated multiple offers to purchase this net leased asset, ultimately executing the deal for $5,078,063 to a private buyer facilitating a tax-deferred 1031 exchange.
The stability of having an investment grade tenant, coupled with a
Herndon, VA – Calkain’s Executive Managing Director, Andrew Fallon, has recently completed another sale of a 7-Eleven property, this one located at 900 Chillum Road, Hyattsville, MD 20782. The 1,710 square foot building is 100% leased to 7-Eleven and sold for over $1.7M. The newly renovated convenience store is situated on the hard signalized corner of Riggs Road and Chillum Road, just across the DC border. 7-Eleven opened for business in June of 2016 and the purchaser wanted to start enjoying the cash flow benefits of the full 15 year ground lease.
The purchaser is a local partnership, executing a …
Tampa, FL – David Sobelman, Executive Vice President and Managing Partner of Calkain Companies, has successfully completed another 1031 exchange for an exclusive client. Sobelman ultimately saved the client roughly $2 million in potential capital gains taxes. Sobelman was tasked with providing a stable, predictable and long-term income stream for a family who inherited an apartment building owned by the previous generation for over 50 years. Upon the sale of the apartment building, the children wanted to use the IRS’s 1031 exchange tax code to allow them to defer their capital gains taxes with the purchase of other real estate …
Fort Lauderdale, FL – Patrick Nutt, Managing Partner of Calkain Companies, America’s Net Lease Company®, along with Associate Director Scott Campbell, recently sold a Family Dollar in Melbourne, Florida. The South Florida brokerage team generated multiple offers for the property and were able to sell the asset at 98% of the asking price. The standalone Family Dollar has a brand new 15 year NNN lease, making it an attractive deal for investors looking for real estate in the income tax free state of Florida.
Investors are seeing an inherent value in the dollar store space, specifically with
Herndon, VA – Andrew Fallon, Executive Managing Director, and Rick Fernandez, Senior Managing Director of Calkain Companies, just completed an assignment under an exclusive buyer representation contract to one of Washington, DC’s top real estate developers. Fallon and Fernandez were chosen by the developer to lead a search on their behalf to identify suitable 1031 exchange replacement properties.
We conducted a nationwide search for a replacement property that included location assessment, tenant performance, risk analysis and lease review to find highly stable long-term NNN investment properties to meet the buyer’s stringent requirements,” Fallon commented.
1031 Exchange buyers and private investors looking for yield drive demand, but stabilizing cap rates suggest this cycle is nearing the top.
Hunger for yield and still-low interest rates — the dynamics that have fueled a robust net lease investment market for retail properties over the past few years — remain in place so far in 2016, but emerging signs suggest that prices are nearing their peak as recession worries continue to mount.
Institutional, high net-worth and foreign investors make up a good chunk of net lease buyers, who are plowing money into Family Dollar stores, Walgreens properties, quick-service restaurants, …