Tag: Cap Rates

Net Lease Report – Automotive Sector

As the economy has recovered from the 2009 recession, the service industry has expanded rapidly. The automotive sector has been steadily growing over the years with the expectation of more growth in the future, particularly for the auto parts industry. This is attributed to consumers maintaining vehicles longer, creating opportunities for dual-store retailers catering to “Do It Yourself” (DIY) consumers and “Do It For Me” (DIFM) service providers such as AutoZone, O’Reilly Auto Parts and Advance Auto Parts.…

AmyNet Lease Report – Automotive Sector

Investor Demand Remains Strong Despite Rising Cap Rates

Herndon, VA – 2016 ended with the Federal Reserve increasing the interest rate by 0.25%, signifying confidence in an improving US economy.  As illustrated in Calkain’s newly released Q4 Cap Rate Report, cap rates in the single tenant net lease (STNL) market are also on the rise, ticking up 18 bps from Q3.  Cap rates will continue to trend upward along with the interest rates, yet still are only at the level they were at this time last year.

While we are witnessing some change, albeit small, is the spread between the US Ten Year Treasury Rate and the …

Emily CusmanoInvestor Demand Remains Strong Despite Rising Cap Rates

Lessons Learned From Previous Mergers

GlobeSt.com

The recent announcement that Fred’s would purchase upwards of 600 locations from Walgreens/Rite Aid to help ensure approval of their merger, highlights an issue facing some owners of these properties. What happens if my property is slated to be closed?

Despite the 600 locations that Fred’s is going to take over, there will still likely be many other Walgreens and Rite Aid locations that will be in close proximity to each other, that one or the other will be shuttered. Landlords of these properties will of course, still be paid their contractual rents; however, the value of the property will …

AmyLessons Learned From Previous Mergers

What To Expect In December

GlobeSt.com

With the holiday season in full swing, the country will be waiting to see if the Fed will increase interest rates during their meeting on December 14th. Following Trump’s presidential election victory, we have seen a surge in S&P, Dow Jones, and Nasdaq.  The Dollar has also advanced and we’ve seen a rise in bond yields.  Meanwhile, cap rates have continued to compress this year, with some STNL properties trading at record low cap rates. Clearly, that trend can’t hold on for much longer, a tune we’ve all been singing for a while.

A major indicator for a rate hike …

AmyWhat To Expect In December

Dialysis Centers Gain Traction

GlobeSt.com

Fresenius and DaVita are the top two dialysis providers in the nation. Demand for these centers has increased dramatically in recent years due to the aging baby boomer population and rising obesity rates.  This niche within the medical sector is expected to grow.  Both are considered stable tenants because of the market demand, attractive cap rates, and credit rated companies.

DaVita and Fresenius are generally located in freestanding buildings with others being in strip centers. The lease structure of these dialysis centers often includes annual rent increases and option periods.  Dialysis centers are located in close proximity to the hospitals …

Traci BidingerDialysis Centers Gain Traction

Calkain’s Rick Fernandez Sells Virginia Applebee’s at a 5.42% Cap Rate

Herndon, VA – Rick Fernandez, Senior Managing Director of Calkain Companies, a national net lease real estate brokerage firm, recently brokered the sale of a NNN Applebee’s Ground Lease in Front Royal, Virginia for $1.925M.

Fernandez represented the seller in the sale of the property, providing marketing and transaction support to guide the deal from negotiating offers to closing.  The buyer acquired the property as part of a 1031 exchange.  The ideally situated real estate and strong franchise operation provided the long term value and security the buyer desired for their investment property.

“Our marketing approach continues to yield industry …

Traci BidingerCalkain’s Rick Fernandez Sells Virginia Applebee’s at a 5.42% Cap Rate

Dollar General Is On An Upward Path

GlobeSt.com

There are many forces driving Dollar General to be an investor’s current pick in the net lease world. As of August 13, 2016, Dollar General operates 13,000 stores in 43 states with plans to open 900 more stores this year and 1,000 more in 2017.  In order to support this expansion, the company plans to hire 10,000 employees this fall.

A majority of their locations have absolute-triple-net leases in place. The lease term is generally 15 years with stated option periods of 5 years each with rental increases ranging from 5-10% when an option is exercised. The national average cap …

Traci BidingerDollar General Is On An Upward Path

Calkain Sells Walgreens in Sumter, SC

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

Emily CusmanoCalkain Sells Walgreens in Sumter, SC

Calkain’s Fernandez Sells North Carolina Arby’s Portfolio for $3.45M

Herndon, VA – Rick Fernandez, Senior Managing Director of Calkain Companies, a national net lease real estate brokerage firm, recently brokered the sale of two North Carolina NNN Arby’s – one in Rocky Mount and the other in Roanoke Rapids. The two properties sold this week for a combined purchase price of $3,450,000.

Fernandez represented the seller providing marketing, lease analysis, site review, and transaction support for offer and contract negotiations to guide the deal to closing. The buyer viewed the solid real estate and sales history at the stores, along with Arby’s strong corporate growth as the critical factors …

Emily CusmanoCalkain’s Fernandez Sells North Carolina Arby’s Portfolio for $3.45M

Calkain’s Fallon to Moderate N3 Panel Discussion at ICSC Chicago Deal Making Conference

Herndon, VA – Calkain Companies continues to have a strong national presence at various ICSC events this year. Next month Andrew Fallon, Executive Managing Director, is moderating the N3 Triple Net Lease Panel Discussion at the ICSC show in Chicago. This session will feature a wide-ranging, macro-level discussion by the region’s industry leaders to explain where the single tenant net lease industry stands and how it might be changing. The panel will cover cap rate trends, tenant and development dynamics, and the capital environment for the net lease sector. The panel discussion will take place Wednesday, October 19 from 2:30 …

Emily CusmanoCalkain’s Fallon to Moderate N3 Panel Discussion at ICSC Chicago Deal Making Conference