The ground lease is priced at approximately $6 million for a cap rate of 8.25%, and the fee interest is priced at about $6.856 million for a cap rate of 7.75%. The 40-year ground lease term expires on July 31, 2028. The rent is $26,400 a year with an option to increase by 7.5% at each five-year interval during the time of the lease.
The Giant Eagle has a 20-year lease term that expires on Sept. 30, 2011. The rent is $8.70 per sf for the first 10 years, and $9.20 per sf for the final 10 years of the lease. Following that are four five-year renewal options raising the rent to $9.95 per sf, $10.70 per sf, $11.45 per sf, and $12.20 per sf in respective five-year increments.
Michael R. O'Mara of the Boston-based National Net Leased Property Group of CB Richard Ellis is handling the transaction.
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