TAMPA, FL—In a deal that demonstrates the triple-net lease market is still commanding low cap rates, the Regions Bank ground lease has traded for $3.7 million. The buyer was part of a 1031 exchange that also financed a small portion of the purchase through a life insurance company.

Jonathan Graber and Rafeal Wright of Franklin Street Real Estate Services represented the seller in the transaction, Nelco Kennedy Property, LLC. Richard Fisher of Hold-Thyssen represented the buyer, an investment group out of Germany.

“We do expect to see more 1031 exchanges in 2013,” Wright tells GlobeSt.com. “That's mostly because it's going to be a tremendous way to avoid taxes. Especially with the additional healthcare tax at 3.8% and capital gains at 20%, I expect 1031 exchanges to continue in 2013.”