CHICAGO, IL- The Boulder Group recently announced that they had completed the sale of a retail space housing an Advance Auto Parts store at 1135 E. Division St. in Diamond, IL, for $1,639,100. Diamond is about 60 miles southwest of Chicago.
Advance Auto Parts has a 15-years net-lease on the property, with periodic rent escalations built into the lease. The company has more than 3,600 outlets across the country. This 6,125 SF store was completed in 2012 and is located on Highway 113 near Interstate 55 and Berta Crossing, a shopping center.
Randy Blankstein, and Jimmy Goodman, the president and partner, respectively, of The Boulder Group represented both buyer and seller. The buyer was an Ohio-based 1031 exchange investor and the seller was an undisclosed Midwest-based partnership.
“The market for new construction net leased auto parts stores remains robust as these assets are in high demand among private investors,” said Blankstein. Goodman added, “1031 exchange buyers continue to aggressively seek single tenant assets occupied by investment grade rated tenants, like Advance Auto Parts.”
Earlier in February, The Boulder Group released a report showing that the reluctance of American consumers to purchase new cars during the recession has been fueling the spread of auto parts stores, with 500 opening in 2012 alone, one of the few segments in the net-lease sector with robust growth. “Demand for auto parts stores is strong,” the authors said, “as they offer long term leases to investment grade tenants and are typically constructed as vanilla boxes which are easier to re-tenant in the event the tenant vacates.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
