NORTHBROOK, IL—The Boulder Group, an investment brokerage firm located in suburban Chicago, has just completed the sale of a net leased CVS store at 1203 South Main St. in Bluffton, Indiana, just outside of Ft. Wayne, for $3,100,000.
The 10,125-square-foot CVS was built in 1999 along the primary north-south thoroughfare of the area on a hard corner of a signalized intersection. The CVS also has a drive-thru and Boulder officials say it's a “strong performing store with a low rent to sales ratio.” CVS fully leases the property and has seven years of primary lease term remaining with a rental escalation coming in 2014.
Randy Blankstein and Jimmy Goodman of Boulder represented the seller, a private partnership based in the Midwest, in the transaction. The buyer was a high net worth individual in a 1031 Exchange.
This has been a historic year for net leased properties, with cap rates for single-tenant retail outlets sinking to lows not seen in years. Last week, GlobeSt.com reported that the cap rates for single-tenant net leased retail and office properties increased for the first time in two years during the third quarter, according to a reprt from Boulder. The rates for retail, however, only went up 2 bps, from 7.00% to 7.02%.
“The market for CVS properties with shorter term leases remains active as investors are attracted to investment grade rated companies at higher yields,” says Blankstein. Goodman adds that “single-tenant properties below $5,000,000 are in the greatest demand amongst private investors and 1031 buyers.”
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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.
