CHICAGO—Net leased properties have been selling well all year, with cap rates sinking to historic lows for several property sectors. But even amongst all this, some types of properties have performed even better.
The Boulder Group, a net leased investment brokerage firm based in suburban Northbrook, for example, has just completed the sale of a single tenant net leased 7-Eleven property located at 3005 North Pulaski Rd. in Chicago, for $1,623,500.
“The market for properties occupied by investment grade rated companies with rental escalations in the lease remain in the highest demand amongst all types of investors,” said Randy Blankstein, president of The Boulder Group. Jimmy Goodman, a partner of Boulder, added, “While single tenant properties are selling in all types of locations; core markets, like Chicago, are at the forefront of investor demand.”
7-Eleven occupies the 3,200-square-foot retail building, which was developed this year. It sits on an 11,389-square-foot parcel at the northeast corner of North Pulaski Rd. and Wellington Ave. in Chicago. Interstate 94 is located one mile east of the property and, according to Boulder, experiences traffic counts in excess of 273,000 vehicles per day. 7-Eleven has ten years of lease term remaining and a 10% rental escalation in 2018.
Blankstein and Goodman represented the seller; a Midwest-based developer, in the transaction. The buyer was in a 1031 Exchange.
Earlier this fall, 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%. Goodman said 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.
