JENISON, MI—The Boulder Group, a net leased investment brokerage firm in suburban Chicago, has just completed the sale of a single tenant net leased Advanced Auto Parts property located at 600 Baldwin St. in Jenison, MI for $1,415,000.
Advance Auto Parts occupies the entire 7,000-square-foot retail building. Developed in 2005, it sits on a 44,867-square-foot parcel on Baldwin St., a heavily trafficked roadway with 28,000 vehicles passing the site daily. Advance Auto Parts originally signed a 15-year lease. It has seven years remaining and a ten percent rental escalation in the primary term.
Randy Blankstein and Jimmy Goodman of Boulder represented the seller, a Midwest-based private individual, in the transaction. The buyer was an East Coast-based high net worth individual.
Advance Auto Parts is a publicly traded company with a market capitalization of $7 billion and over 3,900 locations nationwide.
“Properties leased to investment grade rated tenants with scheduled rental escalations like this will continue to be sought after as a hedge against inflation,” says Blankstein, president of Boulder. Goodman, a partner, adds, “properties that are valued below $2 million are receiving the most activity in the private buyer and 1031 exchange sectors.”
Furthermore, earlier this year, Boulder 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.
