COLUMBUS, OH—A team from Colliers International has just helped a private owner sell a 125,357-square-foot Lowe's located at 2888 Brice Rd. in Columbus, OH, another example of the extraordinary demand among investors for single-tenant net-lease product. The buyer, Store Capital Acquisitions, LLC, a Scottsdale, AZ-based REIT, paid $6,400,000 at an 8.46% capitalization rate.

“A long-term lease would have brought the cap rate down considerably,” Peter L. Block, executive vice president with Colliers' Chicago-based investment services group, tells GlobeSt.com. This lease, however, runs until December 31, 2019, or roughly five years. Still, the property attracted many potential buyers and sold for more than the asking price.

“I don't want to minimize the importance of geography; prices and cap rates can be influenced by location,” Block adds, but it was largely the presence of a Lowe's which sparked interest from investors in the property. Investment grade tenants like that or other well-known corporations such as Walgreens or McDonald's typically drive demand. “What you're selling is an income stream,” and sophisticated buyers like Store Capital know companies like Lowe's will provide it.