NNN Lease Market: NNN CVS Pharmacy in Washington, DC Trades for $14....

NNN Lease Market: NNN CVS Pharmacy in Washington, DC Trades for $14....: NNN Lease Market News Calkain NNN Investment Advisors recently completed the sale of a NNN investment property in Washington, DC. The ...

NNN CVS Pharmacy Trades for $14.5 million

NNN Lease Market News

Calkain NNN Investment Advisors recently completed the sale of a NNN investment property in Washington, DC. The purchaser, a private 1031 investor, seeking a stable, credit rated, income-producing asset. The sale, closing at over $1,154 per square foot, broke the record previously set by Calkain for a NNN investment sale.

Rick Fernandez, Managing Director of Calkain Urban retail  Investment Advisors, represented the seller in the transaction and Calkain Managing Director, Jerry Burg, represented the buyer on the purchase of the CVS on Columbia Road in Adams Morgan. “The Adams Morgan CVS is well situated in a grocery anchored, dense, high traffic, urban location within a diverse residential and retail community,” explained Fernandez. “The investor understood that this CVS not only provided a stable income stream backed by a strong credit rated corporate tenant, but also a highly adaptable asset with rock solid generational value,” continued Burg.

The seller reviewed multiple offers from across the country before closing with a private investor who was working with Burg to identify $35MM in NNN investment properties for a 1031 exchange. The transactions closed in the past thirty days.

Calkain Companies is a boutique commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net leased transactions. While licensed to conduct business in many states, nationally, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast and Northeast United States. Additional information about the firm and listings may be found at www.calkain.com.

NNN Lease Markets Slowly Improving

NNN Lease Market News

Office, Retail and Industrial Markets Slowly Improving

The commercial real estate market continues to slowly improve, lifting itself out of a slump that hit in 2010.

The overall market has stumbled along the way, but all in all, the industry is heading in the right direction, area brokers say. 

"We're starting to see projects on the radar for the first time in a long time," said Lee Warfield, president of Cushman & Wakefield | Thalhimer, a commercial real estate firm based in Henrico County.

Anchor tenants, for example, are being sought for Fairfield Commons Mall, which could be razed and rebuilt, off Nine Mile Road in eastern Henrico. "This is a healthy sign," Warfield said.

And the long bulldozed Azalea Mall in North Richmond is back on the books for a project, possibly a grocery store, he said. 

"The best indicator of a healthy or improving market is when existing companies take additional space or new companies move into the market," Thalhimer's Magrill said.

New companies from outside the market haven't moved here yet. But Allianz and SunTrust Banks Inc. taking more space speak to an improving market, he said.

The retail market continues to improve, despite large retailers such as Best Buy, Kmart, Gander Mountain, Dillard's and Food Lion closing some of their area locations this year.

Unlike the office sector, which suffered in 2009 and 2010, the retail sector never saw a big spike in vacancies, Magrill said.

Specialty grocer The Fresh Market and pet-supply retailer Petco are scheduled to open stores this year in Carytown Place, a development in the former Verizon building at Nansemond Street and Ellwood Avenue.

Food Lion closed two area stores this year, but the one in the Gleneagles Shopping Center off Ridgefield Parkway in western Henrico reopened as the second location of Libbie Market. At 32,000 square feet, the new Libbie Market Ridgefield is about three times as large as the original market on Libbie Avenue between Grove and Patterson avenues.

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(NNN) Net Lease firm Brokered the Sale of Investment Retail Property in Columbia, MD

NNN Lease Market

Calkain Companies, a national net lease real estate brokerage firm, recently brokered the sale of a newly developed, multi-tenant investment retail property in Columbia, MD. The Shoppes at Dobbin Center, a 4,722 square foot three tenant building, was developed by a local group and leased to Starbucks, Radio Shack, and Spa #1 Nails. All of the tenants signed long-term triple net leases with structured rent increases and renewal options. The purchasers were a private group interested in diversifying investments into stable, income-producing real estate.

Calkain’s Andrew Fallon, Assistant Vice President, exclusively represented the seller, and provided marketing and transaction support services throughout the sales process. After working with the seller over the course of the development process, the property was introduced to the marketplace in 1Q 2012. Fallon explains the circumstances, “The property was under LOI and moving to contract the day it was introduced to the marketplace.” Fallon continued, “The seller was able to take advantage of the heated market and compressed cap rate environment given the combination of low interest rates, investor flight to quality, and the laws of supply and demand.” The buyer was a Washington, DC based investor seeking a passive, income-producing property as a family investment.

The characteristics of the property and net lease terms were extremely appealing to the purchasers and other prospective buyers. Calkain received multiple offers for the property, which is extremely well located in the Columbia, MD sub-market. The Shoppes at Dobbin Center was a redevelopment of a dense in-fill parcel in front of a Wal-Mart and adjacent to other national retailers including Chick-fil-a, McDonald’s, and Wendy’s. Further, the net lease structure associated with these corporate leases requires that the tenant pay for real estate taxes, insurance, and maintenance expenses – which effectively provides the landlord with a passive, bond-like income stream through commercial real estate ownership.

Calkain Companies is a boutique commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net leased transactions. While licensed to conduct business in many states, nationally, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast and Northeast United States. Additional information about the firm and listings may be found at www.calkain.com.