(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.

Triple Net (NNN) Leased Starbucks

NNN Lease Market News

Calkain Companies’, a national real estate investment brokerage firm, recently completed the sale of a 33,800 SF investment property ground leased to Starbucks on a long-term, NNN basis. The purchaser was a private investor seeking a passive, incoming-producing asset leased to a national tenant. The property is located at Edens & Avant’s Riverton Commons Super Wal-Mart and Lowes anchored center in Front Royal, Virginia. Other Ground lease parcels are also available for sale.

Calkain’s Rick Fernandez and Rich Murphy brokered the transaction on both the sell and buy side respectively. Calkain worked with the buyer to develop criteria for acquiring a portfolio of properties that would fit the client’s investment strategy. “Knowing the buyer’s criteria, it was a matter of finding an attractive property at the right price point,” says Murphy. “This property just happened to be a Calkain listing,” adds Murphy.  “This Starbucks deal represents the type of stable asset that investors are focused on purchasing in the current environment.” Fernandez said.  

Single Tenant NNN properties are typically free standing buildings that are leased to a single business tenant for a long term, often 10-25 years. Triple Net (NNN) originally meant net of taxes, net of insurance, and net of maintenance. According to the terms of an absolute NNN, the tenant is responsible for all property operating expenses, including insurance, taxes and internal and external maintenance.

NNN properties offer the benefit of little or no management responsibilities, as the tenant pays for most, if not all, of the expenses depending on the terms of the lease. The investor receives the rent with little to no other involvement. With an absolute triple net lease, the tenant is responsible for all expenses, making this a true passive investment for the owner.

Starbucks is the premier roaster and retailer of specialty coffee in the world, operating in more than 50 countries. Starbucks Corporation was formed in 1985 and its common stock trades on the NASDAQ Global Select Market (“NASDAQ”) under the symbol “SBUX.”

The transaction closed within the last thirty days and is recorded in the public record.

Calkain is a full service real estate brokerage firm with a national scope focusing on single and multi-tenant retail, industrial, hotel and office net-leased transactions.  Calkain has offices in Reston, VA (Washington, DC), Florida, Maryland and Delaware.  Additional information about the firm and its listings may be found at http://www.calkain.com/