NNN Dollar General Sold

NNN Lease Market News

Dollar General Net Lease Sells for $1.23MM in Petersburg, VA

Calkain Companies recently sold a Dollar General (NYSE: DG) NNN net lease investment property located in Petersburg, VA. The transaction closed within the past 30 days and illustrated the compressing cap rates within the net lease segment of the market. The buyer was a privately held, fully integrated real estate investment company. The seller was a regional real estate developer. As a preferred developer for Dollar General, the same seller has engaged Calkain to sell another store in Halifax, VA. These Dollar General properties have been developed as part of Dollar General’s build-to-suit program. The stores have brand new 15-year NNN net leases, which provide passive income for the new owner.

Calkain’s Andrew Fallon, Assistant Vice President, facilitated the transaction by providing exclusive representation to the seller. More sales of Dollar General stores have been transacting since S&Praised the company’s credit rating to investment grade BBB- in April 2012. The Petersburg store was highly sought after given its proximity and access to the I-95 corridor, the surrounding demographics, and the favorable lease structure. Fallon commented, “As Dollar General continues to roll out new stores in new markets, the investor demand continues to increase for superior market locations.” The combination of tenant credit and triple net lease terms provide a passive, bond-like fixed income investment, “The leases with Dollar General’s guaranty provide a strong income stream for the buyer, who will have limited to no management responsibilities.” The buyer financed the purchase using a regional bank.

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, Northeast and a new office opening in the Midwest. 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.

http://www2.timesdispatch.com

Long-Term Leases is a Healthy Trend in The Retail Sector Market

NNN Lease Market News

Brokers Say Commercial Retail Market Stabilizing In Aspen...

The downtown commercial core is nearly full, with a vacancy rate reaching pre-recession percentages.
About 30 retail leases have commenced in the past year, which is more than the usual handful that occur annually, said commercial real estate broker Karen Setterfield.
The market is very, very tight right now,” he said. “There are very few spaces available. A year ago you had your selection to pick from and there were deals to be made. There are no more deals.”
Commercial brokers also agreed that rent prices have stabilized and as a result, the pop-up retail stores that once were popular in the local market are no longer a viable option for prospective renters. Pop-up retail is a trend of opening short-term stores, which are known for their spontaneity .The pop-up concept is something that thrived in Aspen over the past couple of years in response to the Great Recession when landlords were willing to tolerate short-term, discounted leases in order to keep their buildings full, said Kruger. But now that the market is stabilizing and there are fewer options for prospective renters, landlords no longer need to rely upon them, she said.

The shift toward long-term leases is a healthy trend in the retail sector, Kruger said, noting that pop-up businesses are a short-term solution but not necessarily good for the marketplace in the long run.


http://www.aspendailynews.com/

Time to Buy (NNN) Net Leased Properties

NNN Lease Market

Now is the Time to Buy (NNN) Net  Leased Properties

As our nation suffers from “deficit disorder” making financial decisions has not been this difficult since the 1980’s. With doom and gloom on the news each night and the word “crisis” in every paragraph, and the capital markets in a state of collapse most investors have frozen their decision making. The availability of high quality assets has rarely been better.

Active lenders are funding selectively and mostly with long term relationships into only the best investments. They look to value of the asset, the ability to pay the loan back and the ability to weather any storm that may come up. We are gripped in a recession a recession and there is no recovery predicted in the near term. Many investors are sitting in strong cash positions and looking for the bottom. It very well be that we would not recognize the bottom even if someone pointed it out. For the long-term investor, they are in the market at all points, up and down. The market is now serving up many great opportunities to buy quality properties at attractive pricing.
Inventory is increasing and there are many products to choose from. All tenant types, credits, lease terms, and types of construction to look at. We look for this trend to continue for the balance of 2010 and most of 2011.
 Despite the economic downturn and the fact that many aspects of the commercial real estate industry still need time to season before true recovery takes place, some niche segments of the market are actually performing extremely well. In fact, some are at the same level they reached at the height of the market.
Financing is the number one issue today. For the owners of smaller properties, options in these difficult times are greater especially since capital is still available for these deals. However, for the larger property owners where potential buyers likely require financing, their choices are much more limited.