(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.

Wal-Mart Stores are rare Investments on The Net Lease Market

Wal-Mart discount department stores vary in size from 51,000 square feet to 224,000 square feet, with an average store covering about 102,000 square feet. Wal-Mart Supercenters stock everything a Wal-Mart discount store does, and includes a full-service supermarket. Wal-Mart Supercenters vary in size from 98,000 to 261,000 square feet, with an average of about 197,000 square feet. Wal-Mart has displayed exceptional growth over the past decade and its AA S&P investment grade credit rating carries strong appeal for real estate investors.
Wal-Mart stores are rare investments on the net lease market with the transaction size, acreage and square footage of the investment (much larger on all counts than the typical netlease property) appealing to a more select group of investors. Big annual rents and relatively low selling cap rates means the typical net lease Wal-Mart transaction is over $10mm. The selling cap rate is often in the low 6's to high 7's depending on lease structure and remaining term.

http://www.calkain.com/