Net Lease Investments for 1031 Exchange Client

Net Lease Market News Acquisition of Two Net Lease Investments for 1031 Exchange Client Calkain Companies, a national net lease real estate brokerage firm, recently brokered the sale of two triple net lease investment properties as part of a 15-month 1031 exchange assignment. The acquired net lease properties include a Wawa ground lease located in North Wildwood, NJ, and an Applebee’s restaurant located in Merritt Island, FL. Both assets were purchased in the fourth quarter of 2012, and totaled nearly $8MM in value. Calkain’s Andrew Fallon, Assistant Vice President, exclusively represented the purchaser, who sold their family-owned car dealership property on August 30, 2012. The family dealership site, located in the Washington, DC suburbs, was sold to a developer whose future plans include a 6-story residential building with structure parking. Back in 2009, Calkain first met with the family to advise on the possibility of a tax-deferred 1031 exchange strategy, which would satisfy the objectives of multiple family members and provide stable income through passive ownership of net lease investments. In 2011, Calkain was engaged to administer a full range of services to ensure a successful reinvestment of the sale proceeds. During the 15-month assignment, Calkain’s Fallon identified net lease investment opportunities, provided in-depth acquisition analysis and underwriting, and provided transaction support services throughout the different phases of the acquisition process. Utilizing the Calkain platform, Fallon ultimately facilitated a successful 1031 exchange totaling nearly $8MM. The family elected to purchase two long-term net leased properties for the stable income produced by the passive investment properties. The Wawa in North Wildwood, NJ was acquired in October. Per the absolute triple net terms of the ground lease, Wawa is obligated to build a brand new store in early 2013, and commence rent for a term of 20-years with structured rental increases. In November, the family closed on their second acquisition, completing their 1031 exchange strategy. The second asset, an Applebee’s restaurant, is uniquely located on the inter-coastal waterways in Merritt Island, FL. Like the Wawa, the Applebee’s property is subject to a 20-year absolute net lease with structured rental increases. The combined Wawa and Applebee’s rental income will provide nearly $500,000 of annual income. These transactions occurred within the last sixty days and will be recorded in the public records. WWW.CALKAIN.COM

Cole Real Estate Investments Crosses Milestone of $10 Billion Total Assets Under Management

Cole Real Estate Investments (Cole) announced its commercial real estate portfolio has surpassed the $10 billion mark in total assets under management, further establishing the company as a national leader in retail, office and industrial real estate investments. With nearly 350 employees across the country, Cole continues its mission to provide access to high-quality commercial real estate.

Drugstore Investments Low Risk Assets with a Steady Income Stream

By Elaine Misonzhnik, Retail Traffic Associate Editor
Net lease investors can’t seem to get enough of the drugstore sector with sales today being driven by a desire among both lenders and buyers for low risk assets with a steady income stream.

According to a report on the second-half outlook for net lease properties from Marcus & Millichap Real Estate Investment Services, drugstore sales were up 10 percent, supporting a 3 percent rise in the median price for the sector to $334 per square foot. Yields have fallen to the high-6 percent to mid-7 percent range.


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