CHICAGO—Single-tenant net-leased assets have been quite popular among investors this year. And few asset types have been as attractive as banks. Quantum Real Estate Advisors, Inc., for example, has just brokered the sale of a 3,800-square-foot Fifth Third Bank at 154 S. Western Ave. in suburban Carpentersville. The property sold to a cash buyer from Southern California. The price was not disclosed, but Quantum officials did say that it had about 13 years remaining on an initial 20-year ground lease.
According to a study released last year by The Boulder Group, a commercial real estate services firm located in suburban Chicago, cap rates for single-tenant bank ground leases had compressed by 85 bps over the previous year to 5.0%, the lowest level since 2004.
“This sale represents the continued demand for core single-tenant net-leased assets, says Senior Vice President Daniel Waszak of the Chicago-based Quantum. “Within a very short time of marketing we were able to identify an all cash buyer at 99% of list price. In addition, we were able to procure multiple backup offers some of which were above our initial asking price.”
Waszak and Executive Vice President Jordan Kaufman, represented the seller, a Chicago-based investor.
“Through the sale of the Fifth Third and the pending sale of the other outlot to the shopping center we are one step closer to carrying out the overall strategy that was implemented for the client,” Kaufman adds.