Popular even outside core areas

SPRINGFIELD, IL—Single-tenant net-leased properties have recently been popular with private investors looking for safe places to park their money. Cap rates have sunk to historic lows, and investors have begun looking outside core areas.

For example, the Boulder Group, a net-leased investment brokerage firm in suburban Chicago, has just completed the sale of a single-tenant McDonald’s ground lease at 3151 S. Dirksen Pkwy. in Springfield, IL, for $766,080.

The building was developed in 1975 and McDonald’s occupies the entire property, which includes a 37,409-square-foot parcel along S. Dirksen and sits in close proximity to Interstate 55 and the signalized intersection of Dirksen and Stevenson Dr., which has a combined traffic count in excess of 32,000 vehicles per day. McDonald’s has over four years of lease term remaining.

Randy Blankstein and Jimmy Goodman of the Boulder Group represented both parties in the transaction. The seller was a private trust based in the Midwest and the buyer was an investor based in Philadelphia.

“The market for McDonalds’s ground leased properties remains active as these assets are in high demand among private investors,” says Blankstein, president of Boulder. Goodman, a partner with Boulder, adds that since “there is a limited amount of long-term core assets on the market, some net-lease investors are seeking assets like quick service restaurants with shorter-term leases.”