ATLANTA—Sure, many investors would prefer a net leased Walgreens, CVS or another major brand. But those deals are hard to come by, driving more investors to look for value-driven deals in smaller markets.
That’s the case in Rome, GA, where a single-tenant triple net leased Kangaroo Express property just traded hands. Located at 4818 Alabama Highway in Rome, the net leased retail asset seems to be a steal at $985,429.
Randy Blankstein and Jimmy Goodman of Boulder Group represented the seller in the transaction. The seller was a high net worth individual from the West Coast. The buyer was a California investor in a 1031 exchange.
“As there is a limited amount of long term core assets on the market, some net lease investors are seeking assets with shorter term leases or assets in secondary markets,” says Randy Blankstein, president of Boulder. Kangaroo Express is the sole occupant of the 2,450-square-foot retail building that was developed in 2003.
The net leased retail property is located along Alabama Highway, a main east-west thoroughfare in the area. Rome is the largest city and the county seat of Floyd County and the Rome MSA is the largest in Northwest Georgia. Jimmy Goodman, a partner at Boulder, says, “Properties that are valued below $2 million are receiving the most activity in the private buyer and 1031 exchange sectors.”
Kangaroo Express has over nine years remaining on the original 20-year triple net lease that expires on October 31, 2023. Kangaroo Express is the primary operating banner of The Pantry, operating over 1,500 stores in 13 states throughout the Southeast. The Pantry is a publicly traded company on the NASDAQ with a market capitalization in excess of $350 million.