WASHINGTON, DC—KLNB Retail has launched a Single Tenant Net Lease Group, which will be managed by industry veterans Peter Snell, who has been named director, and Rich Sillery, who will be an investment associate. The group, which is national in scope, is launching with an approximate $100-million pipeline, Snell tells GlobeSt.com.
The group is handling a wide array of assets from drugstores to fast food restaurants to bank pads to gas stations to the ubiquitous Starbucks, Snell says. In fact, the group is closing a Starbucks deal on Wednesday in Oklahoma.
“Pricing is unreal now. This has always been a high-demand product because it is such a hands-free part of the real estate business you can’t get anywhere else,” Snell says. For this reason REITs have been snapping up net lease assets with particular urgency. The lack of development and available supply is what is sending pricing through the roof, he adds.
Where pricing reaches stratospheric levels, Snell continues, is the urban infill properties, such as the Starbucks at Dupont Circle in Washington, DC, which recently traded for $1,672 per square foot, or $16.2 million, in a deal brokered by Calkain.
Snell says the group plans to hire a third broker in the coming months.
Snell has formerly worked in the investment sales unit of Marcus & Millichap, and also founded a single tenant net lease team while working with The Greysteel Co. Sillery also worked at Marcus & Millichap and Greysteel.