Oliver says the sale at a capitalization rate in the mid-8% range is a sign of "continuing strength of the net lease investment sales market." Although the lease with Menomonee Falls, WI-based Kohl's runs through January 2021, the rental stream from the retailer with an A- credit rating with Standard & Poor's is flat for the initial term, he adds.
"We are pleased to have closed yet another single-tenant, net-leased transaction at a very aggressive cap rate, especially in light of the flat rental stream for the initial lease term," Oliver says.
The New York-based investment broker was off only on market time. However, his prediction of a November closing came when his firm took the assignment about a week before Sept. 11.
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