The number of for-sale properties are understandable--thecreditmarket has forced more owners to put their properties on themarket,either because they were unable to get refinancing or are inadistressed situation.


A shift in prices, as well as cap rates that have dropped byabout 30to 50 basis points depending on whether it is a single ormultitenant, is responsible for the change in demand, Snell The change has been dramatic in some submarkets, hesays. "We had several Walgreens inside DC and in Alexandria, VAthat had been sitting on the market for about a year." Theserecently sold, he adds.


Kirk Knight and Snell recently listed a McDonald's ground leaseinRockville, MD for $2.3 million--a rarity as McDonald's usuallybuys up the few net leased properties it doesn't already own, Snellsays. Encompassing 3,657 square feet, the fast food outlet wasdeveloped in1998. Snell says he expects several full priced offersfrom both 1031Exchange and cash buyers.

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