NEWPORT NEWS, VA-A local investment group here has acquired a 16,510-square foot showroom leased to La-Z-Boy Furniture Galleries. The $3.3 million transaction, was brokered by Calkain Cos., which is headed by Jonathan Hipp. It is indicative of a larger trend, Calkain's Andrew Fallon tells GlobeSt.com. “We are seeing a lot of private buyers start to target single-tenant net lease properties, not only here but throughout the Mid-Atlantic,” Fallon says. “Everyone has been talking about money sitting on sidelines. In single tenant net lease space we are seeing money flood into market especially as economic conditions continue to fluctuate.” Fallon and colleague Bob Browning handled the transaction.

The purchaser of the La-Z-Boy-leased building was motivated by the passive income stream produced by the asset. The store is located at 11968 Jefferson Ave., on a 1.52-acre plot of land. La-Z-Boy, a long-term tenant, recently renewed its lease and made improvements to the building and showroom area.

Fallon reports similar deals under contract in the Richmond area of Virginia: “Another popular tenant is the Dollar Store. Right now I have three such deals under contract in the Greater Richmond area, all by private buyers looking for yield.”