SAN JOSE-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that Jereme Snyder and Eric Carlton of Colliers International has completed the sale of a single-tenant retail property NNN fee simple ground lease for $12 million. The seller is Phoenix-based Cole Capital. The buyer, HDSJ LLC, is a private investor based out of New York City.
The property, located at 635 W. Capitol Expressway in San Jose, “set a new national sales record for the big-box retailer-occupied property with an aggressively low closing cap rate of 4.68%,” according to Colliers. The NNN retail property market is forecasted to remain highly competitive in 2013, explains Snyder.
“We believe there may be room for further CAP rate compression for premier net lease assets,” he says. “Despite lower CAP rates, NNN assets occupied by strong credit-worthy tenants offer a comfortable premium over the five and 10 year Treasuries as well as other investment-grade investments.”
The 11.43-acre property has a corporate backed 25-year ground lease with Home Depot (22 years remaining) and 10% rental increases every five years, the property was held under exclusive bid invitation only, according to a prepared statement.
“There is robust demand for investment grade, single-tenant retail investments nationwide,” adds Snyder. “Factors such as scarcity of low-risk, well-located real estate, attractive low-cost financing sources and attractive returns are driving this demand.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
