The property, Union Pines, is a two-story building at 4799 South Garnett Rd. that was completed in 2000. It is 100% leased by U.S. Cellular Corp. and Allstate Insurance, both of which are S&P A- rated companies. Triple Net Analyst Ross Parkin tells GlobeSt.com that U.S. Cellular has leased 90% of the building through 2008 and Allstate has leased 10% of the building through 2005. Additionally, Parkin says U.S. Cellular has one five-year renewal option and the right of first offer for Allstate's space. Assuming 100% occupancy, the capitalization rate on the investment is 12%, says Parkin.
PNC Bank subsidiary PNC Real Estate Finance provided the acquisition loan, which was sourced by Joe Byers and Richard West of Triple Net Realty. The seller was Kennedy Associates Real Estate Council, Inc. on behalf of Stanford University's Endowment Fund. Kennedy Associates was represented by Andrew Levy of Holliday Fenoglio Fowler LP.
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