NORTHBROOK, IL—A lack of new construction has fueled investor demand for the available net leased retail properties even if, as reported in GlobeSt.com, the outlet is still under construction, or outside the most desirable core markets. And The Boulder Group, a net leased investment brokerage firm based in suburban Chicago, has just completed the sale of another one, this time in Ottawa, Illinois, about 80 miles of southwest of Chicago, to an out-of state investor.
The single tenant net leased Kroger grocery store, located at 2701 Columbus Street, went for $2,712,000. The full identity of the buyer was not disclosed, but Boulder officials, who represented the seller, say it was a California-based limited liability company. Boulder represented the seller, an Illinois-based partnership.
“The market for net leased properties with shorter term leases remains active as investors are attracted to the higher yield these assets generate” says Randy Blankstein, president of Boulder. Jimmy Goodman, a partner at Boulder, adds, “single tenant grocery stores with proven sales are in high demand.”
The 44,038-square-foot property was built in 1982 and sits within the town's primary retail trade zone. The area also features a Wal-Mart Supercenter and a site that Menard's has targeted for a future location.
Kroger proved their commitment to the area by the recent execution of their second renewal option, the Boulder officials say. The grocer leases the store on a triple net basis with four years remaining. Kroger is a publicly traded company on the New York Stock Exchange with a market capitalization of $13 billion.
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