Net Leased Brunswick Zn. Sells in Naperville

NORTHBROOK, IL—The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has just completed the sale of a net leased Brunswick Zone XL located in Naperville, an affluent suburb, at 1515 W. Aurora Ave., for $3,866,500.

Brunswick Zone XL has operated at this location since 1997 and recently extended their lease through June 2018. The 80,425-square-foot building sits on a 6.9 acre parcel located about one mile from the Westfield Fox Valley regional mall. Macy's, JCPenney, Kohl's, and Sears anchor the mall. Other national retailers in the immediate area include Walmart Supercenter, Sam's Club, SuperTarget, Costco, Lowe's, and Home Depot.

Brunswick Zone XL offers its customers 40 lanes of bowling, 16 billiards tables, event rooms, a game zone arcade, laser tag, bumper cars, and a bar & grill.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a private partnership based in Maryland, in the transaction. The buyer was based in a 1031 Exchange.

“The market for net leased properties in Chicago and other major markets are transacting as these assets are in high demand among private investors,” says Blankstein, president of Boulder. Goodman, partner of Boulder, adds, “the market for single tenant properties with shorter term leases is active as investors are attracted to the high yield these properties generate.”

The cap rates for single-tenant net leased properties have been quite low this year, according to a recent report from Boulder. And although cap rates for some net leased properties, such as office and industrial, and to a lesser extent, retail, did increase somewhat, certain specific sectors seemed immune.

“Cap rates for net leased properties valued below $8 million have not experienced the same cap rate impact,” the firm noted. “Properties priced below $8 million are in the highest demand amongst individual investors. Individual investors are more likely to pay lower cap rates than an institutional investor as they do not have to meet the same return hurdles and frequently utilize 1031 Exchanges.”