CHICAGO—Lee & Associates has just negotiated the $12.7 million sale and purchase of the Kohl's store located at 230 E. Rollins in suburban Round Lake Beach. Al Apuzzo from the broker-owned commercial real estate firm's North San Diego office, represented the buyer, Nipoti, LLC.
According to Apuzzo, Nipoti purchased the property as part of a 1031 exchange and plans to hold the 87,000 square-foot property indefinitely. With more than 10 years left on their lease, Kohl's will remain as the property's sole tenant.
Ryan Barr and Ryan Bennett, principals of Lee & Associates – North San Diego County and founders of Barr & Bennett Net Leased Investment Group, represented the seller, Cadillac-Sand Realty LLC.
“The seller sold the property to capitalize on its long-term absolute triple-net lease and the current competitive net-leased market,” said Barr.
As reported in GlobeSt.com, cap rates for single tenant net lease properties have fallen steadily for several years, regularly hitting new historic lows each quarter as more investors put in bids. In the most recent quarters, however, cap rates for retail properties held steady, according to research reports by the Boulder Group, a commercial real estate firm located in suburban Chicago. In the fourth quarter, for example, Boulder found that retail rates were 6.5%, the same as the third but still a historic low.
“This was an aggressive cap rate for a fee simple Kohl's transaction today,” Bennett added.
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