X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

NORTHBROOK, IL-Boulder Net Lease Funds, LLC is betting $6.2 million that an improving Kansas City area office market will make a short-term lease less of a risk. The recently-formed investment group bought a 105,000-sf building on 15.4 acres in Lenexa, KS, net-leased to Sprint.

While Boulder Net Lease Funds faces a rollover of its lease, the rent paid by the building’s lone tenant is below market, according to the buyers. “While most net leased investors stayed away from this transaction due to the risk of a short-term lease, we analyzed and decided to move forward on this transaction as we concluded that this was a well located facility in an improving Kansas City office market,” says Boulder Net Lease Funds principal Jeff Rothbart.

Boulder Net Lease Funds raised $100 million for its first investment pool, and hopes to have the money deployed by the end of the year. It is in the market for single-tenant net-leased office and industrial properties generating capitalization rates of 8.5% or better.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.