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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.

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