Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a single-tenant retail property leased to Dollar Tree. The 14,265-square-foot building is located at 2585 Lineville Road in Howard, Wisconsin. Ronnie Givargis of Stan Johnson Company represented the seller, a New York-based private equity group. The asset was purchased by a private 1031 exchange investor based in Boca Raton, Florida. The property sold for $2.8 million reflecting a 5.10 percent cap rate. “This was a record-breaking cap rate for Dollar Tree in Wisconsin,” said Givargis, Senior Director in Stan Johnson Company’s Newport Beach, California office. “Dollar Tree was in a neighboring shopping center half a mile from this site for many years and outgrew the space. This was a relocation deal to a freestanding building in a proven market.” The property was originally built in 2004 and was renovated in 2021. It is situated on 1.4 acres at a signalized intersection just 15 minutes northwest of downtown Green Bay, Wisconsin. Neighboring tenants include Sherwin-Williams, Auto Zone, Goodwill, Piggly Wiggly and Anytime Fitness, among others.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a 60,000-square-foot industrial distribution facility. Located at 13 Chocksett Road in Sterling, Massachusetts, the property is fully leased to Utz Quality Foods. In addition to the Utz brand, the company is also known for Zapp’s, Golden Flake and TGI Fridays Snacks, among other potato chip and snack foods. Stan Johnson Company’s Erik Lundberg represented the seller, an individual investor based in Leominster, Massachusetts. The buyer was NB Partners III LP, a Wakefield, Massachusetts-based institutional investor. The asset traded for $4.2 million. “We were able to achieve full asking price on an off-market basis for this property that features a short-term lease in place with Utz Quality Foods,” said Lundberg, Associate Director in Stan Johnson Company’s Tulsa, Oklahoma headquarters. The two-story, Class B industrial property was built in 2006 and is situated on 4.8 acres just minutes from Interstate 190. Sterling, Massachusetts is located just 20 minutes north of Worcester and approximately 40 miles west of the Boston metro area.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a net lease bank branch located at 5938 FM 2920 in Spring, Texas. Mark Lovering of Stan Johnson Company exclusively represented the Texas-based private seller. The buyer, a Milwaukee, Wisconsin-based investor, was represented by Stan Johnson Company’s Matt Lipson and Mike Philbin. The asset traded at a 6.00 percent cap rate, although the price was not disclosed. “This is a trophy site for Bank of America, which has operated at this location since 2003 and benefited from strong annual deposit growth,” said Lovering, Associate Director in Stan Johnson Company’s Chicago, Illinois office. “Despite several significant delays caused by COVID-19, we successfully navigated the deal across the finish line with the buyer’s 1031 timeline.” The property was built in 2003 and is situated on 1.7 acres in a northern suburb of Houston, Texas. The site features a drive-thru, has outstanding visibility and is strategically located as an outparcel to a Walmart-anchored shopping center. “This was a great acquisition for our buyer who needed to satisfy a 1031 exchange. He loved the location and the credit behind the lease,” added Lipson, Associate Director in Stan Johnson Company’s Portland, Oregon office.

Excerpt of article originally published by GlobeSt.com Overall, the retail market is in a very healthy space as essential retailers have been thriving. So says Mike Sladich, Regional Director and Partner of Stan Johnson. GlobeSt.com spoke with Sladich among a few other retail experts about all things retail in preparation for the upcoming RECon convention. The event will be hosted this year by ICSC on December 5-7 in Las Vegas. According to Sladich, tenants who are susceptible to e-commerce, have effectively experienced the worst-case scenario for brick-and-mortar sales. But he says, “these non-essential retailers can now better model their businesses moving forward and optimize their spaces as consumers return to stores.” Additionally, he says, “as we review financials and sales data for sale-leaseback candidates in the retail sectors perceived to be hit hardest, like casual dining restaurants, family entertainment centers and fitness centers, we’re seeing that their business in recent months has surpassed pre-COVID-19 levels.” According to Sladich, the pent-up consumer demand for these experiential retail tenants has been substantial and may be even more important moving forward as the population desires a return to routines.  

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of two freestanding Arby’s quick service restaurants for a 1031 exchange client. Brian Lane and Emery Shane of Stan Johnson Company represented the Oregon-based seller, The Garfinkel Trust, in the disposition of one location at 1019 Nashville Pike in Gallatin, Tennessee. They then acquired a second restaurant located at 470 Cummings Street in Abingdon, Virginia in a 1031 exchange. The buyer of the Tennessee property was an individual investor based in Lebanon, Tennessee. The seller of the Virginia location was a Bristol, Tennessee-based franchisee. “We were able to help a long-time client complete a 1031 exchange that will secure their continued retirement for the next 20 years,” said Shane, Senior Director in Stan Johnson Company’s Alpharetta, Georgia office. “We were able to negotiate a closing extension on the Tennessee property and successfully close on the Virginia property just days later, ensuring we minimized the investor’s loss of income,” added Lane, Associate Director in Stan Johnson Company’s Alpharetta, Georgia office. “They traded out of the Gallatin property that only had just over five years remaining on the lease and acquired the Abingdon location that featured a brand new 20-year lease.” The Tennessee asset sold for $3.2 million reflecting a 6.67 percent cap rate with five years remaining on the lease. The Virginia property was purchased for approximately $3.1 million at a 5.35 percent cap rate for a new 20-year lease.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a single-tenant retail property located at 10225 South Highway 6 in Sugar Land, Texas. The 14,380-square-foot property is fully leased to Pep Boys Auto. Stan Johnson Company’s Mark Lovering exclusively represented the seller, an individual investor from The Woodlands, Texas. The asset was purchased by a private equity fund based in Irving, Texas as a part of their 1031 exchange. The property sold for approximately $4.9 million reflecting a 6.60 percent cap rate. “Pep Boys discontinued its retail lines at all locations, including this site, in first quarter 2021, as the company plans to shift out of retail to concentrate on repairs and tire sales – things that can’t be sold easily by online competitors,” said Lovering, Associate Director in Stan Johnson Company’s Chicago, Illinois office. “This corporate strategy is one we expect to see other automotive service tenants with a larger retail line implement. Although Pep Boys no longer uses about 30 percent of the building, we were able to secure an aggressive cap rate for our client, and the outcome was successful for both sides.” The property was built in 2013 on 1.5 acres with superb visibility on Highway 6 which sees nearly 50,000 vehicles per day. Area tenants include Home Depot, CVS Pharmacy, ALDI and Whataburger, among many others. The property is located just 17 miles southwest of downtown Houston.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of 3440 Evergreen Avenue in Jacksonville, Florida. The 115,500-square-foot industrial property is fully leased to KME America Marine Tube & Fitting. The asset consists of two buildings which were originally constructed in 1945 but have seen substantial renovations and additions in recent years. Stan Johnson Company’s Jimmy Ullrich and Michael J. Macchia represented the seller, a local private investor. An individual investor based in Los Angeles, California, Mr. Sunday Xu, acquired the asset for approximately $5.3 million reflecting a 7.72 percent cap rate. “This sale was more than a sale – it was the culmination of a multi-generational family ownership of the property, first as the owner-user, and later as the owner-investor,” said Ullrich, Director in Stan Johnson Company’s New York office. “In an interesting turn of events, the winning bidder was a California investor who is an owner-user turned national real estate investor, so Mr. Xu was able to understand and work through some of the nuances of a 70-year-old family-owned property.” Situated on nearly 5.0 acres, the property is located in a dynamic industrial submarket of Jacksonville that boasts an extremely low vacancy rate of only 2.6 percent. The site serves as one of eight global manufacturing and distribution facilities for the tenant which fabricates copper alloy pipes for the shipping and offshore industries. The company contracts with the U.S. Navy to provide supplies and parts for nuclear submarines and aircraft carriers. KME operates on a long-term triple net lease. “Selling KME was a pleasure,” Ullrich added. “The property offered a great combination of lease term, market and property type. Therefore, we experienced a feeding frenzy of buyer activity. We received more than a dozen bids and six of them were at full asking price.”

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a 5,000-square-foot industrial facility located at 905 Ellis Road in Durham, North Carolina. The property is fully leased to WillScot, a leading provider of temporary space and storage including mobile offices, portable storage units and portable classrooms. The 1031 exchange seller, a developer based in Raleigh, North Carolina, sold the property for approximately $2.8 million reflecting a 7.06 percent cap rate. Michael J. Macchia and Jimmy Ullrich of Stan Johnson Company represented the buyer, a Brooklyn, New York-based private investor. “The buyer was attracted to the rapidly growing demand for industrial outdoor storage, which has commanded premium pricing given it’s in short supply,” said Macchia, Associate Director in Stan Johnson Company’s New York office. “The Raleigh-Durham region has expedited this growth as many have migrated to the area for excellent jobs, universities and affordability, especially post-COVID.” The property was constructed in 2003 on 11.9 acres. The site, located in southeast Durham, provides convenient access to both Raleigh and Greensboro, North Carolina along Interstates 40 and 85. WillScot, headquartered in Phoenix, Arizona, has more than 275 locations across the U.S., Canada, Mexico and United Kingdom. They serve businesses in the construction, education, healthcare, government, retail and commercial sectors, among others.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a Walgreens net lease investment property located at 4210 North Roan Street in Johnson City, Tennessee. The 14,744-square-foot property was built in 2008 and features a drive-thru. Jimmy Ullrich and Michael J. Macchia of Stan Johnson Company represented the 1031 exchange buyer from Coral Gables, Florida. The seller was a private investor based in Bristol, Tennessee. The property traded for nearly $6.0 million reflecting a 5.72 percent cap rate.  “Johnson City is one of the once overlooked towns that is now booming post-pandemic,” said Ullrich, Director in Stan Johnson Company’s New York office. “Johnson City offers a low cost of living and doing business, a central location, access to mountains and amenities, and an active downtown. The buyer was excited to get this strong Walgreens cap rate in a growing, dynamic market.” Situated at the intersection of North Roan Street and Carroll Creek Road, the site offers excellent access from both of the area’s main thoroughfares. The tenant operates on a long-term triple net lease with a corporate guarantee. Neighboring tenants include CVS Pharmacy, Dollar General, Ingles and Food City.

Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a 4,170-square-foot medical office building located at 104 Market Path in Georgetown, Kentucky. The property is fully leased to BlueSprig Pediatrics, which recently merged with Florida Autism Center and Fusion Autism Center to become the leading provider of applied behavior analysis therapy services in the southern U.S. for children diagnosed with autism spectrum disorder. Stan Johnson Company’s Ryan Roedersheimer represented the locally based seller. A private buyer from Kentucky acquired the asset for nearly $1.1 million. “This was a challenging transaction as BlueSprig isn’t yet a well-known brand, and they only signed a five-year lease,” said Roedersheimer, Associate Director in Stan Johnson Company’s Cincinnati, Ohio office. “However, we were able to generate multiple offers just below list price and demonstrate the strength of the location and business model of the tenant.” The property was built in 2000 on 0.76 acres in a northern suburb of Lexington, Kentucky. The site is strategically located near Georgetown Community Hospital and serves a rapidly growing population.

Originally published by GlobeSt The single-tenant net lease market and the national multi-tenant retail market will continue to enjoy booming growth as a combination of low interest rates and ample availability of capital make the sectors attractive for investors, according to a new analysis. “Without an increase in rates or a tightening from lenders, this environment will continue to fuel buyer demand,” says Lanie Beck, Stan Johnson Company Director of Corporate Research, Marketing & Communications. She notes that investment sales volume for shopping centers is up an “incredible” 211% year-over-year in Q3, and the overall net lease market reported more than $20 billion in activity in the last three months. Single tenant net lease sales volume hit $20.7 billion, enjoying its sixth strongest quarter on record in Q3, with office clocking in at $7 billion (up 30% from last quarter), industrial hitting $10.7 billion (up 11% from last quarter), and retail posting $3.1 billion (down 31% from last quarter). “The market is well on pace to exceed 2020’s annual sales totals, even if Q4 activity isn’t particularly strong—early predictions put 2021’s estimated annual total around $75 billion, which would make it the second strongest year in history,” Beck says. The overall single tenant net lease cap rate average fell 8 basis points this quarter to 6.01%. When it comes to STNL buyers, 39% are private buyers and US-based institutional investors account for 30% of all activity, on par with 2020 numbers. Around 35% of office buyers are US-based institutional investors, while private buyers account for 39% of industrial deals and 70% of retail sales. Meanwhile, multi-tenant retail sales volume hit $14.3 billion in the third quarter, up 39% from Q2. Sales volume so far this year has already surpassed 2020 totals, and “while it won’t be anywhere near a record-breaking year, there appears to be strong and growing momentum across the sector,” Beck says. Cap rates have stayed stagnant, though there is wide variation across regions. REITs and private buyers represent a combined 89% of MTR buyers, and the share of REIT deals has increased significantly, going from 3% in 2018 to 40% of the current buyer pool. A lack of inventory continues to plague buyers, particularly with multi-tenant retail, which has faced significant issues over the past few years by a lack of new development. And then there’s the obvious: supply chain issues are presenting challenges for retailers, and the “Great Resignation” is presenting serious labor challenges for employers of all sizes, despite an 18-month low in unemployment. Consumer confidence dropped significantly in the February through April 2020 period and “it hasn’t improved much since then,” according to Beck. However, e-commerce sales as a percentage of total retail sales remain strong and are expected to grow throughout the second half of 2021 as consumers begin holiday shopping early. In addition, “inflation remains a concern for investors and consumers, with CPI rising 5.4% during the 12 months ending in September 2021, Beck says. “Costs are expected to rise for a number of goods and services, further complicating the impact to retailers.”  

Originally published by GlobeSt “Big Box” real estate deals don’t get much bigger. EQT Exeter has closed a $6.8 billion, 70.5 million square foot portfolio sale on behalf of its private real estate funds, EQT Exeter Industrial Value Fund IV and related investment vehicles. The deal is among the largest in US history. The portfolio consists primarily of logistics properties that serve the supply chains of major corporations, including facilities for “big box” regional distribution, e-commerce fulfilment, and last mile distribution. The properties span the top five US distribution hubs of New York, Dallas, Atlanta, Chicago, and Los Angeles and the key e-commerce and air cargo hubs of Memphis, Indianapolis, Columbus, and Louisville. EQT Exeter assembled the portfolio through more than 100 transactions executed over three years. These investments were made on behalf of industrial value fund investors who sought value growth through development and leasing activities. All told, EQT Exeter developed 15 million square feet of the portfolio, with an additional 7 million square feet under construction; leased 45 million square feet of vacancy; and signed 28 million square feet in renewals during the funds’ period of ownership. EQT Exeter raised occupancy from 55% initially to 95% at sale, thus increasing the unleveraged yield on cost from 4.8% to 6.9%. Industrial Assets Remain ‘Critical’ Maggie Holmes, Director in Stan Johnson Company’s Atlanta office, calls the deal a monster transaction that illustrates perfectly how critical industrial assets have become to tenants and investors alike. “During the past decade especially, with the rise in e-commerce, industrial distribution and warehouse facilities have become more sophisticated,” she tells GlobeSt. “These assets are often tailored to specific tenant requirements for picking, sorting and other fulfillment needs. “These specifications are influencing the value of these assets, with location continuing to be a driver of value as well. I can’t say whether we’ll see additional deals of this size, but I am confident that the industrial sector will continue to see strong demand from investors, as we’re projecting the net lease industrial sector to have its best year on record.” The transaction is yet another example of the strong demand for high-quality industrial assets in major metropolitan areas, David Lari, partner, Cox, Castle & Nicholson, tells GlobeSt. “In a highly competitive market, a portfolio of quality assets is even more desirable than single assets. This sale will have an impact on the marketplace. However, every industrial transaction is different, and it is still very much dependent on the quality of the asset and its geographic location.” Even outside of the major hubs, the industrial market is, by all accounts, expected to continue to thrive. One of the main drivers behind this activity will continue to be e-commerce, says Scott Harrell, Principal and Co-owner of Mancini, a tech-driven design firm in New York City, who notes that major brands like Peloton and Volkswagen are signing significant leases across the US at close to a million-plus square feet each.” “The shift from buying at retail stores to online has become so big that you can even buy your next automobile online.” “This price point demonstrates that these companies are willing to pay almost anything to acquire space to expand and grow their businesses.” A Commitment to Sustainability In line with EQT Exeter’s commitment to sustainability, the 22 million square feet of newly constructed properties are equipped with the newest renewable design features in the industry. As part of the reletting of existing space, EQT Exeter has taken a number of steps to reduce environmental impact, including installing LED lighting, reflective roof materials, and clerestory natural light features, and introducing pervious parking and trailer areas and onsite stormwater retention.