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Research Library Wed, 04/27/2022 - 09:21
MarketSnapshot: Q1 2022
Market data, charts & graphs: current and historical trends for single-tenant office, industrial and retail properties, as well as multi-tenant retail Overall market trends Market summary & analysis Economic data points hbspt.forms.create({ region: "na1", portalId: "7279330", formId: "d5cea127-0985-4756-8591-d452dc67de3a" }); Following a record-setting 2021 with unprecedented levels of investment sales activity in the final quarter of the year, there was no expectation that the single-tenant net lease market was positioned for back-to-back quarters of such volume. Instead, predictions called...
Latest Publications

Press
Stan Johnson Company Brokers $8.2 Million Sale of Dental Office in Charleston, South Carolina
Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a 15,030-square-foot healthcare facility leased to Coastal Kids Dental and Braces. The property is located at 996 Tanner Ford Boulevard in Hanahan, South Carolina, a northern suburb of Charleston. Stan Johnson Company’s Jeff Enck and Teresa Lovely represented the seller, a locally based private investor. The asset was purchased by a group of 1031 exchange investors from California. The property traded for approximately $8.2 million reflecting a 5.84 percent cap rate.
“We were able to procure multiple offers on the property and ultimately closed with a West Coast 1031 exchange buyer who purchased the asset all-cash,” said Enck, Associate Director in Stan Johnson Company’s Atlanta, Georgia office. “Medical net lease properties, particularly those with rental increases, continue to be in favor with investors as inflation rises.”
The two-story property was built in 2017 and is situated on 1.52 acres. The flagship location houses the tenant’s dental and orthodontic practice as well as its office support and executive staff.
April 25, 2022

News & Insights
Healthcare M&A at Near Record in Q1
Originally published by GlobeSt
The first quarter in 2022 featured a strong mergers-and-acquisitions climate with a near-record 712 deals, according to new acquisition data from Irving Levin Associates. Activity in Q1 2022 exceeded Q1 2021 when 635 transactions were announced.
“Although deal volume slowed by 5 percent compared with Q4 2021, private equity remains a dominant force in the industry as health systems are on the acquisition trail, expanding their presence across the continuum of care,” according to the report.
Activity in sectors such as Physician Medical Groups and Long-Term Care spurred much of the volume, with 129 and 127 deals, respectively. The most active sector was “Other Services” with 143 deals announced, a small decrease of 5 percent compared with Q4:21.
More Activity in Sale Leasebacks
Kelly Largent, Director, Stan Johnson Company, tells GlobeSt.com that with all of the M&A activity that’s been occurring in the healthcare space, it’s creating more opportunities for companies to execute sale leaseback transactions in order to fund future growth.
“We facilitate sale leaseback programs for multiple healthcare providers that range in size and operational complexity—from Fortune 200 on the large end to private practitioners on the small end—and in recent years, market conditions have altered their strategies,” Largent said.
“We’ve encouraged a shift in disposition strategy from frequent portfolio transactions to individual asset transactions to monetize the spread in pricing due to the inefficiencies in the market.
“As interest rates rise, we’ll be watching to see what impact this has on yield and pricing trends. In the healthcare space, because it’s e-commerce aligned compared to other asset classes, we haven’t seen cap rates impacted. For the immediate future, and as long as there remains a supply-demand imbalance in the market, I expect we’ll continue to see aggressive pricing on healthcare real estate compared to other asset classes.”
Hospital Transactions Limited, But Should Increase
Demand for healthcare real estate, such as medical office buildings and life science properties, also drove the first quarter while tailwinds in the Home Health & Hospice and Behavioral Health Care sectors had those areas stable.
Hospital transactions, however, fell dramatically, with only one merger closed, compared with 17 in the Q4 2021. Irving Levin Associates expects Q2 to be more active.
April 25, 2022

News & Insights
Margaret Caldwell Recognized Among CRE’s Women of Influence by GlobeSt
We are excited to share that Margaret Caldwell, Managing Director and Partner, has been recognized as a Woman of Influence by industry news leader, GlobeSt.com. An industry veteran of more than 20 years, Margaret specializes in the acquisition and disposition of multi-tenant retail shopping centers for her clients and has sold more than $15 billion of retail properties nationwide since 2000. Nominated by leaders, colleagues and peers, Margaret has made a lasting impact on those she works with closely. “There’s never been a moment where I didn’t feel fully supported by Margaret,” said a teammate. She drives, empowers and champions everyone around her and puts integrity above all else. Margaret is a shining example of Stan Johnson Company’s culture, and we’re honored to congratulate her on being recognized by GlobeSt.com among this year’s Women of Influence.
Honoring CRE's Women of Influence
Excerpt of article originally published by GlobeSt
Since 1983, GlobeSt. Real Estate Forum has recognized a growing number of female industry professionals for their remarkable achievements. Seeking to shine a light on the individuals that have personally impacted the market and significantly driven the industry to new heights via their outstanding successes, GlobeSt. collected nominations across various categories, spanning the entire commercial real estate spectrum.
GlobeSt. is proud to announce this year’s Women of Influence winners.
The honorees will be profiled in GlobeSt. Real Estate Forum’s July/August issue and will gain recognition on GlobeSt.com. GlobeSt. Real Estate Forum will also honor the chosen 2022 Women of Influence at the annual GlobeSt. Women of Influence awards dinner, which will be held at the Stein Eriksen Lodge Deer Valley in Park City, UT on July 26.
Congratulations to this year’s honorees.
April 22, 2022

Press
Stan Johnson Company Completes Sale of Industrial Outdoor Storage Facility in South Florida for $7.1 Million
Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of a core, infill industrial outdoor storage (IOS) facility located at 3945 Fiscal Court in West Palm Beach, Florida. The property is fully leased to United Site Services on a triple net basis. Stan Johnson Company’s Brandon Duff and Mack Wolfgram brokered the transaction between the seller, an individual investor based in Fort Lauderdale, Florida, and the buyer, a private investment and development company, based in Philadelphia, Pennsylvania. The asset traded for approximately $7.1 million reflecting a 4.07 percent cap rate.
Comprising a 14,000-square-foot concrete building situated on a 3.62-acre site, the property was originally built in 1990 and includes an improved industrial yard, fully paved with lighting and perimeter fencing. These are highly sought-after features among both IOS tenants and real estate investors which, along with the property’s A+ location, further contributes to its exceptional residual value and long-term appreciation potential. Additionally, with direct frontage on Interstate 95, the property is positioned in a heavily trafficked industrial corridor that includes other national IOS tenants such as ABC Supply Company, Herc Rentals, SiteOne Landscape Supply, Builders FirstSource, Allied Trailers, and Enterprise Truck Rental, among numerous other national, regional and local companies. West Palm Beach is one of the nation's most in-demand markets, especially for industrial properties and the IOS property niche.
“This was a unique opportunity among current IOS offerings, given the infill West Palm Beach location, frontage on Interstate 95 and below market rent. Future use options are versatile, and residual value is exceptionally strong,” said Wolfgram, Associate in Stan Johnson Company’s Chicago, Illinois office.
“This transaction is part of our team’s ongoing industrial outdoor storage and industrial service facility product specialty focus that we have been executing for several years,” added Duff, Managing Director and Partner. “As both investor and tenant demand for this niche segment continues to grow immensely, we have seen increasing interest and historically low cap rates from all buyer types including institutional, REITs, private equity sponsors, individual private investors and 1031 exchange buyers.”
April 22, 2022

Press
Stan Johnson Company Announces Sale of Northcrest Village Near Dallas, Texas
Stan Johnson Company, one of commercial real estate’s leading investment sales brokerage firms, has completed the sale of Northcrest Village located at 3044 Old Denton Road in Carrollton, Texas. The 136,061-square-foot shopping center is anchored by ALDI and Ace Hardware and was approximately 85 percent leased at the time of sale. Margaret Caldwell, Patrick Kelley and Gill Warner of Stan Johnson Company represented the seller, an Oklahoma-based developer. The 1031 exchange buyer was an individual investor based in Texas.
“Northcrest was highly sought after by investors because of its location, strong credit anchors and its potential upside,” said Caldwell, Managing Director and Partner in Stan Johnson Company’s Atlanta, Georgia office.
Located in the northern Dallas suburbs, the shopping center features 31 tenants across three buildings. The attractive tenant mix reflects grocery, restaurant, hard goods, soft goods and service providers including national retailers like Subway, O’Reilly Auto Parts, The UPS Store, Little Caesars and State Farm. At the time of sale, there were four contiguous in-line suites available for lease along with one junior anchor space adjacent to Ace Hardware.
“The bidding process was highly competitive with double-digit offers showing the continued demand for grocery-anchored multi-tenant retail properties,” added Kelley, Associate Director. “In addition to its credit anchors and upside, Northcrest Village boasts a coveted market in Dallas-Fort Worth.”
April 21, 2022

News & Insights
Stan Johnson Company’s Property Marketing Team Wins Top Hermes Creative Award
Stan Johnson Company’s Property Marketing Team is the 2022 Platinum Winner from Hermes Creative!
Based on multiple individual work submissions and consistently high client satisfaction scores as measured by our internal, annual Broker Platform Survey, Hermes Creative has awarded the department the Team’s Body of Work Achievement Platinum Award. Special recognition should be given to Sarah Martin, Taren Brewer, Deena Salim and Jason Young, whose marketing packages were deemed by Hermes to be best-in-class examples.
Hermes Creative Awards is an international competition for creative professionals involved in the concept, writing and design of traditional and emerging media. Hermes Creative Awards recognizes outstanding work in the industry while promoting the philanthropic nature of marketing and communications professionals. The judges consist of industry professionals who look for companies and individuals whose talent exceeds a high standard of excellence and whose work serves as a benchmark for the industry. The Platinum-level award is the highest honor Hermes bestows.
April 21, 2022

Research Library
Buckeye State Capital Remains a Good Bet for Real Estate Investors
While the state of Ohio may not be top of mind as a major real estate investment center, there are many reasons why investors should keep an eye on net lease assets and opportunities across the Buckeye State, and specifically within its capital, Columbus.
With 11.7 million residents and 2.3 percent growth during the last decade, Ohio is the nation’s seventh most populous state. Ohio has attracted new residents with its low cost of living that is approximately ten percent lower than the national average and housing prices that are comparatively low as well. The state boasts good schools and prestigious universities, as well as a thriving economy that also ranks seventh in the nation.
Business is Booming
When it comes to business, the state is ranked fifth for Fortune 500 companies and is home to 25 firms, with more than half located in Columbus alone. Columbus’s economy is hugely diverse, offering employment opportunities across major industries such as technology, finance, healthcare and education. Among the companies that operate their headquarters or have significant employee counts in the area are Nationwide, J.P. Morgan Chase, Honda, Big Lots, Wendy’s and Huntington Bank, among others.
"Columbus is ripe with opportunity for net lease and commercial real estate investors…new construction is robust, and the existing supply of second-generation investment properties is also abundant."
In recent months, a startup company, Staq Pharma Inc., announced plans to build a $50 million facility in Columbus and create 300 new jobs. Intel also recently announced plans to open two new factories in a rural area east of Columbus with an initial investment of more than $20 billion and a long-term investment that could exceed $100 billion. This is the single largest commitment by a private-sector firm ever announced in Ohio, and a total of 10,000 jobs – both permanent and construction-related – are expected to be created in the short-term. The economic impact of an announcement like this will be substantial, and the area will benefit from additional population growth in the coming years – not only from Intel, but from all the supporting suppliers and businesses this mega-site is sure to attract.
With this growth comes the need for housing, and residential developers as well as multifamily investors will see new opportunities generated. Retail will soon follow as an influx of residents will need access to grocery stores, restaurants, shops and entertainment. Net lease investors will be quick to pursue newly built banks, car washes, dollar stores and drugstores, self-storage facilities, drive-thru restaurants and strip centers that will undoubtedly pop up overnight to serve the fast-growing community. Additional industrial development is sure to happen too, as again, an operation of this size will draw suppliers and manufacturing partners.
Current Growth Areas & Opportunities
As the market waits for these future developments to become a reality, Columbus has plenty of activity already occurring. The bulk of new retail construction is happening in suburban areas including New Albany to the northeast, Dublin and Hilliard to the northwest, and in town along the Interstate 70 and State Route 315 corridors near Grandview Heights. Just west of downtown, two significant projects are in various forms of development. The Peninsula includes office, residential, retail and hospitality space, and the project has already secured several large office tenants including Deloitte and Insight Global. The second development is Gravity, a mixed-use project featuring residential, Class A office space, eclectic retailers and outdoor entertainment and gathering spots. The immediate area along West Broad Street is primed for redevelopment, so as incoming residents spur growth, investors will be able to acquire newly built net lease retail, multi-tenant retail and additional multifamily properties that crop up.
Industrial development has been robust in Columbus as well, with 9.0 million square feet of warehouse space built in the past year and another 15.0 million under construction. Much of the activity is occurring within the Rickenbacker Global Logistics Park. Last summer, a newly built 500,000-square-foot industrial facility leased to Synnex Corporation sold for $31.5 million. The property is strategically located adjacent to Rickenbacker Airport, which is the 27th largest cargo airport in the U.S.
Another corridor of growth and development exists in and around The Ohio State University – one of the city’s largest economic drivers. Located minutes north of downtown, OSU is one of the nation’s largest public universities. It features a huge medical complex and an enrollment count of over 67,000 students. The year-round student and faculty population, not to mention the 24,000 people employed by OSU’s medical center, drive a significant need for multifamily housing, retail and healthcare. And while the university itself may not provide traditional commercial real estate investment opportunities, continued expansion by Ohio State is driving local growth. The areas along High Street and Lane Avenue have seen a resurgence lately, and the CVS Pharmacy at this pivotal intersection traded recently for $7.5 million. The Olentangy River corridor too is seeing new development to support the growing medical complex, as the Wexner Medical Center announced additional expansion in the form of an inpatient hospital slated to open in 2026. Driven by an aging baby boomer generation, healthcare in and around the Columbus area will continue to expand and offer investment opportunities beyond the walls of Ohio State.
A Good Bet for Future Investment
Columbus is ripe with opportunity for net lease and commercial real estate investors. New construction is robust, and the existing supply of second-generation investment properties is also abundant. Continued cap rate compression and competition, especially from out of state buyers, maintains a seller’s market for single-tenant net lease investors, and the frothy market is ideal for developers who can sell quickly and move on to the next project. Overall market dynamics may be impacted in the coming months by continued inflation and rising interest rates, but the Columbus market is one area investors can continue to bet on.
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April 19, 2022

News & Insights
CapitalSpring Raises $950M for Restaurant, Foodservice Investment
Originally published by GlobeSt
CapitalSpring this week announced the final closing of CapitalSpring Investment Partners VI, L.P. and parallel funds with $950 million of capital commitments.
Fund VI’s investment strategy focuses on providing structured loans and private equity solutions in support of buyouts, add-on acquisitions, organic growth, recapitalization and other complex financing needs.
Fund VI was substantially oversubscribed and exceeded its target of $750 million. The fund attracted backing from a diverse group of existing and new limited partners in the United States and internationally, including public and private pensions, endowments, foundations, funds of funds and family offices.
The fund will target investments ranging from $10 million to $150 million across the restaurant and foodservice industries as well as in related businesses across the business services, technology and manufacturing sectors.
Since the initial close, CapitalSpring has already completed four investments in Fund VI, representing over $200 million of invested capital.
Schulte Roth & Zabel LLP served as legal advisor to CapitalSpring on this fundraise.
Momentum Maintained by Pent-Up Demand
Mike McKean, founder, Retailsphere, tells GlobeSt.com that as people start spending more money on experiences and going out, especially at restaurants and bars, pent-up demand will almost certainly lead to an increase in openings across the board.
“It isn’t unexpected that a group like CapitalSpring would see such a large raise to invest especially in growing multi-unit groups,” McKean said. “They have the benefit of a model that can be quickly replicated and opened to meet this demand, plus many people are looking for slightly more casual options versus higher end concepts—most likely because of a continuing increase in cost of living as things start to open back up.
“Unlike in the previous few years, it wouldn’t surprise our team to see even larger investments continue into the coming year in the food and beverage industry.”
Indeed, the restaurant and foodservice industry is already experiencing a sudden uptick in hedge fund and private equity investment, according to Marbet Lewis, founding partner and firm CEO of Spiritus Law.
“Demand for hospitality services continues to increase and operators continue to try to stabilize cash flow while they come out of pandemic recovery,” Lewis tells GlobeSt.com. “While the hospitality industry is in full recovery, the pandemic left many operators limited in expansion opportunities as new profit balances out losses from the past two years.
Appetite Grows for Fast Casual, Quick Service
There is strong investor appetite for net lease investments in the quick service retail and fast casual space, particularly with household names like Chick-fil-A, McDonald’s, Taco Bell, Chipotle, and others, Daniel Herrold, partner at Stan Johnson Company, reports.
He said emerging concepts such as Fuzzy Taco, Sweetgreen, Blaze Pizza and Slim Chickens, among others, are gaining popularity as well.
“Demand remains high for these assets as many were resilient through the pandemic and are typically located in strong retail locations,” Herrold told GlobeSt.com.
Higher yields are also driving interest in the casual dining sector, Afshan Kabani, vice president at Four Pillars Capital Markets, tells GlobeSt. “With compressed cap rates and interest rates on the rise, demand has really picked up in the past few months, and investors are seeing higher returns in this space,” Kabani said.
April 14, 2022