TAMPA, FL—Triple net lease opportunities are hard to come by these days, but Calkain is marketing three portfolios. The trio of portfolios, which include Applebee’s, Circle K, and Fred’s Stores, is valued at more than $65 million.
“There’s currently a severe lack of inventory for net lease properties,” David Sobleman, executive vice president at Calkain, tells GlobeSt.com. “That’s mainly due to the fact that investors are looking for some sort of passive income on their cash at higher rates than the bank pays.”
The Applebee’s portfolio includes nine restaurants, which can be sold individually. The restaurants are located through the Orlando and Central East Coast Florida markets. Each site has a brand new, 20-year triple net lease. The individual sites are priced between $2 million and $3 million.
“The leases were just signed in May 2012,” Sobleman says. “There’s annual rent increases and the actual real estate that each of these nine sites are on are on some of the best corners and highly trafficked areas in Florida.”
The Circle K portfolio includes 19 gas stations and convenience stores. The absolute triple net leased assets are guaranteed by Canadian-based parent company, Alimentation Couche-Tard, which Standard and Poor’s ranks with an investment-grade rating of BBB-. The locations span Indiana, Ohio, Illinois, and Iowa and operate under a master lease.
The Fred’s Stores portfolio includes 10 properties, with locations in Arizona, Illinois, Kentucky, and Mississippi. The locations are improved with newly constructed 16,000-square-foot free-standing buildings with in-store pharmacies and are subject to 12-year NN leases.
“At the height of the market retailers were building everywhere anywhere,” Sobleman says. “In today’s market, companies aren’t expanding as much or at all. So there’s less new inventory. Therefore it’s simple economics of supply and demand.”
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