PHILADELPHIA ,PA Jan. 31, 2011 - Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, announced that it has arranged the sale of a portfolio of 13 single-tenant net-leased CVS drugstores nationwide to Cole Real Estate Investments (Cole) of Phoenix, one of the nation’s most active buyers of high-quality, income-producing commercial real estate assets, for approximately $70.1 million.
The properties are located in 11 states including California, Florida, Georgia, Kansas, Minnesota, Mississippi, New Jersey, New York, Oklahoma, South Carolina and Texas.
All of the properties in the 174,000-square-foot portfolio are new stores, opened in 2009 and 2010, and are subject to 24-year triple-net leases.
Dean Zang, (top right photo) vice president investments; Mark Taylor, (middle left photo) vice president investments; and Chris Munley, senior associate, are the Marcus & Millichap brokers, based in the firm’s Philadelphia office, who represented the seller in the transaction. Chad Adams, director of acquisitions, represented Cole.
“We are pleased to acquire a prime portfolio of CVS properties, which exactly fits the parameters of our conservative acquisition strategy, focused on income-producing ‘necessity retail’ properties, long-term leased to creditworthy tenants, and providing a stable flow of income for our investors,” said Kim Kundrak (lower right photo), senior vice president and chief acquisitions officer for sing-tenant retail at Cole.Zang explained, “This portfolio sale demonstrates that investors are increasing their transactions nationwide. As cap rates continue to compress for Class A assets, we will see acquisition volume increase in the B and C sector moving into 2011.”
“Single-tenant properties net-leased to national credit tenants such as CVS are in high demand among investors,” added Taylor.
“This trend is expected to continue in 2011 as well-capitalized private investors and REITs with strong balance sheets continue to acquire assets. These particular CVS assets each have 24 years of lease term remaining, further strengthening their intrinsic, long-term value.”
Additional Marcus & Millichap investment professionals providing representation on these transactions were: J.D. Parker, broker of record (BOR) for New York State; Tim Speck, BOR for Texas; Solomon Poretsky, BOR for Minnesota; Adam Christofferson, BOR for Kansas; Bill Buford, BOR for South Carolina; John Leonard, BOR for Georgia; Greg Matus, BOR for Florida; and David Bohanon, BOR for Oklahoma.
Contact: Stacey Corso, Public Relations Manager, (925) 953-1716
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