The coronavirus news gets scarier every day as the spread of the disease worsens. Investors have taken notice, and the stock market reflects it. But those of us who have been in the business long enough, know that the long-game is the thing.
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The Federal Reserve’s decision to reverse its monetary policy and lower short-term interest rates has fueled demand for single-tenant, net-leased retail assets with regard to both deal volume and the entrance of new buyers into the space, although cap rate movement has been slow to reflect this growth.
The nation’s central bank has implemented three 25-basis-point cuts this year, creating a lower cost of capital for prospective buyers in the net-lease market and generating positive impacts on the cash flows of owners marketing their properties for sale. Consequently, both sides are showing a willingness to both bid on and …
The medical sector is one of the quieter, more under the radar property types within the net lease world. Though not as abundant as dollar stores or ubiquitous as fast food; medical net lease properties offer investors steady cash flows, low-to-no management burden, and cap rates which beat out other similarly sized deals. Furthermore, an aging demographic shift will help ensure this asset type remains a viable investment well into the future.
For …
Three months later, the story is different. During the third quarter, cap rates ramped up by 16 bps, from 6.41% to 6.57%.
An increase in cap rates can mean more buyers are in the market, eager to take advantage of lower price points. This is supported by our transactional data, which posted 544 completed deals. Even in the face …
As we continue to grow into a digital age, we see more and more retailers developing their online presence to have a wider reach with consumers around the world. This is how Amazon become the shopping behemoth we know today. As a result, different brick-and-mortar stores struggle to create a business plan that addresses Amazon’s competition and eventually fall to the wayside. One sector, however, has not seemed to be taken aback from this competition—the Dollar Store sector.…
In analyzing report metrics in our Q2 2019 Net Lease Overview, we noted a focus on fundamentals, a bump in sales activities, and third, a three-sector impact. Let’s explain the third point first.
Q2 numbers were influenced mainly by the automotive, big box, and dollar store sectors; all three types experienced a jump in sales, though their cap rates differed.…
Now is the time for investors to maximize the spread between debt financing and returns, says Calkain Cos.’ Jonathan Hipp.
We all expect investment activity to pick up after the summer months, but are we seeing a bigger uptick than normal? We think so. …
Elkridge, MD Jonathan Hipp, president and CEO at Calkain Cos. completed the sale of the newly built Royal Farms convenience store at 7136 Montevideo Rd. Hipp represented a local developer in the disposition of this 20-year NNN ground lease in a $4.1 million sale.
Avison Young’s Net Lease Investment Sales Group led by Asher Wenig represented the buyer.
“We executed a favorable deal for our client, achieving a 5.12% cap rate. The new 20-year lease structure with multiple renewal options demonstrated the tenant’s commitment to the site. With the corporate-backed guarantee on the lease it was an attractive investment – …
Let’s start off by stating the obvious. No one knows what the end of the year will look like in terms of any of the drivers of market dynamics, and by that I mean the 10-Year Treasury, interest rates or cap rates.…
Washington, D.C. — Calkain Cos. has arranged the $15 million sale of a triple-net-leased CVS property in Washington, D.C. The 8,754-square-foot building is located at 3323, 3325-3329 Connecticut Ave. NW, three miles north of downtown Washington, D.C. The building first served as a pharmacy in the 1950s before being converted to a CVS in 1990. Jonathan Hipp and Rick Fernandez of Calkain represented the seller, an undisclosed family trust, in the transaction. The buyer was a private investor completing a 1031 tax-deferred exchange.
