Net Lease Pick ‘n Save Sale Arranged Date June 4, 2020
The Boulder Group, a net leased investment brokerage firm, completed the sale of a single tenant net lease Pick ‘n Save property located at N77 W14435 Appleton Avenue in Menomonee Falls, Milwaukee for $28,428,000. The lease is guaranteed by Kroger, and investment grade rated tenant.
The 103,611 square foot net lease Pick ‘n Save property is located along Appleton Avenue (14,900 VPD) which is the primary north-south thoroughfare in the area. The Pick ‘n Save property is well located within the Milwaukee MSA directly across from Menomonee Falls High School (1,300+ students) which drives continual traffic to the corridor. The store is guaranteed by Kroger which is investment grade rated (S&P: BBB). Additionally, the store reports strong annual sales. There is approximately 11 years remaining in the primary term of the lease with rental escalations every five years. There are four 5-year renewal options and the lease is NN (roof and structure). The property was built in 2011.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction. The seller is a Midwest based real estate company and the buyer is a west coast based real estate investment company.
“The market for standalone grocery properties remains active due to their built-in customer base,” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Investors pay a premium for grocery stores with a strong sales history.”
Roundy’s is a subsidiary of Kroger, which operates 145 supermarkets and 99 pharmacies throughout the states of Wisconsin and Illinois. The stores of Roundy’s mainly use that branding as a private label, with three front-facing brands and one former brand: Pick ‘n Save, Metro Market, Marino’s Fresh Market, Copps. As of December 2015, Roundy’s became a subsidiary of Kroger of Cincinnati, Ohio. Kroger is the United States’ largest supermarket chain by revenue ($121.16 billion for fiscal year 2019), the second-largest general retailer (behind Walmart). Kroger is also the fifth-largest retailer in the world and the fourth largest American-owned
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in single tenant net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of over $6 billion of single tenant net lease real estate transactions. From 2012-2019, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by both Real Capital Analytics and CoStar. The Boulder Group is headquartered in suburban Chicago. www.bouldergroup.com