Net Lease Krispy Kreme Restaurant Property Sold Date July 11, 2018
The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net lease Krispy Kreme located at 2700 E Beltline Ave SE in Grand Rapids, Michigan for $1,600,000.
The net lease Krispy Kreme property is well located in a dominant retail corridor featuring two premium malls and many national retailers. Woodland Mall, which totals 1.2 million square foot and is 97% occupied, is located directly across from Krispy Kreme and is anchored by Macy’s, JCPenney, Von Maur (2019), The Apple Store and Celebration Cinema. Further, the Shops at CenterPoint, along with all the surrounding retail activity, where Krispy Kreme occupies an ideally-located outparcel, recently completed $38 million in renovations and is anchored by Nordstrom Rack, TJ Maxx/HomeGoods and Planet Fitness. Adjacent to Krispy Kreme is a newly-constructed Chick-fil-A that drives additional traffic to the location. Importantly, Krispy Kreme experiences substantial traffic along East Beltline Ave SE (36,548 VPD) and 28th St SE (34,014 VPD), totaling more than 80,000 vehicles per day. In additional to the mall traffic, large nearby retailers such as Lowe’s, Sam’s Club, Home Depot, Costco and Target draw more consumers to the area as well.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented both the seller and purchaser in the transaction. The seller was a joint venture based in the North East and the purchaser was a high net worth investor based in Florida.
Krispy Kreme recently exercised an early renewal option, showing their commitment to the location. The lease features 10% rental escalations every five years throughout the primary term, as well as in each of the three remaining renewal option periods (five years each). The lease is absolute triplet net with zero landlord responsibilities.
“The market for properties in the Top 60 MSAs remains active as these assets are in high demand among private investors.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Single tenant quick service restaurant properties continue to be in high investor demand as they are less affected by e-commerce.”
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 $4 billion of single tenant net lease real estate transactions. From 2012-2017, 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.comBack