Net Leased C-Store and Gas Station Portfolio Sold Date January 27, 2023
The Boulder Group, a net leased investment brokerage firm, completed the sale of a net leased c-store portfolio encompassing seven properties for $55 million.
The Boulder Group assisted an investor in acquiring seven assets in a net leased c-store portfolio to credit worthy tenants such as 7-Eleven from multiple sellers. The investor’s goal was to take advantage of 100% bonus depreciation available in 2022. The properties spanned across four states. The transaction occurred in late December 2022.
“In facilitating this transaction, our client was able to acquire a high-quality portfolio of single tenant c-stores leased to creditworthy tenants and take advantage of the historic tax benefits associated with 100% bonus depreciation” said John Feeney, Senior Vice President of The Boulder Group. “This benefit is attractive to high net worth investors looking to shelter gains after a taxable event.
Each of the properties were recently constructed and featured long term absolute net leases with rental escalations throughout the course of the leases
The Tax Cuts and Jobs Act of 2017 introduced tax legislation that allowed taxpayers the potential to claim 100% bonus or first year depreciation when purchasing a qualified property. The full 100% bonus deprecation phased out at the end of 2022, however taxpayers still have the ability to depreciate to 80% in 2023. Properties including c-stores and car wash assets may qualify if they meet certain parameters within the Tax Cuts and Jobs Act of 2017.
John Feeney led the acquisition for the buyer process along with Randy Blankstein and Jimmy Goodman of The Boulder Group.
“Single tenant c-store properties continue to garner significant interest amongst private investors due to the strong credit that many operators in the sector posses” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “While 100% bonus depreciation was phased out in 2022, the Tax Cuts and Job Act of 2017 still allows 80% bonus depreciation in 2023 for qualified properties.”
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 $8 billion of single tenant net lease real estate transactions. From 2012-2022, 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