The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant PNC Bank Ground Lease located at 6616 Crossings Drive SE in Walker, Michigan (Grand Rapids MSA) for $1,490,000.<\/p>\n
The 42,055 square foot PNC Bank ground lease property is strategically positioned at a signalized intersection along Kalamazoo Avenue. Kalamazoo Avenue is a primary north-south thoroughfare in the trade area. The property is benefitted by its immediate proximity to Michigan Highway 6 (the Paul B. Henry Freeway) which experiences traffic volumes of approximately 55,000 vehicles per day. The PNC Bank is centrally located within a vibrant retail corridor which features Target, Meijer, Walgreens, Rite Aid, Staples and Family Fare Supermarket.<\/p>\n
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest based real estate investment company.\u00a0 The buyer was a Midwest based private investment group.<\/p>\n
There are 22 years remaining on the original 30 year PNC Bank ground lease. The ground lease expires in February 2039 and features 10% rental escalations in the primary term and in each renewal option period. There are absolutely no landlord responsibilities. PNC is the fifth largest bank in the United States (total branches) with more than 2,700 branches and 7,400 ATM machines. PNC Bank is an investment grade rated company (S&P: A-) and is a publicly traded company on the New York Stock Exchange (Symbol: PNC).<\/p>\n
\u201cThe market for long term ground leases remains active as these assets are highly sought after amongst private investors\u201d said Randy Blankstein, President of The Boulder Group.\u00a0 Jimmy Goodman, Partner of The Boulder Group, added, \u201cWhile the majority of single tenant investment activity is focused on core markets, we are starting to see investors focus primarily on the quality of the tenant.\u201d<\/p>\n