The Boulder Group, a net leased investment brokerage firm, completed the sale of a single tenant net leased convenience store property leased to Kangaroo Express, located at 2906 Atlanta Highway in Montgomery, Alabama for $3,000,000.<\/p>\n
The property is located at 2906 Atlanta Highway in Montgomery, Alabama. Atlanta Highway carries approximately 34,000 vehicles per day. The property sits in Montgomery County, within the Montgomery, Alabama metropolitan statistical area. The Montgomery MSA is made up of Autauga County, Elmore County, Lowndes County and Montgomery County. The Montgomery MSA has a population of approximately 387,900, making it the 145th-largest metropolitan statistical area in the United States. The Montgomery MSA population is projected to grow by approximately 1.2% over the next five years. The city of Montgomery has a population of approximately 197,494. The median household income in the city of Montgomery is approximately $56,811. National retailers along Atlanta Highway include a CVS Pharmacy at 3465 Atlanta Highway, the Forest Hills Shopping Center at 3416-3458 Atlanta Highway and a Goodwill store at 5326 Atlanta Highway. A Walmart Supercenter is located at 6495 Atlanta Highway. Montgomery Catholic Preparatory School operates its MCPS-St. Bede Campus at 3850 Atlanta Highway, serving students from preschool through sixth grade. Trinity Presbyterian School, founded in 1970, is located at 1700 East Trinity Boulevard in Montgomery and serves students from kindergarten through twelfth grade. Maxwell-Gunter Air Force Base is one of the largest employers in the Montgomery MSA and supports more than 17,000 military, civil service and contracted personnel. Hyundai Motor Manufacturing Alabama, located in Montgomery, employs approximately 3,000 workers. Montgomery is also home to Alabama State University and Auburn University at Montgomery.<\/p>\n
Randy Blankstein, Jimmy Goodman and John Feeney of The Boulder Group represented the buyer in the transaction. The seller was a Southeast-based real estate company. The buyer was a private real estate investor.<\/p>\n
The property is subject to a triple net (NNN) lease with Kangaroo Express. Approximately 14 years of primary lease term remain. The lease expires on May 18, 2041. The lease includes four five-year renewal options. Rent escalates by 10% every five years, including within the renewal option periods. Under the triple net lease structure, the landlord has zero ongoing responsibilities for maintenance, taxes or insurance at the property.<\/p>\n
Kangaroo Express is a convenience store banner that traces its roots to The Pantry, Inc., a chain founded in 1967 and later headquartered in Cary, North Carolina. Alimentation Couche-Tard, the Laval, Quebec-based parent of Circle K, acquired The Pantry and its Kangaroo Express stores in 2015, folding the banner into its North American convenience store network. Circle K\u2019s North American operations are based in Tempe, Arizona. Alimentation Couche-Tard operates close to 17,000 stores across 29 countries and territories and employs approximately 146,000 people worldwide. The company\u2019s business lines include convenience retail, motor fuel sales and foodservice offerings sold across its store network. Alimentation Couche-Tard carries an investment-grade credit rating.<\/p>\n
\u201cBuyers with 1031 exchange proceeds to place are drawn to deals like this one, where a single tenant handles nearly every property expense and the income keeps flowing with very little oversight required,\u201d said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, \u201cInvestor appetite for convenience store real estate is at an all time high due to Bonus Depreciation.\u201d John Feeney, Senior Vice President of The Boulder Group, noted, \u201cThe buyer was attracted to this deal due to the long term lease structure, and we were able to move quickly to get the buyer to the closing table.\u201d<\/p>\n