December 14, 2020, 11:00AM
Newmark announces the sale of a single-tenant, net leased grocer property for nearly $16.2 million. The 60,026-square-foot building, occupied by a national grocer on a long-term lease, is located at 450 N. Wilbur Avenue, Washington.
Newmark’s Executive Managing Director Matt Berres and Director Samer Khalil cooperated with Executive Managing Directors Billy Sleeth and Paul Sleeth to represent the seller, an undisclosed publicly traded REIT. The undisclosed, Hawaii-based buyer is a 1031-exchange investor.
“Single-tenant properties occupied by major grocers in good locations have continued to be highly sought after by net lease investors across the country,” said Berres. “We continue to see competitive bid processes and aggressive pricing in the grocery space due to the dearth of inventory available.”
Khalil added, “This property checked all the boxes as an ideal net lease investment and traded at an aggressive cap rate for the market due to the strong national tenant and long-term passive lease structure with fixed rental increases.”
Berres and his team have been extremely active as of late with more than fifteen single-tenant properties sold in the past two months and another 15 in escrow, further confirming that “essential” tenants, strong credit, long-term passive lease structures and quality underlying real estate fundamentals are at the top of net lease investors’ wish lists during the pandemic.
Berres noted, “We expect the trend to continue into 2021 and beyond with “essential” tenants – grocery, drug stores, convenience stores, etc. – and, of course select industrial properties, being the safe havens within the net lease sector for private, institutional and foreign investors alike.”
The property is positioned within the Eastgate Marketplace Shopping Center with national and regional retailers including Staples, Harbor Freight Tools and Cascade Farm & Outdoors. It is easily accessible from Highway 12 with five points of entry around the center’s perimeter. Additional major retailers in the area include Walmart Supercenter, Safeway, Grocery Outlet, Home Depot and Hobby Lobby.
The property, situated on a prominent retail corridor, is occupied by the third largest grocer in the U.S. with a long-term commitment and fixed annual rental increases. Walla Walla is in southeast Washington at the base of the Blue Mountains and the city serves as the hub of Walla Walla County’s economy with a diverse mix of healthcare institutions, industrial manufacturing, agriculture, tourism and higher education facilities. The city is known for wine production, with over $100 million in revenue directly related to the wine industry on an annual basis.
About Newmark Group, Inc. (NASDAQ: NMRK)
Newmark Group, Inc. is a world leader in commercial real estate services, with a comprehensive suite of investor/owner and occupier services and products. Our integrated platform seamlessly powers every phase of owning or occupying a property. Our services are tailored to every type of client, from owners to occupiers, investors to founders, growing startups to leading companies. Harnessing the power of data, technology and industry expertise, Newmark brings ingenuity to every exchange, and imagination to every space. Together with London-based partner Knight Frank and independently owned offices, our 18,800 professionals operate from approximately 500 offices around the world, delivering a global perspective and a nimble approach. In 2019, Newmark Group, Inc. generated revenues in excess of $2.2 billion. To learn more, visit nmrk.com or follow @newmark.
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