Newmark has arranged the sale of two CVS-occupied, triple-net lease properties in Gadsden, AL and Paducah, KY for a total $7 million.
Newmark’s Executive Managing Director Matt Berres and Director Samer Khalil represented the seller, an undisclosed institutional investor, in cooperation with Newmark’s Senior Vice President, Regional Managing Director Joe Steffner and Vice Chairman Bert Sanders.
The first property, located at 3001 Lone Oak Road in Paducah sold for $3.98 million while the second property, located at 806 Hoke Street in Gadsden sold for over $3 million to a private 1031 exchange buyer. Both properties featured recently extended triple-net leases with nearly 20 years of primary term remaining.
“Properties with investment grade tenants and long-term triple-net leases in desirable locations are commanding premium pricing in line with, or exceeding, pre-pandemic levels due to the dearth of quality inventory available,” said Berres. “We have continued to see strong demand for drugstore properties with long-term leases and corporate guarantees due to the resilient and essential nature of the tenants.”
Khalil added, “These two CVS properties were ideal 1031 exchange candidates due to the recent lease extensions and absolute triple-net lease structures, which resulted in a competitive bidding process with multiple offers.”
Berres and his team have been extremely active as of late with 10+ properties sold in the past month and another 10 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.
Newmark (“Newmark”), operated by Newmark Group, Inc. (“Newmark Group”) (NASDAQ: NMRK), is one of the world’s leading and most trusted commercial real estate advisory firms, offering a complete suite of services and products for both owners and occupiers. Together with London-based partner Knight Frank and independently-owned offices, Newmark’s 18,800 professionals operate from approximately 500 offices on six continents. Newmark’s investor/owner services and products include investment sales, agency leasing, property management, valuation and advisory, diligence, underwriting, government-sponsored enterprise lending, loan servicing, debt and structured finance and loan sales. Occupier services and products include tenant representation, real estate management technology systems, workplace and occupancy strategy, global corporate services consulting, project management, lease administration and facilities management. For further information, visit www.ngkf.com.
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