Year Closes with Flurry of Net Lease Deals
CRE deals often rush to close at the end of the year, and 2024 is proving to be no exception in the net lease space. Here are some examples of recent activity.
Marcus & Millichap sold a portfolio of 31 net lease properties anchored by Town Fair Tire for $88.5 million. The portfolio includes identical, absolute net leases with the prominent tire and wheel retailer in the Northeast. The properties are in Connecticut, Massachusetts, New Hampshire, Maine, New York, Rhode Island and Vermont.
“All locations have 16-year terms remaining, rent increases every five years and are backstopped with parent guarantees. Since the sites were sold from the founder’s personal portfolio, they tend to be in the best locations with the highest sales volumes,” said Marcus & Millichap senior associate Alex Quinn, who represented the estate of Town Fair Tire’s founder, Neil Mellen (now deceased), along with managing director James Koury. The pair worked with Dan Plotkin of Northeast Retail, and Koury and Quinn procured the buyer, Orion Buying Corp.
“We are honored to have advised and executed the sale on behalf of Neil Mellen’s estate,” said Koury. “It was a privilege to represent his legacy in the auto retail industry.”
In addition, Mill Valley, California-based Four Corners Property Trust (FCPT) announced a series of net lease deals to close in 2024.
FCPT acquired via sale-leaseback six Christian Brothers Automotive properties in Georgia, Indiana, Florida and Illinois for $24.8 million. The firm said the sites are located in strong retail corridors with high traffic and attractive demographics and are under long-term leases guaranteed by the corporate entity.
In a second auto industry transaction, FCPT acquired a portfolio of automotive service properties across multiple states for $12 million from an undisclosed national operator via sale-leaseback. The sites are under long-term, triple net leases, and the transaction was priced at a cap rate in range with previous FCPT transactions.
FCPT also acquired a National Veterinary Associates property in Connecticut for $3.5 million. The property is corporate operated under a new, long-term triple-net lease with annual rent bumps.
FCPT is focused on ownership, acquisition and leasing of restaurant and retail properties.
Source: GlobeSt/ALM