Sale-Leaseback Offers Buying Opportunity at Higher Yield

Sale-Leaseback Offers Buying Opportunity at Higher Yield

Reston, VA – July 3, 2013 – (RealEstateRama) — Calkain Companies, a national real estate investment brokerage firm, recently facilitated the sale-leaseback of child care center in the Richmond, VA market. The property, located at 8210 Walmsley Boulevard in Midlothian, VA had recently been acquired by Childcare Network to relocate an existing facility. The tenant had displayed a strong enrollment history, and a clear commitment to the new location by offering a long-term landlord friendly lease. Under terms of an exclusive buyer-broker agreement, Calkain was able to identify the sale-leaseback opportunity, which offered a long-term, corporately guaranteed lease at a higher yield in a the current compressed cap rate environment.

Andrew Fallon and Jon Florin, Assistant Vice Presidents at Calkain, exclusively represented the buyer, a Northern Virginia-based, private investor seeking higher yielding net lease and built-to-suit opportunities. Calkain was engaged by the buyer to source and analyze opportunities, to qualify and negotiate on behalf of the buyer, and ultimately to coordinate the transaction and due diligence efforts. As Fallon puts it, “Our menu of services and capabilities allows us to be an extension of the buyer’s acquisition team. In this case, with a private individual, we took on a true advisory role, and were able to provide subject matter expertise for his net lease acquisition needs.” Given the compressed cap rates and competitive bidding environment, finding the right investment opportunity requires patience and substantial evaluation.

After reviewing multiple build-to-suit opportunities at low cap rates, Jon Florin identified the Childcare Network sale-leaseback opportunity which offered a 15-year triple net lease with structured rent escalations and a corporate guaranty at a cap rate north of 8.25%. Florin points out, “This was the perfect deal for our client at the right price point, with a landlord friendly lease and strong real estate fundamentals. Additionally, the higher cap rate and sub-4% interest rate allowed our client to achieve an excellent yield spread and cash flow.”

Calkain Companies is a boutique commercial real estate brokerage firm which specializes in assisting buyers and sellers with single and multi-tenant retail, industrial, hotel and office net leased transactions. While licensed to conduct business in many states, Calkain has multiple office locations throughout the Mid-Atlantic, Southeast, Northeast and Midwest. Additional information about the firm and listings may be found at www.calkain.com.

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We are a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management. We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

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Phone: 703-787-4714

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