Hanley Investment Group Arranges the Sale of Single-Tenant Triple-Net Leased Best Buy for $11.5 Million in Boca Raton, FL in Off-Market Transaction


IRVINE, CALIF. – May 4, 2015 – (RealEstateRama) — Hanley Investment Group, a nationally-recognized boutique real estate brokerage and advisory firm specializing in retail property sales, announced today that Hanley Investment Group’s President Ed Hanley arranged the sale of a 59,500-square-foot Best Buy, located in Boca Raton, Florida, in an off-market transaction. The single-tenant triple-net leased property located on 4.7 acres sold for $11.5 million. The buyer, Magi Henderson LLC, has ties to Santa Monica, California-based Pacific Star, a real estate investment trust. The seller, Palmer Chicago Investment Company, a California general partnership, is affiliated with Black Equities Group of Beverly Hills, Calif.

Best Buy is located at 20540 State Road 7 in the Shadowood Square shopping center, which includes tenants Bed Bath & Beyond, Regal Cinemas, Old Navy, Stein Mart, Walgreens, and McDonald’s.

“Net-leased buyers have shown caution in the past few years when evaluating investments in the consumer electronics tenant category. This is partially due to the intense competition from mass merchants and online retailers who have taken a big bite out of the brick and mortar sales thus raising the concern stores may close or rents may fall,” Hanley noted.

According to Hanley, there were several attributes that made this particular net-leased investment attractive. “The building location is in a desirable area of the city and is part of a popular shopping center. The tenant had been operating at this location for 20 years and just committed to a new 10-year lease. Best Buy is the largest U.S. consumer electronics retailer and is focused on accelerating online sales growth, and improving growth categories like the ‘connected home’ category, which includes smart thermostats such as Nest and wireless video monitoring systems. It is also expanding its line-up of Pacific Kitchen & Home ‘store-within-a-store’ concept, which includes upscale washers, dryers and kitchen appliances,” Hanley said.

“Buyers looking to purchase net-leased investments should look for these and other attributes like rent- to-store sales ratio when evaluating these type of opportunities,” Hanley added.

Hanley, in conjunction with Hanley Investment Group’s Executive Vice Presidents Bill Asher and Eric Wohl, is currently marketing numerous single-tenant investment opportunities including a single-tenant triple-net 55,000-square-foot Best Buy in Sherman Oaks, Calif. for $41,740,000, with 13 years remaining on its corporate lease. The property is located adjacent to Gelson’s Market at the corner of Van Nuys Boulevard and Milbank Street in Sherman Oaks, a prime infill location in the San Fernando Valley just south of Highway 101. According to Hanley, “The Best Buy store in Sherman Oaks is one of the top stores in the western region and in the upper 20 percent nationwide out of 1,400 stores.”

Hanley also noted that the Sherman Oaks store’s year-over-year increased sales fostered a recent multi-million dollar interior remodel including new paint, carpet and Pacific Sales is scheduled to occupy 50 percent of the ground floor upon completion.

About Hanley Investment Group
Hanley Investment Group Real Estate Advisors is a retail investment advisory firm with a $5 billion transaction track record nationwide, who works closely with individual investors, lending institutions, developers, and institutional property owners in every facet of the transaction to ensure that the highest value is achieved. For more information, visit www.hanleyinvestmentgroup.com.

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