David Sobelman, a chief partner of
Calkain Realtor Associates in Tampa,
sees his recently procured sale of a triple net lease as evidence that
the investment market is turning around.
The
14,560-square-foot space, located at 1700 Lockwood Ridge Road in
Sarasota, is leased by
Walgreens, a strong tenant with an
A+ credit rating and a 25-year lease with an option to renew for an
additional 50 years. It was Walgreen's exemplary status as well as
Florida's freedom from a state income tax that sealed the deal for the
New York buyer, Sobelman says. And, he adds, he has every reason to
believe the transaction portends additional such business in the future.
"This time last year, there were just very few
transactions taking place anywhere much less in the triple net lease
market," he says. "We'll do about $40 million in transactions this
quarter. That is drastically different from last year. And it started
with this Walgreens deal that we just closed."
Calkain
Realty specializes in triple net leases that tend to attract developers
who prefer passive management structure. "Triples provide three nets,"
explains Sobelman. "Taxes, insurance maintenance plus management. You
take those three things away from the landlord and the tenant is
responsible for them. This $5.4 million transaction is truly a turning
point in the market as this buyer was influenced by their completing of a
1031 tax deferred exchange. Additionally, the buyer was seeking passive
net lease investments solely in the state of Florida in order not to
pay ongoing state income taxes."
Calkain Realty in Tampa has been in business since 2005.
Writer:
Missy
Kavanaugh Source: David Sobelman, Calkain Realtor
Associates
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