Tampa Realtor: Triple Net Deal In Sarasota Portends Good Times Ahead

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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