By Michael Randman, Southpace Broker
During the first quarter of 2013, cap rates for the single tenant net leased market remained near historic lows for the retail, office and industrial sectors.
These rates continue to compress for long-term freestanding credit retailers like Dollar General and Advance Auto Parts. Good financing is driving the acquisition costs up. Long-term, non-recourse financing is available for new triple-net Dollar Generals making them very attractive for both large REITs and private equity buyers.
Smaller private individuals looking for a conservative stable return versus what is currently available from money market accounts and long-term bonds are also very interested in these options.
Southpace Properties is raising equity to take advantage of this aggressive financing and the long-term stability offered on new Dollar General stores. Please feel free to contact us for more information regarding this opportunity.
This interesting National Real Estate Investor article has more information about the current net lease market and accurately describes how active it is right now.
Southpace Properties, Inc. is Alabama’s largest independent commercial real estate firm. At Southpace, we add value to the use and ownership of commercial real estate through services such as office, retail, land, warehouse, and industrial sales and leasing, tenant and landlord representation, development, consulting, investment sales, property management, and construction management. With 12 CCIM designees, Southpace has the state’s highest number of CCIM accredited brokers under one roof.
