|Calkain Companies, a national real estate investment brokerage firm, recently procured two transactions in the Tampa, Florida market. In both transactions, totaling in excess of $2,000,000, the tenant was actively involved in making decisions on their real estate needs.
The first, a $773,333 sale-leaseback of a freestanding single tenant Krystal’s location, was sold as part of a sale-leaseback transaction. In a sale-leaseback, a company sells corporately owned and occupied real estate, while simultaneously executing a long-term lease for that same real estate, effectively becoming a tenant versus an owner. The property located along South Dale Mabry Highway, was sold subject to a new 20 year triple-net lease to a New York based private investor. Given the long term, passive lease structure in addition to the relatively new construction in front of a high volume Lowe’s Home Improvement store, the property was pursued within 1 day of coming to market and closed in under 30 days.
In the second transaction, a group of private investors sold a $1,265,000 parcel of land encumbered by a long-term ground lease for an Applebee’s restaurant. In this transaction, the purchaser proved to be the tenant, a regional Applebee’s franchisee, whom previously only had ownership of the leasehold improvements. In a typical ground lease scenario, a tenant leases the land from an independent party and then performs their own construction, retaining ownership of all improvements during the duration of the ground lease. The purchase decision from the tenant was made in order to afford future flexibility for their corporately owned real estate.
Patrick Nutt, Managing Director and Michael Zimmerman, Vice President of Calkain Realty Advisors, the private market division of Calkain Companies, along with Scott Tarbet of Atlanta, GA based RCG Ventures worked together to facilitate these transactions. Nutt commented, “The Krystal’s transaction was a pretty straight forward sale lease-back. Given the limited supply of quality net lease properties today, when a highly desirable bite-size deal like this comes up, it trades quickly.” Nutt Continued, “The Applebee’s transaction was a bit unique, as the tenant traditionally performs sale-leasebacks to fund expansion and replenish working capital. Leasehold improvements are a less liquid ownership structure, therefore spending the money to purchase the ground lease position ultimately generated a greater return through increasing the value of their leasehold position.”
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.