OLIVE BRANCH, MS - The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a single tenant AutoZone ground lease located at 7322 Hacks Cross Road in Olive Branch, Mississippi for $1,075,000.
AutoZone is the sole occupant of the 7,008 square foot building located on a 40,843 square foot parcel. Olive Branch is located 23 miles south of downtown Memphis. The property was built in 2004 and is located one-half mile from Mississippi State Highway 302, which experiences traffic volumes in excess of 20,000 vehicles per day. Located in close proximity to the property are The Whispering Woods Hotel and Conference Center, the newest hotel and event space in northeastern Mississippi, and a recently constructed Walgreens.
The property is ground leased to AutoZone on a triple net basis with approximately seven years remaining. The lease has a 10% rental escalation in the primary term and in each renewal option period. AutoZone is a publicly traded company on the New York Stock Exchange (AZO) with a market capitalization of $15 billion. AutoZone is an investment grade rate company with a Standard & Poor’s rating of BBB and has over 5,000 stores nationwide.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a southeast based partnership. The purchaser was a 1031 exchange investor.
“The market for ground leases remains robust as these assets are in high demand among private investors.” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Properties leased to investment grade rated tenants with scheduled rental escalations like this AutoZone, will continue to be sought after as a hedge against inflation.”
About The Boulder Group
The Boulder Group is a boutique investment real estate service firm specializing in net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of more than $1.6 billion of net lease real estate transactions through several real estate cycles. In 2012, the firm was ranked in the top 10 companies in the nation for single tenant retail transactions by Real Capital Analytics. The Boulder Group is headquartered in suburban Chicago. The company’s website address is www.bouldergroup.com