Northbrook, IL- September 23, 2016 – (RealEstateRama) — The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant new construction CVS Pharmacy ground lease located at 2501 N. Field Street in Dallas, Texas for $14,890,000. The property sold at a 4.60% cap rate which is the lowest cap rate for a CVS sale in 2016 according to CoStar.
The CVS Pharmacy is located in the Victory Park area of downtown Dallas. Victory Park is a 75-acre mixed-use development surrounding the American Airlines Center, which is home to the Dallas Mavericks and Dallas Stars. Victory Park features more than 165,000 square feet of retail, restaurant and entertainment space, 621,000 square feet of Class-A office space, the 252-room W Dallas – Victory Hotel, more than 1,700 residential units and the Perot Museum of Nature & Science.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the buyer in the transaction; a southeast based real estate company. The seller was a Texas based real estate company which was represented by Landes Fairmont.
The subject CVS Pharmacy is one of the only single-story buildings in the Victory Park area, sitting a block east from American Airlines Center. There are more than $1.5 Billion in commercial projects under construction or planned within a mile radius of the subject CVS. More recently, Victory Park and Cinepolis USA, a luxury concept movie theatre, announced plans to open an eight-screen, 700 seat theater just steps away from the subject CVS. Future plans also include a multi-level, mixed-use space for residential and retail components as well as additional parking.
There are twenty-five years remaining on the CVS Pharmacy absolute triple net lease with a 7.5% rental escalation in year twenty-one. The CVS lease features six 5-year renewal option periods with 5% rental escalations in each. CVS is a publicly traded company with a market capitalization in excess of $104 billion CVS is an investment grade rated tenant with a Standard & Poor’s rating of BBB+.
“The property’s superior infill location within a core market allowed The Boulder Group to achieve an aggressive cap rate for this sale” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “While single tenant properties are selling in all types of locations; core markets, like Dallas, are at the forefront of investor demand.”