Hanley Investment Group Real Estate Advisors, a nationally recognized real estate brokerage and advisory firm specializing in retail property sales, announced that the firm has completed the sale of a single-tenant retail property in O’Fallon, Illinois.
Hanley Investment Group Vice President Jeff Lefko and Executive Vice President Bill Asher arranged the sale of a new construction single-tenant MedExpress Urgent Care ground lease at 1711 West Highway 50 in O’Fallon, Illinois. The lease had eight years remaining on the original lease term. Built in 2016 on 1.0 acres, the 4,700-square-foot freestanding building is located at the signalized Intersection of West Highway 50 and Castle Acres Drive, across the street from Home Depot, PetSmart, and Walmart Supercenter.
The seller, a private investor based in Missouri, was represented by Asher and Lefko, in association with Alex Apter of L3 Corporation, as the seller’s exclusive listing agents. The buyer, a private investor from Southern California, was represented by Helvetica Group based in San Diego, California. The sale price was $1,452,000, representing a cap rate of 5.85 percent, representing the lowest cap rate for a MedExpress Urgent Care in the United States (excluding Florida and Texas), according to CoStar Group.
According to Lefko, Hanley Investment Group procured a 1031 exchange buyer from California who purchased the property at list price. The buyer was sourced before the firm started formally marketing the property. Hanley Investment Group negotiated a 14-day due diligence and quick close. This transaction marks the fourth single-tenant MedExpress sold by Hanley Investment Group in the last 18 months.
“Despite rising interest rates, this sale highlights the continued demand for well-located, single-tenant, net-lease corporate-guaranteed properties,” said Asher. “Overall, historical values still remain at all-time highs for certain retail product types (i.e. core grocery-anchored, single-tenant net-leased, and multi-tenant pads) even compared to top of the market pricing in 2006-2007. However, it continues to be vital that assets are priced in accordance with the transitioning market if we’re to see transaction velocity increase moving forward.”
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