Jordan Shtulman, Principal of STREAM, commented about the sale that "the continued cap rate compression in the net lease market - particularly for high quality credit tenants under long term triple net leases
- enabled the seller to achieve a profit and avoid short term capital gains taxes.
The fund will also buy UCHealth ER of Littleton, Colorado, a recently completed freestanding building fully leased to theUniversity of Colorado Health (UCHealth) on a 20 year triple net lease
with seven five-year renewal options.
But there are some deals: Kunofsky completed a triple net lease
in a downtown retail condo for Chipotle, where the asking rent was $250 per s/f.
But the property had a particular quality that made it an appealing investment: a triple net lease
, in which the tenant pays property taxes, insurance and maintenance expenses, along with monthly rent, with 17 years remaining.
Currently, 696 West Avenue has a 17,000 s/f, 25-year triple net lease
with CVS and a 5,000 s/f double net lease with ShoeMart.