Friday, January 28, 2011
Wilmington, North Carolina - We have news on a unique Net Lease Properties transaction. This was a net lease property that was marketed as an opportunity to purchase a sparkling, brand new net lease investment with a net-lease corporately guaranteed by AT&T. Agree Realty Corporation was the investor who purchased this retail net leased property. This net leased property leased to AT&T is situated at the northwest corner of New Centre Drive and South College Road. The AT&T store was just recently constructed and opened in time for the Holiday season.
The newly constructed net leased property will replace the old AT&T location that was at 351 College Road. The new net leased property location is 314 S. College Road, in Wilmington, with the zip code 28403. AT&T wants to continue to expand on their services to the Wilmington, North Carolina community. This is a great retail market for AT&T. The commercial real Estate developer of the building reported that the building has a very coastal look with a modern stucco exterior. The Commercial Real Estate developer was considering building this net leased property with two stories but the tenant, AT&T wanted just one story. The new net leased property was built based on a LEED design with an upgraded storm water management system. Apparently the new AT&T net leased property is located in a flood prone area.
This relocation of the 351 College Road high-performing store is in the heart of Wilmington's retail district, and is very close to the University of North Carolina Wilmington. The University of North Carolina Wilmington has an enrollment of approximately 27,916. The new AT&T net leased property is also adjacent to a Verizon Wireless store at 318 College Road, in Wilmington. We are unaware if the net lease property buyer was able to assume existing Investment Property financing.
Agree Realty Corporation paid approximately $3.3 Million for this net leased property. The Net Lease Property was being marketed at approximately $3.5 Million at a 7% Cap Rate. The net lease site is approximately 32,551 Square Feet of an acre. The net lease building is 4,000 square-feet. The lease is NN (net-net) and the rent escalates by $5 per square-foot every 5 (five) years in this lease term. This net lease investment is approximately 3 miles from the Wilmington International Airport. The net leased property has a close proximity to tenants that include Lowe’s, Sam’s Club, Best Buy, Staples, Applebee’s, and our coffee hook up at Starbucks. The Average Daily Traffic Counts currently exceeds 60,999 (VPD) to benefit NNN Commercial Real Estate.
This net lease property corporately guaranteed by AT&T is in a thriving coastal community and tourist area. Reports have more than 57,000 people living within 3 miles. The Wilmington - Wrightsville Beach area has exploded recently with retail traffic, becoming one of the premiere vacation destinations in the North Carolina and the Southeast.
Wilmington is a city in New Hanover County and the county seat. This net lease property will benefit from a metropolitan area with an estimated population of over 343,000 people. Wilmington is located in the southeastern corner of North Carolina between the Cape Fear River and the bodacious Atlantic Ocean. The city has of the largest motion picture and television studios outside of Hollywood. Film production invariably plays an important role in Wilmington's dominance. Wilmington has an industrial base that includes electrical, medical, electronic and telecommunications equipment. They also thrive with clothing and apparel, food processing, paper products, and pharmaceutical business. Wilmington’s economy and local triple net lease properties definitely benefit from tourism, with its close proximity to the ocean which gives plenty to seafood lovers.
Some information on the net lease Tenant, AT&T Inc. (NYSE: T). AT&T Inc. is the seventh largest company in the US by total revenue. AT&T is currently the largest provider of local and long distance telephone services, and DSL Internet access. Also, AT&T is the second largest provider of wireless service in the United States, with approximately 85 million wireless customers, and more than 149 million total customers and growing.
In 2010, AT&T sat comfortably on the list of the 50 Most Admired Companies by FORTUNE magazine. AT&T Inc. was formerly known as SBC Communications Inc. and changed its name to AT&T Inc. in November of the year 2005. The name change of the net lease Tenant came as the result of a merger with AT&T Corporation. The parent company was founded in 1983 and is based in the great city of Dallas, in Texas.
Contact Net Lease Properties to sell your net lease properties, purchase NNN Property or 1031 exchange opportunities.
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