Colliers International in Greater Cincinnati recently completed the sale of three ground leases at the River’s Edge retail development in Milford, Ohio. The three lease transactions total nearly $2.4 million, and were completed in October and November.
Colliers International’s investment services group served as the exclusive advisors to the seller of the three assets. The Cincinnati investment team consists of Steven Timmel, Jeffrey Johnston and Christopher Prosser, all of whom are brokerage senior vice presidents.
The first transaction occurred with the sale of a Gold Star Chili ground lease that sold for $550,000 to a local investor. The 2,400-square-foot building was constructed in 2002.
This transaction was followed by the sale of a Red Robin ground lease for $1.2 million, or about $193.65 per building square foot. The 6,300-square-foot restaurant building was constructed in 2003 on 1.82 acres.
The last transaction was the sale of a Wendy’s ground lease for $628,000 to a private investor. The 3,200-square-foot building was constructed in 2002 and includes 47 surface parking spaces.
“This is a fairly consistent trend we are seeing across the country as investors, specifically smaller private investors, seek low risk real estate investments as a way to achieve returns on their investments,” said Prosser. “The returns you can achieve at a bank are anemic and ground lease or single tenant assets are a relatively low-risk investment for smaller investors.”
All three properties are located in close proximity to nearby retailers including Target, Super Wal-Mart and Rave Motion Pictures. The River’s Edge development is located in close proximity to Interstate-275, and provides easy access for consumers and high visibility from the interstate.