Mid-America Real Estate Corporation’s Net Lease Investment Group recently announced the net lease sale of a 15,120-square-foot freestanding Walgreens building in Port Huron, Mich.
The double net lease sold for $3.96 million to a private Michigan-based company headed by an investor in China. According to Mid-America broker Bill Wright, whose firm was the exclusive representative for the seller, Ohio-based DDR, the purchase was unique in that the buyer chose to expand her investment portfolio for the first time into the commercial net lease market, which seems to be representative of a developing trend among investors at home and abroad.
“The buyer wanted to diversify her portfolio to include real estate and made her first net lease investment that also benefits the Detroit-area real estate market,” said Wright. “This deal exemplifies how investors around the world are focusing on diversifying their portfolios into net leases like this one, rather than solely investing in the stock market, for example.”
Wright said that these new net lease investors are looking for national retailers with good credit, and this type of real estate transaction offers that. “And because the Port Huron market is a major international link between the U.S. and Canada via the Blue Water Bridge, it’s a solid market to invest in,” he added.
The Walgreens building was constructed in 2000, and is located on 1.59 acres. The primary lease term for the building is for 20 years, with eight-and-a-half years remaining, and there are no rent escalations.
Bill Wright and Ben Wineman of Mid-America Real Estate Corp., in cooperation with Daniel Stern of Mid-America Real Estate Michigan Inc., comprised the Mid-America team that represented the seller.