The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, recently completed the sale of a single tenant Trader Joe’s grocery store in the Milwaukee MSA in Brookfield, Wis., for $4.78 million. The single tenant Trader Joe’s asset sold for a 5.75 percent cap rate, which is the lowest cap rate transaction for a freestanding Trader Joes in 2012.
Trader Joe’s is the sole occupant of the 12,500-square-foot retail building that was developed in 2012 as an outparcel to a new Target. The property is located on a 1.80-acre parcel in Underwood Crossing, a newly constructed Target-anchored shopping center in Brookfield.
Trader Joe’s is a privately held chain of specialty grocery stores with more than 375 locations in 31 states. The company is owned by a trust set up by Theo Albrecht, a founder of German grocery chain Aldi. The newly developed Trader Joe’s has a primary lease term of 10 years.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller, a Midwest-based private developer, in the transaction. The buyer was a California-based private investment firm.