Sands Investment Group (SIG) announced today they have closed escrow on the final asset in a “trophy” Albertsons portfolio. SIG Managing Director, Daniel Hoogesteger, and SIG Advisor of Capital Markets, Andrew Chana, were co-brokers on the portfolio, leveraging their specialized expertise in the net lease grocery market and tapping into their extensive network of investors to achieve record-breaking prices and cap rates on this rare grocery portfolio in California.
“This Albertsons portfolio was the largest to hit the California market in recent years, and it was a very significant assignment from a well-established institution and development company,” said Hoogesteger.
The Albertsons portfolio was comprised of 18 prime grocery locations in California. The locations ranged from coastal real estate to central locations in dense development areas. Each property included an initial 20-year net lease with established tenants and six rent increases over the term of the lease, all guaranteed by the Albertsons Corporation.
“In today’s market, it’s rare to find intuitional-level, trophy net lease locations with 20-year lease terms. This portfolio was a generational opportunity because you just don’t see these kinds of assets come to market in California very often,” Chana stated.
Sands Investment Group was instrumental in helping the seller achieve record-breaking prices in the Albertsons portfolio. Hoogesteger and Chana were able to bring in multiple buyers on the deal, which drove competition and pricing up to the aggressive level they were confident they could achieve. Their broad network of buyers includes 1031 Exchange buyers, REITs, foreign capital, and family office money.
“The higher the price point, the smaller the buyer pool. Bigger firms that represent institutional sellers aren’t always able to capture the highest paying buyers because they have a small bench of buyers to go to,” said Hoogesteger. “We have one company, one collaborative team, and a centralized database of investors that gives us access to a much larger pool of buyers,” added Hoogesteger.
“It’s another case study showing why Sands Investment Group is the fastest growing net lease investment company in America,” said Chana.
Sands Investment Group is commercial real estate brokerage firm that specializes in the buying and selling of net lease properties for private investors and institutions across the United States. With over 1,700 transactions in 48 states (to the tune of $4 Billion) since 2010, Sands Investment Group is the fastest growing net lease investment company in America.