SIG Completes Three Grocery NNN Sales Totaling $28.6 M

In just over 12 months, SIG’s grocery focused team has completed approximately $100 million in sales

Santa Monica, CA, (November 19, 2015) –Sands Investment Group, (SIG), one of the fastest growing net lease firms in the nation, has announced the sale of a portfolio of three grocery stores located in Oklahoma, including a Harps in Grove, a Reasor’s in Jenks, and a Reasor’s in Bixby.

Dan Hoogesteger and Andrew Chana of Sands Investment Group’s Santa Monica office represented the seller in all three transactions to the buyer, Ladder Capital Finance LLC. The triple net sales include:

The $5.03 million sale of a 31,500-square-foot Harps grocery store located at 1310 S. Main Street in Grove, OK. Sold by WHLR-HPA-1, LLC, the Harps transaction was completed at a cap rate of 7.25 %. Built in 2012, the asset, located in the Harbor Point Shopping Center, provides a long-term lease of 17 years.

The $12.16 million sale of an 81,000-square-foot Reasor’s grocery store located at 446 S. Elm Street in Jenks, OK. Sold by WHLR JENKS LLC, the Reasor’s sale was completed at a cap rate of 7.5%. Built in 2012, the asset, providing a 17-year long-term lease, sits in a high traffic location adjacent to Creek Turnpike.

The $10.97 million sale of a 74,889 square foot Reasor’s grocery store located at 11116 S. Memorial Drive in Bixby, OK. Sold by WHLR-BIXBY COMMONS LLC, the Reasor’s sale was completed at a cap rate of 7%. Built in 2012, the asset, providing a 17-year long-term lease, sits in a high traffic destination location adjacent to a Lowe’s, Wal-Mart, Walgreens, Dollar Tree, Starbucks and more.

“Grocery stores provide a unique triple net opportunity.    They are less volatile as an asset to own since they provide for an ongoing daily need, so they are strong and stable investment opportunities,” Hoogesteger said. “However, in many cases, they are a higher price point than most triple net properties, so the buyers tend to be more institutional in profile.”

The team worked with the seller to best position the properties to a category of buyers who were most qualified, specifically REITs and institutional.  “We focused on buyers who would appreciate the regional brand appeal of these names. So we included Midwest and Southern buyers as well as institutional,” Hoogesteger added. The team’s strategy was successful creating a competitive bidding war amongst more than 10 offers.

At SIG, teams focus on product categories to provide the highest expert advice possible. Hoogesteger’s team specializes in big box grocery assets. In just over 12 months, the team completed approximately $100 million in sales representing approximately 10 retail grocery-anchored centers and/or single properties. “The industry appreciates the specialization. It’s why clients are coming to us – to benefit from that depth of knowledge and relationships,” said Hoogesteger.