SOMERSET, Kentucky—December 18, 2014—Hudson & Hagan, LLC has purchased a single tenant building, occupied by CVS Pharmacy for $2,575,000. The ground leased building, located at 144 North Highway 27 in Somerset, Kentucky, had more than 17 years left in its lease with CVS Pharmacy at the time of the sale.
Ryan Barr and Ryan Bennett of Lee & Associates – North San Diego County represented both the buyer, procured from their own proprietary database, and the seller, Ikerd Management.
The local investor purchased the building in a 1031 tax deferred exchange with plans for a long term hold on the property. “The property was a perfect fit for the Hudson & Hagan, LLC, who wanted a hands-off, long term, absolute triple net lease property with the safety of investment grade credit”, said Bennett. “Currently, there is a high investor demand for single tenant properties that are leased long term to credit tenants. When you combine this with the current low interest rates and a lack of supply in the market place today, we continue to see cap rate compression. Ikerd Management chose to take advantage of the seller’s market we are in today, selling the property while it still had a long term lease with CVS and thus maximizing its value. In the end, the transaction benefitted both parties involved.”
Barr & Bennett Net Leased Investments, of Lee & Associates-North San Diego, specialize in the acquisition and disposition of single tenant net leased assets nationwide.