Double Net Leased Kohl’s Sold
STOUGHTON, MA—An 88,408 square-foot Kohl’s, located at 501 Technology Center in Stoughton, MA, has been sold for $20 million, GlobeSt.com has learned EXCLUSIVELY. The double-net leased property, which has 11 years remaining on the lease, sold at a 6.22% cap rate.
RK Funding bought the property, while it was sold by Stoughton Marketplace DST. The transaction was arranged by Ryan Barr and Ryan Bennett, principals of Lee & Associates—North San Diego County and founders of Barr & Bennett Net Leased Investment Group.
Barr: “You don’t see too many credit worthy, double-net-leased assets in the Northeast, especially in large MSAs.”
The opportunity to buy such an asset is unusual in the market, Barr tells GlobeSt.com. “It’s rare; you don’t see too many credit worthy, double-net-leased assets in the Northeast, especially in large MSAs like Boston.”
He continues, “This was an ideal transaction. The buyer, who was secured from the Barr & Bennett Net Leased Investment Group’s proprietary database, paid in all cash and closed escrow in 35 days.”
Notes Bennett, the buyer plans a long-term hold on the property. “It was a perfect fit for them. RK, which is based in Boston, already owns several assets in the area so it’s well versed in Stoughton. Being along the interstate, the area attracts commuters so it’s an appealing suburb. And the credit of the tenant was an attractive piece to the buyer.”
Bennett: “The credit of the tenant was an attractive piece to the buyer, who is well versed in the area.”
Market conditions also were conducive to the transaction, notes Barr.
“The seller, Stoughton Marketplace DST, sold the property because of optimal market conditions for an asset like this with term remaining,” he says. “The rent, of approximately $13 per square foot, was fair to what the asset is.”