Investors Dig for Net Lease Gold
Think net lease, and deals for corner-located pharmacies and banks with drive-thrus come to mind. Schools, not so much. But net lease is a big tent, as shown by the recent sale of a 29k SF facility leased by Corvian Community School, a charter school in University City. Even though the property is 100% occupied by the school on a long-term lease with rental increases built in, it was a challenge finding a buyer comfortable with the deal, says Stan Johnson Co’s Zach Harris, who repped the seller--Charlotte-based RJS Properties--and the private buyer in the deal, along with colleague Brad Pepin.
Still, Zach and Brad did find a buyer, one who’d had experience in buying net lease properties leased to schools. "Investor appetite for net lease properties continues to be strong at a nationwide level, and the Charlotte area is no exception,” Zach tells us. “We’ve been involved in several net lease transactions in the Charlotte MSA in the past 12 months, representing both buyers and sellers. We expect additional net lease deals, as investor demand remains strong in this market."