Wednesday, October 05, 2016
DALLAS—Victory Park is a 75-acre mixed-use development surrounding the American Airlines Center, which is home to the Dallas Mavericks and Dallas Stars. It features more than 165,000 square feet of retail, restaurant and entertainment space, 621,000 square feet of class-A office space, the 252-room W Dallas–Victory Hotel, more than 1,700 residential units, and the Perot Museum of Nature and Science.
Within the Victory Park area, a CVS Pharmacy has recently sold at a 4.6% cap rate, which is the lowest cap rate for a CVS sale in 2016 according to CoStar. The buyer was a Southeast-based real estate company.
Net leased investment brokerage firm, The Boulder Group, has completed the sale of the single-tenant new construction CVS Pharmacy ground lease located at 2501 N. Field St. for $14.89 million. Randy Blankstein andJimmy Goodman of The Boulder Group represented the buyer in the transaction. The seller was a Texas-based real estate company which was represented by Landes Fairmont.
The subject CVS Pharmacy is one of the only single-story buildings in the Victory Park area, sitting a block east from American Airlines Center. There are more than $1.5 billion in commercial projects under construction or planned within a mile radius of the subject CVS. More recently, Victory Park and Cinepolis USA, a luxury concept movie theater, announced plans to open an eight-screen, 700-seat theater just steps away from the subject CVS. Future plans also include a multi-level, mixed-use space for residential and retail components as well as additional parking.
“Trophy net lease assets command a large premium in the current market,” Blankstein, The Boulder Group president, tells GlobeSt.com, “The supply is very limited of long-term leased investment grade tenanted properties located in infill locations within a major market.”
There are 25 years remaining on the CVS Pharmacy absolute triple net lease with a 7.5% rental escalation in year 21. The CVS lease features six separate five-year renewal option periods with 5% rental escalations in each.
“The property’s superior infill location within a core market allowed The Boulder Group to achieve an aggressive cap rate for this sale,” said Blankstein.
Written by Lisa Brown - Globest