CHARLOTTE—Demonstrating a continued hunger for triple net leased building transactions, a freestanding Denny’s and AT&T has traded hands. The 9,200-square-foot building sold for $5.6 million, or $603 per square foot.
Bryan Belk of Franklin Street Real Estate Services represented the seller, a private investor out of California. The buyer is a private investor from North Carolina who plans to hold the property long-term.
“Investors are willing to pay premier prices for high-quality real estate,” Belk tells GlobeSt.com. “This is our second two-tenant sale in the last week with corporate national tenants and an aggressive price per square foot of $603.”
Located at 8031 Concord Mill Boulevard in Concord, NC—a northern suburb of Charlotte—the freestanding building is across the street from the Concord Mills Mall. The triple net leased asset is also less than a quarter mile from Interstate 85 with more than 115,000 residents within five miles.
Quality credit tenants were part of the success of this transaction. AT&T is the largest provider of both mobile telephony and fixed telephony in the US, serving over 106 million mobile customers. Denny’s operates over 1,600 restaurants worldwide. The transaction included triple net leases with rental increases every five years and options to renew.
As for the bigger picture, Belk says corporate tenants continue to expand in Charlotte. The Southeastern city’s population base is also growing, attracting retailers and investors.
“Charlotte was not nearly as over built as some of the other Southeast growing cities like Atlanta,” Belk says. “We are starting to see some new construction in this market. Near the Concord Mills area, there have been several shopping centers built with others still in their construction phases. This is one of the most visited shopping centers in all of the Carolinas.” Download PDF