Just Sold: Chili’s in Miami, FL

Ground + Space today announced the sale of a Chili’s Bar & Grill property in Miami, Florida. Michael Zimmerman exclusively marketed the property, which generated multiple offers and was sold to an all-cash buyer. This corporate-guaranteed asset is a prime example of a stable, income-producing property that requires no landlord maintenance for ease of ownership.

Single-tenant, net-leased properties like this one continue to attract the most attention from investors. As the retail property market works to rebound from the difficulties of the COVID-19 pandemic, investors are targeting assets with minimal near-term risk. This Chili’s Bar & Grill Ground lease fit the bill perfectly, thanks to its scheduled rental increases, long-term lease and new construction.

This Chili’s Bar & Grill restaurant is new a newly constructed outparcel within Coral Reef commons, a new mixed-use development anchored by Walmart. At least 900 residential units are planned as part of the project’s multiple development phases, which will considerably increase foot and vehicle traffic to the site. The property sits at a highly visible corner site facing Southwest 152nd Street. Florida’s Turnpike—a major east-west thoroughfare—is less than one mile away. Visitors to the site have immediate access to Zoo Miami and the heart of downtown Miami just 20 miles away.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. During these uncertain times, Ground + Space remains dedicated to providing best-in-class services and results to our clients. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. Contact us today to find out more!


Just Sold: CVS in Hagerstown, MD

Ground + Space recently announced the sale of a CVS Pharmacy property in Hagerstown, Maryland. Michael Zimmerman exclusively marketed the property, which received multiple offers. JRW Realty facilitated the all-cash acquisition of the net-leased property on behalf of ExchangeRight, a vertically integrated real estate company with over $3.8 billion in assets under management. This asset produced a superior cap rate and was sold within one percent (1%) of the original asking price.

This corporate-guaranteed STNL asset has been in place at this location since 1998. The tenant recently extended the NN lease for an additional 20 years, signaling a strong commitment to the site and the greater Hagerstown community. The property benefits from its position at a signalized intersection near two of the area’s major shopping destinations: Hagerstown Premium Outlets and Valley Mall.

In addition to its exceptional access and visibility, this CVS Pharmacy is located within one of the fastest-growing metropolitan areas in the United States. More than 96,000 people live within five miles of the property. The area includes a labor force of 400,000 highly-skilled workers at the crossroads of the Mid-Atlantic corridor.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. During these uncertain times, Ground + Space remains dedicated to providing best-in-class services and results to our clients. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. Contact us today to find out more!

About JRW Realty

JRW Realty is a commercial real estate brokerage firm that has closed over $2.7 billion in transactions across over 750 properties on behalf of its clients. JRW Realty’s team places special focus on due diligence, reviewing over 100 properties each week and only choosing to source for clients the best three to four percent (3-4%) according to their rigorous acquisition criteria. For more information, visit www.jrwrealty.com.

About ExchangeRight

ExchangeRight pursues its passion to empower people to be secure, free, and generous by providing REIT, fund, and 1031 DST portfolios that target secure capital, stable income, and strategic exits. The company strategically acquires and manages long-term, net-leased assets backed primarily by investment-grade corporations that successfully operate essential businesses in the necessity-based retail and healthcare industries. Please visit www.exchangeright.com for more information.


Good News: Retailers Grow Despite Pandemic

Economists expect retail sales to increase approximately 1.9 percent this month. While any increase is good news, it’s a significant drop off from June’s increase of 7.5 percent. Not all hope is lost, however, at least not for some major retail tenants. Today, we take a look at some of the retailers who are making moves and shattering records, even amidst a global pandemic.

7-Eleven

7-Eleven recently entered into a definitive agreement with Marathon Petroleum Corp. (NYSE: MPC) to purchase the Speedway convenience store chain for $21 billion in an all-cash transaction. The arrangement is expected to conclude in the first fiscal quarter of 2021 and includes a 15-year fuel supply agreement for 7.7 billion gallons per year associated with the Speedway business. This large-scale deal includes approximately 3,900 convenience stores. These additional stores will bring 7-Eleven’s retail footprint to roughly 14,000 locations throughout the United States and Canada.

At Home

At Home’s CEO recently told CNBC that the company has been slowly expanding its store count by roughly 20 percent per year over the past seven years. The home décor and furnishings retailer currently has 219 locations but may expand to as many as 600 thanks to record-breaking net sales in its second fiscal quarter. Thanks to its listing as an “essential retailer,” At Home boasted net sales of $515 million in its most recent quarterly filing. What’s behind the increase? At Home is a one-stop-shop for a broad range of home goods, and the store’s open, spacious layouts and the brand’s omnichannel platform allowed the company to easily accommodate COVID-19 regulations.

Chili’s and It’s Just Wings

Brinker International, Inc. (NYSE: EAT), the parent company of Chili’s and Maggiano’s, recently introduced a delivery only-service called “It’s Just Wings.” Since launching in late June, this concept is now on track to exceed $150 million in sales during its first year. So, how does It’s Just Wings work? Brinker International is utilizing what it calls “ghost kitchens”—restaurants with a delivery service instead of a dining room. The “ghost kitchen” concept involves setting up kitchens that only make food for customers who order online, through mobile apps or via third-party delivery services. Instead of using independent kitchen space, It’s Just Wings now operates using separate, dedicated kitchen areas in 1,050 of Brinker’s U.S. Chili’s and Maggiano’s restaurants. This new concept—along with the established pick-up and delivery services already in place under the Brinker International umbrella—have generated strong bottom-line results.

CVS and Publix

Both of these leading retailers have seen a marked increase in year-over-year sales. Both companies benefitted from their status as “essential retailers” during the COVID-19 pandemic. CVS Health Corp. (NYSE: CVS) reported a 35.2 percent increase of $634 billion in the company second fiscal quarter of 2020. The company’s net income also rose to $5 billion (a 48 percent increase). Although CVS plans to close 22 underperforming stores, the remainder of its locations have remained open since the pandemic was first declared a national emergency on March 13, 2020. Publix has also remained open throughout the pandemic. Within its second quarter earnings report, Publix announced that sales have increased by 21.8 percent. Publix estimates that its second quarter sales increased by $1.5 billion due to the pandemic.

Starbucks

Although Starbucks Corp. (NASDAQ: SBUX) saw a decline in U.S. comparable store sales during its third quarter, the company still opened 130 net new stores. This marks a five percent year-of-year unit growth. The company currently operates or licenses approximately 15,243 locations in the United States and 32,180 worldwide. As of late July, Starbucks has opened roughly 97 percent of all its company-operated stores, both in the United States and China. Temporary closures affected locations in airport and college and university locations within North America.

Navigating These Uncertain Times

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. We are committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

Stay Healthy and Safe

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.