Recently Sold: CVS Pharmacy in Plantation, FL

At the beginning of September 2021, Ground + Space announced the sale of a CVS Pharmacy property in Plantation, Florida. Michael Zimmerman exclusively marketed the property on behalf of the seller, which received multiple offers and was sold to an all-cash buyer. This asset produced a superior cap rate (thanks in part to its extremely high rent-to-sales ratio) and featured a seven-day closing period.

Prime CVS Pharmacy Retail Asset

This corporate-guaranteed STNL asset has been in place at this location since 1996. The tenant recently exercised its second five-year option, signaling CVS’s long-term commitment to this site. The property boasts a drive-thru pharmacy—a sought-after feature due to COVID-19—and a MinuteClinic. Two options remain on the current lease, and there are no landlord responsibilities for ease of ownership.

Situated at the signalized intersection of West Broward Boulevard and North Job Hill Road, this CVS Pharmacy is across from Hawks Landing, one of South Florida’s premier luxury communities. Visitors to the site are also minutes from Westside Regional Medical Center and Westfield Broward, a shopping center anchored by Macy’s and Dillard’s.

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: 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.


Just Sold: Wawa in Vero Beach, FL

Ground + Space today announced the sale of a new Wawa property in Vero Beach, Florida. Michael Zimmerman exclusively marketed the property, which sold for the full asking price to an all-cash 1031 buyer. This listing garnered multiple offers thanks to the property’s strong corporate tenant and Wawa’s status as an essential retailer.

Wawa convenience stores are one of the most sought-after net lease investments on the market today. Wawa sites offer investors long-term security and no maintenance or management responsibilities thanks to a Ground lease structure. Wawa convenience stores are located on prime real estate, typically at hard corner locations with great visibility and ingress/egress. This particular Wawa location has full access via Old Dixie Highway and additional exposure on three main roadways. Although the area surrounding the property is mostly zoned for industrial use, visitors have easy access to Vero Beach Regional Airport and Disney’s popular Vero Beach Resort.

Situated along Florida’s Treasure Coast, this newly constructed Wawa sits within Indian River County, Florida’s seventh-richest county by per capita income. The average annual household income within just three miles of the site is nearly $85,000. Additionally, the area immediately surrounding this Wawa has seen a population boom, growing an average of around 18 percent within a five-mile radius over the past decade.

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: Sherwin-Williams in Gainesville, FL

Ground + Space today announced the sale of a Sherwin-Williams property in Gainesville, Florida. Michael Zimmerman exclusively marketed the property, which sold within two percent of the asking price in a 1031 transaction to an individual investor. This listing garnered multiple offers thanks to the property’s strong corporate guarantee and new construction within the larger Markets West master-planned development.

This property is a prime example of a stable, COVID-safe asset that requires minimal landlord maintenance. The NNN lease features a corporate guarantee and scheduled rental increases within each of the six extension periods. The Sherwin-Williams site has excellent visibility within one of Gainesville’s most densely populated residential districts. Centrally located between Newberry Road and Archer Road, the site has easy access to many nearby national retailers and restaurants, as well as busy Interstate 75.

Gainesville itself serves as the cultural, educational and commercial center of the North Central Florida region. Midway between Miami, Florida and Atlanta, Georgia, Gainesville has become a global business destination, attracting investment from around the world. As the home base for the University of Florida—one of the top research institutions in the nation—the Gainesville region offers numerous business advantages for companies both large and small.

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: SimonMed Imaging in Winter Park, FL

Ground + Space today announced the sale of a SimonMed Imaging property in Winter Park, Florida. Michael Zimmerman exclusively marketed the property, which sold within four percent of the asking price in an all-cash transaction. This listing garnered multiple offers thanks to the property’s strong corporate guarantee and the tenant’s status as one of the fastest-growing national physician practices in the country.

This property is a prime example of a stable, COVID-safe asset that requires no landlord maintenance. The NNN lease features a corporate guarantee, multiple five-year renewal options and scheduled 10 percent rental increases. The in-line concept is adjacent to a Wendy’s location that features a drive-thru lane. (Ground + Space successfully sold this property in an all-cash 1031 transaction in November 2020.) The site is less than one mile from the popular Park Avenue shopping district, the city’s new SunRail station and the Valenica College Winter Park campus.

SimonMed Imaging benefits from its prime location less than five miles from the heart of downtown Orlando, Florida. The city has long been a popular tourist destination, attraction more than 75 million people from around the globe in 2018 alone. Major attractions within easy driving distance from the site include Walt Disney World Resort, Universal Orlando Resort, SeaWorld Orlando and LEGOLAND Florida Resort.

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: The Tire Choice in The Villages, FL

Ground + Space today announced the sale of The Tire Choice in The Villages, Florida. Michael Zimmerman exclusively marketed the property, which sold within 2.5 percent of the asking price to an all-cash 1031 buyer. This listing garnered multiple offers thanks to the property’s strong corporate tenant and The Tire Choice’s status as an essential retailer.

This property is a prime example of a stable, income-producing asset that requires no landlord maintenance. The Tire Choice’s NNN lease features a corporate guarantee, multiple five-year renewal options and scheduled rental increases. The Tire Choice is conveniently located along a dense retail corridor that includes other national tenants like Publix, Walmart, Bealls, The Fresh Market and Red Lobster.

The Tire Choice benefits from an ever-growing consumer base as The Villages continues to grow in population and popularity. Forbes recognized The Villages as one of the “25 Best Places to Retire” in the United States for the second time in 2018, and The Villages was recently named the best-selling master planned community for the seventh consecutive year in 2020.

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!


Third Quarter STNL Report

In the days of coronavirus, it’s easy to become overwhelmed by all the bad news splashed across newspaper headlines, television chyrons and on social media. At Ground + Space, we strive to find the silver linings in even the most desperate of situations in order to provide our clients with a more comprehensive outlook on the economy as it relates to the commercial real estate sector. Let’s take a look at some of the major takeaways from the first few weeks of the third financial quarter of 2020:

STNL Properties are Poised for Success

Popular single-tenant net leased (STNL) properties include many essential retailers. Quick-service restaurants (QSR), auto parts stores like The Tire Choice, convenience stores, home improvement retailers and drugstore giants like CVS Pharmacy have all survived the COVID-19 pandemic relatively unscathed thus far. Not only are net-leased assets showing resilience in the face of a global pandemic, they are also properties that continue to attract capital in times of economic downturn.

What’s the secret to their success? Numerous national chains—like Wendy’s and McDonald’s—were aided by in-place drive-thru service, while more traditional restaurant chains and other brick-and-mortar essential retailers benefited from robust delivery, carryout and curbside pick-up platforms. Although many of these retailers reported a dramatic decline in foot traffic, those same retailers have seen profits soar as consumers increase the size of their receipts. Lowe’s and The Home Depot in particular set record highs for sales in the second financial quarter.

Power and Lifestyle Centers Outperform Expectations

Traditional enclosed shopping centers and malls have long been on the decline, but lifestyle and power centers have remained top of mind for both investors and consumers. The prevalence of essential retailers in these types of shopping centers—especially well-known grocery anchors like Whole Foods—has allowed operations to remain strong. In fact, only six percent of net absorption for the year thus far has occurred within this particular sector. A whopping 25 percent of newly vacant space has occurred at malls as retailers like GNC, Victoria’s Secret and Gap announced massive closures. As the market resizes, power and lifestyle centers will most likely attract both tenants and shoppers from malls as they begin to close for good.

Consumer Spending Begins to Recover

Although there has been little progress made regarding extending benefits from the original COVID-19 stimulus package, some segments of the country’s population have begun spending again. By June, many markets saw retail sales increases near pre-pandemic levels. However, only time will tell if this trend will continue into the third and fourth financial quarters. Several states have slowed or halted their reopening plans as new clusters of positive COVID-19 cases arise. If these trends continue, consumer confidence and, in turn, consumer spending, may decline yet again.

Ground + Space is Here to Help

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.

Stay Safe and Informed

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.


Coronavirus Update: State of the Market

The month of July shattered records for new coronavirus cases, hospitalizations and deaths. Unlike in the months of March and April, the epidemic is affecting both urban and rural areas in equal measure. The effects of social distancing, store closings and high unemployment have led to an economic downturn, which has impacted even the strongest segments of the commercial real estate sector.

Commercial Real Estate Prices Wane

As expected, prices for commercial real estate assets weakened in the second financial quarter of 2020. Properties with a smaller price tag (between $1-$4 million) fared better than their higher-priced counterparts, which saw a decline in activity of around 38 percent. Sales totals are also down when compared to previous years. However, this pricing weakness was not felt in every sector. The industrial sector was the only property type index to post gains. This is due in large part to the accelerated adoption of e-commerce, which has in turn supported industrial demand for warehouse space.

GDP Declines in Second Quarter

The United States saw the sharpest decline in its gross domestic product (GDP) in the second fiscal quarter of 2020 since the federal government began tracking this data in 1947. From April to June 2020, the GDP fell at an annualized rate of 32.9 percent. This was due in large part to the widespread shutdown measures imposed by governors across the country as COVID-19 began its resurgence.

To put things into perspective, the GDP only fell by 8.4 percent during the worst three months of what is now called “The Great Recession” in 2008. Economists expect GDP growth to return in the third financial quarter, but the rate is largely in question as more states are pausing or reversing their lockdown orders.

Retailer Spotlight: Wawa

Although the list of retailers filing for bankruptcy grows larger on an almost daily basis, some popular retailers are taking proactive steps to provide long-term solutions for a post-coronavirus world. One such retailer is Wawa. The Pennsylvania-based convenience store chain recently announced plans to build its first-ever freestanding drive-thru location in Township, Pennsylvania. This will be the brand’s first store focused solely on drive-thru and curbside pick-up services for its customers.

According to Terri Micklin, Wawa’s Director of Construction, the company hopes to “learn from the layout, workflow and traffic flow at this location” as Wawa explores multiple alternatives to its traditional store formats. At least one other Wawa property currently under construction—this one in Westhampton, New Jersey—will benefit from a drive-thru feature.

Ground + Space is Here to Help

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. Are you looking for advice on whether to sell one of your assets? Please contact one of our brokers for specialized guidance during this time.

Stay Safe and Informed

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.


COVID-19 CRE News: July Updates

Thanks to a surge of COVID-19 cases in new hotspots across the country, commercial real estate investment activity has slowed considerably. The Ground + Space team have been hard at work tracking the effects of the novel coronavirus on the commercial real estate industry, both in our home state of North Carolina and beyond. Below, we take a look at some of the top headlines from the first half of the month of July:

Decline in National Investment Activity

Owners and investors remain cautious regarding sales of retail assets. This trend has permeated markets across the country, especially those in fast-growing cities. Some locales that have seen steep drop-offs in commercial sales activity include Raleigh, Seattle, Nashville, Atlanta and even Washington, D.C. Historically, major markets such as New York, Miami, San Francisco and Los Angeles are the first to recover in terms of sales volume following economic downturns. That may not be the case this time around.

Any future increase sales activity will likely be tied to areas that can sustain recovery from both a public health and economic standpoint. There is a glimmer of hope on the horizon: Most markets around the country saw an increase in deal volume in the month of June. This could signal an uptick in deal velocity in the third and fourth quarters of 2020.

Retail Spending Increased in June

Retail sales in the United States rose approximately 7.5 percent in June. This is due to the increase in store openings across the country as retailers welcome back guests to their brick-and-mortar locations. In June and July, consumers have been spending more in four key sectors: automotive, clothing, furniture and electronics.

Although increased retail activity is a welcome harbinger of good news, continued recovery in this sector will be determined by the ability of cities and states to remain open in the face of rising COVID-19 infections. Something important to keep in mind: Despite this increase in activity, total retail sales for the second quarter of 2020 were still down by 8.1 percent.

Retailers Continue to Downsize Footprints

National retailers continue to downsize their retail footprints, and some have even turned to Chapter 11 bankruptcy proceedings for protection. New York & Company parent RTW Retailwinds is just one of many clothing retailers to join the likes of J.C. Penney, Brooks Brothers and Neiman Marcus in filing for bankruptcy.

Banking giant Wells Fargo recently announced a proposed $10 billion cut in annual expenses. This move will shrink the brick-and-mortar footprint of the nation’s third-largest bank substantially. In the short term, Wells Fargo plans to consolidate its brick-and-mortar locations, which would include not only bank branches, but field offices and corporate sites as well. The move comes as more and more Americans move to digital and mobile banking.

A Bit of Good News

While it’s disheartening to hear that many retailers are shutting their doors permanently, others have found a way to pivot their business models to align with recent events. One such retailer is Tropical Smoothie Café. Since March 1, 2020, the fast-casual café concept has opened 35 new locations. Additionally, the company has signed at least 103 new franchise agreements in 2020.

Chipotle is also looking to expand its footprint and plans to hire as many as 10,000 new employees during the next few months. The concept now has a presence in 32 states, and many of its new restaurants feature a drive-thru lane (dubbed “Chipotlane”). Chipotle expects that more than 60 percent of its new restaurants will feature this “Chipotlane”—a measure that will allow more locations to remain open during the pandemic.

Ground + Space is Here to Help

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 IRS 1031 tax deadline is less that one week away, so please contact one of our brokers for specialized guidance during this time.

Stay Safe and Informed

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.