Recently Sold - CVS Pharmacy, Zapata, TX
Thomas Company is pleased to announce the recent sale of a CVS Pharmacy located in Zapata, Texas. The asset was structured with long-term fixed-rate CTL financing. The transaction underscores the market’s ongoing demand for zero-cash-flow product. The buyer was attracted to the flexible nature of the investment structure to fulfill their specific exchange constraints and the easily assumable financing.
Key Highlights
- ZERO-CASH-FLOW STRUCTURE: Long-term, easily assumable, fixed-rate CTL financing.
- MANAGEMENT-FREE OWNERSHIP: The Tenant has executed a 25-year bondable net lease (NNNN) with no Landlord responsibilities whatsoever. The Tenant is responsible for all management and maintenance of the asset.
- PASSIVE LOSSES: The property provides the owner with significant passive losses (depreciation and interest expense) to help offset unsheltered cash flow from other real estate investments.
Recently Sold - Intuit Office Campus
Thomas Company is pleased to announce the recent sale of a Class-A Office Campus leased to software company Intuit (NASDAQ: INTU, S&P: A-) on a long-term basis. The campus is located approximately 10 miles northwest of downtown Boise in Eagle, Idaho – an affluent Boise suburb and one of the fastest-growing submarkets of the Boise MSA. With its blossoming population, Eagle has seen the formation of new communities and new custom-built housing. Eagle also boasts one of the lowest vacancy rates in the Boise MSA for commercial office property.
The purchaser owns several other similar assets and was in a 1031 exchange and motivated by the opportunity to acquire a core-quality asset for a long-term hold.
Highlights
- Tenant Site Commitment Demonstrated by Campus Expansion
- Robust High-Growth Boise Market
- Brand New World-Class Construction
- Premier Investment-Grade Credit
- Attractive Annual Rent Increases
Recently Sold - Gateway First Bank Office Headquarters
Thomas Company is pleased to announce the recent sale of a Class-A Office Headquarters leased to Gateway First Bank on a long-term basis. The Property serves as Gateway’s corporate headquarters, housing its executive offices, administrative department, loan servicing for both the bank and mortgage divisions, human resources, retail banking, risk management, and technology department.
Gateway is a Tulsa, Oklahoma-based financial institution that provides banking and mortgage services for individual and commercial customers. Established in 2000 as Gateway Mortgage Group, the company has grown to more than 1,600 employees with operations in 43 states, including 165 mortgage centers. In 2020, Gateway reported total assets of approximately $2.19 billion and net income of approximately $107 million. Gateway First Bank was formed as the result of a merger between Gateway Mortgage Group and Farmers Exchange Bank in 2019.
The property closed as an off-market transaction.
Highlights
- Long-Term Passive Ownership
- Mission-Critical Facility
- Strong Private Credit
- Attractive Rent Increases
Recently Sold - Off-Market CVS, Portfolio
Thomas Company is pleased to announce the recent sale of a four-property CVS retail portfolio – locations in Whitehall, PA, North Reading, MA, Mt. Pleasant, SC and Hardeeville, SC. The portfolio totaled approximately 49,400 square feet. The transaction was for the leasehold interest, meaning only the building’s improvements were sold. The long-term in-place leases and investment-grade credit of the tenant allowed the buyer to create an attractive debt product. This allowed the buyer to maximize LTV, replace a significant amount of debt from their exchange, while generating a higher yield than on a fee simple acquisition.
Highlights
- MANAGEMENT-FREE OWNERSHIP: The Tenant recently executed 19-year absolute net leases (NNN) with no Landlord responsibilities whatsoever. The Tenant is responsible for all management and maintenance of the asset.
- LEASEHOLD INTEREST: The transaction was for the leasehold interest only, allowing the buyer to depreciate 100% of their cost basis.
Recently Sold - ProHealth Care, INC. HQ
Thomas Company is pleased to announce the recent sale of a Class-A Office Headquarters leased to ProHealth Care, Inc. on a long-term basis. The 112,000-SF building features a spacious lobby with 12-foot-high ceilings, several collaborative and meeting areas, a garden-level cafeteria, an executive wing, an 18-inch raised floor data center. The tenant had recently signed a long-term lease extension.
ProHealth Care, Inc. is the largest health care provider between Milwaukee and Madison. The community-based health care system has approximately 4,700 employees and 1,000 doctors who treat more than 400,000 patients a year. ProHealth Care provides health care services to southeastern Wisconsin through a network of three hospitals (Waukesha Memorial, Oconomowoc Memorial, and the Rehabilitation Hospital of Wisconsin), about 15 clinics, assisted living facilities (Regency Senior Communities), a rehabilitation partnership, home health care services, and a hospice facility.
The property closed as an off-market transaction. The buyer was in a 1031 exchange and Thomas Company sourced the opportunity based on the buyer’s requirements.
Highlights
- Long-Term Passive Ownership
- Investment-Grade Credit
- Annual Rent Increases
- Milwaukee MSA
- Mission-Critical Facility
Recently Sold - CVS Richmond, TX
Thomas Company is pleased to announce the recent sale of a single-tenant CVS in Richmond, TX. The property totaled approximately 14,700 square feet and was listed at $6.2 million. The asset closed escrow just 10 business days after the LOI was submitted. This transaction underscores the straightforward loan assumption process, speed of execution, and surety of closing associated with zero-cash-flow investments. The buyer was attracted to the Houston MSA location, CVS credit, and the flexible nature of the investment structure to fulfill their specific exchange constraints.
Highlights
- ZERO-CASH-FLOW STRUCTURE: Long-term, easily assumable, fixed-rate CTL financing.
- MANAGEMENT-FREE OWNERSHIP: The Tenant has executed a 25-year bondable net lease (NNNN) with no Landlord responsibilities whatsoever. The Tenant is responsible for all management and maintenance of the asset.
- PASSIVE LOSSES: The property provides the owner with significant passive losses (depreciation and interest expense) to help offset unsheltered cash flow from other real estate investments.
Recently Sold - CVS Springfield, MA
Thomas Company is pleased to announce the closing of CVS retail asset in Springfield, MA. The list price was $4.42 million. The transaction was for the leasehold interest, meaning only the building’s improvements were sold. The investment-grade credit of the tenant allowed the buyer to maximize LTV, replace a significant amount of debt from their exchange, while generating a higher yield than on a fee simple acquisition.
Highlights
- MANAGEMENT-FREE OWNERSHIP: The Tenant recently executed a 19-year absolute net lease (NNN) with no Landlord responsibilities whatsoever. The Tenant is responsible for all management and maintenance of the asset.
- LEASEHOLD INTEREST: The transaction was for the leasehold interest only, allowing the buyer to depreciate 100% of their cost basis.
Recently Sold - CVS Portfolio
Thomas Company is pleased to announce the recent sale of two-property CVS retail portfolio – locations in Lakewood, WA and Waverly, OH. The combined list price was approximately $12.4 million. The assets were structured with long-term fixed-rate CTL financing. The transaction underscores the market’s recent uptick in demand for zero-cash-flow product. This was the buyer’s first zero-cash-flow transaction. They were attracted to the flexible nature of the investment structure to fulfill their specific exchange constraints and the easily assumable financing.
Highlights
- ZERO-CASH-FLOW STRUCTURE: Long-term, easily assumable, fixed-rate CTL financing.
- MANAGEMENT-FREE OWNERSHIP: The Tenant has executed a 25-year bondable net lease (NNNN) with no Landlord responsibilities whatsoever. The Tenant is responsible for all management and maintenance of the asset.
- PASSIVE LOSSES: The property provides the owner with significant passive losses (depreciation and interest expense) to help offset unsheltered cash flow from other real estate investments.
Recently Sold - 7-11, White Plains, MD
Thomas Company is pleased to announce the recent sale of a Research & Development/ Manufacturing facility leased to Merit Medical Systems, Inc. in Pearland, TX. The property totaled approximately 95,500 SF and closed as an off-market transaction. The buyer was attracted to the asset due to the long lease term in place, strong credit profile of the tenant, and appealing Texas location.
Key Highlights
- Long-Term Passive Ownership
- Annual Rent Increases
- Houston MSA
- Mission-Critical Facility
Recently Sold - Merit Medical, Houston, TX
Thomas Company is pleased to announce the recent sale of a Research & Development/ Manufacturing facility leased to Merit Medical Systems, Inc. in Pearland, TX. The property totaled approximately 95,500 SF and closed as an off-market transaction. The buyer was attracted to the asset due to the long lease term in place, strong credit profile of the tenant, and appealing Texas location.
Key Highlights
- Long-Term Passive Ownership
- Annual Rent Increases
- Houston MSA
- Mission-Critical Facility