Dealmaker: Boulder Group Arranges $20M Grocery Property Sale

Net leased investment brokerage form The Boulder Group, Wilmette, Ill., sold a single-tenant net leased Pick ‘n Save property in Milwaukee, Wis. for $20 million.

Pick ‘n Save, Milwaukee, Wis.

The 120,000-square-foot Pick ‘n Save property is positioned within a well populated retail area. Tenants around the property include Starbucks, Domino’s Pizza, U.S. Bank, Dunkin’, McDonalds and Napa Auto Parts. More than a quarter-million people live within five miles of the property and earn an average annual income exceeding $68,000.

Jimmy Goodman and John Feeney of The Boulder Group represented both the private real estate company buyer and the seller, a Milwaukee-based real estate investor in the transaction.

The Pick ‘n Save property comes with a corporate guaranty from Kroger and has more than eight  years remaining on the primary lease. Roundy’s, a Kroger subsidiary, operates 153 supermarkets and 99 pharmacies throughout Wisconsin and Illinois. Kroger ranked third in sales of all grocery retailers last year.

“The market for standalone grocery properties remains active due to their built-in customer base,” Goodman said.

Feeney noted investors will often pay a premium for grocery stores with a strong sales history.