CORFAC News

Sacramento, California (January 6, 2015) –TRI Commercial/CORFAC International President Tom Martindale, SIOR, announced today that Senior Investment Advisor Bob King, CCIM, from his company’s Roseville office represented the buyer, The Ichord Family, in the purchase of a 17,272-square-foot Rite Aid Pharmacy located at the hard corner of Twin Cities Road and Carillon Blvd. in Galt, California, for $7.17 million. The seller in the transaction was Carillon Corners, LLC.

Galt is a southerly suburb of Sacramento and the Rite Aid shares the intersection with a Subway, Papa Murphy’s, Anytime Fitness, Tractor Supply Company and a new Wal-Mart, all of which are located east of US Highway 99 on Twin Cities Road.

A double-net leased sale, King reports that the property traded at one of the lowest capitalization (cap) rates in the country for a corporately leased Rite Aid of comparable length and rent increases. The Galt Rite Aid sold at a 6% cap rate and Rite Aid is obligated to lease the building for 14+ years plus extension options with a 10% rental rate increase at year 11% and 5% rental increases in the option periods thereafter.

A double-net lease means that the property owner (landlord) has some responsibility for property maintenance that may include repair or replacement of the roof, exterior walls and structure, utility lines to the building and parking lot maintenance or replacement. By comparison, the more common triple-net lease (often using the symbol: NNN) indicates that landlords have some, though minimal, property maintenance requirements, such as paying for taxes, janitorial services and insurance. There is also an absolute triple-net lease in which the tenant bears all of the responsibility for property maintenance. The different leasing scenarios have an impact on the pricing during the disposition and acquisition of the property.

Rite Aid Corporation is a retail drugstore chain and Fortune 500 company that is traded on the New York Stock Exchange (ticker: RAD) and operates over 4,600 locations throughout the United States.

Bob King specializes in representing buyers and sellers of single tenant, net-leased (STNL) properties across the United States, as well as other types of commercial-investment real estate properties. King has most recently sold a corporate long-term ground lease to an investor in which the tenant in the deal is Lowe’s home improvement store. King also facilitated the sale of a corporately leased Jack in the Box in Sacramento, as well as many corporately leased IHOPs (International House of Pancakes) in cities including Weatherford, TX, Orange, CT and Stillwater, OK. King currently has listed for sale an O’Reilly Auto corporate triple net-lease with percentage-rent investment property in Sacramento, CA.

About TRI Commercial/CORFAC International
Founded in 1977, TRI Commercial/CORFAC International is a leading Northern California commercial real estate brokerage and property management firm specializing in San Francisco, East Bay and the Sacramento Metro property markets. The company has expertise in tenant and landlord representation services and helps clients buy and sell commercial and investment-grade property. The company serves office, retail, and land, multifamily and industrial property sectors, with offices in San Francisco, Oakland, Walnut Creek, Sacramento, Roseville and Rocklin. For more information, visit www.tricommercial.com or call 415.268.2200.

About CORFAC International
CORFAC International (Corporate Facility Advisors) is comprised of privately held entrepreneurial firms with expertise in office, industrial and retail real estate leasing and investment sales, multifamily property acquisitions and dispositions, property management and corporate services. In association with global affiliates, CORFAC International offers commercial real estate services with market reach in 48 countries worldwide. Founded in 1989, CORFAC firms completed more than 10,000 lease and sales transactions totaling approximately 400 million square feet of space valued in excess of $7.4 billion in 2014. For more information on the CORFAC network, visit www.corfac.com.