UNLOCK THE POWER OF THE VAULT

Restaurant Boom Feeds 1031 Investment Pipeline

June 26, 2017

Restaurant Boom Feeds 1031 Investment Pipeline

“People are shifting to e-commerce-resistant retail, and restaurants are at the top of the list of what people are looking for,” says Randy Blankstein, president of the Boulder Group, a net lease advisory firm.

June 14, 2017 | by Beth Mattson-Teig | National Real Estate Investor

Investors using 1031 exchanges continue to have a voracious appetite for triple net lease properties, and they are increasingly setting their sights on restaurants.

“People are shifting to e-commerce-resistant retail, and restaurants are at the top of the list of what people are looking for,” says Randy Blankstein, president of the Boulder Group, a net lease advisory firm. “So it has gone from a category that five years ago was considered specialty to very much a mainstream category that is getting a lot of interest from a lot of new players.”

Casual dining restaurants are trading at a slight premium compared to the retail sector as a whole, at 6.0 percent compared to 6.19 percent. That gap was even more pronounced a year ago, when casual dining restaurants were averaging cap rates of 5.75 percent, according to a June 2017 casual dining report released by The Boulder Group. However, a larger percentage of higher cap franchise-owned deals that have traded have pushed cap rates higher amid strong buyer demand.

Read Full Article Here

Print Friendly, PDF & Email
Go Back
Gregory De Jong, CFP, Co-Founder of Paragon Advisors, LLC.
July 7, 2015

Blue Vault is just what advisors need to size up the different offerings in the nontraded REIT market. Just as importantly, it’s what the industry needs to encourage best practices among REITs.