Single Tenant Net Lease Trader Joe’s Sold at Record Cap Rate

Northbrook, IL, November 27, 2012 –(– The Boulder Group, a net leased investment brokerage firm specializing in single tenant assets, has completed the sale of a single tenant Trader Joe’s in the Milwaukee MSA located at 2705 West Bluemound Road, Brookfield, Wisconsin for $4,782,609. The single tenant Trader Joe’s asset sold for a 5.75% cap rate, which is the lowest cap rate transaction for a freestanding Trader Joes in 2012.

Trader Joe’s is the sole occupant of the 12,500 square foot retail building that was developed in 2012 as an outparcel to a new Target. The property is located on a 1.80 acre parcel in Underwood Crossing; a newly constructed Target anchored shopping center in Brookfield, Wisconsin. The property is located along Bluemound Road, a primary east-west thoroughfare that experiences traffic volumes in excess of 41,000 vehicles per day. The regional trade area also features two regional malls, Brookfield Square Mall and Mayfair Mall, totaling over 2 million square feet featuring anchor tenants Macy’s, Sears, Bed Bath & Beyond and PetSmart. Brookfield is a well-populated area with approximately 250,000 people living within five miles of the subject property. Residents living within one mile of the subject property enjoy average household income in excess of $100,000.

Trader Joe’s is a privately held chain of specialty grocery stores with over 375 locations in 31 states. The company is owned by a trust set up by Theo Albrecht, a founder of German grocery chain Aldi. The newly developed Trader Joe’s has a primary lease term of ten years.

Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller; a Midwest based private developer, in the transaction. The buyer was a California based private investment firm.

“Trader Joe’s is one of the only private companies that is able to achieve a cap rate below 6%, due to their unique business model and historically high gross sales per square foot,” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “Activity for this asset was above average as grocery related single tenant assets in major markets are in the greatest demand.”

About The Boulder Group

The Boulder Group is a boutique investment real estate service firm specializing in net lease properties. The firm provides a full range of brokerage, advisory, and financing services nationwide to a substantial and diversified client base, which includes high net worth individuals, developers, REITs, partnerships and institutional investment funds. Founded in 1997, the firm has arranged the acquisition and disposition of more than $1.4 billion of net lease real estate transactions through several real estate cycles. The Boulder Group is headquartered in suburban Chicago. The company’s website address is