February 4, 2019— The Boulder Group, a net leased investment brokerage firm, has completed the sale of a single tenant net lease TCF Bank located at 200 25th Ave S in St. Cloud, Minnesota for $3,100,000.
The net lease TCF Bank property is strategically located at the corner of a signalized intersection in a dominant retail corridor of St. Cloud. Retailers in the immediate area include Walmart Supercenter, Menards, Home Depot, Kohl’s, Dick’s Sporting Goods & Crossroads Center which is anchored by Macy’s, JCPenney, Sears and Target. The property is also near St. Cloud State University, one of the largest universities in the state with more than 14,000 students. Additionally, there are over 100,000 people living within five miles of the property. TCF Bank has strong deposits of $86 million.
Randy Blankstein and Jimmy Goodman of The Boulder Group represented the seller in the transaction; a Midwest based devolper. The purchaser was a 1031 investor.
The newly constructed TCF Bank features a drive-thru and has excellent visibility along both 25th Ave S and Roosevelt Road (21,412 VPD) and is adjacent to a newly constructed Tim Horton’s. TCF Bank was rebuilt on a site that they have successfully operated for over 20 years. There are approximately eight years remaining on the TCF Bank lease which expires June 30, 2026. The lease features a 7.5% rental escalation in 2021 and in each of the four renewal options. The lease is absolute NNN with zero landlord responsibilities.
“The market for banks remains active for locations with strong deposits” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “New construction properties leased to investment grade tenants are the most sought after net lease product for private buyers.”