Dealmaker: Boulder Group Arranges $16M Movie Theater Sale
Tucker, Michael email@example.com
Net-leased investment brokerage firm Boulder Group, Northbrook, Ill., closed a single-tenant net-leased movie theater portfolio transaction for $15.9 million.
The portfolio included three long-term leased movie theaters with more than 16 years remaining. Coastal Cinemas, Creekside Cinemas and Spring Lane Cinemas occupy the three assets.
The absolute triple net leases included annual rental escalations and no landlord responsibilities, Boulder Group reported.
The portfolio included:The Creekside Stadium 10 in Mount Airy, N.C., The Spring Lane Stadium 10 in Sanford, N.C. and The Coastal Stadium 10 in Shallotte, N.C. Each of the properties is located in strategic retail locations with minimal competition in the surrounding trade areas, said Boulder Group President Randy Blankstein.
Blankstein said a high-net-worth individual purchased the assets in a 1031 like-kind exchange from an institutional investment firm seller. He and Boulder Group Partner Jimmy Goodman represented both parties in the transaction.Blankstein said the movie theater leases expire in January 2033 and feature 1.75 percent annual rental escalations throughout the primary term. The lease guarantor currently operates 25 theaters and 256 screens in New Jersey, New York Pennsylvania, West Virginia, Tennessee, North Carolina, South Carolina, Georgia and Florida.
"This portfolio offered the investor the opportunity to acquire three entertainment assets all in one geographic region" Blankstein said.
Goodman noted that theaters and other entertainment facilities offer investors attractive yields compared to typical investment-grade retail assets.