The Boulder Group, a net leased investment brokerage firm, completed the sale of a net leased c-store portfolio encompassing seven properties for $55 million.
The Boulder Group assisted an investor in acquiring seven c-store assets leased to credit worthy tenants such as 7-Eleven from multiple sellers. The investor’s goal was to take advantage of 100% bonus depreciation available in 2022. The properties spanned across four states. The transaction occurred in late December 2022.
“In facilitating this transaction, our client was able to acquire a high-quality portfolio of single tenant c-stores leased to creditworthy tenants and take advantage of the historic tax benefits associated with 100% bonus depreciation” said John Feeney, Senior Vice President of The Boulder Group. “This benefit is attractive to high net worth investors looking to shelter gains after a taxable event.”
Each of the properties were recently constructed and featured long term absolute net leases with rental escalations throughout the course of the leases.
The Tax Cuts and Jobs Act of 2017 introduced tax legislation that allowed taxpayers the potential to claim 100% bonus or first year depreciation when purchasing a qualified property. The full 100% bonus deprecation phased out at the end of 2022, however taxpayers still have the ability to depreciate to 80% in 2023. Properties including c-stores and car wash assets may qualify if they meet certain parameters within the Tax Cuts and Jobs Act of 2017.
John Feeney led the acquisition for the buyer process along with Randy Blankstein and Jimmy Goodman of The Boulder Group.
“Single tenant c-store properties continue to garner significant interest amongst private investors due to the strong credit that many operators in the sector posses” said Randy Blankstein, President of The Boulder Group. Jimmy Goodman, Partner of The Boulder Group, added, “While 100% bonus depreciation was phased out in 2022, the Tax Cuts and Job Act of 2017 still allows 80% bonus depreciation in 2023 for qualified properties.”
Company Name: The Boulder Group
Contact Person: Randy Blankstein
Email: Send Email
Address:3520 Lake Avenue Suite 203
Country: United States