Anthem Chase Bank Branch sells for Over $700 Per Square Foot

Anthem Crossing Chase Branch

Hadden Schifman | Vizzda 

Florida-based Real Estate Investment Trust, National Retail Properties ($NNN), has sold a single tenant pad leased to Chase Bank for $3,534,000 or $785 per square foot. The buyers were a group of investors out of Chicago who financed the deal with $1,464,140 in new debt with Lakeside Bank. Located within the North Phoenix master-plan community Anthem at 39516 N Daisy Mountain Drive- the 4,500 SF bank branch was constructed in 2007 as an out-parcel of the “Anthem Crossing” neighborhood shopping center.

Drive-Thru Facilities

Kimco Realty and Barclay group originally acquired a larger 13+ acre site in 2004 for the future Fry’s anchored 130,870 SF shopping center. A lease was entered July 1^st, 2005, commencing July 26^th, 2005 for a 20 year term with JPMorgan Chase as tenant--expiring 2027--with four 5-year renewals. This branch was later sold on January 3^rd, 2012 to an affiliate of USAA Real Estate Company for $2,816,000 or $625.78 per square foot. USAA then sold property to NNN REIT on February 26^th, 2014 for $3,181,493 or $707 per square foot. The three prior sales dates, prices and relative appreciation are listed below: 

Sale Date	Sale Price	Appreciation
January 3rd, 2012	$2,816,000	NA
February 26th, 2014	$3,181,493	13%
July 11th, 2014	$3,534,000	11%

Net-leased deals such as this have proven to be an attractive investment given their credit rated tenants and the added security of real property. Jamie Medress of Marcus Millichap’s Net Lease Advisory Group adds that cap rates—a ratio of the income derived from a property divided by the purchase price—are at unprecedented lows. Few new single tenant buildings have been constructed in the last several years and the demand for low risk and high credit deals draws investors from around the Country. Mr. Medress can be reached here.

To Contact the Author:

Hadden Schifman – hadden@vizzda.com