California buyer puts up all-cash offer in IRS-sanctioned 1031 transaction, deal takes just 28 days to close for still-under-construction tire outlet near Atlanta

LOS ANGELES March 6, 2018 – A California-based team from Colliers International, which has gained a national reputation for closing dozens of out-of-state transactions with record cap rates and prices on retail investment properties, has just notched one for the record books by negotiating the lowest-ever capitalization rate for any Discount Tire store in the United States.

With an aggressive but unidentified California buyer in tow, the team of Executive Vice Presidents Eric Carlton and Jereme Snyder negotiated a 4.4% capitalization rate on a still-under-construction (pre-sale) Discount Tire store in Alpharetta, Georgia, one of the fastest-growing suburbs of Atlanta. It is the lowest cap rate ever posted in the tire retailer’s history.

“In addition to the record cap rate, a lot about this market-maker transaction was unusual,” said Carlton. “The property is still being built, it is located on land with a rare 20-year absolute NNN ground lease, and the lead came from our own propriety database that we have built over the past decade. We continue to see robust demand from the California exchange buyer across the country, as Investors look to this product type for long term wealth preservation and growth.”

Not only did the two Los Angeles-based retail investment brokers, whose recent transactions have taken place in Tennessee, South Carolina, North Carolina, and Florida, among a half-dozen other states, post the lowest cap rate with this latest transaction, the deal sailed through escrow in just 28 days with no hang ups, a testament to the creditworthiness of the buyer and the reputation of the national credit tenant.

“Crossing state lines to make these deals is almost essential these days for any retail investment broker as opportunities in this strong economy present themselves in new, suburban locations,” added Snyder. “When we look for appropriate properties for our clients, whether they be exchange buyers or just average investors, we have to look outside of California because that’s where most of the well-priced opportunities are these days.”

About Colliers International Group
Colliers International Group Inc. (NASDAQ: CIGI) (TSX: CIGI) is an industry-leading real estate services company with a global brand operating in 69 countries and a workforce of more than 12,000 skilled professionals serving clients in the world’s most important markets. Colliers is the fastest-growing publicly listed global real estate services company, with 2017 corporate revenues of $2.3 billion ($2.7 billion including affiliates). With an enterprising culture and significant employee ownership and control, Colliers professionals provide a full range of services to real estate occupiers, owners and investors worldwide. Services include strategic advice and execution for property sales, leasing and finance; global corporate solutions; property, facility and project management; workplace solutions; appraisal, valuation and tax consulting; customized research; and thought leadership consulting.

Colliers professionals think differently, share great ideas and offer thoughtful and innovative advice that help clients accelerate their success. Colliers has been ranked among the top 100 global outsourcing firms by the International Association of Outsourcing Professionals for 13 consecutive years, more than any other real estate services firm. Colliers has also been ranked the number one property manager in the world by Commercial Property Executive for two years in a row.

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