Michael Mintz Brokers Purchase of Net Leased Walmart for $13.5 Million

Millennium Properties R/E, a premier boutique brokerage and property management company, brokered the purchase of a net leased Walmart location in Palm Desert, CA for $13.5 million. Michael Mintz, vice president of Millennium Properties R/E, represented Tony Fox, president of ADF Capital, Ltd., in purchasing this asset.

The 45,648 square foot free-standing store was a build-to-suit location for Walmart that was completed in 2012. The property is designated in a Class A luxury location in the Coachella Valley near Palm Springs. Walmart has nine years remaining on the initial term of their lease, with several renewal options. This net lease deal has an initial unleveraged cap rate of 5.07%, which will increase in year four to 5.58%, with a leveraged return of over 6.0%.

“Our client was interested in locating a net lease investment with strong long-term fundamentals. Out of all the properties we looked at, this Walmart had the best return on investment as well as being in a prime location,” said Michael Mintz of Millennium Properties.

“We put together 18 entities in a complex 1031 trade and still have room for investors,” said Tony Fox of ADF Capital. “We are opening the syndication on January 1, and will be raising roughly $3,000,000. This is a rare opportunity to invest in a dependable cash flowing property with a top credit-rated tenant and upcoming rent escalations.”

Debora Ashen of Ashen Faulkner represented ADF Capital as legal counsel.