KLNB RETAIL LEVERAGES INVESTMENT SALES DIVISION WITH LAUNCH OF SINGLE TENANT NET LEASE GROUP

WASHINGTON, D.C. (April 16, 2014) – KLNB Retail has announced the launch of its new Single Tenant Net Lease Group, an entity intended to work cooperatively with and leverage the company’s multi-tenant sales teams. Based out of the Washington, D.C. office of the commercial real estate brokerage firm, the Group is positioned to handle transactions on a national scope. It will be managed by Peter Snell, who has been named Director, as well as Rich Sillery, who will function as an Investment Associate.

The Single Tenant Net Lease Group was formed to provide advisory services for investment entities interested in the acquisition and disposition of single tenant net leased retail assets. These assets are traditionally comprised of retailers in free-standing buildings that are leased and occupied by a single user, such as the quick-serve restaurants, automotive parts suppliers, national banks and drug stores, among others. Leases are typically between ten and 25 years in length - with rent escalations built in - and represent excellent investment opportunities for institutions such as real estate investment trusts, life insurance companies and pension funds. Net leased, these assets provide an attractive investment to groups in tax-deferred 1031 exchange situations seeking management free assets.

Snell has overseen and transacted more than 100 separate single tenant net-leased assets over the past ten years, formerly worked in the investment sales unit of Marcus & Millichap, and also founded a single tenant net lease team while working with The Greysteel Company. Sillery specializes in the analysis of single tenant retail properties, tracking national net leased property trends and preparing market/tenant-specific evaluation; as well as assisting in business development and asset transactions. He also formerly worked at Marcus & Millichap and The Greysteel Company.

“KLNB Retail, which is comprised of more than eighty full-time commercial real estate professionals, and includes an extremely active investment sales team, offers the ideal platform to leverage existing relationships and expand our single tenant net lease capabilities on a national scale,” explained Peter Snell, Director of the new entity. “Last year was an extremely active one in the single tenant net leased sector, as investors continued to seek high-quality opportunities, particularly in premier markets such as Washington, D.C., New York City and California. All necessary fundamentals remain in place for the continuation of this healthy velocity in 2014.”    

Single tenant net lease investments are considered extremely viable and attractive alternative investments due to the assets traditionally stable and predictable returns, and its relative immunity from the fluctuations of real estate cycles. By its nature, occupants of such assets typically sign long lease terms and are highly likely to re-lease the space upon expiration of the base term. In addition, the investment can be custom-designed to match the particular investor’s risk-reward expectations, as specific tenant categories and profiles can be hand-selected.

KLNB, LLC is comprised of two operating divisions that include NAI KLNB, a division that focuses on the sale and leasing of commercial office, industrial and warehouse properties and represents the Baltimore/Washington, D.C./Northern Virginia metro area of NAI, a global network of real estate service providers serving 55 countries and 400 offices. The company also includes KLNB Retail, which specializes in the sale and leasing of retail properties as well as tenant representation. The full-service commercial brokerage and property management real estate services firm operates five offices including Towson and Columbia, Maryland; Washington, D.C.; and Brambleton and Vienna, Virginia.