Millennium Properties assists in purchase of net leased Walmart in California for $13.5 million

CHICAGO, Dec. 18, 2018 /PRNewswire-PRWeb/ -- 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.

A leading real estate brokerage and asset management firm, Millennium Properties R/E, Inc. was founded in 1996 and has completed more than $4.3 billion in sales. Millennium Properties manages retail, apartments, office and industrial space throughout the Chicagoland area. The firm also provides a number of other real estate related services, including receiverships, live and sealed-bid auctions, consulting and construction management.

Founded by Tony Fox in 1999, ADF Capital, Ltd. is boutique real firm specializing in redeveloping mixed-use neighborhood properties in Chicago, as well as an investing in net leased properties nationwide. Since 1999, ADF Capital has added value to numerous properties around the Chicago area and has focused on theater properties the last several years. ADF has a proven track record of acquiring properties in outstanding locations and providing its investors with well above average returns.

SOURCE Millennium Properties