German investor couple buys Regions Bank ground lease

BUYER: Hans Ullrich-Loeer and Eva Loeer, Winter Park

SELLER: Nelco Kennedy

PROPERTY: 4128 W. Kennedy Blvd., Tampa

PRICE: $3.7 million

PREVIOUS PRICE: $880,000, December 2003

LAW FIRM ON DEED: Godbold Downing & Bill PA, Winter Park

PLANS, DESCRIPTION:
German investors Hans Ullrich-Loeer and Eva Loeer purchased 0.84 acres at the corner of Kennedy Boulevard and South Krental Avenue for $3.7 million.

The land is leased to Regions Bank, which operates a 7,904-square-foot bank branch there.

The sale was done as part of a 1031 tax-deferred exchange. Regions Bank has more than 10 years remaining on a long-term ground lease. The purchase price equated to a payoff ratio based on income (capitalization rate) of 5.74%.

Jonathan Graber and Rafeal Wright of Franklin Street Real Estate Services represented the seller and Richard Fisher of Hold-Thyssen represented the buyers.

“The demand for long-term leases with investment-grade tenants such as Regions Bank is still very high,” Wright says in a press release. “We see the triple-net-lease market commanding low cap rates in the foreseeable future as interest rates stay low and bonds continue to produce lower returns.”