The 12,500-square-foot Trader Joe’s store building in Brookfield has been sold to a California-based private investment firm for $4,782,609, or $382.61 per square foot, according to Northbrook, Ill.-based The Boulder Group, which brokered the deal for the seller.
The building sold for a 5.75 percent cap rate, which is the lowest cap rate transaction for a free-standing Trader Joe’s store this year, according to The Boulder Group.
“Trader Joe’s is one of the only private companies that is able to achieve a cap rate below 6 percent, due to their unique business model and historically high gross sales per square foot,” said Randy Blankstein, president of The Boulder Group.
“Activity for this asset was above average as grocery related single tenant assets in major markets are in the greatest demand,” said Jimmy Goodman, partner of The Boulder Group.
The Trader Joe’s store opened earlier this month at 2705 W. Bluemound Road, Brookfield, as part of Minneapolis-based Ryan Cos.’ Underwood Crossing development. The Trader Joe’s store is located on a 1.8-acre outlot in front of a Target store. The Trader Joe’s store has a primary lease term of 10 years.