Calkain Cos. Opens St. Louis Office to Capture Midwest Market

Calkain Cos. has opened an office in St. Louis, viewing the Midwest as a largely underserved market. The company has tapped broker Teal Henderson from its Tampa office to run the new location.

Saying the net lease brokerage market in the Midwest has been underserved, Calkain Cos. has established an office in St. Louis to handle deals in the region.

Teal Henderson, a broker with Reston, Va.-based Calkain for nearly three years in its Tampa office, was selected to run the St. Louis location.

“We felt she was a prime candidate to go there,” executive vice president David Sobelman told Commercial Property Executive. “She has some connections there, some family there and had already been doing some business there. So it was a nice fit.”

“Teal has been an integral part of Calkain’s growth and expansion; we’re very happy that she agreed to open our office in the Midwest,” added Jonathan Hipp, president & CEO.

“The Midwest market has been largely ignored by the triple-net lease investor pool, mainly due to lack of professionals focused on the area,” Henderson said. “As the macroeconomic outlook is improving in primary markets and with the inventory of prime assets still low, the Midwest is now seeing an uptick in investment-grade credit tenants seeking new markets that have the demographics to support the expansion.”

Sobelman said he expected much of the firm’s Midwest business to involve banks, restaurants and drug stores.

“Mainly because the population there wants those types of assets,” he said, adding that tenants are looking for expansion or to open new sites.

“We’re seeing more growth in those markets, and we’re seeing more and more tenants comfortable with building a brand-new building for themselves,” Sobelman added.

Calkain–which also has offices in Fort Lauderdale, Fla.; Bethesda, Md.; and Burlington, Mass.–specializes in assisting buyers and sellers with single- and multi-tenant retail, industrial, hotel and office net lease transactions.

“We feel the net lease properties, as a whole, are one of the most stable assets you can purchase in real estate,” Sobelman concluded. “They are providing a very stable return and most of the time above-market yield.”

Calkain is currently marketing two net-lease portfolios that have Midwest locations. Nineteen Circle K gas station/convenience stores with sites in Indiana, Ohio, Illinois and Iowa are being sold by the Canadian-based parent company, Alimentation Couche-Tard. Sobelman said Patrick Nutt is the lead broker on that listing, but Henderson’s presence in the Midwest market has helped with the marketing. Calkain is also the exclusive broker for a 10-property portfolio of corporate-based Fred’s Stores, a discount retailer with more than 700 locations. Illinois is one of the locations for the stores in the portfolio, along with Kentucky, Arkansas and Mississippi.