Net Lease News

B+E Weekly Newsletter

March 12 – March 18, 2024

MARKET

NET LEASE COULD GET RELIEF UNDER TAX BILL

• The House has passed the Tax Relief for American Families and Workers Act of 2024 bill.
• The bill would restore 100% bonus depreciation retroactively for investments made since the end of 2022 and maintain 100% bonus depreciation until the end of 2025.
• There are some types of net lease properties like express car washes and combination fuel and convenience stores that can particularly benefit from this.

LARGE INVESTORS RETURN TO THE MARKET

• After a year in which transactions plummeted more than 50%, some institutional investors have reported they are now returning to the property markets.
• One factor that is facilitating sales is that sellers have come to accept that valuations are lower, likening the process to the five stages of grief with the market now reaching acceptance.

RETAIL

SHELL TO SELL 1,000 C-STORES BY 2026

• Shell has revealed plans to sell 500 company-owned retail sites around the globe both in 2024 and 2025.
• The divestitures will be part of Shell’s new multi-billion-dollar program to upgrade its retail network with low-carbon energy solutions, including a heavy focus on electric vehicle charging stations.
• Shell’s announcement that it will sell 1,000 stores by the end of 2025 comes as it continues to expand its company-owned retail footprint in the U.S.

DOLLAR TREE, FAMILY DOLLAR TO CLOSE 1,000 STORES

• Dollar Tree is planning to close 1,000 of its stores, primarily outlets operating under its Family Dollar brand, the company disclosed during an earnings call.
• The company plans to close 600 of its Family Dollar stores during the first half of this year. The firm also intends to close another 370 Family Dollar outlets and 30 Dollar Tree stores in coming years as leases expire.

BOJANGLES INKS DEAL TO OPEN 20 RESTAURANTS IN PHOENIX

• Bojangles announced the signing of a multi-unit development agreement that will bring 20 new restaurants to Phoenix, marking the next chapter of the brand’s expansion West.
• The growth will be led by operators, LVP Restaurant Group, LLC, an entity of LV Petroleum, in partnership with Kingsbarn Realty Capital, serving as real estate developer.
• This agreement is an extension of the group’s partnership with Bojangles, signing a multi-unit development agreement last year to bring 20 first-to-market restaurants to Las Vegas, and 10 non-traditional units in TravelCenters of America locations across the West.