Lantana, Florida, March 2, 2020 – Compass Commercial Real Estate facilitated the sale of a unique single-tenant net-leased Enterprise Rent-A-Car property on Lantana Drive in Lantana, FL. The purchase price of $1,200,000 represents a cap rate of 5.03% on current rent but will jump up to a 6.45% cap rate when Enterprise Leasing Company of Florida LLC, a wholly-owned subsidiary of Enterprise Holdings, enters into a new 10-year renewal term in October 2020.  

The 1,374-square-foot single-tenant building was built in 1983 on 0.23 acres. The site sits just 0.6 miles east of I-95 and is directly across from the under-construction Water Tower Commons and The Related Group’s brand-new 708-unit Town Lantana Luxury Apartments. The building was previously operated as an auto sales lot by the Seller but has been serving as an Enterprise Rent-A-Car location since the original lease was executed in 2000.  

Enterprise Rent-A-Car extended its corporate-backed triple-net lease with a 10-year extension. Most notable is the 38% rent increase that Enterprise agreed to pay during the extension period – a term that also carries rare 3.0% annual rent increases. Brad Kuskin of Compass negotiated lease terms on behalf of the Seller in unison with marketing the sale of the NNN property.  

According to Kuskin, the Lantana-based Enterprise Rent-A-Car is a strongly performing location for the world’s largest rental car company. Kuskin continued, “When establishing a NNN portfolio, many investors pass over freestanding Enterprise locations for higher-volume QSRs or direct to consumer brands. However, what many real estate investors fail to realize is that Enterprise dominates the off-airport rental car market, with direct insurance carrier contracts and a considerable portion of revenues generated from auto sales. Most notably, Enterprise locations are mostly non-franchised and corporately-backed by an extremely credit-worthy private corporation.” Enterprise is the largest rental car firm in the world, ranking number 15 on Forbes’s list of America’s Largest Private Corporations. If Enterprise were publicly traded, 2019 revenues would rate it at number 190 on the Fortune 500. Hertz is its next largest competitor, coming in at number 309 on the same Forbes list.

Kuskin represented the Sellers, Peter and Marissa Werner, based out of Jupiter, FL. The Buyer, MAR Property Management Group LLC, is headed by Michele Robbins, based in Wellington, FL, and was represented by Kuskin jointly with John DePhillipo of Compass.  

“We generated four offers within the first few days of marketing the NNN investment opportunity, and negotiated a short 20-day inspection period and 10-day closing on behalf of the parties,” said Kuskin. “We closed with an all-cash buyer looking to reallocate assets from California into Florida via a more extensive 1031 exchange. Kuskin and Compass Commercial worked with the Buyer on the overall 1031 Exchange investment strategy.  

Lantana is located in Southern Palm Beach County, and serves as the gateway to Palm Beach Island’s southern access bridge and is just 8 miles north of Delray Beach, FL. The small beach-side city is home to nearly 12,823 residents, a population that has increased more than 12.5% since 2010.  

The location draws from the over 99,627 residents within 3 miles of the site, with average household incomes exceeding $49,000, helping to ensure the long-term demand for auto rentals from this location. Other retailers in the Lantana Road commercial corridor include newly developed Aldi, Wawa, Costco, KFC, Domino’s, Chase Bank, McDonald’s, Dunkin’ Donuts, and Publix, amongst many new retailers opening across the street in Water Tower Commons, set to open late 2020. Click here to learn more about apartments in Palm Beach and South Florida.

About Compass Commercial Real Estate

Compass Commercial Real Estate is the commercial advisory arm of Compass Realty. Compass engages more than 12,000 agents who specialize in luxury homes and real estate investment strategies in upscale, coastal markets. Compass operates in 40 U.S. markets, including New York, South Florida, Boston, Washington D.C., Dallas, San Francisco, Chicago, Los Angeles, and Aspen. Compass works hand-in-hand with individual investors and institutional property owners in every facet of the real estate process to strategically formulate high-value transactions. For more information, visit