Investment Highlights
Price: $3,778,000 - Cap Rate: 4.75%
- Excellent sales history
- New 20 yr. NNN lease on existing location (open since 1988)
- Next to a Walgreens & Kmart anchored shopping center
The NNN Market provides insight to the current NNN brokerage environment. I will highlight recent sales, market trends, off-market investment opportunities as well as discuss innovative idea's (technology) and how it's affecting commercial real estate.
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Low Rent per Square Foot - Rite Aid’s rental rate—at less than $12.00 per square foot—represents one of the lowest rental rates among recently sold and on the market Rite Aid properties. California Rite Aid properties (both on the market and recently sold) had rental rates ranging from $13.45 to $25.19.
Quality Real Estate with Great Tenant Mix - The prime location within the Brickyard shopping center reduces the likelihood of an extended vacancy period if Rite Aid decides not to exercise its renewal option. The well-known tenant mix adds to shopping center traffic and will attract potential new tenants.
Low Price per Square Foot - A sale at a 5.75% cap rate represents a price per square foot of $203, which can be easily justified when compared to other Rite Aid properties on the market.
Strong Demographics & Growing Neighborhood- The high average household income ($81,000 +) in the 3 mile radius of the Property, combined with a population in the 3 mile radius approaching 100,000, create excellent demographics. In addition, 30,000 to 40,000 new homes are planned in the area, which could add 120,000 new residents to the city.
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• PROPERTY HIGHLIGHTS
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– Extremely rare 2.5% annual rent increases
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– Corporate guaranty; $75B market cap
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– S&P AA- investment grade credit
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– Long term tenant - over 20 years
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– Considerable upside with no options to renew
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• LOCATION HIGHLIGHTS
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– Pad to newly renovated Ft. Wright Plaza (Christ Hospital Anchor w/ long term lease)
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– Just off I-75/I-71 with 144,000 VPD
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– $75,000+ average household income within 1-mile radius
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♦ Brand New 10-Year Corporate Lease with Increases
♦ 2015 Construction
♦ Surrounded by National Tenants in Prime Retail Corridor
♦ Out Parcel to Home Depot
♦ Tenant Operates Over 800 Locations Across 28 States
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