Les Schwab

Highlights:

• Long-Term Lease: 20-year corporate ground lease where tenant pays all expenses directly, providing a true passive investment
• Brand-New Building: 2026 construction to tenant’s latest prototype
• Excellent Fundamentals: Access points from 3 roads, huge 2 acre lot, and a very low rent of only $181K for a ~10K SF building that tenant spent ~$3M building
• Site Dedication: Les Schwab has invested significantly in the site by building their own building and maintaining it
• Best-In-Class Tenant: $2B ± revenues, ranking as the 5th largest independent tire retailers in the U.S. with 540+ locations
• Long Operating History: Founded in 1952, with over 70 years of operating history and 8,500+ employees
• Top-Tier Operator: Les Schwab was named the nation’s Best Tire Retailer by Consumer Reports in May of 2026
• Private Equity Owned: In September 2020, Meritage Group acquired Les Schwab for an estimated $3 billion, making it one of the largest private equity-backed transactions in the automotive sector at the time
• Affluent Demographics: $91,000 average household income within a 5-mile radius of the subject property
• Westridge Center: Nearby Westridge Center – anchored by Target & T.J. Maxx – ranks in the 84th percentile of shopping centers in Minnesota in terms of annual visitors (2.4M)
• Bemidji State University: The subject property is less than one mile from Bemidji State University, with 4,113 enrolled students in Fall 2025 (see Page 15)

Description:

Les Schwab in Bemidji, MN is a brand-new 20-year absolute net ground lease with a full-term corporate guaranty. The lease has 10% rent increases every five years, and the tenant built a 9,819 SF prototype store on 2.04 acres, set to open December 2026. The site sits on Bemidji's main retail corridor near Target, Walmart, and Home Depot, and is less than a mile from Bemidji State University.

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