Clinton, TN - Ahold Delhaize USA Distribution (Food Lion)

Description:

SRS National Net Lease is pleased to present the opportunity to acquire the fee simple interest (land & building ownership) in a NNN leased industrial investment property occupied by ADUSA Distribution, LLC. The asset features over 5 years of remaining primary term following a recent renewal, demonstrating the tenant’s continued commitment to the site, with two additional (5-year) renewal options providing stable in-place income and long-term extension potential. The lease includes 2.5% annual rental increases throughout the primary term, with additional rent adjustments during the option periods (see rent roll), supporting steady NOI growth and providing a hedge against inflation. ADUSA Distribution, LLC is the distribution and supply chain arm of Koninklijke Ahold Delhaize N.V. (Food Lion and other brands), which carries an investment-grade credit rating of BBB+ from S&P.

The property serves a critical role within Food Lion’s distribution network as a truck and fleet maintenance facility and last-mile hub for dry goods. Food Lion operates 27 stores across Tennessee, including locations in Clinton, Knoxville, Oak Ridge, and surrounding markets, requiring consistent and reliable replenishment. Tennessee was a primary focus of Food Lion’s 2021 remodel initiative, during which 100% of its stores in the state were renovated, reinforcing the market’s importance. Strategically located at Exit 122 along Interstate 75, the asset benefits from direct access to a primary north-south logistics corridor, with additional connectivity via I-40, positioning it within a key regional distribution hub. Distribution centers in these distribution nodes are central to the company’s strategy, supported by significant capital investment, including an $860 million commitment to a new distribution center in Burlington, North Carolina. Located approximately 21 miles northwest of downtown Knoxville, the property provides efficient access to a dense cluster of Food Lion locations, ideal for last-mile operations. The site is positioned within the I-75 Industrial Park, surrounded by major employers including Aisin Automotive Castings and SL Tennessee LLC, and in proximity to Oak Ridge National Laboratory and the Y-12 National Security Complex. This offering represents a rare opportunity to acquire a mission-critical asset within a supply-constrained industrial submarket. Tennessee’s income tax-free status further enhances its appeal as an investment location.

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Listing ID: a28TP000002ZeJBYA0