Big Lots | 20 Year Absolute NNN Lease With | 2% Annual Increases | Retail Store | FOR SALE

Highlights:

• PREMIER TENANT | Big Lots, Inc (NYSE: BIG) is one of the world’s leading discount retail providers. Founded in 1967, today Big Lots is headquartered in Columbus, Ohio, and operates approximately 1,425 stores in 48 states. They offer an extensive assortment of brand name items and quality products, including food, furniture, seasonal items, electronics and accessories, home décor, toys, and gifls.
• OPTIMAL NET-LEASE STRUCTURE | The Properties feature twenty (20)-year individual absolute net-leases where the Tenant is directly responsible for all operating expenses, insurance, and real estate taxes. The lease structure provides investors with superior long-term capital protection in the form of rental rate increases.
• FAVORABLE RENEWAL TERMS & ATTRACTIVE NOI GROWTH | Renewal options will vary by state. All initial term and renewal periods will feature a 2.0% annual increase providing for long-term income growth.
• STRONG REAL ESTATE FUNDAMENTALS | Characteristically situated amid retail corridors or within robust industrial hubs, an overwhelming majority of the Properties are situated along a bustling local or regional thoroughfare with excellent access and prominent visibility. Across the entire Portfolio, almost 89% of the NOI is generated from Properties located in California, Colorado, Florida and Texas.
• ATTRACTIVE DEMOGRAPHIC PROFILES | Within three miles of the Properties, the average population is greater than 144,000 with an average household income of nearly $86,100. Within five miles of the Properties, the average population is more than 333,000 and the average household income is in excess of $93,000.
• APPEALING RENTAL RATES & ACQUISITION BASIS | The properties are leased below market rents with annual rents of $10.00 PSF average for Retail Store Properties. The Portfolio provides for an excellent basis for a collection of well-located premier retail assets.
• FREE & CLEAR OF FINANCING | The Properties will be transferred free and clear of debt. Investors will be able to capitalize on today’s attractive debt markets and secure highly aggressive and favorable financing. Please contact Scott Budzenski (+1 310 363 4936; scott.budzenski@cbre.com) with CBRE’s Debt & Structured Finance team to discuss the attractive financing options currently available.
• STRONG INTRINSIC VALUE | Anticipated pricing could be below replacement cost, providing strong long-term residual value. Additionally, large lots with attractive zoning potentially allow higher density future redevelopment.
• OFFERED AS SUB-PORTFOLIOS OR A PORTFOLIO | The Seller will entertain offers for the entire 22-property portfolio, sub-portfolio, or individual property sales to cater to buyer’s preferences.
• VALUE-ADD POTENTIAL| With large lots and ample parking, the sites and leases potentially allow pad development with tenant approve. Please contact agent for details.

Description:

RETAIL STORE PORTFOLIO – AVAILABLE INDIVIDUALLY
The Portfolio includes 22 properties totaling over 600,000 square feet of GLA on nearly 55 acres of land. The Portfolio properties are proven, long-standing retail locations that have demonstrated strong individual store sales. The Portfolio covers 7 states, with a substantial concentration in California, accounting for 13 locations and approximately 56% of the Portfolio base square footage. The primary lease term is 20 years with a cumulative NOI of $6,276,101/year. Based on estimated gross leaseable area, this equates to average rents of approximately $10.00/sf, which is significantly below market for most locations.

CBRE Inc., on behalf of Owner as its exclusive advisor, is pleased to offer for sale the Retail Store Portfolio (the “Properties” or the “Portfolio”), consisting of 22 total assets across 7 states. The Properties are leased on an absolute NNN basis with a corporate guarantee from Big Lots, Inc. (NYSE: “BIG”). The primary lease term is 20 years with 2.0% annual increases throughout the initial term and options. The Properties’ optimal lease structure, attractive escalations, and secure, long-term cash flow from a leading national, essential retailer provide for an excellent investment opportunity.

Located within established corridors, the Properties are surrounded by numerous national retail and industrial users with sizable populations and attractive demographic profiles. The Properties also encompass prime retail real estate in excellent investment markets throughout the United States with strong real estate fundamentals.

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