Overview

Description

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an modified gross, freestanding, Chewy, Inc., office investment property located in Louisville, KY. The tenant, Chewy, Inc., has approximately 7 years remaining in their initial term with 2 (5-year) options to extend, demonstrating their commitment to the site. Chewy, Inc. is an online retailer of pet food and other pet-related products owned by PetSmart, and this location is their first call center with 340 agents to field calls. To accommodate their growth, the tenant has an option to expand the building an additional 10,000 SF**. The lease features 2.5% annual rental increases throughout the initial term and option periods, steadily growing NOI and hedging against inflation. The tenant reimburses all operating expenses in excess of the recognized 2019 base year expenses (see pages 17 & 18 for more details).

**Tenant has the on-going option to expand their building improvements by an additional 10,000 SF to accommodate their growth. As such, to meet parking requirements in the lease, the tenant would take over a portion of the parking lot north of the building and increase their parcel size.

The building is located directly along Fern Valley Road/State Highway 1747 (26,400 VPD), a primary retail and business thoroughfare travelling around the city of Louisville. Furthermore, the property is within close proximity to Interstate 65 (150,000 VPD) which is a direct commuter thoroughfare that travels into downtown Louisville, making the property easily accessible for employees of the space. The subject property is surrounded by national/credit tenants such as Sam’s Club, Target, Big Lots, Advance Auto Parts, AutoZone, Walgreens, and more, increasing consumer traffic to the trade area. In addition, Chewy’s is not far from Indian Trail Square, a shopping center just north of the property with notable tenants, Ollie’s Bargain, Dollar Tree, Save-A-Lot, Hibbett Sports, and FFO Home further boosts consumer traffic and promotes crossover shopping to the neighborhood. The Louisville International Airport, the 3rd largest airport in the U.S. for cargo is just 1-mile west of the subject property. The 5-mile trade area is supported by more than 208,000 residents with an average household income of nearly $69,000.
**Tenant has the on-going option to expand their building improvements by an additional 10,000 SF to accommodate their growth. As such, to meet parking requirements in the lease, the tenant would take over a portion of the parking lot north of the building and increase their parcel size.

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