Big Lots | 20-Year Absolute NNN Lease With 2% Annual Increases

Highlights:

• Premier Tenant Burlington (NYSE: BURL) is an American national off-price department store retailer with more than 1,000 stores in 46 states and Puerto Rico, with its corporate headquarters located in Burlington Township, New Jersey.
• Optimal Net-Lease Structure The Property features twenty (20)-year individual absolute net-lease with over eighteen (18) years remaining 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 Situated in a dense infill retail corridor of Lancaster surrounded by housing and national credit tenants. Population within a 3 mile radius exceeds 102,000 and traffic counts at the intersection exceed 28,000 CPD.
• Value-Add Potential With large lots and ample parking, the sites and leases potentially allow pad development with tenant approval. Please contact agent for details.
• Attractive Demographic Profiles Within three miles of the Property, the average population is greater than 102,000 with an average household income of nearly $89,248. Within five miles of the Property, the average population is more than 185,000 and the average household income is in excess of $97,721.
• Appealing Rental Rates and Basis Burlington is leased below market rents at an annual rate of $10.04 PSF. With a recent remodel and upgrades, this provides excellent long-term value.
• Free & Clear of Financing The Property 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.

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