SRS Real Estate Partners-West, LLC is pleased to offer the rare opportunity to acquire the fee simple interest (land & building ownership) in a generational net lease investment on Scottsdale Road at Kierland Commons, in the heart of the affluent and extremely high barrier to entry community of North Scottsdale. The tenant, Bassett Furniture Industries, Inc., (dba Basset Furniture) currently occupies a freestanding single tenant building and has approximately 6 years remaining in their initial lease term with 2 (5-year) option periods to extend. The lease features rare 2% annual rental increases throughout the initial term and 3% annual rental increases throughout the option periods, steadily growing NOI and hedging against inflation. The lease is NNN with landlord responsibilities limited to roof and structure. Future landlord expenditures have been minimized with a new roof installed in August, 2019 with a 10-year transferable warranty.
The Bassett Furniture is strategically located along N Scottsdale Rd, a major north/south retail and commuter thoroughfare servicing the city of Scottsdale, averaging 32,300 vehicles passing by daily. The subject property is ideally located near multiple condominium and apartment complexes including, Optima Kierland, a high-rise condominium tower complex comprised of four 12-story buildings with entry level units priced at $600,000+, and The Paragon at Kierland Apartments, a luxurious 276-unit complex, providing a direct consumer base to draw from. Moreover, the site is within 1 mile of multiple shopping center destinations including Scottsdale Quarter (400,000 SF), Kierland Commons (437,000 SF), and The Promenade (569,000 SF), further increasing consumer draw to the subject area and promoting crossover traffic to the site. The 5-mile trade area is supported by a population of over 202,000 residents and more than 158,000 employees. Residents within this trade area boast an affluent average household income of $129,497.
The adjacent building to the north is also available for sale at this time. See Page 8 for further details.