Harbor Freight 10 Year Lease Extension | Below Market Rents

Highlights:

• Fully Leased to Harbor Freight Tools – This property is occupied by Harbor Freight Tools, a nationally recognized retailer known for its operational stability.
• Recent 10-Year Lease Extension – Harbor Freight Tools’ decision to extend its lease underscores its long-term commitment to this location and confidence in the trade area.
• Corporate Lease – The lease is backed by Harbor Freight Tools, a national chain with over 1,600 locations across the U.S., providing investors with a secure and reliable income stream.
• Recession-Resistant Retailer – Harbor Freight Tools value-driven business model offers competitively priced products that maintain strong consumer demand even during downturns.
• Highly Passive Ownership – The NN lease structure (roof, structure, HVAC) limits landlord responsibilities, making this an ideal hands-off investment for those seeking simplicity.
• Heavily Under-Market Rent – The current rent being paid is $0.85 psf. NNN, significantly below new leases being signed in the area.

Description:

Exceptional Real Estate Fundamentals

Attractive Pricing Metrics – Offered at approximately $216 per square foot for the building and approximately $89 per square foot for the land, this investment is priced well below replacement cost.

Prime Retail Location – Strategically positioned directly south of Home Depot and in close proximity to Arden Fair Mall, creating strong retail synergy and consistent customer traffic.

High Visibility & Traffic – The site benefits from significant daily traffic counts of approximately 40,800 vehicles.

Dense In-Fill Demographics – Located within a robust trade area featuring over 146,300 residents and an average household income exceeding $108,260 within a 3-mile radius.

Ideal 1031 Exchange Opportunity – With a recently executed corporate lease, this property serves as a perfect “coupon clipper” investment for exchange buyers seeking dependable returns.

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