The offering provides an investor with the opportunity to acquire a Kohl’s featuring a full Corporate Guaranty in Reno, NV. Kohl’s has over eight years remaining in the primary term with six 5-year extension options, and 7.5% rental escalations every five years, with the next increase scheduled for 02/01/2023. The tenant is responsible for maintaining the non-structural portions of the parcel including the HVAC, leaving the landlord with the minimal expense obligations of the roof, structure, and parking lot repavement/replacement. The subject property anchors the heavily trafficked Ridgeview Plaza shopping center, and is positioned at the signalized intersection of Mae Anne Avenue and North McCarran Boulevard, which have combined traffic counts of 42,210. McCarran Boulevard, or State Route 659 is one of Reno’s primary arterials that loops around Reno and Sparks, providing access to established businesses and residential areas.
The retail market - The subject property is located in the premier retail node of northwest Reno, a growing submarket within the region. The Ridgeview Plaza that Kohl’s anchors features prominent pylon signage on North McCarran Boulevard and daily needs national tenants, including a Safeway grocery store and fueling station, Ulta Beauty, PetSmart, McDonald’s and Chipotle, which further drive traffic to the center. Reno has undergone an economic resurgence over the past 10 years, with population growth tripling the national rate due to heavy waves of in-migration. Because of this, there have been recent major developments, including the Tesla Gigafactory, as well as data centers and large distribution facilities.