Rare Free Standing Grocery Investment For Sale

Highlights:

• Free Standing STNL Grocery Store – A rare opportunity to purchase a new construction free standing net leased grocery store occupied by Sprouts Farmers Market, one of the leading Grocery Operators in the market.
• Corporate NNN Lease with Sprouts Farmers Market – Sprouts Farmers Market (NASDAQ: SFM) is a national chain organic grocery with more than 420 stores across the United States. Sprouts Farmers Market has a market cap of over $11.7 Billion and reported revenue exceeding $6.8 Billion (2023).
• Attractive Lease Structure – A new 15-year lease eliminates leasing responsibility and landlord capital expenses, creating an extremely secure cash flow. Scheduled 10% rent increases every five (5) years, including in the three (3), 5 (five)-year option periods provides strong NOI growth.
• Essential “Daily Needs” STNL Grocer – Sprouts provides the trade area with high quality, organic daily necessity grocer items.
• Minimal Landlord Expense Responsibilities – The lease is double net with tenant responsible for property taxes, utilities, insurance, and reimbursement of common area maintenance. The landlord is responsible for maintaining and replacing the roof and structure. A new roof with a 20-year roof warranty is currently in-place.
• Build-to-Suit Investment with Improvement Ownership – Investors can enjoy new construction ownership and take advantage of depreciation tax benefits, which enhances post-tax cash flow.
• Additional CAM Profit Center – Sprouts Farmers Market’s CAM contribution is fixed for the first year with three (3) percent annual increases. The current CAM expenses are lower than the CAM amount, creating additional net income to the landlord.
• Freeway Adjacent Location – Sprouts Farmers Market is situated just off the CA State Highway 99 Panama Lane on-ramp/off-ramp.
• Great Retail Synergy – The subject property is situated within the Bakersfield Crossings Shopping Center – which includes Walgreens, T-Mobile, Carl’s Jr., AutoZone, Wells Fargo, and regional/local fitness, dining, and service tenants. Within one (1) mile includes other nationals such as Walmart, Lowe’s, Aldi, In N Out, and Albertsons.
• Dense Infill Demographics – Sprouts is ideally centrally located within a dense trade area that features over 149,422 people with an average household income exceeding $88,973 within a 3-mile radius and over 262,311 people with an average household income exceeding $93,845 within a 5-mile radius.
• Excellent 1031-Exchange Opportunity – This net-leased investment is an ideal “coupon clipper” investment with brand-new construction and corporate backed fifteen (15) year lease.

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