Property details
Below Market Rent Big Kmart, Southwest Region
Property Description
• Big Kmart on 9.4 Acres
• Busiest Signalized Intersection in Town
• Starbucks with Drive- thru Breaking Ground Across the Street
• Walgreens & 10 Story Medical Across the Street
• Corporate Headquarters of ConocoPhillips Petroleum
• Asset is Free & Clear of Debt
Initial lease term was 25 years; commenced on July 1, 1976 and ended on June 30, 2001.
10-5 Year Options:
1. 12/1/2001 - 11/30/2006
2. 12/1/2006 - 11/30/2011
3. 12/1/2011 - 11/30/2016
4. 12/1/2016 - 11/30/2021
5. 12/1/2021 - 11/30/2026
6. 12/1/2026 - 11/30/2031
7. 12/1/2031 - 11/30/2036
8. 12/1/2036 - 11/30/2041
9. 12/1/2041 - 11/30/2046
10.12/1/2046 - 11/30/2051
The subject property is located at a signalized intersection that is the busiest intersection in town. This is a low-risk passive investment opportunity for a conservative investor. The existing rental rate is only a fraction of current market rates and provides a significant upside for the long-term investor. In addition, this offering includes excess land which can be developed with tenant' s permission or at the end of the lease.
Sears Holdings Corporation, the publicly traded (NASDAQ: SHLD) parent of Kmart
and Sears, Roebuck and Co., is the nation's fourth largest broadline retailer with over
$53 billion (2007) in annual revenues and approximately 3,800 full-line and specialty
retail stores in the United States and Canada. The megamerger created one of the
nation's largest retailers (behind Wal-Mart and Home Depot), with about 3,850 stores in
North America. (Sears Holdings owns a majority stake in Sears Canada.) It is the
holding company for the varied retail operations of Sears (about 1,800 department
stores) and Kmart (about 1,380 discount outlets), which continue to operate separately
under their familiar brand names. ESL Investments, controlled by the company's
chairman Edward Lampert, owns about 50% of Sears Holdings.
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Highlights
- Status:
- Available
- Price:
- $2,395,000
- PSF:
- $26
- Cap Rate:
- 9.75%
- Annual Rent:
- $232,840
- Rent Increases:
- None
Property Information
- Building Size:
- 90,570 sq.ft.
- Property Type:
- Net Lease
- Industry Type:
- Retail
- Units/Spaces:
- 1
- Year Built:
- 1975
- Land Area:
- 9.40 acres
- Purchase Tenure:
- Fee Simple
Lease information
- Tenant:
- Kmart
- Lease Type:
- NN
- Lease Commencement:
- 12/1/2006
- Lease Expiration:
- 11/30/2011
- Lease Term:
- 5 years
- Years Remaining:
- 2 years
- Landlord Responsibilities:
- Insurance & Cam
- Options:
- 8 more full 10-year options.
Existing financing information
- N/A
The information contained herein contains confidential and/or privileged material. Any review, retransmission, dissemination or other use of, or taking of any action in reliance upon, this information by persons or entities other than the intended recipient will be prohibited. The information contained herein has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about the accuracy or completeness of the information. As a buyer, it is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this property to you depends on factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. We have no knowledge of this offering other than the information received from Seller or their representatives. We are neither your agent or an agent for the seller. We will not participate in the negotiation of the purchase price or attend the showing of this property. As a buyer, you will be required to indemnify us and hold us harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.