Kohl’s NNN Lease Big Box Investment Washington

Sands Investment Group is Pleased to Exclusively Offer For Sale the 55,347 SF Kohl’s NNN Lease Located at 20025 WA Highway 410 East in Bonney Lake, Washington . Kohl’s is on a Brand New 12-Year Lease With a Rent Commencement Date of May 18, 2022. This Property Features a 10% Increase in Year 7 as Well as Each of the 5 Option Periods Providing a Strong Income Growth and Hedge Against Inflation. With a Population of Over 95,348 People Within 5-Miles and Household Incomes of Over $121,732, This Location is Irreplaceable.

HIGHLY STABLE CORPORATE TRIPLE-NET LEASE

• NNN Lease With Kohl’s Corporation: Kohl’s is a National Department Store Retailer Chain With Over 1,162 Stores in Every State Throughout the Country With the Exception of Hawaii; Kohl’s is a Discount Retailer Offering Both Designer Name Brands, Celebrity Lines and Their Private Brands
  • Strong Rental Increases – 10% Increase In Year 7 and At Each Option Period Providing Hedge Against Inflation
  • Kohl’s Corporation (NYSE: KSS) is a Publicly Traded Company With a Market Cap of Over $7.37 Billion and Reported Revenues of Over $19 Billion For Year Ending 2021; During the Corporate March 1, 2022 Investors Relations Call, Kohl’s Notably Issued an Upbeat Outlook For Fiscal 2022, Calling For Net Sales to Rise 2% to 3%
  • Despite Lingering Supply Chain Headwinds and Other Pressures From Inflation and Labor Costs, Kohl’s CEO Said the Company Achieved an Operating Margin of 8.6% Two Years Ahead of Schedule
• Brand-New Long-Term Lease – Kohl’s is on a Brand New 12-Year Lease With a Rent Commencement Date of May 18, 2022; Following the Initial Term, Kohl’s Has Five (5-Year) Option Periods to Renew
• Low Rent Creating Intrinsic Potential Future Upside – Kohl’s is Only Paying $0.68 Per Square Foot/Month For This Newly Renovated Building Resulting in a Very Low Purchase Price PSF
• Strong Income Growth & Hedge Against Inflation – Due to the Embedded 10% Rental Increases Every 5 Years, the Net Operating Income (NOI) is Projected to Increase By $148,950 (33%) Over the Anticipated 20-Year Hold Period Providing Strong Income Growth Compared to the Many Flat Non-Rental Increase in Other Single Tenant Investments

NEW CONSTRUCTION & RETROFIT WITH LOW MANAGEMENT RESPONSIBILITIES

• Brand New Building Renovation – Kohl’s is Taking Over a Former Albertsons Grocery Store Site, Re-Retrofitting an Existing Building (2021/2022 Construction) With Significant Tenant Improvements Being Invested into the Building at Tenant’s Expense
• Long Term Stability – Kohl’s is a Nationally Recognized, High Credit Tenant With an Initial 12-Year Lease Term and 25 Years of Options Eliminating Any Near Term Leasing and Tenant Improvement Costs at Landlord’s Expense
• Low Management Oversight – With the Lease Structured on a “NNN” Basis, the New Owner Will Have Minimal Management Oversight For the Property With the Primary LL Obligations For Roof and Structural Repairs

HIGH IDENTITY, AFFLUENT SEATTLE/TACOMA MSA TRADE AREA

• High Visibility, High Traffic Location – Kohl’s is Located Right Off Highway 410 (Over 47,413 Vehicles Per Day) With Superior Frontage Visibility on S Prairie Road (Over 19,950 Vehicles Per Day)
• Dense Residential and Commercial Trade Area – Immediate Proximity to Both Residential and Commercial Density With High Utilization of the Neighboring Shopping Centers Synergistic Mix of Tenants
• Primary Retail Hub – Located Directly Within the Primary Retail of Bonney Lake With a Highly Complimentary Mix of National and Regional Credit Tenants Including: Walmart, Lowe’s, Costco, Safeway, Rite Aid, Fred Meyer, Marshall’s, Planet Fitness, McDonald’s, Starbucks, Chick-fil-A, Panda Express, Jack-in-the-Box, Taco Bell and Denny’s, to Name a Few
• Point of Destination – Bonney Lake Serves as the Primary Retail Destination Between Tacoma, Seattle and Access to Mount Rainier National Park, an Iconic Majestic Destination That Draws in Over 2 Million Visitors Annually

HIGHLY AFFLUENT DEMOGRAPHICS

• More Than 49,604 People Within a 3-Mile Radius of the Subject Property With an Average Household Income of $121,293
• More Than 95,348 People Within a 5-Mile Radius of the Subject Property With an Average Household Income of $121,732
• More Than 337,186 People Within a 10-Mile Radius of the Subject Property With an Average Household Income of $107,827
• High Growth Area – Since 2010, the City of Bonney Lake Has Grown By 23.50% and Has Increased its Number of Households By 6,773

In Cooperation With Marianne Christian WA Lic. # 12244 206.915.9222 | DIRECT marianne@SIGnnn.com

View Similar Investment Opportunities

Read Additional Thought Leadership Content From SIG, Specializing in Absolute Triple Net Lease Opportunities