Kohl’s | Bonney Lake, WA
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
