net lease kmart for sale

Kmart (Cincinnati MSA)10560 Harrison AvenueHarrison, OH 45030

NET LEASE INVESTMENT OFFERING


TABLE OF CONTENTS

I. Executive Summary

Executive SummaryInvestment HighlightsProperty Overview

II. Location Overview

Site PlanAerialMapsPhotos

III. Market & Tenant Overview

Tenant ProfileLocation OverviewDemographics


DISCLAIMER STATEMENT

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable;however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor hasThe Boulder Group conducted any investigation regarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein.

DISCLAIMER STATEMENT:


EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Kmart property located within the Cincinnati MSA. Kmart has a long operating history at this property since 1981 and recently exercised a renewal option further illustrating their commitment to this location. There are five years remaining on the recently extended Kmart lease which expires August 31, 2021. The lease features a low rent per square foot ($2.99) and is being offered below replacement cost ($39.97 per square foot).

The 86,714 square foot Kmart property is strategically located along Interstate 74 exposing the property to over 50,000 vehicles per day. Interstate 74 links the suburb of Harrison to downtown Cincinnati. The Kmart is strategically located within the area’s primary retail destination which features Home Depot, Kroger Market Place, Walgreens, CVS, Big Lots, McDonald’s, Chipotle, Key Bank, AutoZone and Remke Markets. The average annual household income within a seven mile radius of the property is approximately $80,000.

Kmart is the third largest discount store chain in North America, behind Walmart and Target, with 941 locations. The chain purchased Sears for $11 billion in 2005, forming a new corporation under the name Sears Holdings Corporation. Sears Holdings operates 1,672 retail locations under the mastheads of Sears, Kmart, and their subsidiaries, such as auto centers and pharmacies. As of 2014, it is the 18th largest retailer in the United States. Sears Holdings Corporation is publicly traded on the Nasdaq (SHLD) with a market capitalization of $1.5 billion.

EXECUTIVE SUMMARY:


INVESTMENT HIGHLIGHTS

• Located within the Cincinnati MSA

• Kmart has a long and successful operating history at this location (since 1981)

• Tenant is committed to this location as evidenced by recently exercising a renewal option

• Triple Net – no landlord responsibilities

• Low rent per square foot ($2.99)

• Below replacement cost at $39.97 per square foot

• Positioned along Interstate 74 with exposure to 50,000+ vehicles per day

• Located within a retail trade area which features Home Depot, Kroger Market Place, Walgreens, CVS, Big Lots, McDonald’s, Chipotle, Key Bank, AutoZone and Remke Markets

INVESTMENT HIGHLIGHTS:


PROPERTY OVERVIEW

Price: $3,250,000

Cap Rate: 8.00%

Net Operating Income: $260,000

Lease Commencement Date: September 21, 1981

Lease Expiration Date: August 31, 2021

Renewal Options: None

Tenant: Kmart Corporation

Year Built: 1981

Lease Type: NNN

Building Size: 86,714 SF

Land Size: 7.22 Acres

PROPERTY OVERVIEW:


SITE PLAN

HARRISON AVENUE

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SITE

BURWINKEL FARMS

AERIAL


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INvEsTmENT sUmmARy

Location Overview

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PHOTOS


TENANT PROFILE

Kmart is a chain of American discount department stores headquartered in Hoffman Estate, IL. The chain purchased Sears for $11 billion in 2005, forming a new corporation under the name Sears Holdings Corporation. The company was founded in 1962 and is the third largest discount store chain in North America, behind Walmart and Target, with stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Guam (which houses the world’s largest Kmart). As of January 30, 2016, the company operated a total of 941 Kmart stores.

Sears Holdings Corporation is an American holding company headquartered in Hoffman Estates, Illinois. It is the owner of retail store brands Sears and Kmart, and was founded after the latter purchased the former in 2005. Sears Holdings owns the brands Craftsman, Kenmore, and DieHard. Sears Holdings operates 1,672 retail locations under the mastheads of Sears, Kmart, and their subsidiaries, such as auto centers and pharmacies. As of 2014, it is the 18th largest retailer in the United States. Sears Holdings Corporation is publicly traded on the Nasdaq (SHLD) with a market capitalization of $1.5 billion.

Website: http://www.kmart.com/

Number of Kmart Locations: 941

Parent Company: Sears Holdings Corporation

Number of Parent Company Locations: 1,672

Parent Company Stock Symbol: Nasdaq: SHLD

Market Capitalization: $1.5 billion

Headquarters: Hoffman Estates, IL

TENANT PROFILE:

http://www.kmart.com/


LOCATION OVERVIEW

Harrison is a city in Hamilton County, Ohio. The city is located within the Cincinnati Metropolitan Statistical Area. As of the 2010 Census, city had a population of approximately 10,000 people. Harrison is located approximately twenty miles northwest from downtown Cincinnati along the Ohio-Indiana border. Harrison boasts unprecedented population growth of 7% annually for the past 3 years.

Cincinnati is a city in the U.S. state of Ohio that serves as county seat of Hamilton County. The larger Cincinnati metropolitan area had a population of 2,214,954 in 2010, making it the 28th-largest Metropolitan Statistical Area in the United States and the largest centered in Ohio.

Major corporations have their head offices in Cincinnati, such as Procter & Gamble, The Kroger Company, and Macy’s, Inc., amongst others. Kroger, the largest employer in the city, has 17,000 employees. Cincinnati is home to two major sports teams, the Cincinnati Reds, the oldest franchise in Major League Baseball, and the Cincinnati Bengals of the National Football League.

The city is served by Cincinnati/Northern Kentucky International Airport which is actually located in Hebron, Kentucky. The airport is a hub for Delta Air Lines and express mail service company DHL Express, in addition the airport is a focus city for Allegiant Air and Frontier Airlines. The city has an outer-belt, Interstate 275 (which is the longest circle highway in the country) and a spur, Interstate 471, to Kentucky. It is also served by Interstate 71, Interstate 74, Interstate 75 and numerous U.S. highways: US 22, US 25, US 27, US 42, US 50, US 52, and US 127.

LOCATION OVERVIEW:


DEMOGRAPHICS

DEMOGRAPHIC REPORT:

Population 1 Mile 3 Mile 5 Mile

Total Population 7,051 15,880 28,378

Total Households 2,633 6,202 10,851

Income 1 Mile 3 Mile 5 Mile

Median Household Income $62,377 $59,850 $62,662

Average Household Income $74,531 $73,443 $76,523

Randy [email protected]

Jimmy [email protected]

666 Dundee Road, Suite 1801Northbrook, IL 60062

www.bouldergroup.com

net lease kmart for sale

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