IGA Grocery Store NNN Investment, 8.27% Cap Rate

Retail-Commercial for Sale
Catylist Listing ID: 30171224
Property Subtypes: Free-Standing Building, Retail-Pad, Street Retail
Building Size (RSF): 19,215 SF
Gross Land Area: 3 Acres
Sale Price: $750,000
Unit Price: $39.03 PSF
Ceiling: 15 ft.
Property Use Type: Net Leased Investment (NNN)
Building Name: IGA Grocery Store
Usable Size (USF): 19,215 SF
Sale Terms: Cash to Seller
Cap Rate: Undisclosed
Average Occupancy Rate: 100
Last Updated: 11/17/2017

Overview / Comments

This IGA grocery store has been in existence for over 20-years and just executed a 5-year extension on May 17, 2017. There is a triple net (NNN) lease in place. The Capitalization Rate is about 8.27%. The lease includes a 5-year extension. The Landlord is responsible for the roof and structural maintenance.

The tenant is Laurel Grocery Company which is a credit tenant doing about $400 million (D&B Hoovers) in volume as a "family-owned wholesaler serving family owned retailers since 1922". They own stores like this one but are primarily a wholesale distributor for the grocery business.

The store has been well maintained and is the dominate grocery for Benton, TN and the surrounding area. Benton and the surrounding area has a high amount of tourist traffic due to the Ocoee and Hiwassee Rivers which are nearby and due to the scenic beauty of the mountains.

Reports which are available:
Demographics: 5,10 & 15 Drive Time
Lease Abstract & Lease Documents
2015, 2016, YTD 2017 and Pro Forma Profit & Loss Statements
Polk County:http://www.polkgovernment.com/

Additional Details

Nearest MSA: Cleveland
County: Polk
Taxing Authority: Polk County
Tax ID/APN: 045 028.13
Zoning: NONE
Retail Clientele: General, Family, Business, Traveler, Tourist, Recreation, Convention
Property Located Between: Benton, TN Hwy 411
Property Visibility: Excellent
Largest Nearby Street: Hwy 411
Feet of Frontage: 336
Traffic/Vehicle Count: 8,500
Highway Access: Hwy 411 is the main Highway heading north and south. The property fronts Hwy 411. Daily traffics counts are about 8,5000 cars.
Airports: Cornelius Moore Field
Site Description: The site is level and about 2-3 feet above street grade level. It has about 3 acres of land plus a gravel rear egress and ingress from Ward Street.
Area Description: Polk County is a small community of 17,000 people. The 5, 10 and 15-minute drive time demographics report shows 1,738, 5682 and 17,541 people respectively.
Tenancy: Single Tenant
Total Number of Buildings: 1
Number of Stories: 1
Typical SF / Floor: 19,215 SF
Property Condition: Good
Year Built: 1997
Construction/Siding: Steel Frame
Exterior Description: The building is a well kept metal building with a sloped metal roof.
Total Parking Spaces: 80
Parking Ratio: 4 (per 1000 SF)
Parking Type: Structure, Surface
Parking Description: There is a concrete parking lot in front with about 80 striped parking spaces.
Sprinklers: Wet
Heat Type: Natural Gas
Heat Source: Central
Air Conditioning: Engineered System
Interior Description: Typical of grocery store.
Zoning Description: Polk County does not have zoning ordinances.
Lot Frontage: 336
Lot Depth: 400
Water Service: Municipal
Sewer Type: Municipal
Land Ownership: Owned

Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 1,846 2,857 4,433
Median Age: 38.93 39.17 40.31
Households: 710 1,101 1,728


Photograph of Listing Agent

Robert Fisher

KW Commercial GCAR CMLS Member
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