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Department Store

Hobby Lobby | Absolute Net Ground Lease | Below Market Rent

5622 Johnston St, Lafayette, LA 70503

Listing Price: $2,600,000

Cap Rate
4.03%
Tenant Name
Hobby Lobby
Years Remaining On Lease
7.3
Guarantor
Corporate Guarantee
Rentable SF
101,163
Lease Type
Ground Lease
Rent Per Square Feet
$1.04

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire an absolute net Hobby Lobby ground lease in Lafayette, Louisiana. The property consists of 9.16 acres of land that includes a 101,163 square-foot, power center featuring Hobby Lobby and Mardel Christian & Education, and an 8,214 square foot freestanding building occupied by Texas Roadhouse. Hobby Lobby is on its fourth renewal term with over seven years remaining on the current term. Each ten-year renewal period has 10 percent rental escalations with five renewal options remaining on the lease. Mardel and Texas Roadhouse are sublessees of Hobby Lobby. The property has excellent access and visibility on the corner of the signalized intersection of Johnston Street and Ambassador Caffery Parkway, where traffic counts exceed 51,100 vehicles per day. The area is dense with more than 130,517 residents within a five-mile radius. Hobby Lobby pays only $104,776 annually, which equates to $1.04 per square foot in annual rent on the gross leasable area of the building. This significantly below-market rent results in extremely high probability that Hobby Lobby continues to renew each of their renewal options. Should Hobby Lobby decline a renewal option, this would allow the landlord to increase the rent to market to significantly increase the cash flow and value of the asset.

Investment Highlights

  • Ground Lease with Seven Years Remaining
  • Rent Well Below Market ($1.04 Per Square Foot)
  • Property Includes a 101,163 Square Foot Box and an 8,214 Square Foot Restaurant on 9.16 Acres
  • Excellent Access and Visibility on Corner of Signalized Intersection at Johnston Street and Ambassador Caffery Parkway (51,100 Vehicles Per Day)
  • More than 130,517 Residents (Five-Mile Radius)
  • $25.70 Per Square Foot to Building
  • $6.51 Per Square Foot to Land

Exclusively Listed By

Financing By

Department Store

Hobby Lobby | Absolute Net Ground Lease | Below Market Rent

Listing Price: $2,600,000

Cap Rate
4.03%
Tenant Name
Hobby Lobby
Years Remaining On Lease
7.3
Guarantor
Corporate Guarantee
Rentable SF
101,163
Lease Type
Ground Lease
Rent Per Square Feet
$1.04

Investment Highlights

  • Ground Lease with Seven Years Remaining
  • Rent Well Below Market ($1.04 Per Square Foot)
  • Property Includes a 101,163 Square Foot Box and an 8,214 Square Foot Restaurant on 9.16 Acres
  • Excellent Access and Visibility on Corner of Signalized Intersection at Johnston Street and Ambassador Caffery Parkway (51,100 Vehicles Per Day)
  • More than 130,517 Residents (Five-Mile Radius)
  • $25.70 Per Square Foot to Building
  • $6.51 Per Square Foot to Land

Investment Overview

Marcus & Millichap is pleased to present the opportunity to acquire an absolute net Hobby Lobby ground lease in Lafayette, Louisiana. The property consists of 9.16 acres of land that includes a 101,163 square-foot, power center featuring Hobby Lobby and Mardel Christian & Education, and an 8,214 square foot freestanding building occupied by Texas Roadhouse. Hobby Lobby is on its fourth renewal term with over seven years remaining on the current term. Each ten-year renewal period has 10 percent rental escalations with five renewal options remaining on the lease. Mardel and Texas Roadhouse are sublessees of Hobby Lobby. The property has excellent access and visibility on the corner of the signalized intersection of Johnston Street and Ambassador Caffery Parkway, where traffic counts exceed 51,100 vehicles per day. The area is dense with more than 130,517 residents within a five-mile radius. Hobby Lobby pays only $104,776 annually, which equates to $1.04 per square foot in annual rent on the gross leasable area of the building. This significantly below-market rent results in extremely high probability that Hobby Lobby continues to renew each of their renewal options. Should Hobby Lobby decline a renewal option, this would allow the landlord to increase the rent to market to significantly increase the cash flow and value of the asset.

Exclusively Listed By

Financing By

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