Department Store

Kohl's Net Lease with Upside in Developable Outparcel

150 Kohls Dr, Nicholasville, KY 40356

Listing Price: $9,600,000

Cap Rate
6.52%
Tenant Name
Kohl's
Years Remaining On Lease
9.0
Gross SF
82,982
Guarantor
Corporate Guarantee
Rentable SF
82,982
Price/Gross SF
$115.69
Lease Type
Double Net
Rent Per Square Feet
$7.54

Investment Overview

Marcus & Millichap, on behalf of Ownership as its exclusive advisor, is pleased to offer for sale the 100 percent fee simple interest in the single-tenant Kohl's retail property located at 150 Kohl's Drive in Nicholasville (Lexington), KY (the Property). Build-to-suit for Kohl's in 2003, the Property comprises a +/- 83,000 SF building on a large +/- 8.6-acre parcel, that is strategically positioned along US Route 27 with nearly 50,000 vehicles per day. Subject located in Nicholasville, KY is situated only two miles from Lexington, KY along US Route 27 serving as the primary arterial. The Property benefits from its location just minutes from Lexington, home to the University of Kentucky with a combined enrollment of over 35,000 students, the strong economy is anchored by over 400 horse farms, known as the Horse Capital of the World. The area has very strong Average HHI of over $85,000 within one mile and population growth of 6.3 percent expected over the next five years to over 431,000 within 15 miles. The Property features a newly formed 1.18-acre outparcel that is expected to yield a ground rent of approximately $60,000 annually. Kohl's Corporation (NYSE:KSS | Rated: C2) fully guarantees the lease and operates under a new 12-year lease term with more than 10 years remaining and six, five-year renewal options with five percent increases every five years. A passive investment opportunity, nominal Landlord responsibility of roof and structure. Additional to buying free and clear of debt, the Property presents a debt assumption opportunity, offered with a non-recourse, fixed rate, fully amortizing loan for investors seeking to increase a depreciable basis. This structure is also ideal for tax-deferred 1031 exchange buyers seeking passive losses that may be used to offset income from other real estate investments.

Investment Highlights

  • Nicholasville has an Above Average Household Income of $88,000 within Five Miles
  • Upside in Leasing 1.18-Acre Out-parcel (PART OF THE DEAL)
  • New 12-Year Lease w Limited Landlord Responsibility with Corporate Guaranty by Kohl's
  • Top-Performing Trophy Kohls Location with Recent Lease Extension
  • Bonus Near-Term Upside Leasing the New Out-Parcel Recently Created
  • Hedge Against Inflation in Options as Lease Provides for 5 Percent Increases

Exclusively Listed By

  • Jesse Limon

    Licensed Real Estate Salesperson

    (212) 430-5291

    Email Jesse

    License(s): IN: RB14048415, NY: 10401271892

    Manhattan

Broker of Record

  • Colby Haugness

    First Vice President Investments

    License(s): KY: 242197

    Kentucky

Department Store

Kohl's Net Lease with Upside in Developable Outparcel

Listing Price: $9,600,000

Cap Rate
6.52%
Tenant Name
Kohl's
Years Remaining On Lease
9.0
Gross SF
82,982
Guarantor
Corporate Guarantee
Rentable SF
82,982
Price/Gross SF
$115.69
Lease Type
Double Net
Rent Per Square Feet
$7.54

Investment Highlights

  • Nicholasville has an Above Average Household Income of $88,000 within Five Miles
  • Upside in Leasing 1.18-Acre Out-parcel (PART OF THE DEAL)
  • New 12-Year Lease w Limited Landlord Responsibility with Corporate Guaranty by Kohl's
  • Top-Performing Trophy Kohls Location with Recent Lease Extension
  • Bonus Near-Term Upside Leasing the New Out-Parcel Recently Created
  • Hedge Against Inflation in Options as Lease Provides for 5 Percent Increases

Investment Overview

Marcus & Millichap, on behalf of Ownership as its exclusive advisor, is pleased to offer for sale the 100 percent fee simple interest in the single-tenant Kohl's retail property located at 150 Kohl's Drive in Nicholasville (Lexington), KY (the Property). Build-to-suit for Kohl's in 2003, the Property comprises a +/- 83,000 SF building on a large +/- 8.6-acre parcel, that is strategically positioned along US Route 27 with nearly 50,000 vehicles per day. Subject located in Nicholasville, KY is situated only two miles from Lexington, KY along US Route 27 serving as the primary arterial. The Property benefits from its location just minutes from Lexington, home to the University of Kentucky with a combined enrollment of over 35,000 students, the strong economy is anchored by over 400 horse farms, known as the Horse Capital of the World. The area has very strong Average HHI of over $85,000 within one mile and population growth of 6.3 percent expected over the next five years to over 431,000 within 15 miles. The Property features a newly formed 1.18-acre outparcel that is expected to yield a ground rent of approximately $60,000 annually. Kohl's Corporation (NYSE:KSS | Rated: C2) fully guarantees the lease and operates under a new 12-year lease term with more than 10 years remaining and six, five-year renewal options with five percent increases every five years. A passive investment opportunity, nominal Landlord responsibility of roof and structure. Additional to buying free and clear of debt, the Property presents a debt assumption opportunity, offered with a non-recourse, fixed rate, fully amortizing loan for investors seeking to increase a depreciable basis. This structure is also ideal for tax-deferred 1031 exchange buyers seeking passive losses that may be used to offset income from other real estate investments.

Exclusively Listed By

  • Jesse Limon

    Licensed Real Estate Salesperson

    (212) 430-5291

    Email Jesse

    License(s): IN: RB14048415, NY: 10401271892

    Manhattan

Broker of Record

  • Colby Haugness

    First Vice President Investments

    License(s): KY: 242197

    Kentucky

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