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Miscellaneous

Suburban Propane

195 Commerce Way, South Windsor, CT 06074

Listing Price: $1,369,000

Cap Rate
6.50%
Tenant Name
Suburban Propane
Years Remaining On Lease
9.5
Gross SF
2,004
Guarantor
Corporate Guarantee
Rentable SF
1,860
Price/Gross SF
$683.13
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$47.86

Investment Overview

The subject property is an 1,840 square foot building on a large, 2.74 acre lot leased to Suburban Propane and located in South Windsor CT. The lease is corporately guaranteed by a publicly traded credit tenant that has been in business for nearly 100 years. Suburban Propane has been at this location since the building was built for them in 2001, and recently signed a lease extension for another 10 years of term. There are attractive scheduled rent increases every three years tied to CPI increases over the prior three-year period, allowing for a great hedge against inflation and a dependable, natural accelerant to the property’s market value every three years. The tenant recently extended the lease on exactly the same rental increase terms as the original lease, a clear sign of their satisfaction with this location and their rent-to-sales ratio at the site. The lease is NNN, with the tenant handling all CAM themselves and reimbursing the landlord for the real estate taxes owed on the property. The landlord is only responsible for maintaining roof and structure, a minor expense given the size of the building. In the unlikely event that the tenant were to ever leave, the oversized lot would provide an investor with an opportunity to repurpose the property for a wide variety of alternative uses, ensuring an investment that will hold its value for the foreseeable future. This opportunity provides a NNN investor with the best of all possible worlds - a corporately backed 10-year lease with an essential, internet-proof credit tenant that has two decades of proven success at the location.

Investment Highlights

  • Corporately backed 10+ year lease with a credit tenant who has 20 years of success at the site
  • Frequent rent bumps every 36 months tied to CPI increases over the prior period
  • Zero day-to-day management responsibilities

Exclusively Listed By

Broker of Record

  • John Krueger

    Vice President / Regional Manager

    (203) 672-3300

    License(s) CT: REB.0752012

    Connecticut

Listing Price: $1,369,000

Cap Rate
6.50%
Tenant Name
Suburban Propane
Years Remaining On Lease
9.5
Gross SF
2,004
Guarantor
Corporate Guarantee
Rentable SF
1,860
Price/Gross SF
$683.13
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$47.86

Investment Highlights

  • Corporately backed 10+ year lease with a credit tenant who has 20 years of success at the site
  • Frequent rent bumps every 36 months tied to CPI increases over the prior period
  • Zero day-to-day management responsibilities

Investment Overview

The subject property is an 1,840 square foot building on a large, 2.74 acre lot leased to Suburban Propane and located in South Windsor CT. The lease is corporately guaranteed by a publicly traded credit tenant that has been in business for nearly 100 years. Suburban Propane has been at this location since the building was built for them in 2001, and recently signed a lease extension for another 10 years of term. There are attractive scheduled rent increases every three years tied to CPI increases over the prior three-year period, allowing for a great hedge against inflation and a dependable, natural accelerant to the property’s market value every three years. The tenant recently extended the lease on exactly the same rental increase terms as the original lease, a clear sign of their satisfaction with this location and their rent-to-sales ratio at the site. The lease is NNN, with the tenant handling all CAM themselves and reimbursing the landlord for the real estate taxes owed on the property. The landlord is only responsible for maintaining roof and structure, a minor expense given the size of the building. In the unlikely event that the tenant were to ever leave, the oversized lot would provide an investor with an opportunity to repurpose the property for a wide variety of alternative uses, ensuring an investment that will hold its value for the foreseeable future. This opportunity provides a NNN investor with the best of all possible worlds - a corporately backed 10-year lease with an essential, internet-proof credit tenant that has two decades of proven success at the location.

Exclusively Listed By

Broker of Record

  • John Krueger

    Vice President / Regional Manager

    (203) 672-3300

    License(s): CT: REB.0752012

    Connecticut

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