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Miscellaneous

JOANN Fabrics and Crafts

20600 E Thirteen Mile Rd, Roseville, MI 48066

Listing Price: $4,210,600

Cap Rate
8.00%
Tenant Name
JOANN Fabric and Craft
Years Remaining On Lease
9.7
Guarantor
Corporate Guarantee
Rentable SF
32,863
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$10.25

Investment Overview

We are pleased to offer for sale the fee simple interest in a freestanding, single-tenant retail building occupied by JOANN Inc. (the “Asset”) located in Roseville, Michigan, within the Detroit MSA. JOANN is the nation’s leading fabric and craft specialty retailer. Their retail stores and website feature a variety of competitively priced merchandise used in sewing, crafting and home decorating projects, including fabric, notions, crafts, frames, paper crafting supplies, artificial floral, finished seasonal and home decor items. JOANN operates approximately 850 stores in 49 states, is publicly traded (NASDAQ: JOAN) with a $510 million market cap, and reported revenues of $2.76 billion in fiscal year 2021. The building is a 32,863 SF, masonry construction, originally built in 1996, and renovated in connection with JOANN’s 2013 occupancy. JOANN re-committed to the space with an early 10-year lease extension in November 2021, which included a tenant improvement allowance to remodel the store with new HVAC equipment, restroom upgrades, interior and exterior painting, new floor coving, and new exterior signage. Tenant will complete the improvements on their own, and have scheduled the remodel for 2023 given the current supply chain constraints and lead time issues. This extension provides future ownership with steady cash flows and a remodeled asset.

Investment Highlights

  • The Asset has just under 10 years of firm term remaining with a $0.40/SF escalation in 2027, allowing for a low maintenance investment structure with income appreciation over the primary term
  • This location is important for JOANN Stores, with no other locations within 7 miles, it fills a void for the retailer in the region
  • High quality freestanding retail location with multiple access points and ample parking
  • Well trafficked location just off I-94, at the intersection of 13 Mile Road and Little Mack Avenue with 30,000 vehicles per day and major retailers including Kroger, Meijer, PetSmart, and The Home Depot
  • Only 340,000 square feet of retail product is scheduled to deliver this year in Detroit, with most of this space already pre-leased. The diminished pipeline will allow metro wide vacancy to fall to a 15-year low and asking rents to reach a cycle high in 2022
  • Attractive basis and below market rental rates, with Detroit MSA reporting current asking rents of $17.50/SF
  • Tenant has slated a remodel of the Asset for 2023

Exclusively Listed By

Broker of Record

  • Steven Chaben

    Senior Vice President / Regional Manager

    (248) 415-2600

    License(s) MI: 6502387903

    Michigan

Miscellaneous

JOANN Fabrics and Crafts

Listing Price: $4,210,600

Cap Rate
8.00%
Tenant Name
JOANN Fabric and Craft
Years Remaining On Lease
9.7
Guarantor
Corporate Guarantee
Rentable SF
32,863
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$10.25

Investment Highlights

  • The Asset has just under 10 years of firm term remaining with a $0.40/SF escalation in 2027, allowing for a low maintenance investment structure with income appreciation over the primary term
  • This location is important for JOANN Stores, with no other locations within 7 miles, it fills a void for the retailer in the region
  • High quality freestanding retail location with multiple access points and ample parking
  • Well trafficked location just off I-94, at the intersection of 13 Mile Road and Little Mack Avenue with 30,000 vehicles per day and major retailers including Kroger, Meijer, PetSmart, and The Home Depot
  • Only 340,000 square feet of retail product is scheduled to deliver this year in Detroit, with most of this space already pre-leased. The diminished pipeline will allow metro wide vacancy to fall to a 15-year low and asking rents to reach a cycle high in 2022
  • Attractive basis and below market rental rates, with Detroit MSA reporting current asking rents of $17.50/SF
  • Tenant has slated a remodel of the Asset for 2023

Investment Overview

We are pleased to offer for sale the fee simple interest in a freestanding, single-tenant retail building occupied by JOANN Inc. (the “Asset”) located in Roseville, Michigan, within the Detroit MSA. JOANN is the nation’s leading fabric and craft specialty retailer. Their retail stores and website feature a variety of competitively priced merchandise used in sewing, crafting and home decorating projects, including fabric, notions, crafts, frames, paper crafting supplies, artificial floral, finished seasonal and home decor items. JOANN operates approximately 850 stores in 49 states, is publicly traded (NASDAQ: JOAN) with a $510 million market cap, and reported revenues of $2.76 billion in fiscal year 2021. The building is a 32,863 SF, masonry construction, originally built in 1996, and renovated in connection with JOANN’s 2013 occupancy. JOANN re-committed to the space with an early 10-year lease extension in November 2021, which included a tenant improvement allowance to remodel the store with new HVAC equipment, restroom upgrades, interior and exterior painting, new floor coving, and new exterior signage. Tenant will complete the improvements on their own, and have scheduled the remodel for 2023 given the current supply chain constraints and lead time issues. This extension provides future ownership with steady cash flows and a remodeled asset.

Exclusively Listed By

Broker of Record

  • Steven Chaben

    Senior Vice President / Regional Manager

    (248) 415-2600

    License(s): MI: 6502387903

    Michigan

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