Dry Good

Harbor Freight NeT Lease w/ Upside

1235 N Main St, Madisonville, KY 42431

Listing Price: $1,825,000

Cap Rate
6.78%
Tenant Name
Harbor Freight Tools
Years Remaining On Lease
8.20
Guarantor
Corporate Guarantee
Rentable SF
24,538
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$5.05

Investment Overview

Marcus & Millichap, on behalf of Ownership as its exclusive advisor, is pleased to offer for sale the 100% fee simple interest in a net leased Harbor Freight retail property located at 1235 North Main Street, Madisonville, Kentucky (the “Property”). Recently renovated in 2018, the Property comprises a +/- 24,538 SF building on a very busy +/- 3.294-acre parcel, that is strategically positioned to be visible and convenient to a combined 40,000+ vehicles per day at the signalized intersection of North Main Street and KY-281, and only one mile from Interstate 69 with highway traffic of about 24,000 vehicles per day. The Property benefits from it’s visibility, accessibility, as well as large lot in a strong commercial area along North Main Street, adjacent to retailers including Arby’s, Advance Auto Parts, CVS/Pharmacy, Captain D’s, Dollar General, Food Giant, First Care, Taco John’s, McDonald’s, and Walgreens, among others. The area is surrounded by over 10,800 households within 5 miles. The population in 2018 was 26,000 people, within 5 miles, with an average HH Income of $61,000 within 5 miles of the property and a daytime population of over 51,700 people within 5 miles. Madisonville is a city in and the county seat of Hopkins County, Kentucky, located in the state’s Western Region, the area serves as the commercial seat for the region and has experienced exponential growth throughout the past decade. The building is 65.5 percent occupied by Harbor Freight Tool USA, Inc., with over 1,000 stores nationally. The original lease was signed in 2018, subject to a 10-year triple net lease with 10% rental escalations every 5 years, including in the five, 5-year options. Additional upside can be found in leasing the balance of the space, 8,460-SF, to a national or regional tenant.

Investment Highlights

  • Subject is a 24,538 Square-Foot Freestanding Retail Building on 3.294 Acres with 87 Parking Spaces that was Recently Renovated in 2018
  • Situated Along Major Retail and Commuter Corridor North Main Street/U.S. Route 41 and KY-281 Intersection with Combined Traffic Counts of Over 40,000 Vehicles per Day
  • Triple Net Lease with a Corporate Guaranty from Harbor Freight Tools USA, Inc, with a "BB-" Rating from Moody's
  • Harbor Freight is an Essential Retailer, Lease Calls for 10% Escalations Every 5 Years
  • Eight Years Remaining with Five (5-Year) Options, Next Rental Increase in 2023 and at the Beginning of Each Option Period
  • Low Price Point Opportunity Offers Additional Upside in Leasing 8,460 Sq. Ft. with Pro Forma NOI $191,481, a Cap Rate of 10.55 Percent | NNN Rent/Sq. Ft. Assumption: $8.00 USD

Exclusively Listed By

  • Jesse Limon

    Licensed Real Estate Salesperson

    (212) 430-5291

    Email Jesse

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

    Manhattan

Dry Good

Harbor Freight NeT Lease w/ Upside

Listing Price: $1,825,000

Cap Rate
6.78%
Tenant Name
Harbor Freight Tools
Years Remaining On Lease
8.20
Guarantor
Corporate Guarantee
Rentable SF
24,538
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$5.05

Investment Highlights

  • Subject is a 24,538 Square-Foot Freestanding Retail Building on 3.294 Acres with 87 Parking Spaces that was Recently Renovated in 2018
  • Situated Along Major Retail and Commuter Corridor North Main Street/U.S. Route 41 and KY-281 Intersection with Combined Traffic Counts of Over 40,000 Vehicles per Day
  • Triple Net Lease with a Corporate Guaranty from Harbor Freight Tools USA, Inc, with a "BB-" Rating from Moody's
  • Harbor Freight is an Essential Retailer, Lease Calls for 10% Escalations Every 5 Years
  • Eight Years Remaining with Five (5-Year) Options, Next Rental Increase in 2023 and at the Beginning of Each Option Period
  • Low Price Point Opportunity Offers Additional Upside in Leasing 8,460 Sq. Ft. with Pro Forma NOI $191,481, a Cap Rate of 10.55 Percent | NNN Rent/Sq. Ft. Assumption: $8.00 USD

Investment Overview

Marcus & Millichap, on behalf of Ownership as its exclusive advisor, is pleased to offer for sale the 100% fee simple interest in a net leased Harbor Freight retail property located at 1235 North Main Street, Madisonville, Kentucky (the “Property”). Recently renovated in 2018, the Property comprises a +/- 24,538 SF building on a very busy +/- 3.294-acre parcel, that is strategically positioned to be visible and convenient to a combined 40,000+ vehicles per day at the signalized intersection of North Main Street and KY-281, and only one mile from Interstate 69 with highway traffic of about 24,000 vehicles per day. The Property benefits from it’s visibility, accessibility, as well as large lot in a strong commercial area along North Main Street, adjacent to retailers including Arby’s, Advance Auto Parts, CVS/Pharmacy, Captain D’s, Dollar General, Food Giant, First Care, Taco John’s, McDonald’s, and Walgreens, among others. The area is surrounded by over 10,800 households within 5 miles. The population in 2018 was 26,000 people, within 5 miles, with an average HH Income of $61,000 within 5 miles of the property and a daytime population of over 51,700 people within 5 miles. Madisonville is a city in and the county seat of Hopkins County, Kentucky, located in the state’s Western Region, the area serves as the commercial seat for the region and has experienced exponential growth throughout the past decade. The building is 65.5 percent occupied by Harbor Freight Tool USA, Inc., with over 1,000 stores nationally. The original lease was signed in 2018, subject to a 10-year triple net lease with 10% rental escalations every 5 years, including in the five, 5-year options. Additional upside can be found in leasing the balance of the space, 8,460-SF, to a national or regional tenant.

Exclusively Listed By

  • Jesse Limon

    Licensed Real Estate Salesperson

    (212) 430-5291

    Email Jesse

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

    Manhattan

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