CAP Rate: 6.50%
Net Operating Income: $495,000
Land Size: 13.05 AC
Year Built/Renovated: 1992/2004
The subject offering is a 109,440 square foot Lowe’s Home Improvement Center situated on 13.05 acres located in Paintsville, Kentucky. The fee simple ground lease is corporately guaranteed by Lowe’s Companies Inc. (NYSE:LOW). Lowe’s Companies Inc. maintains an Investment Grade ‘A’ Rating from S&P. The asset is strategically located on a highly trafficked commercial thoroughfare and is well positioned in Paintsville’s main retail corridor serving a trade area population of nearly 70,000.
Lowe’s Companies Inc. t is subject to an absolute triple-net ground lease providing for zero landlord obligations. There are 7 years remaining on the initial term and scheduled rental increases of 5% in each of the six 5 year option periods.
Paintsville is along Paint Creek in Johnson County, Kentucky, in the United States. It is the seat of its county. Paintsville’s main shopping district has gradually moved from Main Street to Mayo Plaza, which is northwest of downtown. Stores such as Wal-Mart and Lowe’s opened in the plaza during the early 1990s. Today, downtown mostly serves as Paintsville’s financial district. But, in May 2009 Paintsville received a grant to redevelop Main Street in hopes of making it one of the city’s popular shopping districts again. In recent years, Mayo Plaza has rapidly expanded. In the early 2000s, a new Wal-Mart Supercenter, a new Lowe’s, and multiple restaurants have opened.