Kohl's Anchored Shopping Center - Seabrook, NH
325 Lafayette Rd Seabrook , NH 03874-4539

Kohl's Anchored Shopping Center - Seabrook, NH - retail for sale

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Overview



JLL is pleased to offer for sale the fee interest in the ground under a Kohl’s anchored shopping center (the “Property” or “Asset”) located in Seabrook, New Hampshire. Located 30 miles north of Boston, the Property sits within an affluent community that serves as the first primary trade area north of the Massachusetts border. The Property is fully occupied and features 9.9 years of weighted average lease term remaining and a diversified tenant mix. Kohl’s recently reformatted its store layout to the company’s optimal footprint, subleasing the excess space to Planet Fitness. This optimization strategy will maximize Kohl’s efficiency while driving more traffic volumes to the Property through the addition of one of the nation’s most popular health clubs. This offering presents the opportunity to acquire a fully-leased shopping center in an affluent Boston submarket with minimal landlord responsibilities. 


Investment highlights



LONG-TERM GROUND LEASE WITH 8X5 YEAR RENEWAL OPTIONS

Kohl’s has demonstrated their commitment to this site through a 20-year primary lease term, which has ten years of term remaining.

The lease features eight, five-year renewal options and a ten percent rental escalation at the start of each option term.

Kohl’s has rightsized its occupancy in the Property, now operating in its optimal store footprint. The excess space is subleased to Planet Fitness, a nationally recognized health club that will drive greater traffic volumes to the Property.

The Asset is diversified through two medical firm leases with annual rental increases and attractive rental rates.

Minimal landlord responsibilities provide future ownership with a passive, appreciating cash flow, ideally designed to protect and strengthen residual asset value.

NEWLY UPGRADED INVESTMENT GRADE CREDIT PROFILE WITH CORPORATE GUARANTY

In April 2019, S&P upgraded Kohl’s credit rating to “BBB” (Stable Outlook) following consistently strong financial performance over the past six quarters and its recent voluntary repayment of $900 million in debt.

Kohl’s has spent 22 straight years on the Fortune 500, generating over $20 billion in 2018 revenue and a healthy gross profit margin of 36.4 percent in the same year.

PRIMARY, SALES TAX-FREE TRADE AREA NORTH OF THE MASS. BORDER

The Property is 30 miles north of Boston and the first primary trade area within New Hampshire north of the Massachusetts border. The location is highly strategic for retailers, as many Massachusetts residents cross the border for sales tax-free consumption.

The Asset is located on Lafayette Road (a continuation of Route 1) which experiences over 23,000 vehicles per day and is home to complementary retail offerings including a directly adjacent Lowe’s, a wide range of restaurants, and a neighboring shopping center which all help to drive customers to the subject Property.

AFFLUENT SURROUNDING DEMOGRAPHICS & STRONG RETAIL MARKET FUNDAMENTALS

Within a three-mile radius of the Property, the average household income is $89,640 with over 32 percent of households making over $100,000 per year, indicating an affluent population base with ample discretionary income.

The Rockingham submarket has shown strong retail market fundamentals, exhibiting a 2.8 percent average vacancy rate from Q1 2015 through Q3 2019. Retail rents have shown a similar upward trajectory, growing at a CAGR of 3.1 in the same timeframe, reaching a market rent PSF of $18.35 at the end of Q3 2019.


General
Property type Retail
Tenure type Sale/Purchase
Property address 325 Lafayette Rd, Seabrook, NH 03874-4539
Land in acres 13.2
Building size 101,184  ft2
Year built 2009
Financial
Price $7,776,000
Cap rate 7.50%
Current NOI $583,181.00
Lease

Kohl's Anchored Shopping Center - Seabrook, NH - retail for sale

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