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Master Lease for MI, IL Furniture Stores Asks $57M
Online net lease brokerage platform B+E has listed five Art Van Furniture properties under a master lease for $56,550,000. Four of the properties are located in the Greater Detroit area, while the fifth is located in the Chicago suburb of Schaumburg, IL.
The buildings total 340,740 square feet on 26.26 acres of land, and include parking. The NNN master lease carries a cap rate of 7.25%, with a remaining term of 17 years and six months.
“This an excellent investment opportunity providing a lengthy, strong return with an established 60-year-old retail business,” said Tim Hain with B+E. “The master lease also has built-in annual 2% increases, providing an increasing return over the life of the base term.”
The master lease structure allows landlords to capitalize on the diversity of the portfolio, while collecting a single payment, B+E says. This also shelters the investor from any risk associated with one property.
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