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Chicago & Midwest  + Midwest  + Retail  | 

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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About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 16-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 7-10 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

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