INVESTMENT HIGHLIGHTS
RECENT 10-YEAR EXTENSION AND STRONG HISTORICAL OCCUPANCY
Hobby Lobby has occupied the property since 2014 and recently extended their lease term by 10 years showing strong commitment to the site. This location was Hobby Lobby’s first store in the state of Oregon.
SCHEDULED RENT INCREASES
The Property features $0.50/SF rent increases every 5 years (a 7.50% rent increase in 2029) and $0.75/SF rent increases starting in the 2nd option period, providing an investor with a hedge against inflation.
STRONG CORPORATE GUARANTEE / NATIONAL TENANT
The Lease is guaranteed by Hobby Lobby Stores Inc. Hobby Lobby is the largest privately-owned crafts retailer in America, with annual revenue in excess of $5.3 billion.
HIGH BARRIER TO ENTRY SUB-MARKET WITH 0.9% VACANCY RATE
Retail vacancy rates in Albany are currently 0.9% with 11% rent growth over the past three years, per CoStar. With no new retail development under construction and no new supply delivered in the past 12 months, the development lull creates an incredibly high barrier to entry as demand for space remains high.
SIGNIFICANTLY BELOW MARKET RENT
Hobby Lobby is currently paying $6.75/SF + NNN with market rents achievable in the $13.00 – $15.00/SF + NNN range.
MINIMAL LANDLORD RESPONSIBILITIES
The NNN Lease features minimal landlord management or repair responsibilities (landlord responsible for roof/structure) and zero mall common area maintenance responsibility.
TRANSFERABLE ROOF WARRANTY
The roof is in excellent condition and features a 10-year, transferable roof warranty (through 6/20/2034).
AAA LOCATION IN THE DYNAMIC ALBANY, OR TRADE AREA
The Property benefits from its central location in the Albany trade area and is located on an endcap of the Heritage Mall (over 3.3 million visitors per year). The mall includes large national retail tenants such as Target, Ross, and Old Navy. The property features strong visibility, ample parking and multiple access points.
STRONG, AFFLUENT DEMOGRAPHICS WITH STRONG POPULATION GROWTH
Within a 5-mile radius of the property, the population grew by over 15% in the last decade with average household incomes are over $88,000.
Listing Agents:
CLAYTON J. BROWN
Luke Holsinger
253.732.5067
luke.holsinger@marcusmillichap.com
