INVESTMENT HIGHLIGHTS
RECENT 10-YEAR LEASE
La-Z-Boy Inc. purchased the operations at the Property in September 2022 and signed a 10-year NNN lease with 4, 5-year options, providing an investor with 9 years of long-term, passive cash flow.
+2% ANNUAL RENT INCREASES
The Lease features rare +2% annual rent increases during the 10-year term, and 2% rent increases in all options, providing an investor a hedge against inflation.
STRONG CORPORATE GUARANTEE
The Lease is guaranteed by La-Z-Boy corporate, NYSE (LZB). Its revenue for Full Year Fiscal 2023 was over $2.3 billion and retail segment sales increased 22%.
FULL $1,000,000+ PROPERTY RENOVATION IN 2022
In the spring of 2022, the Seller invested more than $1,000,000 in fully renovating the interior and exterior of the property, including: parking lot seal and restripe, full interior and exterior paint, new monument sign and sign on building, new interior and exterior lighting, new trim and soffits, all new carpet and tile, all new ceiling fixtures and ceiling tiles, new electrical wiring for computers and monitors, and new plumbing fixtures. The Property is in excellent condition and will not require any near-term capital expenditures.
NEW ROOF AND HVAC REPLACEMENT IN 2019
In 2019, the Property had a full roof replacement. After the roof replacement, all 6 HVAC units were replaced.
+54% Y-O-Y INCREASE IN CUSTOMER VISITS AND TOP 10% STORE NATIONWIDE
Customer visits at this store have increased over 54% year-over-year, per Placer.ai. Additionally, this store ranks in the top 10% of all La-Z-Boy stores nationwide.
MINIMAL LANDLORD RESPONSIBILITIES
The Lease features minimal Landlord management or repair responsibilities (Landlord responsible for roof/structure). With the property’s recent roof replacement and full property renovation, there are no foreseeable expenses for many years.
BUILD-TO-SUIT WITH 25+ YEARS OF SUCCESSFUL OPERATING HISTORY
The Property was a build-to-suit for a La-Z-Boy franchisee in 1998. La-Z-Boy has continuously operated at this location for over 25 years. In 2022 La-Z-Boy Inc. purchased the operations and signed a 10-year corporately guaranteed lease with 4, 5-year options, showing their strong commitment to this site, which is tailored to their needs.
HIGH-TRAFFIC RETAIL LOCATION W/ EXCELLENT VISIBILITY
The Property is located directly on N. Division St/HWY 395 with great signage and excellent visibility at the intersection of W Hawthorne Rd, boasting in excess of 44,000 VPD. The Property benefits from being nearby numerous large national and regional tenants such as: Walmart, Target, The Home Depot, Dick’s Sporting Goods, Safeway, Rosauers, and Ziggy’s Home Improvement.
HIGH GROWTH SUB-MARKET / Dense demographics
Within a 5-mile radius, the population exceeds 350,000, has grown nearly 14% since 2010, and is projected to increase by another 5.20% in the next 5 years. Additionally, household growth is projected to increase 5.31% in the next 5 years. The Property is adjacent to Rockwood at Whitworth, a new construction 200-unit senior living community, Whitworth University, and surrounded by residential neighborhoods.
INCOME TAX FREE STATE
Washington State is income tax-free state.
Listing Agents:
CLAYTON J. BROWN
