Highlights

• 8.50% Cap Rate
• 12.30% Year One Total Return With Proposed Financing
• New 19-Year Absolute NNN Lease

• 11% rent increases in 2013, 2018 and 2023
• 71,560 Residents and an average HHI of $74,224 within a 3-mile radius

Description

The subject property is an Orchard Supply Hardware Store that serves as the anchor tenant to the Fairfield Corners Shopping Center. The subject property is on a new 19-year absolute NNN lease with three, five-year renewal options. There is an 11% rent increase in 2013 and 11% rent increases every five years thereafter. The lease is guaranteed by Orchard Supply Hardware LLC which is owned by Sears Holdings Corporation (NASDAQ: SHLD). There are no landlord maintenance responsibilities under the terms of the lease.

The subject property is in a prime retail location. OSH serves as the anchor tenant for the Fairfield Corners Shopping Center. Other tenants located in the shopping center include McDonald's, Taco Bell, Starbucks, Mary's Pizza Shack, Great Clips and FedEx Kinko's. The subject property is situated in the immediate area of several national tenants including Raley's, PETCO, Barnes & Noble, Cost Plus World Market, Michaels, Ross, OfficeMax, Trader Joe's, Chevys, Meineke and Subway. It is located less than 1 mile west of Westfield Solano Shopping Center, which is home to over 160 restaurants and retail shops including Macy's, Best Buy, Sears and Old Navy.