1293 E Higgins Rd
Schaumburg, IL 60173
Kohl's · Retail Property For Sale

LONG TERM NNN LEASE WITH 2 % ANNUAL INCREASES There are +/- 17.5 years remaining on the Art Van Furniture master lease. Additionally, the lease has built-in annual increases providing an increasing return over the life of the base term. CORPORATELY GUARANTEED LEASE The master lease is guaranteed by Art Van Furniture Inc., which is a large retail furniture chain. The company had system wide sales of ~$1.1B in FY 2018 and operates 189 furniture stores. MASTER LEASE STRUCTURE The master lease structure of this investment allows landlords to capitalize on the diversity of the portfolio, while collecting a single payment. This also shelters the investor from any risk associated with one property. The structure allows the tenant to allocate the rents that best suits the financial performance of the location. FINANCIAL REPORTING As specified in the master lease, each location is contractually obligated to turn in quarterly P&L statements. Additionally, the tenant must provide company-wide financial statements. LIMITED EXPOSURE TO TRADE WAR WITH CHINA Art Van Furniture is well positioned in the event of an extended trade war with China due to its manufacturing and assembly strategy. #1 FURNITURE RETAILER IN THE MIDWEST WITH 60 YEAR OPERATING HISTORY Art Van Furniture, LLC is the Midwest's No. 1 furniture and mattress retailer with 189 stores in nine states operating under the following brands; Art Van Furniture, Art Van PureSleep, Scott Shuptrine Interiors, Levin Furniture, Levin Mattress, Wolf Furniture and Gardiner Wolf Furniture. INTERNET RESISTANT BUSINESS MODEL Furniture retailers are well insulated from web based competition as many consumers prefer to see/test the product in person before purchasing. Art Van is also revamping their omni-channel retail approach by increasing their online presence to drive foot traffic into brick and mortar locations.