Marcus & Millichap, on behalf of ownership, is pleased to exclusively offer the condominiumized interest in this Five Below located in California, Maryland. The Tenant, Five Below Inc., has 8.5 years remaining on a corporately guaranteed NN lease with three, five-year option periods. There is a 10% rental increase forthcoming in three and one half years, which will boost the cap rate to 7.15%. Five Below is publicly-traded (NASDAQ:FIVE) and boasts no debt with a present market cap of $2.36 Billion. The expanding discount store concept is aimed at teens and pre-teens by selling age appropriate merchandise, all of which is priced at $5 and less. Five Below is one of the fastest growing retailers in the country with more than 500 stores across 32 states and has achieved 10 consecutive years of positive same store sales. The company expected to open 85 new stores in 2016 and enter four new states on top of opening 70 stores in 2015.
The Subject Property is exceptionally located in a regional retail node in this growing exurb of Washington D.C. The Tenant occupies an 8,935 square foot, highly visible end cap among the market' s dominant center, anchored by Lowe' s, BJ' s Wholesale Club, Target and Giant. BJ' s Wholesale Club and Lowe' s effectively sandwich the building that the tenant occupies along with Staples and Michael' s. The store is also in proximity to Walmart, Best Buy, Advance Auto Parts, and several notable restaurant pads within the master planned project. Further, the property is across the street from Saint Mary' s Marketplace, a 95,000 square-foot Harris Teeter-anchored development which broke ground in April 2016. California, Maryland boasts an excellent growth story and strong demographics. It has experienced population growth of more than 24% since 2000. The growth in both technology-related and defense-related jobs at the Patuxent River Naval Air Station (PAX) are the key driver for most of this population.
