At Home: Annual Net Sales of $1.365B (FY2020) – Strong Corporate Credit Lease – One of the Fastest Growing Retailers in America – The subject property is leased by At Home Group Inc., the home décor superstore. At Home is one of the fastest growing retailers in America, operating 212 stores across 39 states During fiscal 2020, At Home opened 32 stores and grew annual net sales 17% to $1.365 billion, marking their sixth year in a row of at least high-teens sales growth.
40%-50% Below Market Rent – Tenant Completed a $4M Full Store Remodel – Tenant Replaced Parking Lot & HVAC Units in 2019 – This location benefits from a rent that is 40%-50% below market. At Home is currently paying $6.95 per square foot and market rent in the NE Madison retail submarket is closer to $12-$14 per square foot. The current rent of $6.95 per square foot is not only easily replaceable but provides an investor with upside if the tenant were to ever leave. In 2019, At Home heavily invested in the property by completing a full store remodel costing roughly $4,000,000. In the same year At Home also replaced the parking lot and the building’s HVAC units showing a long-term commitment to the site.
Rare True NNN Lease in Place – Tenant is Responsible for Replacement/Repairs/Maintenance – Strong Rent Growth – The lease offers an investor with a rare true triple-net (NNN) lease where the tenant is responsible for replacement/repair/maintenance of the roof, parking lot, and HVAC in addition to paying for 100% of all CAM’s, taxes, and insurance. At Home has 9+ years remaining on its current Triple-Net (NNN) 10-year lease, which features (3) 5-year options to renew. The lease features strong rent growth with 10% rent increases every five years in the Primary Term and Option Periods.
“A” Real Estate Location within East Towne Plaza – Across from the Renovated East Towne Mall (787,000 SF) – Consistent Customer Draw to the Site – At Home is located in the dense northeast Madison retail trade area within the East Towne Plaza shopping center which, sits across from the East Towne Mall (underwent multi-million dollar renovation in 2017), providing for outstanding synergy with co-tenants including Ulta, DSW, Marshall’s, Kirkland’s, Party City, and Burlington, as well as adjacent national retailers such as Menard’s, Kohl’s, Old Navy, Ashley Home Store, Home Depot, and Goodwill. In 2017, the East Towne Mall underwent a multimillion-dollar renovation, and the addition of tenants Flix Brewhouse and H&M.
Located Along Dense Major Retail/Commuter Corridor – Excellent Visibility & Access – The subject property benefits from outstanding visibility and draw with its location within the East Towne Plaza on Zeier Road (11,000 CPD). Zeier Road is the main access road into the renovated East Towne Mall, and intersects directly onto Hwy 151 (46,000 CPD) to Interstate 90 (89,000 CPD), providing shoppers and nearby residents easy acces in/out of the center, and offering quick access to downtown Madison.
Located in Desirable Capital City of Madison – Home to the University of Wisconsin – One of the Fastest Growing Communities in Wisconsin – The subject property is located in Madison, Wisconsin, the second-largest city in Wisconsin and the county seat of Dane County. The area has a strong, diverse economy based on healthcare, education, insurance, and hi-tech businesses. It is one of the fastest growing communities in Wisconsin and has won numerous awards including “Healthiest City”, “Best Places to Live”, “Best Cities for Young Professionals”, and “Best City for Families”.