Desirable National Tenant -The double net (NN) lease is guaranteed by Petco Animal Supplies, Inc., the second-largest U.S. retailer of specialty pet supplies. Petco had a reported sales revenue of $3.2 Billion as of October 2014, and is ranked #146 on Forbes List of America’s Largest Private Companies with over 1,400 locations in the U.S. Mexico and Puerto Rico.
Strategic Location/Retail Synergy -The property is surrounded by neighboring tenants such as Carson’s, Kohl’s, Barnes & Noble, Home Depot, Walgreens, Taco Bell, Wendy’s, LA Fitness, Fifth Third Bank, Chipotle, Pizza Hut, Denny’s, Dollar Tree, White Castle, and more. In addition, the subject property sits across from the 1.1 million-square-foot Spring Hill Mall which has 120 stores. A $37,000,000 Redevelopment Plan was recently approved to upgrade the Mall, and will focus on adding more entertainment and desirable dining options to help revitalize the center.
Limited Competition/Strong Pet Spending – There are limited Pet Supply Competitors in the trade area. The closest National Pet Supply Store is a PetSmart, located roughly 6 miles away in Algonquin, IL. In addition, the property is located in a high Pet Spending Area with the average household spending from $780-$1,395/year.
Commitment to Site/Building Renovated – The Tenant invested $75,000 to complete improvements such as repaving & restriping parking lot, cleaning the building exterior, replacing the landscaping, replacing fencing around the building, and upgrading store’s exterior signage.
Strong Demographics – The property lies in a dense residential area with an estimated 151,000 people living within a 5 mile radius of the property. In addition, the average household income is $90,000 within a 1 Mile Radius.