Whole Foods
PRICE
CAP RATE
SQUARE FOOTAGE
LEASE TERM

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Patrick Hammond

Senior Advisor

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PROPERTY ADDRESS

5014 Poplar Ave., Memphis, TN 38117

PROPERTY INFORMATION

Price:
$23,712,000
Cap Rate:
3.85%
Term Remaining:
17 Years
Year Built:
2014
Status:
Available

INVESTMENT HIGHLIGHTS

  • NNN Ground Lease | Requires Zero Landlord Responsibility
  • Over 17 Years Remaining on Absolute NNN Ground Lease
  • Rent Increases 8% Every 5 Years | Next Increase June 2018
  • Three (3), Five (5) Year Options With Rent Increases
  • Corporate Guarantee by WFM which Carries a “BBB” Rating
  • Tenant Signed New Long Term Lease and Spent Millions to Expand-ed Their Foot Print from 34,000 Square Feet to 40,385 Square Feet Showing Commitment to the Site
  • Tenant Spent $6.5+ Million on Construction of New Building in 2014

INVESTMENT SUMMARY

Fortis Net Lease is pleased to present this free-standing 40,385 square foot Whole Foods Market ground lease investment opportunity. This is a offering is a single tenant net leased investment property located in Memphis, TN on Poplar Avenue. The twenty (20) year, absolute NNN ground lease has a little over 17 years remaining on the primary term and is corporately guaranteed by Whole Foods Market (WFM) which carries a Standard’s and Poor credit rating of “BBB-”. The lease features scheduled rent increases of eight percent (8%) every five (5) years with the next increase set to take place is June of 2018. The scheduled eight percent (8%) rent increase offer an investor significant cash flow appreciation over the primary term as well as the four (4), five (5) years option periods. The tenant is responsible for 100% of the cost including property taxes, insurance, CAM and capital expenditures.

The subject property is ideally located on the Poplar Avenue where there is an average daily traffic count of 44,000+ cars per day. The tenant recently invested over $6.5 million to build a brand new state of the art 40,385 square foot building. The old building which was knocked down to build the new one, was 64,000 square feet with Office Depot occupying 30,000 square feet. The new building was opened in 2014 and has been very well received locally. The multi-million dollar investment by Whole Foods shows their commitment to this site long term.