Jones Lang LaSalle Americas, Inc. (“JLL”) is pleased to offer for sale the opportunity to acquire the fee-simple interest in a dark, absolute NNN Lucky’s Market located at 1964 West Tennessee Street, Tallahassee, FL (the “Property” or “Asset”). The lease will feature 7.5% rent bumps every 5-years in the base term. Although the Lucky’s is not currently operating out of the Asset, there are 12.6 years of contractual rent remaining on the lease and a guaranty from the tenant’s investment-grade parent, The Kroger Co. (Moody’s / S&P: Baa1 / BBB). With BBB Corporate Bond yields trading at a 5.51% today, the Property offers investors the opportunity to receive a significant yield premium in comparison to BBB Corporate Bonds – as well as a significant potential upside if Lucky's returns to business or another grocery user is found.
The Property is ideally positioned on a 2.20-acre parcel at the densely trafficked intersection of West Tennessee Street and Ocala Road with direct exposure to over 81,500 vehicles per day. The Asset is within a dense residential and retail trade area in the Collegetown area of Tallahassee, which is conveniently located near Florida State University’s campus. The Asset is located in on the Tennessee corridor, which as seen an increase in student housing development as demand surpassing the 10 fraternity homes along Heritage Grove Circle and the nine existing student communities with over 5,000 beds that are currently serving the area.
The Property is down the street from Ocala Corners, one a highly trafficked shopping center in the region with 15+ retailers and over 2.3 million visitors annually. It is less than a 15-minute drive to the Tallahassee International Airport. Florida State University, a 487-acre academic campus with over 44,000 students enrolled annually, and Tallahassee Memorial Hospital, with 772 beds and 700+ affiliated physicians, are less than a ten-minute walk from the Asset.
- Investment-grade tenant (S&P: BBB)
- The Property features an absolute NNN lease structure with 12.6 years of remaining lease term and attractive rent increases of 7.5% every 5 years.
- The Property is situated at the heart of retail activity on Tennessee Street, less than a 10-minute walk from Campus and less than a mile away from the football stadium.
- Top Tier, Flagship University with Increasing Acclaim with an enrollment of over 44,000. In 7 years, FSU rose in ranks from 43rd to a top 20 public university in the nation (U.S. News & World Report).
- Rare Central Location on Tennessee Street known the retail hub of FSU and primary dining area for students. The location offers strong vehicle, foot traffic, visibility and tenant signage.
- Located in the Off-Campus Student Housing & Greek Life Hub.