Best Buy Distribution Center _Property for Sale

8906 State Road 33 North, Polk City, FL, 33809, US

Best Buy Distribution Center

Asset description

Jones Lang LaSalle, Inc. ("JLL") has been exclusively retained to market for sale the fee simple interest in the Best Buy Distribution Center (the "Property") – a purpose-built Class A 650,808 SF cross-dock industrial facility in Central FL that serves as the statewide distribution hub for the company's 65 stores and online fulfillment. The Property is strategically located equidistant from Tampa and Orlando at the heart of the state, enabling same-day delivery to all of Florida's 23M residents, as well as convenient distribution throughout the Southeastern US via I-4 (3.4 miles away).

Constructed in 2018 as a build to suit for the tenant, the Property is 100% leased to Best Buy (NYSE: BBY, S&P: BBB+), a $43.5 billion-dollar, Fortune 100 company that sells consumer electronics and a variety of related merchandise. This facility serves as Best Buy's sole Delivery Distribution Center (DDC) in Florida and ranks as the top-performing DDC among the company's seventeen nationwide, housing $900 million in product volume.

Best Buy Distribution Center offers investors an opportunity to acquire a Class A distribution center massively below replacement cost at a strategic statewide distribution location with contractual rent from an investment grade tenant and future upside with in place rent offering 64% mark-to-market potential.

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Attributes

Building area net

650,808 sf

Year built

2018

WALT

3.1 years

Tenants

Best Buy

Occupancy

100%

Media

Investment highlights

Institutional quality, 650,808 SF cross-dock facility with well-below market lease at a strategic Central FL location ideal for statewide distribution.

Fully leased with 3.1 years of term remaining to Best Buy – the largest electronics retailer in the United States with global revenue of $43.5B and an investment grade credit rating.

The Property, serving as Best Buy’s only Delivery Distribution Center (DDC) in Florida, is mission critical to the company’s operations in the state, supplying retail stores statewide and fulfilling online orders across a vast area from Southern Georgia to Miami and Puerto Rico.

Boasting an impressive $900 million in inventory and ranking #1 in volume among Best Buy’s 20 DDC’s nationwide, the Property stands out as an essential part of the company’s overall business performance.

Best Buy strategically chose Polk City, Florida as the site for their build-to-suit facility, which serves as a hub for storing televisions and large appliances and provides a workplace for 180 employees.

Attractive acquisition basis significantly below both recent trades (+$140/SF) and replacement cost (+135/SF) providing long-term competitive advantage to a new owner.

Favorable NNN lease structure with limited landlord responsibilities and no near-term capital requirements.

Strategic location and regional distribution capabilities provide access to over 19.3 million consumers within a 4-hour drive time. Excellent transportation dynamic with direct access to I-4 (3.4 miles away).