Lowe's Home Improvement — Sale in Lawnside, NJ

  • Price: Contact for price
  • Listing type: For sale
  • Asset type: Retail Business
  • Location: Lawnside, NJ 08045

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Lowe's Home Improvement — Sale in Lawnside, NJ, photo 1 of 2
Lowe's Home Improvement — Sale in Lawnside, NJ, photo 2 of 2

Investment Figures

Cap rate
5.50%

Derived from the asking price and operating figures published for this listing. Informational only — not an appraisal, valuation or financial advice. Verify independently before relying on any figure.

Description

Below Market Rental Rate – The Tenant, Lowe’s Home Centers, Inc., is subject to a NNN ground lease with five years remaining after recently exercising is second contractual option renewal. The tenant benefits from a highly attractive below-market rent rate under $5 PSF, which is significantly lower than comparable retail or industrial box space in Southern New Jersey. Market activity in the Southern New Jersey corridor suggests that similar box space typically commands rents well above $10 PSF for both retail and industrial space. As such, the low rent rate gives the tenant a very favorable occupancy cost, helping support long-term profitability and reducing downside risk. At the same time, it creates a clear mark-to-market opportunity for investors over the long term should the tenant vacate. In the meantime, investors will benefit from 10% increases in each option period, or the opportunity to do a “blend extend” with Lowe’s if so desired. Proven Operating History with Ongoing Tenant Investment – Lowe’s has operated at this location since 2001, highlighting more than two decades of tenancy in a well-established trade area which is highly restrictive to new development. The tenant has exercised two contract renewal options to date, underscoring the strength of the location’s sales performance. In addition to its renewals, Lowe’s has continued to invest in the property, including a roof replacement in 2016 and the installation of solar infrastructure in 2022/2023. This location is one of 174 locations across the chain to receive this solar upgrade. This continued capital investment further underscores the tenant’s commitment to the site. Stand-Alone Parcel in Infill Market – The property sits on a flat 15.503-acre parcel. The site is zoned C-1, which permits a wide range of commercial uses, making it flexible for continued retail occupancy or alternative commercial uses over time. In addition, the parcel directly to the rear of the Lowe’s is classified as an “Indust

Market Context

This retail in Lawnside, NJ is listed for sale. It is offered at an approximate 5.5% capitalization rate, a key benchmark for income-producing retail assets. Compare it against other retail listings for sale in Lawnside, NJ — view the full market.

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