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Aaron's Portfolio | 6 Locations | 7.4% Cap Rate

3134 S Oates St
Dothan, AL 36301
PRICE : $8,620,540
CAP RATE: 7.4%
PROPERTY TYPE: Retail
BUILDING SIZE: 54,000 SF

Highlights

  • Absolute NNN Leases: All locations are subject to absolute NNN leases with an initial term of 10 years and 10% escalations every 5 years due to be signed at the close of escrow.
  • Proven Operating History: Stores are all owned and operated by HPH Investments LLC. The principal at HPH Investments LLC is Michael Hickey Sr., who served for 12 years as the former VP of Management at Aaron’s Corporate. The portfolio locations have an average operating history of 8+ years. The owner has been operating within the Aaron’s system for 16 years.
  • Strategically Located: The stores are located in Aaron’s target consumer markets close to retailers who have similar customer demographics. The average 3-mile annual household income for the portfolio is $60,419.
  • Recession-Resistant Business Model: The rent-to-own business model has proven to be more resistant to the effects of macroeconomic fluctuations than other traditional retail stores. The business model is also set to benefit from the recent tax reform because of the ability to immediately deduct inventory purchases and reduce cash taxes, providing a healthier balance sheet.

Description

Bull Realty Inc. is pleased to exclusively offer to qualified investors the opportunity to acquire a portfolio of 6 Aaron’s stores located in Alabama and Florida. This offering consists of 6 absolute NNN leases with 10 years of initial term due to commence at close of escrow in the completion of a sale-leaseback. Each lease also contains three 5-year renewal options with a 10% escalation every 5 years. The portfolio is comprised of 5 single-tenant Aaron’s and one multi-tenant building totaling 54,000 SF while generating a pro forma Net Operating Income of $637,920.00.

The portfolio consists of stores opened and managed by Michael Hickey Sr., the principal at HPH Investments LLC and former VP of Management at Aaron’s Corporate, where he served for 12 years. Mr. Hickey is supported by owner/operators Michael Hickey and Joleene Williams. Michael and Joleene have both been in the Aaron’s system for 16 years respectively.

Addresses:
4885 US-90, Marianna, FL 32446
3134 S Oates Street, Dothan, AL 36301
4111 Montgomery Hwy, Dothan, AL 36303
2001 Gateway, Opelika, AL 36801
105 Scouting Cir, Troy, AL 36081
1114 Boll Weevil Cir, Enterprise, AL 36330

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