Agree Realty Corp. Buys Cleveland-Area Sam’s Club for $21.4M
- Jul 16, 2013
Agree Realty Corp., a Farmington Hills, Mich.-based real estate investment trust involved in the development and acquisition of single-tenant net lease retail properties, recently purchased a triple-net-leased Sam’s Club located in Brooklyn, Ohio. Marcus & Millichap Real Estate Investment Services arranged the all-cash sale.
The 147,771-square-foot freestanding building is located at 10250 Brookpark Road, at the intersection of Tiedeman and Brookpark roads. It was constructed in 1987, on 9.9 acres of land. Over the last decade, it has been periodically remodeled.
Agree Realty acquired the retail building from Betco Properties L.L.C., an affiliate of Cleveland-based Stark Enterprises. It paid $21.4 million, or 145 per square foot, for the property. A Sam’s Club Fuel Center outparcel was included in the sale. Marcus & Millichap’s Scott Wiles, Craig Fuller and Erin Patton represented the seller. Sam’s Club has 5.5 years remaining on its lease and a percentage rent clause tied to the store’s gross sales, providing a potential source of additional income.
Scott Wiles, a vice president of investments in Marcus & Millichap’s Cleveland office, said the property received a lot of attention from investors. Erin Patton, a vice president of investments in the firm’s Columbus office, added that the property is located just next door to a newly expanded and remodeled Walmart Supercenter, at a heavily trafficked intersection that sees daily traffic counts of 53,730 cars.
Agree Realty also acquired a 7,840-square-foot AutoZone store on South Kedzie Road in Chicago. “We are extremely pleased to announce these two high-quality additions to our portfolio. With the acquisition of this Sam’s Club, Walmart has now become the fourth-largest tenant in our portfolio by rental revenue,” said Joey Agree, president & CEO. ”Our acquisition team continues to source value-add, accretive opportunities leased to industry-leading tenants.”
Agree Realty currently owns and operates a portfolio of 120 properties in 32 states, with about 3.5 million square feet of gross leasable space.
Photo credits: Agree Realty Corp.
Charts courtesy of Marcus&Millichap Real Estate Investment Services