IGRE Investment Grade Fund purchases Kohl’s “Flag Ship” store
Updated: Mar 16, 2022
Written by: William Levy IGRE Investment Grade RE Income Fund, LP
June 1, 2021 - Santa Barbara, CA Investment Grade R.E Income Fund, LP (“IGRE”) has concluded its $9.8 million purchase of Kohl’s Corporation’s (KSS) “Flagship Store” located in close proximity to Kohl’s corporate headquarters in Menomonee Falls, Wisconsin.
Kohl’s management noted the 98,500 sq ft property is one of Kohl’s top producing locations of their 1,152 total stores nationwide. They have seen increases of over 2 million new walk-in customers due to their partnerships with Amazon’s Return Services and they are piloting a partnership with Sephora Cosmetics to build a 2,500 sq ft Sephora shop within the Menomonee Falls store and subsequently all stores nationwide.
In addition to these lucrative relationships, the company’s e-commerce business now represents 42% of total sales, up 22% year over year. As a result, Kohl’s is expanding its e-commerce fulfillment centers and its in-store pickup operations.
“This acquisition exceeds all of our criteria requirements including a cap rate providing for rents which pay an estimated 6% annual return, long term lease, Investment Grade tenant rating and 10-year fixed rate mortgage financing,” states William Levy, Founder and Senior Director of IGRE. “It is the ideal acquisition for IGRE's high quality ‘Institutional Grade’ investment portfolio”.
IGRE Investment Grade R.E.Income Fund, L.P’s strategy targets essential “necessity-based” single tenant, triple-net leased properties ie; medical facilities, distribution centers, grocery stores, wireless providers and pharmacies with leases backed by the tenant’s Investment Grade rated parent company.
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