Property Name

Harps Foods Grocery Portfolio - Arkansas

Location
Huntsville, Harrison (Bellefonte), Mountain Home, Waldron, AR
GLA 140,758 SF
Property Description

  • 4 HARPS GROCERY STORES: Abs. NNN. 9 years remaining on primary terms; 9, 5-year options
  • LIST PRICE: $14,200,000 / $100.88 PSF (Avg.)
  • NOI: $994,275 / $7.06 Rent PSF (Avg.)
  • LIST CAP: 7.00%
  • ASSUMABLE DEBT: $6.3M / 4.50% fixed rate (250 bps spread) / nonrecourse 
    • Rapid 100% amortization over the remaining 9-year initial term results in an annual 11%+ ROE.  
    • After 9 years, Buyer will own 4 Harps free and clear with $944K annual cash flow, and at an equity basis of approximately $50-55/SF
  • HIGH UNIT-LEVEL PERFORMANCE: the portfolio reports strong and growing sales with very low rent-to-sales ratios; Mountain Home is the #1 store in the chain (Placer AI). 
  • RARELY TRADED ASSETS: the majority of Harps stores are owned by Harps or by REITs. These are the first assets to trade in the last 3 years. 
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