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JLL Capital Markets, as exclusive broker, is pleased to offer the exceptional opportunity to acquire Harbor Square Plaza, a 109,458 square foot strong-performing Kohl's & PetSmarts shopping center located in Port Charlotte, Florida.
STABLE LONG-TERM TENANCY – Over 63% of revenue is generated from investment-grade Kohl’s (S&P: BBB-) with a low single-digit ground rent. PetSmart recently re-committed by executing an early 10-year extension for a total of over 12 years of term remaining. The property features a weighted average lease term of 9.3 years remaining.
LEADERS IN CUSTOMER TRAFFIC – Kohl’s at Harbor Square Plaza is ranked 5th among 57 apparel stores in 30 miles for customer traffic. In 2019, the store saw 475,000 customer visits. PetSmart is ranked 3rd among 7 PetSmart locations in 50 miles with 136,000 customer visits in 2019 which is also 17% more visits than the Petco on Tamiami Trail (Placer.ai).
DEPARTMENT STORE DARLING – Kohl’s served 65 million shoppers in 2019 which is 25 million more than competitor Macy’s. Kohl’s carries a significant advantage over competitors with its largely non-mall store base. Kohl’s stands to benefit from reduced competition as other chains are downsizing. Kohl’s is on pace for $6 billion in e-commerce sales in 2020.
KOHL’S CASH FLOW – Kohl’s (NYSE: KSS / S&P: BBB-) continued strength is due, in part, to the chain’s ability to generate cash flow and Morningstar forecasts the company to produce $700 million in annual free cash flow from 2021 to 2029. Over the past four years, Kohl’s has used $4 billion of its cash to pay dividends and repurchase debt.
FAMILY PET OR FAMILY MEMBER! – An estimated $75 billion will be spent on pets in the U.S. in 2020 (APPA) and IBISWorld reports industry revenue grew at an annual rate of 4.3% over the last 5 years. PetSmart holds the strongest market share among pet stores by capturing 34% of the total revenue, more than double Petco’s market share.
LEADING PROVIDER OF PET CARE & SERVICES – PetSmart at Harbor Square Plaza offers grooming and training as well as veterinarian services through Banfield Pet Hospital. Pet services has been the fastest-growing product segment in the industry. PetSmart at Harbor Square Plaza is highly regarded with 4.4 stars based on 861 Google reviews.
MUST-HAVE DOMINANT RETAIL TRADE AREA – Outside of Port Charlotte, the closest major retail nodes are located 25 miles to the northwest in Sarasota and over 30 miles to the southeast in Fort Myers. National retailers target Harbor Square Plaza’s trade area where one-third of Charlotte County’s total retail inventory is accessible in a 5-minute drive.
EXPANDED DRAWING RADIUS – The nearest Kohl’s and PetSmart locations are more than 26 miles away in all directions resulting in a captive customer base through all of Charlotte County including Port Charlotte and Punta Gorda, neighboring North Port, and coastal communities from Manasota Key to Boca Grande. These are crucial locations for both retailers.
GEOGRAPHICALLY-CONSTRICTED TRADE AREA – The Myakka River and Peace River to the south and Interstate-75 to the north present geographic barriers to entry that limit outward expansion resulting in continued densification and established shopping patterns around Harbor Square Plaza.