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  Tractor Supply Co.


Average Property & Lease

Average Sale Price$3,805,615
CAP Rate (12mo avg)6.37%
NOI$180,000
$/Square Foot$117.00 - $158.0
Building Size19,097 sf
Lot Size4.20 acres
Lease Term15 Years
Escalations10% Every 5 Years
CREDIT RATING
N/A
Moody's
N/A
S&P
view credit rating chart
search calkain.com property listings for Tractor Supply Co.  |  view all propery listings
Net Lease Advisor Overview

Tractor Supply is a highly sought after brand and has been aggressively expanding in recent years. While they are not currently rated they are universally regarded as strong company and a great tenant. They were previously rated B+ by S&P although they no longer have any rated debt. Their typical lease is 15 years in length with 10% bumps every five years. That lease structure combined with the ability to buy one at close to an 8% cap translates into an excellent yield on a risk adjusted basis.

Typically, Tractor Supply stores are built in rural or tertiary markets. While this is where the stores perform best; the real estate that they are built on would probably not be considered highly desirable otherwise. Additionally, the leases are typically NN, which means that the landlord will be responsible for the Roof and Structure of the building. As a practical matter this means maintaining a reserve of about $.15/sqft per year to eventually have enough money on hand to replace or repair the roof or make other repairs as the property ages.
 

Pros

Cons

  • Popular Tenant
  • Excellent yield on a risk adjusted basis
  • Rural and Tertiary locations
  • NN leases
Tenant Description

Tractor Supply Company is a large retail chain offering a wide selection of products for home improvement, agriculture, lawn and garden maintenance, livestock, equine and pet care. It is the largest retail farm and ranch store chain in the United States, operating more than 1043 retail stores in 44 states with over 15,000 employees.

Founded as a mail order tractor parts business in 1938, the first Tractor Supply retail store was founded in 1939 in Minot, North Dakota. It is headquartered in Brentwood, Tennessee and traded on the NASDAQ exchange under the symbol 'TSCO'. The company generates over $3 billion in annual revenues.


TRACTOR SUPPLY CO. TREND
CAP Rate

2014 avg: 6.61%

2015 avg: 6.37%

RECENT SALES

Burlington, WI

$4,180,000 | 7.2%

Los Banos, CA

$5,500,000 | 7.27%

MORE INFO
www.tractorsupply.com
Google Finance: TSCO
Google News: TSCO