HOME  |  ABOUT  |  NET LEASE 101  |  CONTACT  |  SUBSCRIBE



7-Eleven
Advance Auto Parts
Affordable Dentures
ALDI
Applebee's
Arby's
Ashley Furniture
AutoZone
Bank of America
BankUnited
BB&T Bank
Best Buy
BMO Harris Bank
Bojangles'
Burger King
Captain D's
Chase Bank
Chick-fil-A
Chipotle
Church's Chicken
Circle K
Cracker Barrel
CVS
Dairy Queen
DaVita
Dollar General
Dollar Tree
Dunkin' Donuts
Family Dollar
FedEx
Fred's Super Dollar
Fresenius Medical Care
Hardee's
Hobby Lobby
IHOP
KFC
Kohl's
Mattress Firm
McDonald's
Napa Auto Parts
O'Reilly Auto Parts
Panera Bread
PDQ
Pep Boys Auto
PNC Bank
Red Lobster
Rite Aid
Sheetz
Shell Oil
Sherwin-Williams
Starbucks
Steak 'n Shake
SunTrust
Taco Bell
TD Bank
Tractor Supply Co.
Verizon
Walgreens
Walmart
Wawa
Wegmans
Wendy's
Zaxby's
  Ashley Furniture


Average Property & Lease

Average Sale Price$4,075,000
CAP Rate (12mo avg with 10+ lease term)7.50%
NOI$472,147
$/Square Foot$122.66
Building Size30,000 - 54,000 sf
Lot Size2.5 - 5.5 acres
Lease Term15 Year NNN
Escalations7.5 - 10% Every 5 Years
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM
Net Lease Advisor Overview

Ashley Furniture HomeStore is a highly sought after brand and has been aggressively expanding in recent years. Ashley Furniture HomeStore typically features a 30,000 - 54,000 +/- SF building, and are usually situated on 2.5 - 5.5 acres of land. Ashley Furniture HomeStore net lease properties provide a long-term investment with no property management responsibilities. Generally the lease term is a 15 year NNN with 3 five-year options and increases annually or 7.5-10% every 5 years. Ashley Furniture HomeStore are generally operated by franchisees as opposed to corporately owned. In less than 10 years, Ashley Furniture HomeStore has become the No. 1 selling furniture store brand in the world and the No. 1 retailer of furniture and bedding in the United States.

Pros

Cons

  • NNN lease eliminates Landlord responsibilities
  • No. 1 selling furniture store brand in the world
  • Lease terms generally are 15 year NNN
  • Private Company/Non-investment grade
  • Due to size, harder to lease property if the tenant leaves
  • Many sites are franchisee locations, with operator strength varying significantly
Tenant Description

Ashley Furniture HomeStore is a furniture store chain that sells Ashley Furniture products. Opened in 1997, the chain comprises over 450 HomeStore locations in North America and 520 locations worldwide. Their stores are located throughout the United States, Canada, Mexico, Central America, and Japan, and the company is expanding domestically and abroad every day. The chain has both corporate and independently owned and operated furniture stores. Independent Ashley Furniture HomeStores are locally owned and operated. Because their store owners and their team members live and work in the same areas in which their stores are located, they have better insight into their customers needs and preferences at the local level.

The parent company of Ashley Furniture HomeStore, Ashley Furniture Industries, headquartered in Arcadia, Wisconsin continues to be the core manufacturing and distribution center for the Ashley Companies. Owned by father and son team, Ron and Todd R. Wanek, the company manufactures and distributes home furnishings throughout the globe. The company employs more than 18,000. The company is building a 3.8 million square foot manufacturing and distribution complex in North Carolina. Founded by Carlyle Weinberger in 1945, the company started as a sales organization with branches in Chicago, IL and Goshen, IN. With over 50 years of innovation and experience in the furniture industry, The Ashley Companies (Ashley Furniture Industries, Inc.) has become an industry leader as a manufacturer of quality furniture products. Today, Ashley has sales over 3 billion. The Ashley Companies now has three separate operating divisions: Ashley Casegoods, Ashley Upholstery and Millennium.
ASHLEY FURNITURE TREND
CAP Rate

2014 avg: 8.42%

2015 avg: 7.50%

RECENT SALES

Memphis, TN

$4,075,000 | 7.5%

College Station, TX

$5,900,000 | 8.5%

MORE INFO
www.ashleyfurniture.com