Tractor Supply

Property Overview

190 Emerald Parkway in Creswell, Oregon is a 42,739 SF single-tenant retail building occupied by Tractor Supply Company under a triple net lease. Built in 2003, the property sits at an intersection just east of Interstate 5 access, approximately 13 miles south of Eugene and two hours south of Portland.

Challenge

Our team was engaged by the developer to sell the property following Tractor Supply's occupancy. The assignment required finding a buyer capable of recognizing the long-term value of a corporate-guaranteed net lease in a smaller Oregon market, and doing so in a way that satisfied the needs of a 1031 exchange buyer seeking a passive, low-management replacement asset.

Action

We marketed the property as a stabilized, single-tenant investment anchored by a publicly traded national retailer. Key points of emphasis in our outreach included the corporate guaranty from Tractor Supply Company (NASDAQ: TSCO), the remaining lease term with built-in rent increases across four 5-year renewal options, and the 2018 capital improvements to the roof, HVAC system, and parking lot. These upgrades reduced near-term capital risk for any incoming buyer. We targeted investors seeking triple net assets with durable income and minimal management obligations, with particular attention to buyers in 1031 exchange positions.

Result

• Sold the property for $3,330,000 ($78/SF)
• Identified a local 1031 exchange buyer, satisfying their replacement property requirements
• The transaction covered a corporate-guaranteed Tractor Supply lease with 8+ years of primary term remaining and four 5-year renewal options featuring 5% rent bumps each
• The buyer acquired a newly renovated asset with a new roof, HVAC system, and parking lot repairs completed in 2018