JOANN and Former Hy-Vee (Dark)
Cedar Rapids, IA
The Opportunity
Summary
- Price: INQUIRE WITH FORGED REAL ESTATE TEAM (JOANN and the former Hy-Vee boxes can be purchased separately.)
- Parcel Size: 16.71 Acres
- Building Size (JOANN): 20,600 SF
- Building Size (Former Hy-Vee): 63,491 SF
- Lease Term Remaining (JOANN): 4.75 Years
- Lease Term Remaining (Former Hy-Vee): 1.5 Years
Forged Real Estate is pleased to exclusively offer the opportunity to acquire the fee simple interest in two single-tenant properties leased to JOANN and Hy-Vee, (the “Property”) in Cedar Rapids, the second (2nd) most populous city in Iowa. JOANN and the former Hy-vee boxes can be purchased separately or together. JOANN currently operates on a double-net (NN) lease with just under five (5) years remaining on their lease. JOANN’s lease features one (1) remaining five (5) year option with an 8.33% rental increase. Hy-Vee went dark at this location as of January of 2022, but they are paying rent through their lease expiration date of December 31st, 2024. JOANN and the dark Hy-Vee are two separately parceled boxes which sit adjacent to the Lindale Mall, located along Iowa Highway 100/Collins Road NE, a main thoroughfare in the active retail corridor boasting 34,000 VPD. JOANN ranks in the top 75th percentile of all JOANN locations within Iowa based on the number of visits According to Placer.ai. Additionally, the Collins Rd NE Corridor is one of the strongest in the state of Iowa. Over the last two (2) years, Red Lobster, Olive Garden, Perkins Bakery and Panda Express have all ranked within the top 92% of their respective chains. Moreover, the adjacent Kohl’s, Dick’s Sporting Goods and Best Buy all rank within the top 80% amongst their respective chains during the same timeframe. The property can be easily accessed via two signalized intersections with Northland Avenue NE or Lindale Drive NE. Within five (5) miles of the property, the population of over 136,800 and over 57,600 households are up 9.52% and 11.27% since 2010, respectively. Both numbers are projected to continue to rise through 2027.
Investment Highlights:
Tenant
Snapshot
Ownership: PUBLIC - JOAN (NASDAQ)
Credit Rating: Caa2 (MOODY’S)
Headquarters: HUDSON, OH
#of Locations: 833 (As of 1/28/2023)
Starting off as a single retail store in Cleveland, Ohio in 1943, JOANN Fabric and Craft stores have grown into the nation’s leading fabric and craft retailer with 833 stores throughout 49 states. Additionally, their e-commerce platform allows users to shop, explore project ideas, and even customize their own fabrics. JOANN emphasizes inspiring creativity in the hearts, hands, and minds of their customers by serving as the single source for all supplies and guidance one would need to complete any passion project of theirs. JOANN offers a wide range of products ranging from fabric, sewing supplies, jewelry making, storage and organization and much more. Currently, JOANN is partnering with On Our Sleeves, the movement for children’s mental health powered by behavioral health experts at Nationwide Children’s Hospital. Furthermore, in an effort to continuously inspire the creative spirit in each of their customers, JOANN also offers a selection of classes that vary in price and include topics such as urban sketching to easy home décor sewing and many more.
In December 2021, JOANN announced a joint venture with SINGER® sewing brand, a brand under Singer Viking Pfaff Worldwide (SVP Worldwide); the world’s leading consumer sewing company, to revolutionize the way people create and utilize sewing and craft patterns. Together, they will launch products and services with parented technology to reinvent the sewing pattern process. In Fiscal 2023, JOANN added three million new customers to their database of which 75% were acquired through digital channels. Over the past three years, the customer database has grown by 15 million people.
