Consistent with its portfolio expansion plans, Agree Realty Corporation (ADC) bought two properties for $3.7 million. Leased to well-known retailers for an average remaining lease period of over 13 years, these properties offer Agree Realty ample scope to augment its top line.
Among the acquisitions by this retail real estate investment trust (:REIT), one property is situated in Berwyn, Ill. and the other in Joplin, Mo. The first asset is net leased to The Goodyear Tire & Rubber Company (GT), which has operated on-site for more than 50 years and lately inked a 15-year lease deal.
On the other hand, the Mo-based asset is occupied by an outlet of Mattress Firm Holding Corp. (MFRM). This outlet is a new build-to-suit property situated close to a shopping center that is leased to Target Corp. (TGT).
On an acquisition spree in recent times, in Oct 2013, Agree Realty, through its Joint Venture Capital Solutions program, closed on a 4.5 acre parcel of land in the New Lenox Town Center in New Lenox, Ill. The company will develop a property on the land for a total project cost of around at $8 million and will be the sole owner, following completion. Agree Realty also penned a 10-year net lease deal with TJ Maxx, Ross Dress for Less and Petco for 62,450 square feet of space at the planned property.
We expect such opportunistic deals to boost Agree Realty’s strong tenant base and prove accretive to the company’s earnings in the future.
Agree Realty specializes in acquiring and developing single tenant properties net leased to national and regional retail companies in the U.S. At present, the company owns and operates a portfolio of 131 properties, located in 33 states, comprising roughly 3.8 million square feet of gross leasable space.
Agree Realty currently carries a Zacks Rank #3 (Hold).