Consistent with its portfolio expansion plans, Agree Realty Corporation (ADC) disclosed the acquisition of Pa.-based BJ's Wholesale Club outlet for $10.6 million. The move depicts the company’s motive to strengthen its tenant base of industry leading retailers.
Notably, with this high-end buyout, Agree Realty’s year-to-date acquisition volume totals about $70 million. BJ's Wholesale Club, spanning 112,230 square feet, is positioned at Airport Road South in Allentown.
The acquisition of BJ's Wholesale Club outlet, which is serving the Airport Road South area over the past 20 years, offers Agree Realty the scope to enjoy steady revenues, going forward. Lately, Agree Realty has been on an acquisition spree. Earlier this month, the company purchased an outlet of a privately-owned American health club chain – LA Fitness – in Rochester, N.Y. for approximately $10.3 million.
Moreover, last month, Agree Realty shelled out $6 million to acquire four single tenant assets. Two of these are in Madisonville, Texas and Forest, Miss. and are leased to Tractor Supply Company (TSCO), which commands a large chain of retail stores. Among the other two properties, one is occupied by AutoZone, Inc. (AZO) in Sun Valley, Nev. and the other by Mattress Firm Holding Corp. (MFRM) in Baton Rouge, La.
Such opportunistic deals are expected to help Agree Realty to add tenants to its strong tenant base and extend ties with existing tenants as well as drive earnings in the future.
Agree Realty – which specializes in the acquisition and development of single tenant properties net leased to national and regional retail companies in the U.S. – currently owns a portfolio of 128 properties in 33 states, comprising roughly 3.8 million square feet of gross leasable space.
Agree Realty, at present, carries a Zacks Rank #3 (Hold).