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Net Lease Aaron's

Net Lease Aaron’s Property Profile and Cap Rates

Date February 11, 2017

Net Lease Aaron’s – Typical Property and Lease Terms

 

Price Range:$1 mm - $3mm
Cap Rate:7.5%
Net Income:$75,000 - $125,000
Price Per foot:$125 PSF
Building Size:6,000-8,000 SF
Lot Size:1 AC
Escalations:10% every 5
Lease Term:10 Years
Lease Type:NNN
Credit Rating:NR

 

Tenant Company Information:

Aaron’s, Inc. (NYSE: AAN) is a vertically integrated, leading retailer focused on the lease ownership, lease, and sale of consumer products such as computers, appliances, furniture, and accessories. As of 2012, Aaron’s had 2,073 owned and franchised stores in 48 states and Canada, 11,900 employees, and over $2.22B in yearly revenue, up from $1.88B in 2010. Typically, the rent-to-own transaction takes place through weekly or monthly transactions over 1–2 years and is popular amongst lower-middle-income consumers who have a temporary need, wish to test out a product or brand, cannot qualify under typical financing programs, or who have sufficient credit but do not want to add debt. This is not considered a credit installment contract, and customers may return the product or buy it outright, generally at any time. Aaron’s differentiates itself by utilizing larger stores, offering a wider merchandise selection, and delivering lower costs through integrated manufacturing. Aaron’s believes that the reduction in small-box consumer-goods retailers has provided an opportunity for the industry to grow the subset of the population currently targeted by rent-to-own retailers.

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