Net Lease Goodwill Property Profile and Cap Rates

Net Lease Goodwill – Typical Property and Lease Terms

 

Price Range:	$1.5 mm - $6 mm
Cap Rate:	6.75%
Net Income:	$250,000
Price Per foot:	$200 PSF
Building Size:	18,000 SF
Lot Size:	1.5 Acres
Escalations:	10% every 5 Years
Lease Term:	15 Years
Lease Type:	NNN
Credit Rating:	Not Rated

 

Tenant Company Information:

Goodwill Industries International Inc., or shortened to Goodwill, (stylized as goodwill) is an American nonprofit 501(c)(3) organization that provides job training, employment placement services, and other community-based programs for people who have barriers preventing them from otherwise obtaining a job. Additionally, Goodwill Industries may hire veterans and individuals who lack education or job experience or face employment challenges. Goodwill is funded by a massive network of retail thrift stores which operate as nonprofits as well. Goodwill’s answer to its profit status is “As a unique hybrid called a social enterprise, we defy traditional distinctions. Instead of a single bottom line of profit, we hold ourselves accountable to a triple bottom line of people, planet, and performance.”[5]

Goodwill operates as a network of independent, community-based organizations in South Korea, Venezuela, Brazil, Mexico, Panama, Uruguay, the United States, Canada, and 8 other countries, with 156 local Goodwills in the United States and Canada[6]. It slowly expanded from its founding in 1902 and was first called Goodwill in 1915.[7]

In 2014, Goodwill organizations generated a total of $5.59 billion in revenue, 83 percent of which was spent directly on programs. In 2015, the group served more than 37 million people, with more than 312,000 people placed into employment.[8]

Goodwill’s logo is a stylized letter g, resembling a smiling face. It was designed by Joseph Selame in 1968.[9]

Currently, there are two public faces of Goodwill. Organization expert Lorie Marrero is the face of the Donate Movement, which began in 2010. ABC correspondent Evette Rios partnered with Goodwill in 2012 to help appeal to the Latin American market.[10] Form 990 filed by Goodwill Industries listed the 2017 salary of CEO James Gibbons as $598,300 with additional compensation of $118,927.

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