CSRA Grocery Portfolio I, DST
Location: Food Lion, a necessity retailer in North and South Carolina
INVESTMENT COST $14,490,000
EQUITY RAISE $5,740,000
- CASH-ON-CASH RETURN 6% Starting
- OFFERING LOAN-TO-VALUE 60.39%
- FIXED INTEREST RATE 4.70%
- LOAN 10-Year Term: 30-Year
Delhaize Group, founded in 1867, is a large food retailer headquartered in Brussels, Belgium. The principal activity of Delhaize Group is the operation of food supermarkets in 11 countries in North America, Europe and Southeast Asia. Delhaize Group’s U.S. revenues rose 6.6 percent during 2014, equal to approximately $1.1 billion.
Food Lion in North and South Carolina
Each property is anchored by Food Lion, a subsidiary of Delhaize Group (NYSE:DEG), an international company with an S&P rating of BBB-/A-3. Food Lion operates more than 1,100 supermarkets in 10 Southeastern and Mid-Atlantic States.
INVESTMENT HIGHLIGHTS
- Grocery-Anchored Shopping Centers: Food strategy – Food Lion is a necessity retailer with strong store sales.
- Strong Anchor Tenant: Food Lion is owned by Delhaize America, the U.S. division of Delhaize Group (NYSE: DEG), which has an S&P rating of BBB-/A-3.
- Long-Term Anchor Leases: Food Lion, the anchor tenant, recently signed new 10-year leases.
- Triple Net Leases: Tenants are responsible for the payment of taxes, insurance, maintenance and repairs, protecting investor distributions from future inflation.
- Strong Locations: The properties are in growing markets with strong Food Lion brand recognition.
- High Occupancy Level: Portfolio approximately 98 percent leased upon acquisition.
- Renovated Shopping Centers: Seller to complete substantial renovations, all at seller’s cost.
ABOUT CAPITAL SQUARE
Capital Square 1031, LLC specializes in the creation and management of real estate investment programs for Section 1031 exchange investors and other investors using the Delaware Statutory Trust structure. Louis J. Rogers, founder and chief executive offi cer of Capital Square, has been involved in the creation and management of more than 100 investment offerings totaling over $3 billion, including DSTs, tenant-in-common offerings, numerous real estate funds, and multiple publicly registered non-traded real estate investment trusts.