Hybridy Member Username: Hybridy
Post Number: 127 Registered: 08-2006
| Posted on Tuesday, August 07, 2007 - 10:42 am: | |
hope they don't close this one in the event it can't be sold. i love my ghetto home depot http://www.loopnet.com/xNet/Ma inSite/Listing/Profile/Profile SE.aspx?LID=15274960&linkcode= 10850&sourcecode=1lww2t006a000 01 |
Urbanize Member Username: Urbanize
Post Number: 2163 Registered: 02-2007
| Posted on Tuesday, August 07, 2007 - 10:44 am: | |
^^^It would suck too if the reason they did close it wasn't the lack of profit. |
Brandon48202 Member Username: Brandon48202
Post Number: 178 Registered: 12-2004
| Posted on Tuesday, August 07, 2007 - 12:29 pm: | |
They are not closing, this is a "sale leaseback" offering. Homes Depot will sign a "long-term lease: 25 yr base with ten 5-yr options" with the new owner of the building. |
Iheartthed Member Username: Iheartthed
Post Number: 1313 Registered: 04-2006
| Posted on Tuesday, August 07, 2007 - 12:32 pm: | |
Damn, Home Depot costs more than the Guardian Building. ETA: My 1-313 post! (Message edited by iheartthed on August 07, 2007) |
Brandon48202 Member Username: Brandon48202
Post Number: 179 Registered: 12-2004
| Posted on Tuesday, August 07, 2007 - 12:48 pm: | |
You could buy 2 Book towers for the price of 1 Home Depot! |
Urbanize Member Username: Urbanize
Post Number: 2170 Registered: 02-2007
| Posted on Tuesday, August 07, 2007 - 12:51 pm: | |
Funny, Crap in Today's Society is worth more than Architecture and Importance. |
Charlottepaul Member Username: Charlottepaul
Post Number: 1372 Registered: 10-2006
| Posted on Tuesday, August 07, 2007 - 1:18 pm: | |
"Long-Term Lease: 25 yr base with ten 5-yr options" Sounds like Home Depot isn't planning on going anywhere. Is interesting though that someone would want to sell a fully leased site. |
Swingline Member Username: Swingline
Post Number: 877 Registered: 11-2003
| Posted on Tuesday, August 07, 2007 - 1:30 pm: | |
Isn't Hartford Memorial Church the seller? |
Track75 Member Username: Track75
Post Number: 2563 Registered: 10-2003
| Posted on Tuesday, August 07, 2007 - 1:33 pm: | |
It's actually very common for triple-net leased real estate to change hands. NNN leases to high-quality lessees like HD are akin to a corporate bond, note the relatively low cap rate of 5.75%. |
Titancub Member Username: Titancub
Post Number: 66 Registered: 08-2006
| Posted on Tuesday, August 07, 2007 - 7:43 pm: | |
I would speculate there's nothing too funny with it. May perhaps just wants to cash out its investment in the property by selling it off rather then taking in the lease payments for 25 years. Probably will go put their money to work somewhere else now. |
Davetroit Member Username: Davetroit
Post Number: 6 Registered: 03-2007
| Posted on Wednesday, August 08, 2007 - 4:58 pm: | |
Yes, Hartford Memorial owns the Home Depot, as well as a lot of other property in that area. |
Viziondetroit Member Username: Viziondetroit
Post Number: 1094 Registered: 11-2003
| Posted on Wednesday, August 08, 2007 - 8:42 pm: | |
Yeah, it would be a wise decision for Hartford to sell the property and invest elsewhere. I used to work at that location from grand opening until 2/06 and they have had much success. It took a while for them to overcome the shrink and associate turnover, but they have the right management in place and have had a stable 24 months after a few rocky years. |
3rdworldcity Member Username: 3rdworldcity
Post Number: 849 Registered: 01-2005
| Posted on Thursday, August 09, 2007 - 5:55 pm: | |
Very interesting post. I'd be interested to know how a church ended up owning this property. My guess is it will sell for around $18,500,000 in order to yield a touch more than 7%. Some very good, AAA corporate bonds are yielding 7% or more (or were the last time I checked recently.) My concern as an investor would be the threat from Lowes, which is going head-to-head with Home Depot, and mostly winning. Is there any more developable land around this store? Home Depot built a store at 12 Mile and I-75 and it was the best performing store in the chain. Lowes built a new store right next door and is going gangbusters. Lowes was a very high priced deal because it had to purchase a relatively new manufacturing plant and tear it down in order to build next door to HD. |
Charlottepaul Member Username: Charlottepaul
Post Number: 1375 Registered: 10-2006
| Posted on Thursday, August 09, 2007 - 8:09 pm: | |
No there really isn't all that much land around. It is basically a four block site in the middle of a neighborhood breaking a row of small shops along 7 mile. All around it are blocks of homes. Really the only 'open' space around is Mary Grove College, but they are doing well and prob. would not sell off any of their land. |
Viziondetroit Member Username: Viziondetroit
Post Number: 1095 Registered: 11-2003
| Posted on Friday, August 10, 2007 - 2:36 am: | |
Yeah that is one location where Lowes is not a threat, there is NO area immediately around the HD location. The neighborhood is very dense in that area.. The church bought the land when it came available like 20 years back... it was a hospital location and then a vacant lot for the longest until the city council approved development for it to be a Kmart location... and that took years to approve. It became a Home Depot in 2003.... |
3rdworldcity Member Username: 3rdworldcity
Post Number: 851 Registered: 01-2005
| Posted on Friday, August 10, 2007 - 11:22 am: | |
Smart church. Good for it. |
Jams Member Username: Jams
Post Number: 5706 Registered: 10-2003
| Posted on Friday, August 10, 2007 - 11:56 am: | |
3rdworldcity, Check out this from their website. http://www.hartfordchurchdetro it.org/html/who/vision.html I spent a great amount of time there on a contract job one year (very unusual for a Caucasian to be hired), I came away with a great admiration for that Church and its Pastor. |
Bumble Member Username: Bumble
Post Number: 300 Registered: 11-2004
| Posted on Friday, August 10, 2007 - 12:23 pm: | |
quote:Lowes built a new store right next door and is going gangbusters. I'm a regular at both of these places at this location and Lowes is always dead. |