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November 5, 2024
Tractor Supply Company: Turnkey Retail Redevelopment
Baxter Springs, KS
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Case Studies
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Opportunity
CMK was entrusted to purchase and retrofit a vacant retail store into a new facility for Tractor Supply Company under a limited timeline of 12-16 weeks.
Services Provided
- Site Selection: CMK located the market for TSC based on a gap analysis of current store locations and potential customer demand.
- Acquisition: Negotiated an attractive purchase price of an existing 33,000 square foot Walmart building in good condition.
- Renovation: Oversaw the complete retrofit of the building including the installation of a new roof, renewed parking lot, and new HVAC units.
- Leasing: Negotiated an attractive lease structure with the investment-grade tenant including periodic rent escalations, net lease structure, and a 15-year term.
Results
This net lease project has provided CMK investors with consistent cash-flow as well as a significant anticipated return on capital targeted at 17-20% IRR.
