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  Hobby Lobby


Average Property & Lease

Average Sale Price$6,746,000
CAP Rate (12mo avg with 10+ lease term)6.15%
NOI$413,310
$/Square Foot$124
Building Size49,000 - 75,000 sf
Lot Size5.8 acres
Lease Term5 - 15 Years
EscalationsIn Option Periods
CREDIT RATING
N/A
S&P
N/A
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Hobby Lobby is an industry leader in the arts and crafts business, and is a highly sought after brand. While they are not currently rated they are universally regarded as strong company and a great tenant. Lease agreements can vary between 5 and 15 years in length, however a 10-year NNN term seems to be most common Hobby Lobby lease structure. Hobby Lobby is a strong credit tenant. The company has excellent corporate financial fundamentals and is consistently listed on Forbes list of America's Largest Private Companies. Generally, Hobby Lobby stores are located in a prime location in a dense and dynamic retail corridor.

Hobby lobby is attractive to investors because they typically have an initial term of 15 years with up to three five-year renewal options. In addition, there can be rent increases throughout the base lease term and option periods as well. Specific lease terms and landlord obligations vary, but generally the landlord is not responsible for the property.

Pros

Cons

  • National name brand recognition
  • Located in prime locations
  • Leases are landlord-favorable with limited landlord responsibilities
  • Private Company
  • Non-investment grade
  • Due to size, harder to lease property if the tenant leaves
Tenant Description

Hobby Lobby Stores, Inc., located in Oklahoma City, OK, started as an extension of Greco Products, a miniature picture frames company founded in a garage by David Green in 1970. Hobby Lobby officially began operation on August 3, 1972 with a mere 300 square feet of retail space, and has been growing ever since. Hobby Lobby prides themselves on their Christian foundations and morals, giving back to the local community and various charities the Green Family has chosen. Hobby lobby has two affiliated companies; Mardel, a Christian bookstore and education supply store, and Hemispheres, a fine furnishings retailer.

Today, Hobby Lobby is considered a leader in the arts and crafts industry. It has 569 stores across the nation that average 55,000 square feet and offer more than 67,000 crafting and home decor products. Hobby Lobby is listed as a major private corporation in Forbes and Fortunes list of America's largest private companies, and the company carries no long-term debt.
HOBBY LOBBY TREND
CAP Rate

2013 avg: 7.56%

2014 avg: 6.52%

RECENT SALES

Woodbury, MN

$5,250,000 | 8.38%

Murphy, TX

$6,125,000 | 6.85%

MORE INFO
www.hobbylobby.com