ALDI Tenant Overview


Net Lease Advisory Tenant Aldi

Pros

  • Long term leases
  • Leases generally include rent increases every 5 years
  • Multiple extension of 5 years each

Cons

  • Private company
  • Competition from Lidl

Tenant Description

ALDI is a discount supermarket chain focusing on creating an efficient supermarket experience, saving customers time and money without sacrificing quality.

Although ALDI is a private company, there is great demand for their freestanding stores as net lease investments. The properties are well located on main commercial thoroughfares. ALDI net lease properties provide a long-term investment with no property management responsibilities in the form of a 15 to 20-year primary term, NNN ground lease. The lease terms typically call for a 5% increases in rent every 5 years.

Founded by the Albrecht family, the first ALDI store opened in 1961 in Germany, making ALDI the first discounter in the world. Headquartered in Batavia, IL, ALDI has more than 2,00 stores across 35 states, employs over 25,000 people and has been steadily growing since opening its first US store in Iowa in 1976.

ALDI has a unique grocery shopping experience as the products are displayed in their shipping boxes to help save time and resources restocking shelves. Shoppers will find more than 90% of the groceries they offer are under ALDI exclusive brands at the lowest prices.

With more demand comes more stores. Over the past decade, ALDI has nearly doubled in size. Aldi announced it has entered into a definitive agreement to acquire Winn-Dixie and Harveys Supermarket stores from Southeastern Grocers, adding 400 locations across five states to its portfolio. This acquisition is part of Aldi's aggressive expansion strategy in the U.S., particularly targeting the Southeast. Aldi aims to operate these stores with the same focus on quality and service, while also evaluating which locations may convert to the Aldi format​.

Average Cap Rate
4.73%
Trailing 12-month average
Average Property & Lease
Average Sale Price $3,609,617
NOI $170,289
$/Square Foot $157 - $212
Building SF 17,000 - 23,000
Lot Size 1 - 3 Acres
Lease Term 15 - 20 Years
Escalations Varies
Stock Symbol N/A
Credit Rating
S&P N/A
Moody's N/A
Average Cap Rate Trend
4.35%
2022
4.73%
2023
Rates reflect year-over-year comparison
Recent Sales Comps
Champaign, IL 4.80%
La Plata, MD 4.25%
Duluth, MN 5.16%