Net Leased Natural Grocers Property Profile and Cap Rates

Net Leased  Natural Grocers – Typical Property and Lease Terms

 

Price Range:	$5M - $7M
Cap Rate:	6.00% - 6.50%
Net Income:	$300,000 - $450,000
Price Per foot:	$340 PSF - $465 PSF
Building Size:	15,000 SF
Lot Size:	1.5 Acres
Escalations:	10% Every 5-Years
Lease Term:	15 Years
Lease Type:	NNN
Credit Rating:	NR

 

Tenant Company Information:

 

Vitamin Cottage Natural Food Markets, Inc (NYSE: NGVC) (commonly referred to as “Vitamin Cottage” or “Natural Grocers”) is a Colorado based health food chain.

The business was founded in 1955 as a door-to-door sales operation by Margaret and Philip Isely.[1] They opened the first Vitamin Cottage store in Lakewood, Colorado, in 1963.[1] After Margaret Isely’s death in 1997, the Iselys’ children took over the business the following year.[2] Beginning in 2008, Vitamin Cottage Natural Grocers phased in a name change to Natural Grocers by Vitamin Cottage, to emphasize that groceries, rather than nutritional supplements, formed a majority of its sales.[3] The company made its initial public offering on the New York Stock Exchange in July 2012, raising $107 million.[4]

Products include vitamins, dietary supplements, natural and organic food, organic produce and natural body care products.[5][6] The company has a manifesto entitled “What We Won’t Sell and Why”, which includes artificial colors and flavors, artificial preservatives, irradiated food and meat raised using artificial hormones and antibiotics, among others.[7][8]

The company operated around 140 retail grocery stores in around 19 states, mainly west of the Mississippi River,[9] and had approximately 3,000 employees in 2008

 

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