Kingsbarn Realty Capital announced the acquisition of two Fleet Farm retail centers located at 2324 3rd Ave. NE, Cambridge, Minnesota 55008 and 2003 US-12 W, Menomonie, Wisconsin 54751, respectively. Each Fleet Farm store has approximately 18 years remaining on a triple-net lease with annual rental increases of two percent. In addition to the retail store, both locations also include an onsite gas station and a free-standing car wash facility. Both Fleet Farm stores enjoyed store sales of more than $30 million in 2021.
“With the acquisition of these two Fleet Farms centers, Kingsbarn has now acquired a total of eight Fleet Farm properties, including the flagship store located in Appleton, Wisconsin,” stated Kingsbarn CEO Jeff Pori. “Our single-tenant portfolio has been extremely successful. We have had a great run offering properties with proven, quality tenants for 1031 exchange investors who desire consistent returns.” Kingsbarn intends to offer interests in the two properties in a single Delaware Statutory Trust structure, thereby making the portfolio eligible for purchase fractionally as a 1031 exchange replacement property.
Fleet Farm has been proudly serving high-quality merchandise, as well as e-commerce-resistant products, including farm, pet, home improvement, and automotive. Founded in 1955, the retail chain has 47 locations and over 6,600 employees in the Upper Midwest. Fleet Farm was purchased for $1.2 billion in 2016 by private equity giant Kohlberg Kravis Roberts & Co. L.P. With its extensive retail sector experience, Kohlberg Kravis Roberts & Co. L.P. aims to further expand Fleet Farm’s store count in the coming years.