Best Buy’s Second-Largest Distribution Center Up for Sale
- Oct 27, 2016
Findlay, Ohio—Lori Schneider, a senior vice president investments at Marcus & Millichap, has been exclusively engaged to market for sale Best Buy’s second-largest distribution facility. Schneider is representing the seller, a private investor from Florida. The property is offered on an open bid basis.
Situated on a 99-acre site in the northwestern part of Ohio, the property is strategically located and provides a $3.2 million annual rent with scheduled increases. The site offers investors immediate cash flow and opportunities for appreciation.
“The qualified buyer pool for this property is broad. It could appeal to institutions wanting to obtain an investment-grade-tenant revenue stream or to high-net-worth private investors seeking management-free long-term yield with increasing cash flow. The property serves as a regional distribution hub for Best Buy’s e-commerce and direct store fulfillment operations,” said Schneider in a prepared statement.
Best Buy is well-positioned near Interstate 75 and conveniently located near the CSX freight train railroad in a designated Foreign-Trade zone. Due to the attractiveness of the area, distribution centers including Whirlpool, Lowe’s and Kohl’s are also nearby. Recently, Whirlpool invested $40 million in a manufacturing facility in the same area.
“As e-commerce continues to drive demand for industrial space, distribution centers have become a highly desired asset class for investors’ long-term investment objectives,” said Schneider.
Best Buy operates more than 1,150 stores across the U.S. and Canada. The company started operations as a retail store called Sound of Music in 1966. After 17 years, it changed its name to Best Buy. Today, it is a multinational company that employs approximately 167,000 people.
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