Net Lease Profile: ALDI
Although Aldi is a private company, there is great demand for their free-standing stores as net lease investments. The properties are well located on main commercial thoroughfare. Aldi net leases 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 5% increases in rent every 5 years.
The company plans to open 650 more stores in the U.S. by 2018, increasing its store count by 50% as it expands across the nation. Aldi is seeking to become the country’s biggest discount supermarket chain by store count. The company’s target shows how grocers at the high and low ends of the market have continued to grow while those in the middle have struggled.
- Long term leases
- Lease usually includes rent increases
- Store sales appear to be growing at as healthy rate
- Private Company
- Future competition from Lidl
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