About the Investment
Our investment sales team successfully sold a 20 YR NN+ ALDI repurposed former grocery store in Canton, OH. ALDI INC. (OH) was the guarantor, and we represented the seller in the transaction. TheALDI deal we closed was at the highest price ever traded for an ALDI in OH as of June 2023 for $4,066,000 (5.0% cap rate). The property sold to a 1031 buyer based in NW Ohio.
Our Challenges
- Property was attached to a larger shopping center and not free standing.
- Landlord responsibilities for roof& structure.
- Favorable lease terms for tenant (assignment/ subletting language).
Our Solutions
- Advised our client to amend the lease and lot split the ALDI space into a 2.0-acre self-contained parcel.
- Implemented 20 and 30 YR warranties respectively to each landlord responsibility.
- Targeted 1031 buyers needing to place their capital and not as concerned with potential assignment of the lease.
