Company News
Kingsbarn Purchases Retail Center Leased to Mills Fleet Farm For $55.1 Million
Las Vegas, Nevada, June 22, 2021 – Kingsbarn Realty Capital (“Company” or “Kingsbarn”) announced the acquisition of Mills Fleet Farm's flagship store in Appleton, Wisconsin. The property is comprised of five (5) separate buildings on 32.28 acres. The 431,440-square-foot commercial property includes the flagship retail store (273,175 sq. ft.), an industrial building (143,883 sq. ft.), two gas stations (7,296 sq. ft.), and a car wash building (7,086 sq. ft.). The Fleet Farm triple net lease is for an initial 20-year term with annual rental increases at the rate of 2% (adjusted every 5 years).
"While many retailers are closing stores, Fleet Farm is expanding, having opened six new stores over the past two years," stated Kingsbarn CEO Jeff Pori. "Founded in 1955, Fleet Farm is a proven product that has been operating for over 65 years. They have an e-commerce resistant product mix, as they are similar to wholesale club stores like Costco, Sam's Club, and BJ's Wholesale Club," Pori further explained. Fleet Farm currently operates 53 stores throughout the upper Midwest.
Fleet Farm was acquired by private equity giant KKR (NYSE:KKR) in 2016 for $1.2 billion. KKR carries a Standard & Poor's "investment-grade" credit rating and has more than $165 billion of assets under management.
Kingsbarn will offer investment interests in the Property in a DST structure, making the interests eligible for an IRC Section 1031 exchange. The DST investment structure provides investors with fractional ownership in higher quality properties than they may be able to acquire on their own. DSTs are also very useful in helping investors diversify their real estate portfolios in a much easier fashion than if they tried to acquire multiple properties on their own. The DST offering will be available through KB Exchange Trust, an affiliate of Kingsbarn, later this summer.
About Kingsbarn Realty Capital
Kingsbarn Realty Capital is a real estate private equity and development firm based in Las Vegas, Nevada. Kingsbarn structures its real estate investment opportunities for both fractional 1031 investors as well as providing customized portfolio solutions for large scale investors. Kingsbarn’s management team has wide-ranging experience developing, managing, operating, and sponsoring a diversified portfolio of stabilized, income-driven properties. Kingsbarn has acquired and currently operates over $600 million of commercial real estate throughout the United States. In 2020, Kingsbarn Capital and Development was founded as the company’s development arm to expand its product offerings for investors to include ground-up development of real estate assets and to fund operating companies that require real estate solutions across the United States.
No Offer
This is not an offer. An offer will only be made pursuant to the delivery of the required offering documents, including the private placement memorandum, as supplemented or amended (the “Memorandum”) and only in states in which the securities offered pursuant to the Memorandum are registered or exempt from registration requirements, and only by broker-dealers authorized to do so. This information discusses general information about the portfolio and is not a guarantee, prediction or projection of future performance. Diversification does not protect against loss or guarantee return. There are risks associated with investing in real estate assets, such as inflation, interest rates, real estate tax rates, changes in the general economic climate, local conditions such as population trends and neighborhood values, and supply and demand for similar property types. Investing in DSTs and 1031 exchanges involves significant tax consequences. Please refer to the Memorandum for detailed information about the offering and its associated risks and implications.
Forward-Looking Statements
This press release may contain forward-looking statements identified by the use of words such as “outlook,” “indicator,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. Kingsbarn assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events or circumstances.