Kohl's - Henderson, NV

INCOME-TAX-FREE STATE – Nevada is one of only a handful of states that has no state income tax, making ease of ownership much more attractive for investors and the aftertax cash flow more attractive for residents of income-tax-free states.
MAJOR RETAIL HUB – Sunset and US Highway 93, where the subject property is located, features a surplus of national retailers as well as the famous Sunset Station Hotel and Casino, Henderson’s first hotel-casino hotel. Major retailers within the immediate trade area include: Costco, Target, Walmart Supercenter, The Home Depot, Lowe’s, Nordstrom Rack, Hobby Lobby, Best Buy, and tons more.
ATTRACTIVE SPREAD – SUBJECT TO CHANGE: However, current the interest rate for the subject property is around 6.35%, offering investors a roughly 115 basis-point spread at full list price which represents a 7.50% cap rate.
ABSOLUTE NNN LEASE – Tenant takes care of maintenance, taxes, and insurance, offering a convenient and passive investment.
POST-COVID BOOST – After COVID-19 in 2020, Kohl’s experienced a surge in annual net sales growth between 14.2% and 22.9% in the following years. 2022 ended with total net sales of $17.1 Billion and $18.1 Billion in total revenue.
10% RENT INCREASES: The lease includes 10% rent increases scheduled every 5 years with the next one scheduled for the upcoming option in February of 2028.
IMPROVED BUSINESS MODEL - Kohl’s recently announced a strategic partnership with Sephora beauty supplies. In the fourth quarter of 2022, total beauty category sales increased 90% for Kohl’s, achieving high-single-digits percent comparable beauty sales growth in the 200 Sephora shops that opened in 2021, and better than expected beauty sales in the 400 shops opened in 2022, with continued solid sales growth on its website. Kohl’s recently announced the 250 stores that would add full-sized, 2,500-square-foot Sephora at Kohl’s experiences in 2023. The 250 new locations brings the total Sephora at Kohl’s fleet to more than 850, achieving the partnership’s initial planned goal of the Sephora at Kohl’s rollout. In addition, Sephora will also plans to open 50 additional small-format Sephora at Kohl’s locations by the end of 2023.
#3 RANKED SAFEST CITY IN US - A recent Forbes report listed Henderson, Nevada as the 3rd ranked safest large city in the country, offering shoppers the peace of mind to travel throughout the city safely and enjoy the retail and casino nearby.

TENANT SUMMARY
Address	3116 W Sunset Rd Henderson, NV 89014
Term Remaining on Lease	±4.5 Years
Lease Type	NNN
Options	6, (5) Year Options
Increases	10% in Options

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