In an effort to expand its portfolio
Agree Realty Corporation
), a retail real estate investment trust (REIT), made a purchase
of an LA Fitness in Rochester, N.Y. for approximately $10.3
AGREE RLTY CORP (ADC): Free Stock Analysis
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Privately owned American health club chain - LA Fitness -has a
notable presence in the U.S. and Canada. The above-mentioned
acquisition is of a recently opened 45,000 square foot LA Fitness
situated on East Ridge Road in Rochester.
With around 15 years left on the base term of the lease,
the property offers scope for Agree Realty to enjoy steady
revenue going forward. This also reflects the addition of a
second LA Fitness to its portfolio.
Agree Realty - that specializes in the acquisition and
development of single tenant properties net leased to national
and regional retail companies in the U.S. - at present owns a
portfolio of 126 properties in 33 states, comprising roughly 3.6
million square feet of gross leasable space.
Of late, the company has been on an acquisition spree. Recently,
the company shelled out $6 million to acquire 4 single tenant
assets. Two of them are in Madisonville, Texas and Forest, Miss.
and are leased to
Tractor Supply Company
), which commands a large chain of retail stores.
Among the other two properties, one is occupied by
Mattress Firm Holding Corp.
) in Baton Rouge, La. and the other by
) in Sun Valley, Nev. Leased to well-known retailers for an
average lease period of approximately 10 years, these properties
offer scope for Agree Realty to enhance its top line.
Moreover, in June Agree Realty disclosed $22.4 million in
acquisitions of 2 single-tenant properties - one occupied by
Wal-Mart Stores and the other by AutoZone. The renovated Wal-Mart
asset that operates as Sam's Club is based in Brooklyn, Ohio and
spans 147,771 square feet. The second property is situated in
South Kedzie Road in Chicago, Ill. and encompasses 7,840 square
feet. To date, the Sam's Club buyout is the largest acquisition
by Agree Realty at around $21 million.
Such opportunistic deals are expected to help Agree Realty
strengthen its tenant base and its relationship with existing
tenants and add to its earnings in the days ahead.
Agree Realty currently carries a Zacks Rank #3 (Hold).