Corporate Guarantee (NYSE: KSS)
– Kohl’s (NYSE: KSS) is a leading omnichannel retailer with 1,175 locations in 49 states.
– As of 2025, Kohl’s investment grade status was rated ‘BB-‘ by S&P and ‘B2’ from Moody’s.
– In 2024, Kohl’s had the second highest annual revenues ($15.4B) of any department store retailer in the country, only behind Macy’s (Yahoo Finance).
27+ Year Occupancy History with Continued Commitment to Site
– Kohl’s has operated at this location since 1997, showing strong historical occupancy at the site.
– The tenant continues to show their commitment to the site, having exercised a renewal option and recently doing a 10-year extension through 2033.
– In 2023, Kohl’s also expanded their services onsite with the addition of Sephora’s beauty and cosmetic lines.
Absolute NNN Lease with Scheduled Rental Increases
– The lease is Absolute NNN in nature, with zero landlord responsibilities whatsoever.
– The lease calls for scheduled rental increases of 5.00% every five years in the base term and each option period.
Well-Below Market Rent and Priced Below Replacement
– Kohl’s is currently paying $6.64/sf, while the average retail rents in the surrounding marketplace are $19.26/sf.
– Priced at $88.55/sf, the asset is offered substantially below replacement costs.
8-Miles from Downtown Knoxville and the University of Tennessee – 301K+ People in 10-Miles
– The subject property is located just 8-miles from the University of Tennessee (downtown Knoxville), which has an enrollment of 38k+ students.
– Kohl’s is positioned just off of the I-640/I-40 Interchange, which both provide direct access into downtown Knoxville in roughly 10 minutes.
Dense Trade Area with Strong Traffic Drivers
– The property is situated in a dense retail corridor, with many national retailers within a mile including: Walmart Supercenter, Sam’s Club, Lowe’s, Home Depot, Target and more.
– Just a half-mile from the subject property is a newly-constructed, 220,000 sf (85-Acre) Amazon Delivery Station.
