ARCTRUST Vestal Home Improvement, DST (the “Trust”) is offering an opportunity to invest in a Lowe’s Home Improvement Center in Vestal New York, which is part of the Binghamton MSA. The property contains a 131,645-sf building on 14.48 acres of land, all of which is leased to Lowe’s Inc., on an original lease that began in 1996. Lowe’s extended the lease in 2021 and has a remaining base term of approximately 11.5 years with several renewal options. The lease also has rent increases every 5 years. This property was the first Lowe’s store to open in the New York State. Lowe’s recently expanded the building by 5,000 sf and completed major renovations to the property. Based upon store visits, this property is one of the top 10% of all Lowe’s stores in the United States. The aged low contract rent being paid by Lowe’s provides the investor rent protection and a value opportunity is created because the asset is being purchased below replacement cost.
Lowe’s is the second largest home improvement store in the world, with over 2,200 locations in the United States and Canada. The Company holds a BBB+ investment grade rating from Standard & Poor’s and is currently ranked number 35 on the Fortune 500 list. For year end 2021 Lowe’s had over $96 billion in sales, $44 billion in assets, a market cap of $113 billion, and Net Income in excess of $5.8 billion. More importantly, the home improvement business is an internet resistant business that requires store visits that many consumers consider entertaining. In addition, the home improvement business is generally a stable recession resistant business as consumers make repairs during stressful times and buy new items during growth periods.
Delaware Statutory Trust
Home Improvement DST