Property Description

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.

Property Type

Retail

Structure

Delaware Statutory Trust

ARCTRUST Vestal
Home Improvement DST

NY

Remaining Availability

66% Remaining

Total Funds
$12,174,000
Remaining Availability
$8,000,000
Minimum Investment
see PPM
Funded To Date
$4,174,000
Est. Hold Period
10 Years
Leverage
47.72%
Equity Raise
$12,174,000
Price/SF or Price/Unit
$153/SF

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Location Details

 
 
 

Population

See PPM

Population Growth

See PPM

About The Area

The Binghamton metropolitan area is an emerging center for healthcare and education, driven by Binghamton University. Major food distributors have headquarters in the area including Maines Paper & Food Service, Willow Run Foods, and Crowley Food, while Frito-Lay has a large plant in the region. Binghamton University is regularly ranked among the top public colleges and has been considered to be a “Public Ivy” due to its reputation for educational excellence. The University has a large research presence, including a New York State Center of Excellence and is classified as an R1: Doctoral University.

The property is located within the Vestal Town Square, a 768,000-sf shopping center on 78 acres of land, at the intersection of Vista Highway and State Highway 17, two of the most important roads in the area, with more than 54,000 cars per day. Vista Town Square is the dominant important retail node in the Vestal market, containing a high concentration of nationally recognized anchor tenants. The 1-3-5-mile demographics show better than average density and income.

 

Sponsor

The ARCTRUST group of companies (“ARCTRUST”) is a 40-year old, vertically integrated real estate organization that has been responsible for the development, acquisition, and joint-venture funding of more than 500 properties with an aggregate value in excess of $5 billion. ARCTRUST operates throughout the United States with a focus on the New York to Florida corridor, and major metropolitan areas with international airports.