Tractor Supply
Long-Term Corporate Backed Lease
Marketing description
Northmarq is pleased to present to qualified investors the opportunity to acquire a fee simple interest in a single-tenant, Tractor Supply located at 501 Oak Mountain Trail, Pelham, AL 35124 (the "Property")
The Property consists of approximately 24,191 square feet of retail space on a 4.08 acre parcel, leased to Tractor Supply Company under a net lease guaranteed by Tractor Supply Company. The lease commenced March 2023, and runs through March 2043, with four additional five-year renewal options. This ensures a largely passive ownership structure with minimal landlord responsibilities limited to the roof, structure and parking lot.
Originally built in 2023, the Property is operated by one of the nation's most recognized rural lifestyle retail brands. Tractor Supply Company's strong customer loyalty, broad merchandise offering and consistent store performance continue to drive dependable traffic and repeat business. The tenant is responsible for all operating expensed, including CAM, taxes, insurance and utilities providing investors with stable cash flow supported by corporate-backed credit.
Tractor Supply Company is a nationally recognized retailer serving the needs of homeowners, farmers and rural communities, known for its dependable operations and strong customer base. With the brand's proven performance, long-term lease structure, and net lease type with minimal landlord responsibilities, the Property represents a compelling investment opportunity in a stable and growing suburban market offering predictable, long-term growth.
Investment highlights
- STRONG CORPORATE-BACKED TENANT - The lease is guaranteed by Tractor Supply Company, a publicly traded Fortune 500 retailer with over 2,200 stores and an investment-grade credit rating, providing investors with a secure and reliable income stream backed by a nationally recognized brand.
- STRONG DEMOGRAPHICS IN BIRMINGHAM MSA - The Property benefits from its location in Shelby County, one of Alabama's most affluent and fastest-growing counties. Strong household incomes, robust population growth, and continued residential development provide a deep and expanding customer base for Tractor Supply. The area's favorable demographics and purchasing power support long-term retail performance and reinforce Pelham's position as one of the premier suburban retail markets within the Birmingham MSA
- LONG TERM NET LEASE WITH LIMITED LANDLORD RESPONSIBILITIES - This property is backed by a long-term net lease that limits landlord responsibilities solely to the roof, structure and major parking and includes four(4) additional five-year renewal options. The base term and each renewal option feature 5% rent increases ensuring stable, predictable cash flow and consistent income growth throughout the investment term.
- ESSENTIAL USE TENANT - Tractor Supply serves the agricultural and rural lifestyle needs of a community that is not easily displaced by e-commerce, supporting consistent store performance.
- STRATEGIC LOCATION - The property is strategically located in a prime retail corridor immediately off Interstate 65 and along Pelham Parkway (28,240 VPD) providing exceptional visibility and accessibility within one of Birmingham MSA's fastest growing suburban corridors. The property is situated less than a mile from Oak Mountain State Park, Alabama's largest state park and premier outdoor recreation destination, attracting millions of annual visitors and supporting strong consumer traffic throughout Pelham trade area.
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