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Zanesville Harbor Freight building sold

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Zanesville Harbor Freight building sold

By Staff Report

National Retail Properties (NYSE: NNN) has acquired the Harbor Freight building at 2770 Maple Ave.

The retailer will remain at the location, however, instead of owning the building outright, it will enter into a long-term NNN lease with National Retail Properties.

A NNN lease, commonly referred to as a triple net lease is designed in such a way that the lessee pays the property taxes, insurance and maintenance on the building on top of the base monthly rent.

This is advantageous for the lessee because it supplies upfront capital, greater than what could be expected from a conventional sale-leaseback.

These funds are then usually invested back into the business to provide the necessary capital for future investments and continued development of their business, according to National Retail Properties recent 10-K fillings.

According to Harbor Freight’s website, more than 900 stores are company owned and they do not offer franchise opportunities.

Harbor Freight bought the Zanesville property from Balderson Real Estate in July of 2014 for $862,000 and sequentially opened their doors in early 2015, according to the Muskingum County Auditor’s records.

The land and building were then sold in October to National Retail Properties for $3.1 million dollars, according to the Muskingum County Auditor’s records.

Harbor Freight operates 35 stores across Ohio, and while the company doesn’t own all of those locations, it recently sold both their Reynoldsburg and Steubenville stores to National Retail Properties, as well.

Based on previous National Retail Properties’ 10-K filings, the company typically buys up multiple locations at once rather than one building at a time, although, it is unknown how many Harbor Freight stores were purchased during the sale.

Requests for comment from Harbor Freight and National Retail Properties on the sale-leaseback were not returned by the time of publication.

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