La-Z-Boy – Modesto

La-Z-Boy – Modesto is a single-tenant retail sale-leaseback at 3500 Sisk Road in Modesto, CA. The 17,995 SF property is 100% occupied, giving investors an income-producing furniture showroom with an Absolute Net lease structure.

Built in 1981, the property sits on 0.76 acres and has 13 parking spaces. Its showroom format serves a furniture retailer whose customers visit to see products in person. Northern California Chair Corp. guarantees the lease and operates 21 La-Z-Boy locations in Northern California. The lease begins at close of escrow, runs for 10 years, provides 10% rent increases every 5 years and includes two 5-year renewal options. The tenant is responsible for maintenance and property expenses under the Absolute Net lease.

The property is on Sisk Road near Vintage Faire Mall and its entrance, placing the showroom alongside an established shopping destination. State Route 99 provides highway exposure, while the 117,278 AADT traffic count puts a substantial flow of vehicles past the retail area. Target, Kohl’s, Costco and Walmart are among nearby retailers, giving shoppers other reasons to visit the area. Downtown Modesto is 5.6 miles from the property.

The asking price is $5,333,000, or $296 PSF, with a 6.75% cap rate and $360,000 in-place NOI. For a buyer seeking a leased retail asset, the sale-leaseback pairs an identified operator with a defined lease term and scheduled rent increases. The property is offered individually or as part of a portfolio. Review the Offering Memorandum for the transaction materials.