Acquisition of Cabela’s Portfolio Complete
LOUISVILLE, Colo., Jun 24, 2021 – Real estate investment company Real Capital Solutions (RCS) has acquired a portfolio of three single-tenant Cabela’s properties for $108.7M consisting of 400,000 square feet. The stores are located in Michigan, Wisconsin and West Virginia and generate over $100 million in sales. True destination stores, Cabela’s showrooms offer outdoor enthusiasts and their families an educational and entertaining shopping experience.
After shopping a dozen Cabela’s deals, Real Capital Solutions was able to hand-select the top-performing stores and sign a 23-year absolute net lease term for the triad. The firm has been targeting higher-yield single tenant net leased (STNL) opportunities and is looking for similar projects nationwide.
“We couldn’t be happier to add these properties to our single-tenant portfolio especially given the quality of stores, the country’s steadily increasing outdoor sports participation and long-term leases,” said Adam Abeln, Managing Vice President of Acquisitions. “These assets are an outstanding inflation hedge since the annual rent increases adjust by CPI.”
Bass Pro Shops purchased the Cabela’s brand in 2017, taking the public company under their private ownership. Since the acquisition of Cabela’s, the Bass Pro Group became one of the highest grossing outdoor retailers in the U.S. and directly competes with prominent conglomerates such as Dick’s Sporting Goods and Nike. Cabela’s is one of the nation’s premier sporting brands and is a leader in hunting, fishing, and boating with enhanced product offerings, unique outdoor experiences, and unrivaled services.
This strategic transaction is the latest purchase in a series of single tenant net leased acquisitions Real Capital Solutions has taken. In the last two years, the full-service real estate firm has acquired over half a billion of STNL properties.
Real Capital Solutions has recently expanded its search for capital to include outside investors. “We’ve found a lot of investor interest with our STNL initiative because it provides stable cash flow and a high yield from strong performing tenants, which is a rare commodity in today’s environment,” said Abeln. This is the second significant STNL purchase for RCS over the last two months, following the Amazon single tenant net leased industrial building acquisition in April 2021 for $125 million.