Heartland Income Properties Enters Kansas Real Estate Market

Kansas Dollar General Property Lease Includes Corporate Guarantee

SCOTTSDALE, Ariz. - April 16, 2020 - PRLog -- Heartland Income Properties, LLC, (http://www.heartlandincome.com) a growing real estate investment company focused on acquiring undervalued single-tenant, triple-net commercial properties in the Midwest region of the United States, is pleased to announce that it has entered into a contract with an independent third party to acquire an 8,000 square foot building in Sabetha, Kansas currently under lease to Dollar General, the national discount store chain.  Sabetha is a farming community in Northeast Kansas. Completion of this transaction will represent the company's first acquisition outside of the State of Iowa.

The Sabetha property features an 8.2% initial capitalization rate.  The current lease runs through September 2026 and there is an additional five-year option period at the conclusion of the initial lease term with a 10% base rent increase at the beginning of the five-year option period.

Under the triple-net model, the tenant is responsible for all costs related to operations including taxes, insurance, snow removal, and maintenance.

Dollar General is the nation's largest small-box retailer with more than 16,000 stores in 45 states.  Dollar General has guaranteed the Sabetha lease.  Heartland will assume this guarantee.

In announcing the contract, Heartland Executive Chairman Tim Kopatich said that the property is in good condition and since it is already occupied by a major national tenant, will be immediately cash flowing to Heartland.

Mr. Kopatich went on to say that the company believes Dollar General represents a strong recession resistant and e-commerce resistant tenant partner.  "For these reasons, including our ability to secure competitive capitalization rates, we like Dollar General stores and anticipate adding several more to the Heartland portfolio," he said.

As previously reported, the company had commissioned an environmental study in connection with its proposed purchase of an O'Reilly Auto Parts store in Estherville, Iowa.  This study revealed soil contamination levels significantly above state limits.  The costs for remediation would have been substantial and, as a result, the company deemed it to be in the best interests of its investors to terminate its purchase contract pursuant to contract provisions that allowed it to do so.

For additional information please contact Tim Kopatich at 949-340-2647 or tim.kopatich@heartlandincome.com.

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