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Long-Term NNN Lease with 15% Rent Increase 2427 University Blvd E 11,090 SF Retail Building Tuscaloosa, AL 35404 $12,968,900 CAD ($1,169.42 CAD/SF) 7% Cap Rate
Investment Highlights
- Brand-New Construction Ideal for Bonus Depreciation - Significant Year-1 tax Shelter and Minimal Near-Term Capital Exposure
- Full Term Corporate Guaranty - Global, Best-in-Class Plasma Pharmaceutical Credit – Kedrion S.p.A
- Long-Term NNN Lease With 15% Rent Increase in Year 3 - 13+ Years Remaining, Cap Rate Increasing to 8.05% in Year 3
- Adjacent to University of Alabama - Prime Frontage Along Tuscaloosa’s Dominant Retail Corridor, Surrounded by UofA Medical Center and Student Housing
Executive Summary
Pegasus Investments Real Estate Advisory, in conjunction with ParaSell, Inc., is pleased to present the opportunity to acquire the fee simple interest in a newly constructed, build-to-suit plasma collection center leased to Kedrion, one of the world’s leading plasma derived pharmaceutical companies, located at 2427 University Boulevard East, Tuscaloosa, Alabama (the “Property”). Completed in 2023, the 11,090-square-foot facility sits on a 2.18-acre parcel and was purpose built to meet Kedrion’s specialized operational requirements. Both landlord and tenant invested substantial capital into the development, underscoring Kedrion’s long-term commitment to the site and positioning the Property at the beginning of its useful life. The modern, medical grade buildout also offers investors the potential for meaningful first year bonus depreciation benefits, enhancing after-tax returns.
The Property is leased on a long-term net basis with 13 years of firm term remaining through May 31, 2039, plus a five-year renewal option with CPI-based rent growth. The lease structure provides for above market rental increases, including a 15% rent escalation in Year 6, and a CPI-based increase in Year 11. The landlord’s responsibilities are limited solely to structural components, resulting in an extremely passive ownership profile. Offered at a 7.00% cap rate on in-place NOI, the upcoming rent increase meaningfully enhances future yield while maintaining strong downside protection. The lease is fully guaranteed by Kedrion S.p.A. for the entire term, providing exceptional credit security from a globally scaled pharmaceutical operator.
The Property is leased on a long-term net basis with 13 years of firm term remaining through May 31, 2039, plus a five-year renewal option with CPI-based rent growth. The lease structure provides for above market rental increases, including a 15% rent escalation in Year 6, and a CPI-based increase in Year 11. The landlord’s responsibilities are limited solely to structural components, resulting in an extremely passive ownership profile. Offered at a 7.00% cap rate on in-place NOI, the upcoming rent increase meaningfully enhances future yield while maintaining strong downside protection. The lease is fully guaranteed by Kedrion S.p.A. for the entire term, providing exceptional credit security from a globally scaled pharmaceutical operator.
Property Facts
Sale Type
Investment NNN
Property Type
Retail
Property Subtype
Freestanding
Building Size
11,090 SF
Building Class
B
Year Built
2024
Price
$12,968,900 CAD
Price Per SF
$1,169.42 CAD
Cap Rate
7%
NOI
$907,824 CAD
Tenancy
Single
Building Height
1 Story
Building FAR
0.12
Lot Size
2.18 AC
Opportunity Zone
Yes
Zoning
GC - GC - General Commercial District
Parking
73 Spaces (6.58 Spaces per 1,000 SF Leased)
Somewhat walkable
30/100
Moderately drivable
70/100
Fairly bikeable
50/100
Nearby Major Retailers
Property Taxes
| Parcel Numbers | Improvements Assessment | $732,238 CAD | |
| Land Assessment | $33,455 CAD | Total Assessment | $765,693 CAD |
Property Taxes
Parcel Numbers
Land Assessment
$33,455 CAD
Improvements Assessment
$732,238 CAD
Total Assessment
$765,693 CAD
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Long-Term NNN Lease with 15% Rent Increase | 2427 University Blvd E
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