Petco - Brooklyn Net-Leased Retail 2601 86th St

The subject offering is a 10,266 SF retail building located on the corner of 86th Street and Stillwell Avenue in Brooklyn’s Bensonhurst neighborhood. The property is leased long-term to Petco, on a corporate guaranteed lease that runs through January 31, 2030. Petco has been at this location since 2009, and they just recently executed their second, and final renewal option. The original lease was for ten years with two 5-year renewal options. The second renewal option begins February 1, 2025. This is a NN lease. The landlord is only responsible for repairs and replacement to the roof and structure, the tenant is responsible for all other expenses directly, including all real estate taxes, insurance, utilities, and maintenance. The landlord put on a brand-new roof in 2020.
The property rests on a 25,200 SF lot with a 31-car parking lot. The property is zoned C8-2/R5-B, and the lot allows for a total buildable square footage of 50,400 SF. 86th Street is one of the main retail corridors, and one of the most heavily traveled streets, in South Brooklyn. The property is surrounded by local and national retailers, including Walgreens, Dunkin Donuts and McDonald’s.
The offering presents the rare opportunity to acquire a corporate guaranteed net-leased deal in Brooklyn with a full parking lot and essentially zero management. The site is a corner with 163 feet of retail frontage along both 86th Street and Stillwell Avenue.
Petco (Petco Health and Wellness, Inc) has 1,500 retail locations, with annual revenue of $4.4 Billion . Petco is publicly traded (Nasdaq: WOOF), and they are the second largest pet retailer in North America.