Interested in selling your BI-LO NNN property or BI-LO ground lease property and was wondering what you can get for it in today’s changing market?
Contact us for a complimentary broker opinion of value for your off-market BI-LO NNN property for sale or BI-LO ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your BI-LO NNN property or the inclusion of a BI-LO ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market BI-LO properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
Number of locations
BI-LO has over 650 South Carolina, North Carolina, Georgia, Tennessee, and Florida stores.
Revenue and income
In 2022, BI-LO‘s total revenue was $3.5 billion. Net income was $100 million.
Future plans
BI-LO plans to continue expanding its regional footprint. 2023 the company plans to open over 50 new stores in its five-state market. BI-LO is also investing in new technologies, such as self-checkout and mobile ordering.
Corporate vs. franchise
About 60% of BI-LO stores are franchised. The remaining 40% are corporate-owned. Franchisees typically pay a franchise fee of $25,000 to $50,000 and a royalty fee of 3% of gross sales.
Additional information BI-LO Properties
BI-LO was founded in 1919 in Greenville, South Carolina. The company’s name refers to the first store being located on the corner of Broadway and Lima Streets. BI-LO is the second-largest grocery chain in the Southeastern United States. The company’s most popular products include fresh produce, meats, and seafood. BI-LO is a subsidiary of Southeastern Grocers, Inc., a regional grocery conglomerate.
BI-LO History
BI-LO has a history dating back to 1919 when William Isaac Loblaw established its first grocery store in Greenville, South Carolina. The name BI-LO originated from the store’s initial location at the corner of Broadway and Lima Streets. The company expanded during the 1920s and 1930s, establishing stores across the Southeastern United States. In 1961, regional grocery conglomerate Winn-Dixie Stores, Inc. acquired BI-LO. It operates as a Winn-Dixie subsidiary and is recognized as the second-largest grocery chain in the Southeastern United States.
Why Invest in Ground Lease and NNN Lease of BI-LO?
Investing in BI-LO’s ground lease and triple net (NNN) lease properties offer compelling reasons:
1) BI-LO NNN Property Investment: Stable income
Investing in BI-LO NNN property offers a reliable and consistent income stream due to the brand’s well-established presence and strong market position. The structure of Ground and NNN leases ensures a consistent and predictable cash flow over the long term.
2) BI-LO NNN Property Investment: Established tenant
The prominence and success of BI-LO as a recognizable brand significantly diminish the risk of potential vacancy or lease default. This aspect guarantees a stable, trustworthy tenant for any BI-LO NNN property investment.
3) BI-LO NNN Property Investment: Low management responsibility
The extended lease terms and predetermined rent escalations contribute to a hassle-free investment experience. This feature ensures a steady income and offers the possibility of rental growth for the BI-LO NNN property investment.
4) BI-LO NNN Property Investment: Favorable lease terms
BI-LO NNN property investments benefit from lengthy lease terms and built-in rent escalations. This advantageous arrangement secures a foreseeable income stream and potential rental expansion.
5) BI-LO NNN Property Investment: Real estate value
Strategically situated in high-traffic areas, BI-LO locations can enhance property value. This promising aspect opens up opportunities for capital appreciation in the context of a BI-LO NNN property investment.
Pros and Cons of BI-LO Ground Lease and NNN Lease Investment
Pros:
1. Stable income from a well-established brand.
2. Established tenant reduces vacancy and lease default risks.
3. Minimal management responsibility for landlords.
4. Long lease terms provide stability and potential income growth.
Cons:
1. Lease renewal risk when the term expires.
2. Dependency on BI-LO’s success and operational challenges.
3. Market saturation and competition affect profitability.
4. Limited control over property decisions.
5. Economic and market risks inherent in real estate investments.
Thorough due diligence and consideration of location, lease terms, tenant strength, and investment strategy are essential. Seek guidance from real estate professionals and financial advisors to align with your goals and risk tolerance.