Interested in selling your Food Lion NNN property or Food Lion 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 Food Lion NNN property for sale or Food Lion 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 Food Lion NNN property or the inclusion of a Food Lion ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Food Lion properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
Number of locations
As of January 2023, Food Lion has over 1,100 stores in 10 Mid-Atlantic and Southeastern United States states. The states with Food Lion locations are West Virginia, Delaware, Georgia, Kentucky, Maryland, North Carolina, Pennsylvania, South Carolina, Tennessee, and Georgia.
Revenue and income
In 2022, Food Lion’s total revenue was $11.6 billion. Net income was $390 million.
Future plans
Food Lion plans to continue expanding its regional footprint. 2023 the company plans to open over 50 new stores in its existing markets. Food Lion also invests in new technologies, such as self-checkout and online ordering.
Corporate vs. franchise
About 90% of Food Lion stores are corporate-owned. The remaining 10% are franchised. Franchisees typically pay a franchise fee of $250,000 and a royalty fee of 2% of gross sales.
Additional information Food Lion Properties
In 1957, Food Lion was established in Salisbury, North Carolina.
The company’s name refers to the first store on a lion farm.
Food Lion is the second-largest supermarket chain in the Mid-Atlantic and Southeastern United States.
The company’s most popular products include fresh produce, meat, and dairy.
Food Lion is a subsidiary of Ahold Delhaize, a Dutch-Belgian retail conglomerate.
Food Lion History
Food Lion was founded in 1957 in Salisbury, North Carolina. The company was originally known as Food Town, but it changed its name to Food Lion in 1983. Food Lion is the second-largest supermarket chain in the Mid-Atlantic and Southeastern United States. The company has over 1,100 stores in 10 states.
Why Invest in Ground Lease and NNN Lease of Food Lion?
Investing in Food Lion’s ground lease and triple net (NNN) lease properties offers compelling advantages:
1) Food Lion NNN Property Investment: Stable income
As a well-established grocery brand with a solid regional presence, Food Lion offers a reliable source of income. Ground and NNN leases ensure consistent and predictable cash flow over an extended period.
2) Food Lion NNN Property Investment: Established tenant
Food Lion’s solid reputation and recognition within the community minimize the risk of tenant vacancy or lease default. This stability ensures a dependable tenant for the property.
3) Food Lion NNN Property Investment: Low management responsibility
With ground and NNN leases, the tenant assumes responsibility for property maintenance and expenses, reducing the landlord’s management obligations. This arrangement allows landlords to focus on other investments and endeavours.
4) Food Lion NNN Property Investment: Favorable lease terms
Long lease terms with built-in rent escalations provide a predictable income stream and the potential for rental growth over time.
5) Food Lion NNN Property Investment: Real estate value
Strategically located Food Lion properties in high-traffic areas can contribute to the property’s value appreciation, offering the possibility of capital growth over the investment’s lifespan.
Pros and Cons of Food Lion 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 Food Lion’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.