Broadstone Net Lease has initiated construction on two new retail properties in Manor, Texas, marking its first development projects under a 15-year lease strategy for tenants Hobby Lobby and Academy Sports.
The REIT estimates total investment of $10.3 million for the Hobby Lobby property and $12.4 million for the Academy Sports site, both spanning 55,000 square feet. As of August 25, Broadstone has deployed $1.6 million and $2.2 million respectively, leaving $8.7 million and $10.3 million in remaining outlays. Both projects are scheduled for completion in June 2027.
Lease terms include 15-year agreements with annual rent escalations of 0.5% for Hobby Lobby and 0.4% for Academy Sports. The REIT projects an estimated cash capitalization rate of 7.1% for each property, aligning with its industrial-focused, diversified net lease portfolio strategy.
As of June 30, Broadstone’s portfolio comprised 766 net leased commercial properties across 44 U.S. states and four Canadian provinces, spanning industrial, retail, and other asset types. The off-market transactions were directly sourced, according to the company.
