Home Depot

Investment Overview

Newmark is pleased to offer the fee interest in the Home Depot ground lease at 47th Street Pavilion, approximately 10.32 acres in Palmdale, California. The land is leased to Home Depot U.S.A., Inc. under a ground lease since 2007. Home Depot operates a very successful store and dominates the sub-market and closest competition - Lowe’s. Per Placer.ai, Home Depot has nearly doubles the number of annual visits and more than doubles the estimated sales volumes. $777,834 per year of ground rent, with six 5-year options to extend.

Investment Highlights

• Home Depot credit. The Home Depot, Inc. (NYSE: HD), which reported $164.7 billion of fiscal 2025 sales across 2,359 stores and carries investment grade credit.
• Below Market Rent. Extremely favorable and below market rent ($5.56 PSF), making this one of the most compelling Home Depot offerings in the market.
• Stable Investment Opportunity:
• Absolute NNN Lease: The best ownership structure with no management responsibilities. The tenant built and maintains the improvements and pays OEA operating costs, taxes on the premises, utilities and insurance.
• High-traffic Home Depot location. 883.7K visits in the past year, the 97th percentile of California home improvement locations per Placer.ai, in a center that drew 6.5 million visits in 2025. As a comparison, the Lowe’s in the market had 472,000 visits during the same time frame.
• Fee ownership of 10.32 acres. Pricing equates to $34.60 per SF of land and $111 per SF of building, with the store on tenant-built improvements and a home improvement exclusive across the center, excluding the Target parcel.