| Purchase Price | $24,800,000 |
|---|---|
| Annual Rental Income | $1,537,600 |
| Cap Rate | 6.20% |
| Lease Term | 17 Years |
| City | Sarasota |
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Floor & Decor – Sarasota, Florida (Southwest Florida – Sarasota County – Gulf Coast Growth Corridor)
This listing presents the opportunity to acquire a long-term, net-leased retail investment to Floor & Decor in Sarasota, Florida—one of the most affluent and fastest-growing metropolitan areas in the southeastern United States. This property features a lease to one of the country’s most successful and expansion-focused specialty retailers in a strategic, high-traffic retail corridor. The lease structure offers long-term passive income, corporate credit backing, and ownership of valuable real estate in a high-barrier-to-entry Florida market.
The subject property is occupied by Floor & Decor, a publicly traded Fortune 1000 company that specializes in hard surface flooring and installation accessories. With more than 200 warehouse-format locations nationwide and a highly disciplined real estate strategy, Floor & Decor has become a dominant player in a previously fragmented retail sector. Their stores typically exceed 70,000 square feet and are situated in destination retail zones with easy access, high visibility, and proximity to home improvement anchors.
Located in Sarasota—one of Florida’s most desirable residential and lifestyle markets—the property benefits from exceptional demographics, sustained population growth, and strong consumer demand for home improvement and renovation services. Floor & Decor serves contractors, designers, and homeowners alike, offering a one-stop shop for high-volume flooring needs with in-store design consultation and inventory availability unmatched by traditional competitors.
The lease is structured as a long-term net lease with minimal landlord responsibilities, typically limited to roof and structure. The tenant pays all operating expenses, property taxes, insurance, and common area maintenance. With a strong rent-to-sales ratio, corporate guarantee, and high investment in the store’s buildout and design center, this property provides excellent income durability and a compelling case for long-term portfolio inclusion or 1031 exchange reinvestment.
Tenant Overview – Floor & Decor Holdings, Inc.
Floor & Decor (NYSE: FND) is a specialty retailer of hard surface flooring, including tile, stone, wood, and luxury vinyl plank, as well as installation materials, accessories, and design services. Founded in 2000 and headquartered in Atlanta, Georgia, the company operates more than 220 warehouse stores across the United States, with a strategic focus on high-growth housing markets and suburban metros with strong homeownership rates.
The company’s warehouse-style stores average 75,000 to 90,000 square feet and serve a dual customer base: do-it-yourself homeowners and professional contractors. Floor & Decor’s business model emphasizes broad in-stock selection, competitive pricing, and on-site design services, which has allowed it to grow market share rapidly in a space traditionally dominated by fragmented regional players or big-box generalists.
Corporate highlights include:
The company’s real estate strategy emphasizes strong visibility, ample parking, truck access for material pickup, and proximity to big-box anchors and regional highways. Floor & Decor’s Sarasota location reflects these standards and the company’s long-term commitment to Southwest Florida.
Lease Structure – Net Lease with Corporate Guarantee
The Sarasota property is subject to a long-term net lease directly with Floor & Decor Holdings, Inc. The lease is structured as an NN or NNN lease depending on specific site improvements, in which the tenant is responsible for property taxes, insurance, common area maintenance, and day-to-day operating costs. Landlord responsibilities, if any, are typically limited to roof and structural components—ensuring predictable, low-risk income.
Typical lease terms for Floor & Decor locations include:
With strong store sales and significant physical investment in design centers, warehousing racks, and point-of-sale systems, Floor & Decor rarely relocates or exits locations. The Sarasota store is expected to perform well above national average volumes due to the local housing and remodeling dynamics, driving lease renewal likelihood and income continuity.
Market Overview – Sarasota, Florida (Gulf Coast – Sarasota County)
Sarasota is one of Florida’s premier Gulf Coast cities, located in Sarasota County approximately halfway between Tampa and Fort Myers. Known for its arts and culture, white-sand beaches, strong retirement demographics, and increasingly diversified economy, Sarasota is experiencing robust residential growth fueled by domestic migration, especially from the Northeast and Midwest.
Key economic and demographic drivers:
The Sarasota market features a high percentage of homeowners, affluent retirees, and new residents renovating existing properties or purchasing new construction homes. These dynamics generate strong demand for flooring, cabinetry, and home renovation materials, placing Floor & Decor in a prime position to serve the local market.
Submarket Overview – Retail Corridor and Customer Base
The subject property is located along one of Sarasota’s most active commercial corridors, surrounded by complementary national retailers and within a few miles of major residential subdivisions, schools, healthcare facilities, and recreational amenities. The area is a well-established trade destination for both professional contractors and homeowners, supported by above-average household incomes and high vehicle traffic.
Submarket features:
Floor & Decor’s wide product assortment, competitive pricing, and in-stock model give it a strategic edge over boutique flooring retailers and traditional big-box stores with limited flooring options. Its Sarasota store benefits from steady residential turnover, coastal weather-related repairs, and the ongoing wave of relocation-driven remodeling.
Property Overview – Store Format and Operational Advantages
Floor & Decor stores are purpose-built or adapted to warehouse-format buildings that can accommodate bulk material storage, customer design interactions, and high transaction volumes. The Sarasota location includes:
The site’s layout and size support both walk-in DIY customers and high-volume trade customers with commercial accounts. Floor & Decor’s in-stock reliability and same-day material access are essential features for professionals operating on tight renovation schedules.
Strategic Investment Merits
This offering represents a rare chance to acquire real estate leased to one of the fastest-growing and most operationally efficient retailers in the country. Strategic merits include:
Few properties combine this level of tenant strength, location quality, and lease security in a region with both high livability and economic momentum.
Conclusion
The Floor & Decor property in Sarasota, Florida is an institutional-quality asset leased to a national, investment-grade tenant in one of Florida’s most desirable and demographically resilient markets. With a strong lease, low management burden, and a business model aligned with long-term housing trends, this property is well-positioned to deliver secure, passive income and appreciation.
As Sarasota and Southwest Florida continue to attract high-income residents and support strong remodeling activity, this Floor & Decor location will remain a vital retail hub for years to come. The store’s regional dominance, deep inventory, and integrated service model provide a moat against competition and a high probability of lease extension. For investors seeking a low-volatility, income-producing asset in a top-tier Florida market, this property represents a best-in-class opportunity.