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Agree Realty Corporation , a real estate investment trust (REIT), has recently acquired two premium assets -  LA Fitness property in  Illinois and an AutoZone store in Minneapolis, Minnesota. The properties were acquired at a combined purchase price of approximately $11.6 million.
 
Spanning 42,625 square feet, LA Fitness is located at the corner of South Rand Road and West Deerpath Road in Lake Zurich with a 15 year lease remaining. The second asset, AutoZone store, located on Clinton Avenue in Minneapolis, Minnesota, has approximately 11 years remaining lease term.

Through this strategic initiative, Agree Realty expects to enhance its portfolio quality, which in turn could be accretive to earnings going forward.  The current acquisition features industry leading retailers as lessee. The median household income in this region exceeds $92,000. Apart from the locational advantage, the demographics of this area further boost the company’s portfolio.

Based in Farmington Hills, Michigan, Agree Realty is primarily engaged in the ownership, development, acquisition, and management of retail properties, which are primarily leased to national and regional retail companies in the United States. Currently, the company owns a portfolio of 103 properties in 26 states, spanning approximately 3.2 million square feet of gross leasable space. The company primarily emphasizes on strong value-added development opportunities and acquisitions to maximize shareholder value.

Agree Realty currently retains a Zacks #2 Rank, which translates into a short-term Buy rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Kimco Realty Corporation holds a Zacks #3 Rank, which translates into a short term Hold rating.

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