Net Lease Investment Opportunity O`Reilly Auto Parts

Net Lease Investment Opportunity
O’Reilly Auto Parts
$1,400,000
5549 Old National Highway | College Park, GA 30349
2
5549 Old National Highway
College Park, GA 30349
Disclaimer
The Confidential Memorandum contains selected information pertaining to the Property but does not purport to be all-inclusive or to contain all of the
information that a prospective purchaser may require. All financial projections are provided for general reference purposes only and are based upon
assumptions relating to the general economy, competition and other factors, which therefore, are subject to material change or variation. Prospective
purchasers may not rely upon the financial projections, as they are illustrative only. An opportunity to inspect the Property will be made available to
qualified prospective purchasers.
In this Confidential Memorandum, certain documents, including financial information, are described in summary form and do not purport to be complete or accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to review independently all documents.
This Confidential Memorandum is subject to prior placement, errors, omissions, changes or withdrawal without notice and does not constitute a recommendation, endorsement or advice as to the value of the Property by Bull Realty Inc. or the current Owner/Seller. Each prospective purchaser is to
rely upon its own investigation, evaluation and judgment as to the advisability of purchasing the Property described herein.
Owner/Seller expressly reserve the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to
terminate discussions with any party at any time with or without notice. Owner/Seller shall have no legal commitment or obligation to any purchaser
reviewing this Confidential Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has
been fully executed, delivered and approved by the Owner/Seller and any conditions to the purchaser’s obligations therein have been satisfied or
waived.
This Confidential Memorandum may be used only by parties approved by the Owner. The Property is privately offered, and by accepting this Confidential Memorandum, the party in possession hereof agrees (i) to return it if requested and (ii) that this Confidential Memorandum and its contents are of
a confidential nature and will be held and treated in the strictest confidence. No portion of this Confidential Memorandum may be copied or otherwise
reproduced or disclosed to anyone without the prior written authorization of Bull Realty, Inc. or Owner/Seller. The terms and conditions set forth
above apply to this Confidential Memorandum in its entirety and all documents, disks and other information provided in connection therewith.
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5549 Old National Highway
College Park, GA 30349
For more information, please contact:
Virginia I Wright, CCIM
Vice President
Net Lease Investments
(404) 876‐1640 x 134
[email protected]
Bull Realty, Inc.
50 Glenlake Parkway
Suite 600
Atlanta, GA 30328
www.BullRealty.com
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Table of Contents
Executive Summary
4
Investment Overview
5
Close-Up Aerial
6
Retail Aerial View
7
Location Map
8
Tenant Description
9
Demographics
10
Broker Profile
11
Confidentiality Agreement
12
4
5549 Old National Highway
College Park, GA 30349
Executive Summary
Investment Overview
The City of College Park, in the greater metropolitan Atlanta area, is a well-established community. Located near the Hartsfield-Jackson Atlanta
International Airport, Interstates I-85 and I-285, residents and visitors alike will find that this revitalized city offers the best of Southern hospitality in its
city services, local restaurants, lodging accommodations, parks and recreation, and community events.
O’Reilly Automotive Inc. (S&P Rating BBB) is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and
accessories in the United States, serving both the do it yourself and professional service provider markets. As of March 30, 2013, they had revenues of
$6.2 billion, a net income of $592 million and a net worth in excess of $2.1 billion.
Investment Highlights:
♦
♦
♦
♦
♦
Building: The subject property is a free-standing, 9,240 sq ft, 2-tenant building. Originally built in 1997, it was remodeled in 2008 for the O’Reilly
Auto Parts lease. As an added benefit, there is also an established billboard, leased by one of the largest billboard tenants in the United States - CBS
Outdoor.
Tenant: The anchor tenant, O’Reilly Auto Parts (S&P rating of BBB) occupies 6,844 sq ft, and is
Investment Summary
operating on a 20 year lease which extends through August 30, 2028. A local independent tire
dealer, Choice Tire, occupies the remaining 2,396 sq ft space. CBS Outdoors, with over 400,000
♦ O’Reilly Auto Parts:
$ 77,760
unique locations throughout the US, is currently operating this lighted billboard under a 10 year
♦ Choice Tire:
$ 18,000
lease.
♦
CBS
Outdoor
Billboard:
$
7,920
Property: The subject property sits on approximately .86 acres and is zoned C1 for multiple
♦
Total
NOI:
$103,680
usage.
♦ Price:
$1,400,000
Location: Situated along busy Old National Highway, the site sees daily traffic counts of 42,930.
♦
Cap
Rate:
7.68%
Demographics: This excellent location has a population of just over 135,000 within a 5 mile
radius, with an average household income of approximately $42,000.
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5549 Old National Highway
College Park, GA 30349
Property Information
Investment Overview
Choice Tire - Lease
Property Address:
5549 Old National Highway
College Park, GA 30349
County:
Fulton
Price:
$1,400,000
Rentable Square Feet: +/- 9,240 sq ft
Current NOI:
$103,680
Cap Rate:
7.68%
Year Built:
1997
Lot Size:
+/- .86 acre
Lease Commencement
August 1, 2013
Lease Expiration
August 31, 2018
Lease Type
NNN
Leasable Area
2,396 sq ft
Current Annual Rent
$18,000
CAM Charges
Tenant pays 25% of
CAM expenses, insurance, and Prop Tax each
month. Reconciled at
year-end.
Initial Term Increases
Year 2 = $19,200
Year 3 = $20,400
Options
None
O’Reilly Auto Parts - Lease
Lease Commencement
August 5, 2008
Lease Expiration
August 30, 2028
Lease Type
NNN
Leasable Area
6,844 sq ft
Current Annual Rent
$77,760
Initial Term Increases
CBS Outdoor Billboard - Lease
Lease Commencement
June 1, 2008
Lease Expiration
May 31, 2018
10% Increase in Year 11 and 16
Lease Type
NNN
Options
Three 5-year
Current Annual Rent
$7,920
Option Increases
10% Increase each option
Options
None
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5549 Old National Highway
College Park, GA 30349
Close-Up Aerial
Old N
ation
al H
ighwa
y
6
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5549 Old National Highway
College Park, GA 30349
Retail Aerial View
Sub
ject
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Pro
p
ert
y
8
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5549 Old National Highway
College Park, GA 30349
Location Map
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5549 Old National Highway
College Park, GA 30349
O’Reilly Auto Parts
O'Reilly Auto Parts, originally known as O'Reilly Automotive, Inc., is a publicly traded chain of
auto parts stores that started with one store in Springfield, Missouri, in 1957. It has since
grown to include more than 3,469 stores in 38 U.S. states. The corporation is headquartered
in Springfield.
O'Reilly Automotive, Inc. officially started in the auto parts business in Springfield, Missouri,
in November 1957. The company's history began with Charles Francis O'Reilly, a traveling
salesman for Fred Campbell Auto Supply in St. Louis, Missouri. By 1924 Charles had become
familiar with the Springfield area, having traveled by train to sell auto parts throughout the
territory. He recognized the region as an area of growth and opportunity, and asked to be
transferred there. By 1932 he had become manager of Link Motor Supply in Springfield. One
of his sons, Charles H. "Chub" O'Reilly, had also joined the company. Together they provided
the leadership and management that made Link the predominant auto parts store in the
area.
O’Reilly Automotive Inc. is one of the largest specialty retailers of automotive aftermarket
parts, tools, supplies, equipment and accessories in the United States, serving both the do it
yourself and professional service provider markets. Founded in 1957 by the O’Reilly family,
the Company operated 3,859 stores in 39 states as of June 30, 2012.
As of March 30, 2013, they had revenues of $6.2 billion, a net income of $592 million and a
net worth in excess of $2.1 billion.
O’Reilly Automotive Inc. currently has a Standard and Poors rating of BBB.
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Tenant Description
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5549 Old National Highway
College Park, GA 30349
2013 Demographics (STDB)
1 mile
Population 9,182
Households 3,451
Average Household Income $38,939
Median Age 31.9
3 mile
Population 55,197
Households 21,339
Average Household Income $42,409
Median Age 31.9
5 mile
Population 135,066
Households 54,289
Average Household Income $40,014
Median Age 31.9
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Demographics
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5549 Old National Highway
College Park, GA 30349
Broker Profile
VIRGINIA I. WRIGHT
Virginia is Vice President of National Net Lease Investment Group at Bull Realty. She works closely with buyers and sellers
throughout the United States helping them meet their real estate investment objectives. She is primarily focused on single
tenant net lease and 1031 tax deferred exchanges.
With extensive experience within the commercial market throughout the southeastern region, Virginia has also brokered
transactions across the United States. She is licensed in Georgia, North Carolina, South Carolina and Florida and is currently
acquiring real estate licenses in several other states.
Some recent sales include:
CVS Pharmacy (Scranton, PA)
$900,000
Golden Corral (Austell, GA)
$3,300,000
CVS Pharmacy (Woodstock, GA)
$2,439,000
CVS Pharmacy (Smyrna, GA)
$2,000,000
McDonald’s-Chevron (Marietta, GA)
$1,719,900
Arby’s (Titusville, FL) - $1,167,500
Walgreens (Niles, MI) - $1,600,000
Applebee’s (Statesboro, GA)
$2,245,000
CVS Pharmacy (Lawrenceville, GA)
$2,600,000
Walgreens (Anderson, SC)
$3,800,000
Wendy’s
GA) - $900,000
P.
11 of(Conyers,
12
McDonald’s (Georgia) - $1,562,500
As a Certified Commercial Investment Member (CCIM) of the CCIM Institute, Virginia has achieved the highest designation in the
field of commercial real estate. The commercial real estate industry recognizes that the CCIM designation certifies that she is an
expert in the field of commercial real estate. Only 6% of commercial real estate broker/agents nationwide have the CCIM
designation.
Virginia is a member of various professional organizations including the National and Atlanta Commercial Board of Realtors, the
International Council of Shopping Centers, and the CCIM Georgia Chapter.
A Michigan native who moved to Atlanta in 1994, Virginia received her BA in International Business from American
InterContinental University. She previously held positions in sales, management, finance, communications and marketing.
Bull Realty is a U.S. commercial real estate sales and advisory firm headquartered in Atlanta, Georgia. The firm was founded in
1998 with two primary missions that drive the firm’s decisions every day: to grow a company known for stellar integrity and
reputation, and provide the best commercial real estate marketing in the nation.
•
•
•
•
•
Commercial real estate services include acquisition, disposition, leasing, tenant representation and advisory.
Areas of expertise include office, retail, industrial, multifamily, land, healthcare, single tenant net lease, special asset and
daycare properties.
Disposition services, for appropriate properties, include exposure on up to 350 websites, 17 marketing systems and 4 to 7
e-marketing systems.
Additional disposition and lease marketing services include video marketing, social media, auctions and national radio
exposure.
The firm hosts the Commercial Real Estate Show, a talk radio show about commercial real estate that airs
on 12 radio stations throughout the nation. The show is available on-demand
on iTunes and the show website CREshow.com.
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5549 Old National Highway
College Park, GA 30349
Confidentiality Agreement
This Confidentiality Agreement (“Agreement”) is made and agreed to for the benefit of
the undersigned party (“Receiving Party”), the owner of the subject property (the
“Seller”) and undersigned broker Bull Realty Incorporated (“Broker”).
III. Governing Law
This Agreement shall be governed and construed in accordance with the laws of the State
of Georgia
Now therefore in consideration of the privileges granted to Receiving Party with respect
to receiving certain confidential information, and other good and valuable consideration,
the Receiving Party hereby agrees to the following:
Accepted and agreed to this _______ day of ___________________, 2014.
I. Confidential Information:
Receiving Party will receive confidential information regarding property referred to as
5549 Old National Highway. Prospect agrees to not disclose to any person that the property may be available for sale or lease, or that discussions or negotiations are taking
place concerning the property, nor any terms, conditions, or other facts with respect to
the property, including but not limited to tenant information, lease rates, lease expirations, income and expenses, and any such possible purchase, including the status
thereof. The term “person” used in this agreement shall be interpreted broadly and shall
include, without limitation, any corporation, company, partnership or individual other
than parties to which Broker approves in writing. Receiving Party may share information
with directors, officers, employees, agents, affiliates, counsel, lending sources, accountants or representatives of Receiving Party that Receiving Party notifies of the requirements of this Agreement. Receiving Party agrees to not contact the property owner, the
management, the tenants, the lender, the vendors, the insurers, the employees or the
customers of any business at the site.
II. Acting as a Principal:
Receiving Party hereby warrants that it is acting as a principal only, and not as a broker,
regarding this contemplated transaction. Receiving Party acknowledges that Broker is
working an agency capacity as representing the Seller only in this transaction and is the
only Broker involved in this potential transaction. Receiving Party agrees to not be involved in any arrangement to lease or purchase the property, in whole or in part, as a
lender, partner, buyer of the note, buy in foreclosure, buy from bankruptcy court, or in
any other manner acquire an investment in, joint venture or control of the property,
unless Bull Realty, Incorporated is paid a commission at closing as per separate agreement with Seller.
This agreement will expire two years from the date hereof.
Receiving Party
Signature __________________________________________________________________
Printed Name _______________________________________________________________
Title _______________________________________________________________________
Company Name _____________________________________________________________
Address ____________________________________________________________________
____________________________________________________________________
Email ______________________________________________________________________
Phone _____________________________________________________________________
Fax ________________________________________________________________________
Broker
Signature ___________________________________________________________________
Printed Name ________________________________________________________________
You may return the executed agreement by fax (678) 892-4980 or email.
Virginia Wright
Bull Realty, Inc.
50 Glenlake Parkway, Suite 600
Atlanta, GA 30328
GA License H-20209
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