Assignment – OREILLY AUTO PARTS 2019-01-18T15:20:13+00:00

MADISON, MS

OREILLY AUTO PARTS

  • COST $2.12M
  • CAP RATE 5.5%
  • NOI $117K
  • OCCUPIED 100%
  • NN LEASE
  • SQUARE FEET 7,225
OFFERING MEMORANDUM

INVESTMENT SUMMARY

The Chetek Group of Marcus & Millichap, as exclusive advisor, is pleased to present the opportunity to acquire a single tenant net leased O’Reilly Auto Parts property totaling 7,225-square feet (the Property) located in Madison, MS. The Property is brand new construction and will have a 20-year lease that will commence in March 2019. The lease is structured double-net and includes four, five-year renewal options providing an additional 20 years of option term. Rent increases 6% after years 11, 15, and in each five-year option period. In addition, the lease is corporately guaranteed by O’Reilly Automotive, Inc, a publicly traded company (NASDAQ: ORLY) with an investment grade S&P rating of BBB. The subject property is strategically located in Madison, MS in an under-served, high-growth submarket which was identified and carefully vetted as significant area of opportunity for the retailer to achieve long term success. The Property offers investors ease of scalability to satisfy a range of 1031 exchange needs of different sizes. The Property is being offered free and clear of debt for a purchase price of $2,127,416 at a 5.5% cap rate.

INVESTMENT HIGHLIGHTS

Brand New 2018 Construction. Investment Grade Tenant S&P “BBB”.

20-year term commencing March 2019. Corporate Guaranteed Lease by O’Reilly Automotive, Inc.

6% increases in years 11,15, and option periods.

Population growth of 6-7% over the next 5-years.

As the most vibrant and affluent area in Mississippi, Madison County offers the most exclusive and prestigious corporate and residential addresses in the State.

Madison County, has benefited from 3.9% year-over-year job growth, adding an additional 2,000 jobs to the local economy.

OFFERING MEMORANDUM