o’reilly auto parts - matthews€¦ · o’reilly is a company dedicated to providng their...

O ’ R e i l l y A u t o P a r t s , L y n n H a v e n , F L | 1

O’Reilly Auto Parts1 6 0 2 O h i o A v e | L y n n H a v e n , F L O F F E R I N G M E M O R A N D U M

2 | O f f e r i n g M e m o r a n d u m


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E X E C U T I V E S U M M A R Y

f i n a n c i a l O V E R V I E W

a r e a O V E R V I E W

t e n a n t o v e r v i e w

c o n r a d s a r r e a l

Senior Associate

[email protected] (310) 919-5760MOB (626) 230-1006LIC # 01982875 (CA)

c h a d k u r z

SVP & National Director


Kyle MatthewsBroker of RecordLic # CQ1052263


I n v e s t m e n t H i g h l i g h t s

Property Highlights

• Ideal 1031 Exchange – There are 11+ years remaining on a corporate lease

• Rent Increases – Attractive rent increases of 6% in each option help hedge against inflation

• Upgraded Construction – Compared to O’Reilly’s prototypical metal panel building, this location offers high quality block construction

• Minimal Landlord Responsibilities – Tenant is responsible for parking lot, HVAC, taxes, and insurance offering investors a passive investment

• Good Visibility/Access – The center left turn lane offers good ingress/egress from Ohio Ave

• Large Lot – Subject property sits on 0.92 acres of land

Location Highlights

• Income Tax-free State – Florida is one of the few states with no state income tax

• Busy Traffic Counts – Ohio Ave benefits from ±29,000 vehicles per day

• Power Anchor Tenants – Immediate retail corridor is anchored by grocers Winn-Dixie and Publix as well as a Walmart Supercenter

• Growing Tourist Destination – Major Tourist Destination – Neighboring Panama City Beach attracts 17 Million visitors each year to these cities who contribute $2.7 Billion dollars in economic impact.

Tenant Highlights

• Highest Rated Tenant – O’Reilly Auto Parts who boasts strong S&P BBB credit is the tied for the highest rated tenant among its main competitors: AutoZone, Advance Auto Parts, and Napa Auto Parts. On top of that, their same store sales increased an impressive $559

Million to $9.5 Billion

• Expansion Mode – ±200 new stores were planned for 2019 in addition to current its current ±5,219 stores in 47 states

• Multi-Billion Dollar Company – As of 11/14/2018, O’Reilly Auto Parts is valued at $28.5 Billion with annual sales of nearly $9 Billion (2017)


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O ’ R e i l ly A u t o P a r t s1602 Ohio AveLynn Haven, FL 32444

List Price .......................................................................................$1,800,000

CAP Rate - Current .............................................................................. 6.00%

Gross Leasable Area ..................................................................± 6,944 SF

Lot Size ..................................................................................... ± 0.92 Acres

Year Built ..................................................................................................2009

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Years 1 - 10 $8,500 $102,000 $14.69 5.75%

Years 11 - 20* $9,010* $108,120* $15.57* 6.10%*

Option 1 $9,551 $114,612 $16.51 6.45%

Option 2 $10,124 $121,488 $17.50 6.85%

Option 3 $10,731 $128,772 $18.54 7.25%

Tenant Summary

Tenant Trade Name O’Reilly Auto Parts

Type of Ownership Fee Simple

Lease Entity Corporate

Lease Type NN+

Roof and Structure Landlord Responsible

Original Lease Term 20 Years

Lease Commencement Date 12/1/2010

Rent Commencement Date 12/1/2010

Lease Expiration Date 12/31/2030

Term Remaining on Lease ± 11 Years

Increases 6% Increases in Year 11 and in Each Option

Options 3 5-Year Options

*Purchase price and cap rate is derived from the rent scheduled for December 2020; Seller will credit the Buyer the difference in rent at closing.


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Property Name O’Reilly Auto Parts

Ownership Public

Revenue $9.54B

Market Cap $33.6B

No. of Locations ± 4,712

No. of Employees ± 79,354

Headquartered Springfield, MO

Website http://www.oreillyauto.com

Year Founded 1957

TENANT OVERVIEW

The fast-growing company sells automotive aftermarket parts (both new and remanufactured), maintenance supplies, professional service equipment, tools, and accessories through some 5,420 stores across some 47 US states and online. Many O’Reilly stores also offer customers a range of services, including oil and battery recycling, battery testing, paint mixing, and tool rental. The family founded and operated company wheels and deals with automotive professionals, as well as do-it-yourself customers.

STRATEGY

O’Reilly is a company dedicated to providng their customers with amazing service. Their customer service culture is their greatest competitive advantage and the driving force behind their marketing strategy. Their constant priority is to identify, hire, and develop exceptional team members, while teaching them the culture values of hardwork, enthusiasm, professionalism, teamwork, respect, and honesty.

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Property Name O’Reilly Auto Parts

Property Address 1602 Ohio Ave

Lynn Haven, FL 32444

Assessor’s Parcel Number 10477-000-000

Site DescriptionNumber of Stories One

Year Built 2009

Gross Leasable Area (GLA) ± 6,944 SF

Lot Size ± 0.92 Acres (40,145 SF)

Type of Ownership Fee Simple

Parking ± 22 Surface Spaces

Landscaping Professional

Topography Generally Level

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hio Ave ± 2

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O ’ R e i l l y A u t o P a r t s , L y n n H a v e n , F L | 1 1

s u r r o u N d i n g t e n a n t s


Ly n n H av e n , F L

d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2025 Projection 10,051 38,055 70,461

2020 Estimate 9,502 35,828 66,970

2010 Census 8,659 32,223 61,757

Growth 2020 - 2025 5.78% 6.22% 5.21%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 4,025 15,237 28,527

2020 Estimate 3,815 14,371 27,109

Growth 2017 - 2022 5.50% 6.03% 5.23%

INCOME 1 Mile 3 Mile 5 Mile

2020 Est. Average Household Income

$84,798 $88,049 $76,607

Located in Bay County, Lynn Haven is in northern Florida, slightly north of Panama City. It was first created as one of three Union Veterans Colonies in the South. This area was targeted for settlement because it had a great climate and productive soil. The first houses and stores were built in 1911, and the population rapidly increased. By 1913, a community had formed with many different civic and social organizations, new schools and churches, and a developing government.

Today, Lynn Haven is a tight community with a low crime and unemployment rate. The most common industries are in public administration and manufacturing, with most occupations in sales and management. There are great outdoor areas and historic sites to honor the residents that created this town.

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Economic Development

Since Union veterans founded Lynn Haven, the town has many different memorials to honor them. The most notable is Monument Park. Early on, a monument was created to represent the veterans. Members donated a small portion of their pensions each month to help build the monument. The final project was a statue of a soldier standing on a pedestal, forty feet high, facing north. Different plaques were set around the statue that represented the union soldiers. A beautiful, landscaped park has developed around the statue. It is a great symbol to remind Lynn Haven where they came from.


P a n a m a c i t y, F L

Alive with activity, Panama City houses quaint specialty shops and superb local dining establishments all within close proximity to some of the nation’s most enticing beaches. The city has been listed as one of the best small art towns in America, consequently housing the Marina Civic Center and the Visual Arts Center, which provide a wide variety of cultural and entertainment opportunities for Panama City residents. With numerous city parks hosting festivals, musical and theatrical performances, and markets, Panama City also hosts a multitude of other year-round events, including The Blessing of the Fleet, The Annual Spring Boat Show, A Classic Car Show, Spring Festival of the Arts, The Annual Independence Day Celebration, Oktoberfest, First Friday, and Concerts in the Park.

Furthermore, Panama City boasts rich opportunities for fishing, boating and all varieties of water sports thanks to its Gulf Coast location. The Northwest Florida city also offers several golf courses and other opportunities for sports activities. The almost-perfect weather, friendly atmosphere, numerous activities and exciting possibilities combine to make Panama City a great place to visit and an even better place to call home.


L o c a l E c o n o m y

More than ever, Panama City is booming with events and activities. As the county seat of Bay County, Panama City encourages new or relocating industries and businesses to consider the area for there are many opportunities for growth and development. Panama City’s main retail center is Pier Park on the beach and Panama City Mall across the Hathaway Bridge in town.

Home to Tyndall Air Force Base and the U.S. Navy’s Naval Support Activity Panama City, two military bases, Panama City has a large federal government presence with it being the area’s single largest employer. Other major industrial employers include Eastern Shipbuilding Group, Gulf Power, WestRock, Trane, L-3 Communications, ARINC, and JENSEN-GROUP. Continued economic growth and success can be attributed to the Port of Panama City and the Panama City and St. Andrew’s Marinas.

Protected by St. Andrews Bay, Port Panama City is a growing port that handles a wide variety of cargo ranging from standard shipping containers to delicate cargo. Port Panama City is perfectly situated along Northwest Florida’s Emerald Coast, providing a Gulf Coast gateway to shippers in Georgia, Alabama, Florida, Tennessee and the Carolinas.

It is the northernmost port in the Gulf of Mexico. Port Panama City’s Foreign-Trade Zone (FTZ) #65 is an integral part of its infrastructure of services. Representing a major incentive for the establishment of new industry in the area, FTZ has made Port Panama City the center for national and international companies with manufacturing, large assembly and product modification. Combined with the incentives available through FTZ #65, rates at the port are among the most economical on the Gulf of Mexico and East Coast region; Port Panama City offers an attractive alternative to industries seeking to expand or relocate to the Gulf Coast region.

P o r t P A n a m a C i t y

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of O’Reilly Auto Parts located at 1602 Ohio Ave, Lynn Haven, FL 32444 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T


e x c l u s i v e ly l i s t e d b y

O’Reilly Auto Parts1 6 0 2 O h i o A v e | L y n n H a v e n , F L

c o n r a d s a r r e a l

Senior Associate


c h a d k u r z

SVP & National Director


Kyle MatthewsBroker of RecordLic # CQ1052263

o’reilly auto parts - matthews€¦ · o’reilly is a company dedicated to providng their...

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