offering memorandum o’reilly auto parts€¦ · a public offering of company stock in april 1993....

Offering Memorandum

Crawfordville, Florida

O’REILLY AUTO PARTS

Subject Property

CONFIDENTIALITY AND DISCLAIMER

NON-ENDORSEMENT NOTICE

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success.Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

NET LEASED DISCLAIMER

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services of Florida © 2017. All rights reserved.

SUBJECT PROPERTY


FINANCIAL OVERVIEW

Overview

2250 Crawfordville Hwy, Crawfordville, Florida 32327Price: $1,640,000Cap Rate: 5.75%Rentable Square Feet: 7,225Annual Rent: $94,317Rent PSF: $13.05Land Area: 1.17 AcresYear Built: 2017

Lease Summary

Tenant: O’Reilly Auto PartsWebsite: www.OReillyAuto.comLease Guarantor: CorporateLease Type: NNLease Term: 20 YearsOption Periods: 4, 5-Year OptionsRental Increases: 6% in Yr 11 and Every 5 Yrs in OptionsRoof & Structure: LandlordRent Commence: 6/1/2017Lease Expiration: 5/31/2037

Base Term Annual Rent PSF Cap Rate

6/1/2017-5/31/2027: $94,317 $13.05 5.75%6/1/2027-5/31/2037: $99,976 $13.84 6.10%

Option Periods Annual Rent PSF Cap Rate

6/1/2037-5/31/2042: $105,975 $14.67 6.46%6/1/2042-5/31/2047: $112,333 $15.55 6.85%6/1/2047-5/31/2052: $119,073 $16.48 7.26%6/1/2052-5/31/2057: $126,218 $17.47 7.70%

http://www.oreillyauto.com/site/c/home.oap?utm_medium=Yext&utm_source=Header&utm_campaign=Home


Investment Highlights• Brand-New, 20-Year Lease• Four, Five-Year Renewal Options• Six Percent Rental Increases in Year 11 of Base Term and Every Five

Years in Option Periods

Location Highlights• Surrounding Retailers Include Walmart Supercenter, Tractor Supply

Company, Dollar Tree, Winn Dixie, Walgreens, CVS, Family Dollar, Badcock Home Furniture & More, Pizza Hut, Zaxby’s, Burger King and Many More

• 15 Miles from Tallahassee, Florida’s State Capital, and Florida State University, Which was Ranked as the 38th Best Public University in the United States in 2017 by U.S. News & World Report

• 15 Miles from Tallahassee International Airport and Florida A&M University

• Eight Miles from Edward Ball Wakulla Springs State Park, Home of One of the Largest and Deepest Freshwater Springs in the World

• Wakulla Springs is a Popular Tourist Attraction in the Area All Year Round with Riverboat Tours to View the Wildlife and Glass Bottom Boat Tours

Tenant Highlights• O’Reilly Automotive, Inc. is One of the Largest Specialty Retailers

of Automotive Aftermarket Parts, Tools, Supplies, Equipment and Accessories in the United States

• As of March 31, 2017, the Company Operates More Than 4,800 Stores in 47 States

INVESTMENT HIGHLIGHTS

TENANT SUMMARY


O’Reilly Automotive, Inc. (NASDAQ: ORLY) officially started in the auto parts business in Springfield, Missouri, in November of 1957. However, its historical background in the automotive business, as well as the family’s quest for opportunity and advancement, may be traced back to a much earlier time.

By 1961, the company’s volume had reached $1.3 million – the combined volume of O’Reilly Automotive Distributors, a division formed to serve independent automotive jobbers in the area. In March of 1975, annual sales volume rose to $7 million, and a 52,000-square-foot facility at 233 S. Patterson was built for the O’Reilly/Ozark warehouse operation. By that time, the company had nine stores, all located in southwest Missouri.

The long range plans and stability of the company were solidified by a public offering of company stock in April 1993. Since that time, the company has grown through the opening of new stores, as well as through numerous mergers and acquisitions, and currently operates stores in 47 states, including Alaska and Hawaii.

Throughout this time the underlying spirit and philosophy of O’Reilly Automotive, Inc., has been one of growth and progress, both for the company and its team members. This remains the policy to which the company is dedicated.

Today, 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 professional service providers and do-it-yourself customers. Founded in 1957 by the O’Reilly family, the Company operated 4,888 stores in 47 states as of March 31, 2017.

Tenant: O’Reilly Auto PartsOwnership: PublicWebsite: www.OReillyAuto.comLease Guarantor: CorporateSales Volume: $8.59 BillionStock Symbol: NASDAQ: ORLYCredit Rating: Standard & Poor’s: BBB+

http://www.oreillyauto.com/site/c/home.oap?utm_medium=Yext&utm_source=Header&utm_campaign=Home

AERIAL

17,000Daily 15 Miles from

Tallahassee - Florida’s

State Capital

Craw

ford

ville

Hig

hway


Burger King

LOCAL & REGIONAL MAPS


MARKET OVERVIEW


Crawfordville, Florida | Tallahassee MSACrawfordville is an unincorporated community and county seat of Wakulla County, Florida. Crawfordville is less than 15 miles from Tallahassee, Florida’s state capital. Wakulla County is part of the Tallahassee Metropolitan Statistical Area (MSA).

Wakulla County is also home to Edward Ball Wakulla Springs State Park, which is one of the largest and deepest freshwater springs in the world. Wakulla Springs is a popular tourist attraction in the area all year round with riverboat tours to view the wildlife and glass bottom boat tours.

Tallahassee qualifies as a significant college town with a student population exceeding 70,000. Tallahassee is currently ranked as the 18th best college town in the nation by Best College Reviews.

Tallahassee is home to Florida State University, ranked the nation’s 43rd best public university by U.S. News & World Report. It is also home to Florida A&M University, the country’s largest historically black university by total enrollment, and Tallahassee Community College which is a large community college serving mainly as a feeder school to both FSU and Florida A&M.

Wakulla Springs

Tallahassee, Florida

Florida State University


POPULATION 3 MILES 5 MILES 10 MILES

2010 Population 9,269 14,969 28,9642016 Population 9,524 15,342 30,0472020 Population 10,825 17,438 32,5502016 Male Population 4,684 7,567 15,1052016 Female Population 4,840 7,775 14,9422016 Median Age 39.1 38.5 39.0

RACE & ETHNICITY 3 MILES 5 MILES 10 MILES

American Indian, Eskimo 0.9% 0.8% 0.8%Asian 0.8% 0.7% 0.6%Black 11.5% 11.4% 17.6%Hawaiian/Pacific Islander 0.1% 0.1% 0.1%White 83.6% 83.9% 77.9%Other 0.5% 0.5% 0.6%Multi-Race 2.6% 2.6% 2.6%Hispanic Ethnicity 3.5% 3.5% 3.4%Not of Hispanic Ethnicity 96.5% 96.5% 96.6%

HOUSEHOLDS 3 MILES 5 MILES 10 MILES

2010 Households 3,363 5,274 10,6242016 Households 3,424 5,358 10,9582021 Households 3,912 6,112 11,915

HOUSEHOLD INCOME 3 MILES 5 MILES 10 MILES

2010 Avg Household Income $56,279 $57,628 $56,2222016 Avg Household Income $57,654 $59,053 $58,3522021 Avg Household Income $63,875 $65,482 $65,6382010 Med. Household Income $51,273 $51,142 $47,1322016 Med. Household Income $50,032 $50,581 $48,4042021 Med. Household Income $56,999 $57,954 $56,1572010 Per Capita Income $20,612 $20,435 $21,7472016 Per Capita Income $20,927 $20,758 $22,4542021 Per Capita Income $23,263 $23,074 $25,123

DEMOGRAPHICS

View inGoogle Maps

https://www.google.com/maps/place/2250+Crawfordville+Hwy,+Crawfordville,+FL+32327/@30.2094238,-84.3675133,1025m/data=!3m2!1e3!4b1!4m5!3m4!1s0x88ec85ef8dc68e5b:0x9f37315ea91f7071!8m2!3d30.2094238!4d-84.3653246

Marcus & Millichap (NYSE: MMI) has established itself as a leading and expanding investment real estate company with nearly 1,500 brokers in 78 markets throughout the United States and Canada. The foundation of our investment sales is the depth of our local market knowledge. Our 44-year history of maintaining investor relationships in local markets enables us to be the best information source and transaction service provider in North America.

About Marcus & Millichap

The Wolfe Retail Group of Marcus & Millichap specializes in the sale of single-tenant properties and shopping centers and has successfully assisted clients in selling approximately 450 separate commercial properties with a market value exceeding $1.15 billion. Having closed sales in nearly 40 states, our track record is evidence that we are one of the premier brokerage teams in the United States.

With our experience and background in various fields such as law and finance, we have proved to be invaluable to our clients, earning their trust and exceeding their expectations while best assisting them in their real estate transactions.

The Wolfe Retail Group

has sold approx. 450 properties

in nearly 40 states

Representative Photo

Subject Property

Barry M. WolfeSenior Managing Director Investments

[email protected](954) 245-3493

Alan LipskySenior Associate


Evan WhelanAssociate


Catie JacksonMarketing Coordinator


Angelica LinaresTransaction Coordinator

Angelica. [email protected](954) 245-3416

mailto:Evan.Whelan%40marcusmillichap.com?subject=

mailto:Angelica.%20Linares%40marcusmillichap.com?subject=

offering memorandum o’reilly auto parts€¦ · a public offering of company stock in april 1993....

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