Exclusive Investment Opportunity

Transcription

1 Commercial Real Estate Exclusive Investment Opportunity Net Lease Investment Frankfort, KY Asking Price: $1,959,717

2 Table of Contents Virginia I. Wright, CCIM Principal & Director Atlanta Office Millenia Partners Wright Investment Group Atlanta Office (470) GA License # Atlanta Office Cicero Drive, Suite 100 Alpharetta, GA Wendal Miller Broker of Record Prime Commercial Realty w/real Property Services Office (615) KY License # River Rd Murfreesboro, TN Executive Summary Investment Overview Lease Abstract Rent Schedule Tenant Overview Maps & Aerials Location Overview Demographics Broker Profile Confidentiality Agreement Pg. 2

3 Executive Summary O Reilly Auto Parts (NYSE: ORLY) is a public company headquartered in Springfield, MO. O'Reilly Auto Parts is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do-it-yourself customers. The subject property is a new 20 year lease, with three (3) - five year options and rental increases, located in Frankfort, KY. With convenient access off US 421, this O Reilly is strategically located in a dense retail area with traffic counts of over 34,037 cars per day. It is surrounded by several national and regional retailers including: Kroger, Starbucks, Goodwill, McDonalds, Walgreens, Speedway, Dollar Tree, Jimmy Johns, AutoZone, Subway, and Domino s Pizza. This location is enhanced by the neighboring schools, easy access to the East West Connector, a growing business district, and local tourism. All of which add to the appeal of this O Reilly Auto Parts investment, offering investors a reliable, steady cash flow. Pg. 3

4 Investment Overview Property Summary Address County Building Area Land Area Year Built 289 Versailles Rd Frankfort, KY Franklin +/- 8,250 Sq Ft Acres 2016 (New Construction) Tenant Highlights O Reilly is Investment Grade (S&P: BBB+) One of the Largest Retailers of Automotive Parts Operates Over 4,600 Stores in 44 States with Numerous Locations Opening in st Quarter Comparable Sales Increase of 6.1% Forbes List of 2016 America s Best Employers Financial Summary Sale Price $1,959,717 Price / Land Sq Ft $36.28 Current NOI $110,724 Cap Rate 5.65% S&P Rating BBB+ Location Highlights Frankfort is the Capital of Kentucky, Bringing Abundant Tourism to the Local Area Close Proximity to Major East-West US Connector Surrounded by National and Regional Retailers Located off of Heavily Trafficked US 421 with Traffic Counts of 34,037 vpd Market Highlights Strong Demographics One of the Most Successful States in Creating Jobs and Securing Investments in 2014 & 2015 Growing Economical Market (Projected 3.2% Increase in 2016) Vital Regional Business Center Pg. 4

5 Lease Abstract Lease Summary Estimated Operating Information Tenant Trade Name Lease Guarantor O Reilly Auto Parts O'Reilly Automotive Stores, Inc Income Gross Potential Rent $110, Lease Term 20 Years Lease Term Remaining 20 Years Lease Commence Exp. 10/01/2016 Lease Expiration Exp. 09/31/2036 Effective Gross Income $110, Less: Expenses Net Operating Income $110, Lease Type NN Renewal Options Three (3) - 5 Year Options Rent Increase 6% In Year 11 & Options Current Annual Rent $110, Rent / Sq Ft Repairs & Maintenance Property Tax $13.42 / Sq Ft Tenant Tenant Insurance Tenant Roof & Structure Landlord HVAC Tenant Pg. 5

6 Rent Schedule *Based on estimated rent commencement date Lease Year Date Monthly Rent Annual Rent /1/ /31/2026 $9, $110, /1/ /31/2036 $9, $117, Option /1/ /31/2041 $10, $124, Option /1/ /31/2046 $10, $131, Option /1/ /31/2056 $11, $139, Pg. 6

7 Tenant Overview Company Profile Year Founded 1957 Headquarters Springfield, MO # of Employees 62,533 # of Stores 4,623 Revenues (2014) 7.97 Billion NYSE Symbol ORLY Website History O'Reilly Automotive, Inc. officially started in the auto parts business in Springfield, Missouri, in November of 1957 with one store and 13 employee. Their sales totaled $700,000 in 1958, their first full year of business. Due to the hard work and ability of the original employees, several of whom were stockholders in the company, the business grew and prospered from its very first year. 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. Stores The long range plans and stability of the company were solidified by a public offering of company stock in April Since that time, the Company has grown through the opening of new stores, as well as through numerous mergers and acquisitions, and currently operates over 4,600 stores in 44 states, including Alaska and Hawaii. Financial Sales for the first quarter of 2016 increased $194 million, or 10%, to $2.10 billion from $1.90 billion for the same period one year ago. Gross profit for the first quarter increased to $1.10 billion (or 52.4% of sales) from $987 million (or 51.9% of sales) for the same period one year ago, representing an increase of 11%. New stores and increased sales at established stores contributed to the robust top line expansion and filtered down to net income. Pg. 7

8 Millenia Partners Wright Investment Group Commercial Real Estate Retail Map 289 Versailles Rd Frankfort, KY Pg. 8

9 Location Maps 289 Versailles Rd Frankfort, KY Pg. 9

10 Location Overview Frankfort, KY Kentucky's capital city nestled between Louisville and Lexington along the Kentucky River is in the heart of bourbon, horse and wine country. Frankfort is know for its number of tourist attractions including The Franklin County Court House, The Old State Capitol, KY Vietnam Veterans Memorial, numerous state parks, and is home to Kentucky State University. Over the past 30 years, more than 43 new structures or major building expansions have enhanced Kentucky State University s 882-acre campus, which includes a 311-acre agricultural research farm and a 306-acre environmental education center. Kentucky State University is a public institution with an enrollment of approximately 1,600 students and 135 full-time faculty members. Pg. 10

11 Location Overview 2015 Demographics (STDB) Statistics Frankfort, KY 1 Mile Population 7,813 Households 3,484 Average Household Income $65,025 3 Mile Population 27,557 Median Age 37.2 Median Home Value $130,741 Median Household Income $41,449 Average Household Size 2.22 Population 25,603 Households 10,827 Area Sq Mi Average Household Income $60,869 5 Mile Population 38,392 Households 16,568 Average Household Income $61,249 Pg. 11

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15 Broker Profile Virginia I. Wright Virginia is Principal and Director of the Atlanta office of Millenia Partners Capital Group, bringing over 25 years of marketing, communications, finance, sales, and operational management experience to the firm. Specializing in the single tenant net lease retail segment, she is also experienced in industrial and medical as well as sale leasebacks. Throughout her real estate career, Virginia has developed exceptional underwriting and negotiation skills while closing over $150MM in net lease transactions in 8 states. She provides advisory, acquisition and disposition services to numerous corporate, institutional and private clients, private equity groups, preferred developers, franchisees, REITS, and build-to-suit specialists nationwide, with a focus on assisting buyers and sellers through the intricacies of 1031 exchanges. Recent Transactions Include: As a result of her extensive transaction experience and knowledge, Virginia has established herself as a premier broker that is committed to providing superior client service, while embracing a philosophy of integrity and professionalism. This has enabled her to cultivate and foster long lasting relationships with her clients. Lowe s (Charlotte, NC) Arizona s Steakhouse (Lithonia, GA) Buddy s Rents-Leaseback (Portfolio of 9 stores) Rader Building (Duncan, SC) Lear Building (Duncan, SC) Medical Building (Austell, GA) FedEx Ground (Crestview, FL) Golden Corral (Austell, GA) Holiday Inn (Atlanta, GA) CVS Pharmacy (Lawrenceville, GA) Walgreens (Anderson, SC) $7,700,000 $2,730,000 $11,908,235 $3,295,000 $10,750,000 $5,610,000 $6,125,000 $3,300,000 $6,100,000 $2,600,000 $3,800,000 As a Certified Commercial Investment Member (CCIM) of the CCIM Institute, Virginia has achieved the highest designation in the field of commercial real estate. Only 6% of commercial real estate broker/agents nationwide have the CCIM designation. Virginia is also 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. Professional Affiliations: Certified Commercial Investment Member (CCIM) GA CCIM Chapter Member International Council of Shopping Centers (ICSC) GA Real Estate License FL Real Estate License SC Real Estate License Virginia I. Wright, CCIM Principal & Director Atlanta Office Millenia Partners Wright Investment Group Atlanta Office (470) VWright@Millenia-Partners.com Atlanta Office Cicero Drive, Suite 100 Alpharetta, GA Wendal Miller Broker of Record Prime Commercial Realty w/real Property Services Office (615) WMiller@WWMiller.com Pg. 15

16 Commercial Real Estate Confidentiality Agreement This Confidentiality Agreement ( Agreement ) is made and agreed to for the benefit of the undersigned party ( Prospect ), the owner of the subject property (the Seller ) and undersigned agent Millenia Partners, LLC ( Broker ). Now therefore in consideration of the privileges granted to Prospect with respect to receiving certain confidential information, and other good and valuable consideration, the Prospect hereby agrees to the following: I. Confidential Information: Prospect will receive confidential information regarding property referred to as 289 Versailles Rd, Frankfort, KY Prospect agrees to not disclose to any person that the Property or the note may be available for sale or lease, or that discussions or negotiations are taking place concerning a possible purchase of the Property or the note, nor any terms, conditions, or other facts with respect to the Property or the note, 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. Prospect agrees to not contact the Seller, 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 Prospect hereby warrants that it is acting as a principal only, and not as a broker or agent, regarding this contemplated transaction. Prospect acknowledges and agrees that Millenia Partners, LLC., will act in an agency capacity representing the Seller, and will be used as the sole broker or agent in connection with the purchase of the property. Millenia Partners, LLC, will be paid a commission by the Seller. Prospect 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 or control of the property, unless Millenia Partners, LLC is included as the selling agent and is compensated as described herein. Prospect reserves the right to involve any lender, underwriter, equity partners, attorney or other advisor in the transaction provided said party is paid by the Prospect, and said party has agreed in writing to this confidentiality agreement. III. Governing Law This Agreement shall be governed and construed in accordance with the laws of the State of Georgia. Accepted and agreed to this day of, Signature Printed Name Title Phone Fax Company Name Address Virginia I Wright GA License # Millenia Partners, LLC Principal & Director Atlanta Office O. (470) VWright@Millenia-Partners.com Wendal Miller Broker of Record KY License #2264 Prime Commercial Realty O. (615) WMiller@WWMiller.com