DISCLAIMER O REILLY AUTO PARTS 10361 East Colonial Drive Orlando, FL EXCLUSIVELY MARKETED BY: TED DOWDING Sr. Vice President NetLeaseCloser@gmail.com tdowding@equity.net FAMILY DOLLAR 3015 S Rio Grande Ave, Orlando, FL DIRECT 858.263.4171 CELL 858.999.7431 Actual Site 16.5 Years Remaining Corporate Guaranty Strong Market Fundamentals
INVESTMENT OVERVIEW EXECUTIVE SUMMARY Equity OMDM is pleased to offer this single tenant, net lease, fee simple investment opportunity in Orlando, the fastest growing MSA in Florida. The offering is inclusive of a 20-year lease that commenced in May 2013 backed by O Reilly Auto Parts, one of the nation s premier specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories. O Reilly (NASDAQ: ORLY), as of January 23, 2017 the stock was trading at $265.00 per share, up 121% since 2013. The company currently operates 4,712 locations in 45 states and was expected to grow by an additional 210 units in fiscal 2016. This assets consists of a freestanding 7,385 square foot stucco retail building constructed exclusively for O Reilly in 2013. The property is located in the Orlando MSA, along the an east-west thoroughfare, US Highway 50. The residential and regional shopping atmosphere and strong tenancy combine to make this a very attractive offering for passive investors looking for a good return with strong fundamentals. This fee simple offering has the opportunity to secure new market financing ensuring secure long term passive cash flow to the investor while also benefiting from aggressive rent increases throughout both the initial term and Three 5-Year Option Renewal Periods. INVESTMENT & PROPERTY HIGHLIGHTS O Reilly (S&P:BBB) is one of the nation s premier specialty automotive retailers Excellent visibility with a monument sign 16.5+ years remaining on the initial 20-year lease New construction (Built in 2013) Rent commenced in May 2014 Established location with strong customer base Excellent ingress/egress Recently added two extra lanes due to rapidly growing area leading to heavy traffic counts. CLICK HERE TO VIEW VIDEO
DOWN TOWN ORLANDO LAKE DOWNEY COLONIAL DR
OFFERING OVERVIEW Investment Highlights 10361 East Colonial Drive, Orlando, FL 32817 Building Size: ±7,385 Square Feet Lot Size: ±0.84 Acres Year Built: 2013 Rent Commencement: May 2014 Premier Brand O Reilly Auto Parts (ORLY) is one of the largest specialty retailers of automotive aftermarket parts, tool supplies, equipment, and accessories in the United States. The company has seen comparable store sales growth of 5.7% from January to August 2014, up 3.6% over the same period in 2013. Brand New Construction The building was constructed in 2013 and brought to market in excellent condition to highlight a high pride of ownership investment. Actual Site Net Lease Structure The lease structure for the O Reilly s is double-net, providing limited oversight and management for a new owner, ideally suited for the passive investor. O Reilly Auto Parts corporately guarranty s this 20 year base lease term with three (3) five (5) year renewal options with favorable rent increases. The lease commenced in May 2014 and runs through November 2049. There is a rare Year 11 rent increase not found in many O Reilly s and very favorable for the owner. Strong Location Strong Neighboring Tenants O Reilly Auto Parts benefits from the synergy and increased traffic volume generated by the large, national retailers in the immediate area, including: Dollar Tree, McDonald s, dd s discounts, Aarons, and Walmart Supercenter. Further, there are several auto related retailers located along State Highway 50, creating a synergy. Excellent Visibility and Exposure This location benefits O Reilly s by being both highly visible and easily accessible. Situated on the northwest corner of East Colonial Drive/Highway State 50 and Culver Road, the tenant has a monument sign and excellent exposure to drive by traffic with the red colored building. Highway State 50 is a main east/west traffic artery in the Orlando; traffic counts on Highway State 50 at this intersection are over 50,000 vehicles per day. Further, Orlando Executive Airport is 15 minutes west of the property. Great Access The building enjoys excellent access with a full movement intersection in addition to an ingressegress point located off State Highway 50.
INVESTMENT SUMMARY Property Overview Year Built: 2013 Acreage: ±0.84 Acres Square Feet: ±7,385 Parcel Number: 31-22-17-6296-12-220 Architecture: New Construction Lease Summary Tenant: Lease Type: Lease Start: 5/13/2014 Lease End: 11/08/2033 Initial Term: O Reilly Automotive Stores NN Lease Very Minimum Landlord Responsibilities 20 Years (16.5 years remaining before 1st Option Period) Option Periods: Three 5-Year renewal periods. Each with rent increase. Lease Entirety: November 2049 (35 Years) Financial Overview Market Price: $2,515,000 Net Operating: 11/2023-11/2033: $132,056 Cap Rate: 5.25% Price Per SqFt: $340.55 Rent Per SqFt: $17.88 Current Annual Rent: $132,056 Current Monthly Rent: $11,004.70 Rent increases $34,663 (26.25% over entirety of the lease with options periods) Traffic Counts Colonial Drive Dean Road 47,779+ VPD 23,104+ VPD RARE YEAR 11 INCREASE FAVORABLE RENT INCREASES THROUGHOUT ENTIRETY OF LEASE Rent Escalations: Annual Rent Monthly Rent Years 11-20: $139,979.76 $11,664.98/mo Year 2024 Option Rent Increases: Option 1: Option 2: Option 3: $148,379.04 $157,281.00 $166,718.04 $12,364.92/mo $13,106.75/mo $13,893.17/mo 2033 2038 2043
ash Flow Analysis CASH FLOW ANALYSIS O REILLY S AUTO PARTS 10361 East Colonial Drive, Orlando, FL 32817 2017 Cash Flow Analysis $180,000 $140,000 $100,000 $60,000 Cash Flow In Each Term Cash Flow in Cap Rate 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% CAP Rate Range 5.25% - 6.63% Cap Rate Cap Rate Blended Cap Rate over entirety of lease 5.93% $20,000 Years 1-10 Years 10-20 Option Period PRIMARY TERM 1 Option Period 2 Option Period 3 1.00% 0.00% Years 1-10 Years 10-20 Option Period PRIMARY TERM 1 Option Period 2 Option Period 3 Rent Increases Annual Rent Increases Cap Rate Initial Term RENT INCREASES Years ANNUAL 1-10 RENT $132,056 LEASE INCREASES RENT INCREASE 5.25% Initial Term Initial Term Years 1-10 $132,056 Years 10-20 Initial Term $139,980 6% Years 1-10 5.57% 5.25% Initial Term Years 10-20 $139,980 Initial Term 6% Years 10-20 5.57% Option Period 1 Option Period 1 Years 20-25 Years 20-25 $148,379 $148,379 Option Period 1 6% 6% 5.90% Option Period 1 5.90% Option Option Period Period 2 2 Years 25-30 Years 25-30 $157,281 Option $157,281 Period 2 6% 6% Option Period 6.25% 2 6.25% CAP RATE Option Period Period 3 3 Years 30-35 Years 30-35 $166,718 Option $166,718 Period 3 6% 6% Option Period 6.63% 3 6.63% Year 2014-2024 2024-2033 2033 2038 2043
TENANT OVERVIEW www.oreillyauto.com 4,829 LOCATIONS 2016 SALES: $8.59 BILLION S & P CREDIT: BBB INVESTMENT GRADE COMPANY TYPE: PUBLIC #827 FORBES Global 2000 (2015) MARKET CAP (As of May 2017): $23.2 BILLION www.oreillyauto.com O Reilly Auto Parts is a leading American auto parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do-ityourself customers. Founded in 1957 by the O Reilly family, the company is headquartered in Springfield, Missouri. As of December 31, 2016, the company operated 4,829 stores in 47 states. O Reilly Automotive, Inc. was founded in 1957 and is headquartered in Springfield, Missouri.
TENANT OVERVIEW www.oreillyauto.com $951 $512 $760 $867 $978 2012 2013 2014 2015 2016 FREE CASH FLOW (in millions) COMPARISON OF FIVE-YEAR CUMULATIVE RETURN This graph shows the cumulative total shareholder return assuming the investment of $100 on December 31, 2011, and the reinvestment of dividends thereafter, in the common stock of O Reilly Automotive, Inc., the Standard and Poor s S&P 500 Retail Index and the Standard and Poor s S&P 500 Index. $100 $112 $161 $241 $317 $348 2011 2012 2013 2014 2015 2016 O Reilly Automotive, Inc. S&P 500 Retail Index S&P 500 Index extending our long track record of profitable growth into 2017. 74,000+ team members O'Reilly is made up of 74,715 team members as follows: 63,380 Store, 7,807 Distribution Center, and 3,428 Regional and Corporate Team Members. 4,829 stores O'Reilly stores are divided into 10 divisions, 56 regions, and 474 districts, with approximately 10 stores in each district. 78 $978 20.8% 20.8% 23.6% 23.6% 26.9% 26.9% 31.5% 31.5% 34.3% 34.3% 16 2016 2012 20122013 20132014 20142015 20152016 2016 RETURN on INVESTED CAPITAL $10.1 $13.6 $19.6 $24.8 $25.9 $951 $512 $760 $867 $978 20.8% 23.6% 26.9% 31.5% 34.3% 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 27 distribution centers O'Reilly Distribution Centers stock an average of 148,000 part numbers and provide five-night-a-week service to all O Reilly stores in the continental U.S. In addition, approximately 90% of O'Reilly stores receive multiple daily deliveries directly from a DC or hub store. 78 $978 20.8% 20.8% 23.6% 23.6% 26.9% 26.9% 31.5% 31.5% 34.3% 34.3% 16 2016 2012 20122013 20132014 20142015 20152016 2016 RETURN on INVESTED CAPITAL $10.1 $13.6 $19.6 $24.8 $25.9 $951 $512 $760 $867 $978 20.8% 23.6% 26.9% 31.5% 34.3% 2012 2013 2014 2015 2016 MARKET CAPITALIZATION O REILLY AUTOMOTIVE 2016 ANNUAL REPORT 4 (in billions) THE O'REILLY FOOTPRINT Store Count 200-600+ 100-199 1-99 Distribution Center 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 47 states Founded in 1957, O Reilly began with one store in Springfield, MO, has grown to more than 4,800 stores across 47 states, and plans to open 190 net, new stores in 2017.
LOCATION OVERVIEW ORLANDO Orlando is located in Central Florida. With a population of more than 2 million, the Orlando region is projected to be among the nation s fastest-growing regions in this decade. With over one third of its population between the ages of 20 and 44, and a median age of 37.0, Orlando is a young and vibrant community. While Orlando is renowned worldwide for its tropical climate and relaxed lifestyle, the region also is one of the top 10 locations in the country for business. From corporate headquarters to regional distribution centers, from product manufacturing to high tech research, the region of Orange, Seminole, Lake and Osceola counties and the City of Orlando spans a dynamic economic spectrum. Orlando Rankings Orlando is #9 among USAA s top 10 places in the U.S. for veterans to find jobs. Techie.com ranked Orlando among its list of the Most Promising Tech Hubs to Watch in 2014. The article cites Orlando s Creative Village as evidence of a booming digital media industry, low overhead costs compared to other-known tech hubs and its pipeline of talented and creative young professionals. Orlando received Gallup s 3rd-highest Job Creation Index Score in the country for 2012. Orlando is the only metro area to rank in the top metro for percentage hiring in 2012. TOP 10 REASONS TO DO BUSINESS IN ORLANDO 1. Young, Diverse Educated Workforce 2. Access. Access. Access. 3. Top Location for Entrepreneurs 4. Real Estate Variety 5. Tech Industry Hub 6. Innovation Economy 7. Nation s 2nd Largest University 8. Great Neighborhoods 9. Partnership Philosophy 10. The Livability Factor
Walt Disney World Resort 69,000 Top 10 Employers in Adventist Health Systems 17,600 Universal Orlando (Comcast) 17,300 Orlando Health 14,310 ORLANDO Darden Restaurants Inc. 7,600 SeaWorld Parks & Entertainment 6,032 Lockhead Martin Corporation 5,774 Marriot International, Inc. 5,635 Westgate Resorts 5,323 Siemans 4,448 ORLANDO BUSINESS ENVIRONMENT Orlando serves as the headquarters for several companies, including: Darden Restaurants, Tupperware Brands Corp., American Automobile Association (AAA) and Ruth s Chris Steak House, among others. Divisional headquarters for the following are located in Central Florida: Siemens Energy Inc., Mitsubishi Hitatchi Power Systems Americas, Lockheed Martin, L-3 Communications, Science Applications International Corporation (SAIC), Electronic Arts and more. Home to the U.S. operations of Germany s Siemens Energy, Japan s Mitsubishi Hitatchi Power Systems, Spain s Indra Systems, Australia s Adacel and many more. In total, more than 150 international companies, representing approximately 20 countries, have facilities in Orlando. Orlando is home to Lake Nona Medical City, a life sciences cluster that could create 30,000 jobs with a $7.6 billion economic impact by year 10 of operation. Located near Orlando International Airport, the cluster includes the University of Central Florida s (UCF) College of Medicine, Sanford-Burnham Medical Research Institute, UCF s Burnett School of Biomedical Sciences, Nemours Children s Hospital, Orlando VA Medical Center (2015) future home to VHA National Simulation Center - SimLEARN and the University of Florida Research and Academic Center. Orlando has the 7th largest research park in the country (Central Florida Research Park) with over 1,025 acres. It is home to over 120 companies, employs more than 8,500 people, and is the hub of the nation s military simulation and training programs.
MARKET OVERVIEW DEMOGRAPHICS 2-Mile 3-Mile 5-Mile 2017 POPULATION 43,638 96,982 258,151 NUMBER OF HOUSEHOLDS 15,029 34,870 91,312 PERSONS PER HOUSEHOLD 2.68 2.75 2.67 MEDIAN HOME VALUE $147,779 $154,763 $174,804 MEDIAN HOUSEHOLD INCOME $42,212 $46,396 $46,765 POPULATION GROWTH BY 2022 9.8% 9.6% 7.64% STRONG MARKET GROWTH Explosive Population Growth Projected Over The Next 5 Years TRAFFIC COUNTS Vehicles Per Day Colonial Drive 47,779+ Dean Road 23,104+ 3 MILES 2 MILES 5 MILES
10361 East Colonial Drive ORLANDO, FL
RETAIL AERIAL Traffic Counts Colonial Drive Dean Road 47,779+ VPD 23,104+ VPD
DISCLAIMER DISCLOSURE All materials and information received or derived from Equity, OMDM its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty by Equity OMDM its directors, officers, agents, advisors, or affiliates as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither Equity OMDM its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. Equity OMDM will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. ALL PARTIES SHALL CONDUCT THEIR OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. Equity makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. Equity does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by Equity in compliance with all applicable fair housing and equal opportunity laws. EXCLUSIVELY MARKETED BY: TED DOWDING Sr. Vice President NETLEASECLOSER@GMAIL.COM tdowding@equity.net DIRECT 858.263.4171 CELL 858.999.7431