O Reilly Auto Parts Louisville MSA, KY New 20 Year Lease Rent Increases during Initial Term S&P Investment Grade Corporate Guarantee (NASDAQ: ORLY) Brand New Brick Construction Avg. HH Income within 5 miles: $92K Representative photo David Wells Managing Director 305.498.6095 david.wells@wellsnetlease.com Justin Estes 731.487.0634 jestes@emppro.us Peter Estlick Investment Associate 305.965.9452 peter@wellsnetlease.com
CONFIDENTIALITY This marketing brochure has been prepared to provide a summary to prospective investors of the valuation of the lease or leases contained herein and does not include or take into account any value of the real estate which is bonded under the lease or leases contained herein. It is intended to be reviewed only by the party receiving it from WNL and should not be made available to any other person or entity without the written consent of WNL. The information contained herein is not a substitute for a thorough due diligence investigation. WNL has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the bonded lease or lease information contained herein and or it s guarantor or guarantors nor any future projected financial performance. WNL recommends and advises any and all prospective purchasers to work with a licensed real estate professional or legal counsel to verify the size and square footage of the property and improvements, investigate 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, WNL has not verified, and will not verify, any of the information contained herein, nor has WNL conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided.
PROPERTY OVERVIEW Investment Overview The subject property is a brand new brick construction O Reilly Auto Parts store located in La Grange, KY 20 miles outside of Louisville, KY. Average household income within 5 miles is $92,623. Representative photo Location The property is located on South Highway 53 along the main retail corridor of La Grange, KY, less than ½ mile from Interstate 72. In addition to being surrounded by dozens of national retail tenants, this location is within a 1 mile radius of several auto repair/tire shops, an Enterprise Rent-A-Car and a Chevrolet/GMC dealership. The property is located in an affluent neighborhood with an average household income of $92,000 within 5 miles. La Grange, KY is a part of the Louisville/Jefferson County KY-IN metropolitan statistical area, population 1,400,000. There is a new 20 year NN lease in place with a 6% rent increase in year 11 of the initial term and each renewal option thereafter. The lease is backed by a corporate guarantee from O Reilly Automotive Inc., with an S&P Investment Grade Credit Rating of BBB+. The property is being offered at a 5.25% cap and a blended cap rate over the initial term of 5.41%. The property is currently under construction with an estimated delivery date of November 1st of this year.
INVESTMENT OVERVIEW O Reilly Auto Parts Price Cap Rate Base Rent Lease Term Commencement Expiration Term Remaining 2021 S Hwy 53, La Grange, KY 40031 $1,808,000 5.25% $94,934.04 20 Years 11/1/2016 (Estimated) * 10/31/2036 (Estimated) * 20 Years Insert photo Lease Type Increases Guarantor Public or Private S&P Credit Rating Options Building Size Lot Size Year Built * Under construction NN 6% Yr. 11 and Options Corporate Public BBB+ (4) 5 Year 7,225 SF 1.21 Acres 2016 Representative photo Investment Highlights Corporate Guarantee (NASDAQ: ORLY) S&P BBB+ Investment Grade Credit Rating Brand New Brick Construction New 20 Year Lease with Rent Increases Avg. HH Income within 5 miles: $92K
LEASE ABSTRACT Taxes Insurance Maintenance/CAM HVAC Parking Lot Roof & Structure Utilities Right of 1 st Refusal Assignment & Subletting Termination Options Rent Increase Options Increases in Options Sales Reported Tenant Tenant / Landlord Tenant Tenant Landlord Landlord Tenant 10 Days Parent, subsidiary or affiliate None 6% Year 11 (4) 5 Year 6% Per Option No
RENT SCHEDULE SIZE Tenant Year Annual Rent Rent/ft. Cap Rate 7,225 O Reilly Auto 1-10 $94,934.04 $13.14 5.25% 11-20 $100,630.08 $13.93 5.56% Opt. 1 $106,667.88 $14.76 5.90% Opt. 2 $113,067.96 $15.65 6.25% Opt. 3 $119,851.92 $16.59 6.63%
TENANT OVERVIEW Tenant Overview Corporate Information Company Name O Reilly Automotive Inc. S&P Credit Rating BBB+ Public or Private Public Ticker NASDAQ: ORLY Founded 1957 Headquarters Springfield, MO Number of locations 4,571 Number of Employees 71,621 Website www.oreillyauto.com Tenant Highlights S&P BBB+ Investment Grade Credit 4,571 stores in 44 U.S. states $8.16 billion in sales O Reilly Automotive, Inc., together with its subsidiaries, engages in the retail of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States. The company provides new and remanufactured automotive hard parts, such as alternators, starters, fuel pumps, water pumps, brake system components, batteries, belts, hoses, temperature controls, chassis parts, driveline parts, and engine parts; maintenance items comprising oil, antifreeze products, fluids, filters, wiper blades, lighting products, engine additives, and appearance products; and accessories, such as floor mats, seat covers, and truck accessories. Its stores offer auto body paint and related materials, automotive tools, and professional service provider service equipment. The company's stores also offer enhanced services and programs comprising used oil, oil filter, and battery recycling; battery, wiper, and bulb replacement; battery diagnostic testing; electrical and module testing; check engine light code extraction; loaner tool program; drum and rotor resurfacing; custom hydraulic hoses; professional paint shop mixing and related materials; and machine shops. Its stores provide do-it-yourself and professional service provider customers a selection of brand name, house brands, and private label products for domestic and imported automobiles, vans, and trucks.
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LOCATION MAPS Maps (click on below) Area City Regional
DEMOGRAPHICS La Grange, KY 1 Mile 3 Miles 5 Miles Total Population 2,274 15,219 31,515 Total Number of Households 759 5,178 9,422 Average Household Income $91,578 $86,865 $92,623
For additional information contact: David Wells Managing Director 305.498.6095 david.wells@wellsnetlease.com Justin Estes 731.487.0634 jestes@emppro.us Peter Estlick Investment Associate 305.965.9452 peter@wellsnetlease.com