AutoZone Ground Lease
Subject Property
AutoZone Ground Lease High-Growth Fort Worth-Dallas Suburb
Price: $1,125,000 — 5.33% Cap Rate
20-Year Absolute Net Ground Lease with Increases (14.5 Years Remaining)
Fortune 500 Investment Grade Tenant — Rated “BBB”
Fee Simple Sale
Alvarado, Texas
For more information, please contact:
In association with:
Bob Tuller Senior Vice President, Principal 415-677-04444 [email protected]
Brett Bunnet Regional Managing Principal TX LIC #3128590
LIC #00360391
www.thinknnn.com The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
AutoZone
Alvarado, Texas
LOCATION
1011 E Highway 67, Alvarado, TX 76009
LOT SIZE
Approximately 1.00 acres — 43,560+/– square feet
IMPROVEMENTS
Constructed in 2009, a 7,000+/– square foot freestanding AUTOZONE retail store with ample on site parking.
GROUND LEASE
ANNUAL INCOME
Only the land is for sale.
The improvements are owned by AutoZone, Inc., and is not included in the sale.
Ground lease to AUTOZONE, INC., for 20 years from March 15, 2009 until March 15, 2029 (14.5 years remaining). The current annual rent of $60,000 increases by 10% in Years 11 and 16. The lease is absolute net with the tenant responsible for all taxes, insurance and maintenance including roof and structure. The landlord has no responsibilities. There are four 5-year renewal options with 10% rental increases each option period. YEARS
ANNUAL RENT
RETURN
03/2009 – 03/2019
$ 60,000
5.33%
03/2019 – 03/2024
$ 66,000
5.86%
03/2024 – 03/2029
$ 72,600
6.45%
Option 1
$ 79,860
6.66%
Option 2
$ 87,846
7.10%
Option 3
$ 96,631
7.80%
Option 4
$106,294
9.45%
PRICE
$1,125,000 — 5.33% Cap Rate
PRICE PER SQUARE FOOT
$25.80 — Land Only
FINANCING
The property will be delivered free and clear of permanent financing.
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
RMT:dkw:1014:06:R-1
AutoZone
ABOUT THE TENANT
Alvarado, Texas
AUTOZONE, INC. (NYSE: “AZO”) is the leading retailer and a leading distributor of automotive replacement parts and accessories with 4,984 retail stores in 49 states, the District of Columbia and Puerto Rico in the U.S., 402 stores in Mexico, and five stores in Brazil for a total count of 5,391 (as of August 30, 2014). Each store carries an extensive line of maintenance items and accessories for cars, sport utility vehicles, vans and light trucks. Headquartered in Memphis, the company has been in business since 1979 and has over 70,000 employees. For the fiscal year ended August 30, 2014, sales were $9.5 billion, an increase of 5.6% from the prior year, and net income was $1.01 billion, an increase of $5.2%. The company is ranked #300 in the 2014 Fortune 500. Standard & Poor’s rates the company as “BBB”, investment grade. AutoZone serves two markets:
DIY — Do It Yourself: Individual consumers who come to the store to purchase the merchandise and who, typically, work on their own vehicles. DIFM — Do It For Me: Auto repair professionals and service shops working on an individual’s vehicle, who usually order by phone, fax, or e-mail. Many service shops order daily from the store for same- or next-day delivery. Strong DIFM sales depend upon a good distribution/inventory system. If the ordered item is in stock, there is next-day availability to the ultimate consumer; if not; the objective is to ship from an AutoZone warehouse overnight, providing second-day delivery. To that end, AutoZone has developed a system of warehouses, such that any parts order placed by a given store will be delivered the next morning. To achieve these efficiencies, there are different sizes of highly computerized warehouses, all within an overnight drive of every store.
More information is available at www.autozone.com
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
RMT:dkw:1014:06:R-1
AutoZone SITE INFORMATION
Alvarado, Texas Great high traffic location on Highway 67 and the E access road of I-35W (N Parkway Drive), in fast growing Alvarado, less than ½ mile from Interstate 35W. National and regional tenants include Holiday Inn Express, Comfort Inn, La Quinta Inn & Suites, Days Inns, Wells Fargo, Dollar General, Family Dollar, Domino’s Pizza, Dairy Queen, McDonald's, Taco Bell, and Whataburger, to name a few.
ALVARADO, TEXAS
Alvarado, Texas, with a population of around 4,000, is situated on Interstate Highway 35W, about 26 miles south of Fort Worth. Its proximity to the Dallas/Fort Worth metropolitan area makes it a great place to find small town living with access to the amenities, sights, and attractions of the city. Historically, Alvarado has been an agricultural community, but in recent years it has become more industrial in focus. The Sabre Tubular Structures plant employs hundreds of people in the manufacturing of steel poles. This 200,000 square foot facility houses the largest hot dip galvanizing system in North America. Another industry in recent years has been natural gas production. The Barnett Shale is a geological formation in the Alvarado area that is thought to contain the largest natural gas reserves of any onshore drilling project in the United States. The nearest major airport is Dallas Love Field (DAL). This airport has international and domestic flights from Dallas. Another major airport is Dallas/Fort Worth International Airport (DFW), which has international and domestic flights from Dallas.
DEMOGRAPHICS
2014 ESTIMATES
3-MILES
5-MILES
7-MILES
7,143
16,527
36,885
$60,599
$64,684
$67,423
Population Average HH Income
NOTE
The information set forth herein has been received by us from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness of the information and make no representations with respect thereto. The above is submitted subject to errors, prior sale or lease, change in status, or withdrawal without notice.
TEXAS
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
RMT:dkw:1014:06:R-1
AutoZone
Alvarado, Texas
MAP
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
AutoZone Ground Lease High-Growth Fort Worth-Dallas Suburb
Price: $1,125,000 — 5.33% Cap Rate
20-Year Absolute Net Ground Lease with Increases (14.5 Years Remaining)
Fortune 500 Investment Grade Tenant — Rated “BBB”
Fee Simple Sale
Alvarado, Texas
For more information, please contact:
In association with:
Bob Tuller Senior Vice President, Principal 415-677-04444 [email protected]
Brett Bunnet Regional Managing Principal TX LIC #3128590
LIC #00360391
www.thinknnn.com The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
AutoZone
Alvarado, Texas
LOCATION
1011 E Highway 67, Alvarado, TX 76009
LOT SIZE
Approximately 1.00 acres — 43,560+/– square feet
IMPROVEMENTS
Constructed in 2009, a 7,000+/– square foot freestanding AUTOZONE retail store with ample on site parking.
GROUND LEASE
ANNUAL INCOME
Only the land is for sale.
The improvements are owned by AutoZone, Inc., and is not included in the sale.
Ground lease to AUTOZONE, INC., for 20 years from March 15, 2009 until March 15, 2029 (14.5 years remaining). The current annual rent of $60,000 increases by 10% in Years 11 and 16. The lease is absolute net with the tenant responsible for all taxes, insurance and maintenance including roof and structure. The landlord has no responsibilities. There are four 5-year renewal options with 10% rental increases each option period. YEARS
ANNUAL RENT
RETURN
03/2009 – 03/2019
$ 60,000
5.33%
03/2019 – 03/2024
$ 66,000
5.86%
03/2024 – 03/2029
$ 72,600
6.45%
Option 1
$ 79,860
6.66%
Option 2
$ 87,846
7.10%
Option 3
$ 96,631
7.80%
Option 4
$106,294
9.45%
PRICE
$1,125,000 — 5.33% Cap Rate
PRICE PER SQUARE FOOT
$25.80 — Land Only
FINANCING
The property will be delivered free and clear of permanent financing.
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
RMT:dkw:1014:06:R-1
AutoZone
ABOUT THE TENANT
Alvarado, Texas
AUTOZONE, INC. (NYSE: “AZO”) is the leading retailer and a leading distributor of automotive replacement parts and accessories with 4,984 retail stores in 49 states, the District of Columbia and Puerto Rico in the U.S., 402 stores in Mexico, and five stores in Brazil for a total count of 5,391 (as of August 30, 2014). Each store carries an extensive line of maintenance items and accessories for cars, sport utility vehicles, vans and light trucks. Headquartered in Memphis, the company has been in business since 1979 and has over 70,000 employees. For the fiscal year ended August 30, 2014, sales were $9.5 billion, an increase of 5.6% from the prior year, and net income was $1.01 billion, an increase of $5.2%. The company is ranked #300 in the 2014 Fortune 500. Standard & Poor’s rates the company as “BBB”, investment grade. AutoZone serves two markets:
DIY — Do It Yourself: Individual consumers who come to the store to purchase the merchandise and who, typically, work on their own vehicles. DIFM — Do It For Me: Auto repair professionals and service shops working on an individual’s vehicle, who usually order by phone, fax, or e-mail. Many service shops order daily from the store for same- or next-day delivery. Strong DIFM sales depend upon a good distribution/inventory system. If the ordered item is in stock, there is next-day availability to the ultimate consumer; if not; the objective is to ship from an AutoZone warehouse overnight, providing second-day delivery. To that end, AutoZone has developed a system of warehouses, such that any parts order placed by a given store will be delivered the next morning. To achieve these efficiencies, there are different sizes of highly computerized warehouses, all within an overnight drive of every store.
More information is available at www.autozone.com
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
RMT:dkw:1014:06:R-1
AutoZone SITE INFORMATION
Alvarado, Texas Great high traffic location on Highway 67 and the E access road of I-35W (N Parkway Drive), in fast growing Alvarado, less than ½ mile from Interstate 35W. National and regional tenants include Holiday Inn Express, Comfort Inn, La Quinta Inn & Suites, Days Inns, Wells Fargo, Dollar General, Family Dollar, Domino’s Pizza, Dairy Queen, McDonald's, Taco Bell, and Whataburger, to name a few.
ALVARADO, TEXAS
Alvarado, Texas, with a population of around 4,000, is situated on Interstate Highway 35W, about 26 miles south of Fort Worth. Its proximity to the Dallas/Fort Worth metropolitan area makes it a great place to find small town living with access to the amenities, sights, and attractions of the city. Historically, Alvarado has been an agricultural community, but in recent years it has become more industrial in focus. The Sabre Tubular Structures plant employs hundreds of people in the manufacturing of steel poles. This 200,000 square foot facility houses the largest hot dip galvanizing system in North America. Another industry in recent years has been natural gas production. The Barnett Shale is a geological formation in the Alvarado area that is thought to contain the largest natural gas reserves of any onshore drilling project in the United States. The nearest major airport is Dallas Love Field (DAL). This airport has international and domestic flights from Dallas. Another major airport is Dallas/Fort Worth International Airport (DFW), which has international and domestic flights from Dallas.
DEMOGRAPHICS
2014 ESTIMATES
3-MILES
5-MILES
7-MILES
7,143
16,527
36,885
$60,599
$64,684
$67,423
Population Average HH Income
NOTE
The information set forth herein has been received by us from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness of the information and make no representations with respect thereto. The above is submitted subject to errors, prior sale or lease, change in status, or withdrawal without notice.
TEXAS
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
RMT:dkw:1014:06:R-1
AutoZone
Alvarado, Texas
MAP
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
