AUTOzONE
Autozone
1074 W. Pleasant Grove Road | Lowell, Arkansas 72745
Actual Location
CONFIDENTIAL OFFERING MEMORANDUM
STANJOHNSONCO.COM
Tulsa Atlanta Chicago New York
Houston Los Angeles Phoenix San Francisco
NET LEASED INVESTMENT OFFERING
CONFIDENTIAL DISCLAIMER This Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you solely for the purpose of your review of the commercial property located at 1074 W. Pleasant Grove Road in Lowell, Arkansas 72745 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Stan Johnson Company (“Broker”). By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC. This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon SJC, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither SJC, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.
stan johnson company | 918.494.2690 | PAGE 2
NET LEASED INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
Purchase Price: $1,994,600 Cap Rate: 6.75%
Representative Photo
OFFERED EXCLUSIVELY BY Gill Warner | Senior Director [email protected] In Cooperation with: Jeff Nicholas, Arkansas License #PB00058032 Stan Johnson Company 6120 S. Yale Ave., Suite 813 Tulsa, Oklahoma 74136
Stan Johnson Company is pleased to offer for sale to qualified investors an AutoZone located at 1074 W. Pleasant Grove Road in Lowell, Arkansas. Lowell is part of the Fayetteville–Springdale–Rogers Metropolitan Statistical Area (464,623). Lowell is a high-growth area, with a 67% population growth within 1-mile of the subject property. The property is 100% leased to Auto Zone under a fifteen (15) year lease with four (4), five (5) year renewal options and attractive 10% renal increases in each option. The subject property is located off of West Pleasant Grove Road, approximately 1 mile east of Interstate 540 (69,000 VPD) and Walmart Supercenter. Other nearby tenants include Kum & Go, World’s Gym, First National Bank of Rogers, Walgreens, McDonald’s, Academy, and Ashley Furniture Home Store, among others.
• Approximately Ten (10) years remaining on a Fifteen (15) year lease term • 100% leased and guaranteed by AutoZone, Inc. (S&P: BBB/Stable) • Increases every 5 years during the lease term and 10% rental increases in each option period • The subject property is located off of West Pleasant Grove Road, approximately 1 mile east of Interstate 540 (69,000 VPD) and Walmart Supercenter. • Surrounding tenants include Kum & Go, World’s Gym, First National Bank of Rogers, Walgreens, McDonald’s, Academy, and Ashley Furniture Home Store, among others. • As of May 4, 2012, AutoZone, Inc. reported total revenues of $8.4 billion and a net income of $908 million. The company currently holds an S&P credit rating of BBB/Stable.
P: 918.494.2690 | F: 918.794.9713 www.stanjohnsonco.com
stan johnson company | 918.494.2690 | PAGE 3
NET LEASED INVESTMENT OFFERING
lease abstract 1074 W. Pleasant Grove Road | Lowell, AR 72745 Offering Price:
$1,994,600
Offering Cap Rate:
6.75%
Tenant:
AutoZone, Inc.
Building Size:
+/- 7,370 SF
Land Area:
+/- 1.02 Acres
Year Built:
2007
Rent Commencement:
September 2007 (approximate)
Rent Expiration:
August 31, 2022
Lease Term:
Fifteen (15) years
Renewal Options:
Four (4), Five (5) year renewal options
Expenses:
Landlord is responsible for roof and structure.
annual rent Term
Rent
Percent Increase
6 – 10 (Current)
$134,640
2%
11 – 15
$137,328
2%
16 – 20 (Option 1)
$151,068
10%
21 – 25 (Option 2)
$166,176
10%
26 – 30 (Option 3)
$182,784
10%
31 – 35 (Option 4)
$201,072
10%
The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notice.
stan johnson company | 918.494.2690 | PAGE 4
NET LEASED INVESTMENT OFFERING
Tenant OVERVIEW
Location overview
AutoZone, Inc. (NYSE: AZO) is the No. 1 retailer and distributor of aftermarket automotive parts and accessories in the United States. The company’s stores offer various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.
Lowell is a city in Benton County, Arkansas and is part of the Fayetteville–Springdale–Rogers, Metropolitan Statistical Area. The US Census estimated the population of the MSA to be 473,830 in 2011. From 1990-2000 the Fayetteville-Springdale-Rogers MSA was the sixth fastest growing area in the nation.
As of May 5, 2012, AutoZone had 4,613 stores in the United States, the District of Columbia, and Puerto Rico; and 297 stores in Mexico. AutoZone was founded in 1979 and is based in Memphis, Tennessee.
Actual Location
As of May 4, 2012, AutoZone, Inc. reported total revenues of $2.11 billion and a net income of $248 million. The company currently holds an S&P credit rating of BBB/Stable.
The metropolitan area is the home of Wal-Mart and Tyson Foods — global leaders in retail and meat and poultry processing, respectively. Over 1,300 Wal-Mart vendors have added corporate branches or offices in the area including: Coca-Cola, Procter and Gamble, Unilever, Motorola, Nestlé, Dell, General Mills, Kellogg, and PepsiCo. The subject property is located off of West Pleasant Grove Road, approximately 1 mile east of Interstate 540 (69,000 VPD) and Walmart Supercenter. Other nearby tenants include Kum & Go, World’s Gym, First National Bank of Rogers, Walgreens, McDonald’s, Academy, and Ashley Furniture Home Store, among others.
City Hall - Lowell, AR
stan johnson company | 918.494.2690 | PAGE 5
NET LEASED INVESTMENT OFFERING
Area Map
Pleasant Grove Self Storage
Boomerang Carwash
W Pleasant Grove Rd: 21,000 VPD
First National Bank of Rogers
Interiors Galleria
25
,40
0V
PD
NWA Chiropractic
Metropolitan National Bank
Fellowship Bible Church of Northwest Arkansas
PD
0V
,00
69 stan johnson company | 918.494.2690 | PAGE 6
NET LEASED INVESTMENT OFFERING
Demographics 1074 W PLEASANT GROVE RD | LOWELL, AR 72745
0-1 Mile
%
0-3 Miles
%
0-5 Miles
%
Population 2018 Projection
2,466
38,552
83,573
2013 Estimate
2,207
35,202
77,303
2010 Census
2,018
32,842
72,927
2000 Census
1,207
20,754
50,361
67.19%
58.24%
44.81%
2018 Projection
815
12,809
29,019
2013 Estimate
735
11,752
26,931
2010 Census
676
11,046
25,558
2000 Census
421
7,405
18,402
60.57%
49.17%
38.89%
2,207
35,202
77,303
Growth 2000 - 2010 Households
Growth 2000 - 2010 2013 Est. Population by Single Classification Race White Alone
1,511
68.46
24,912
70.77
56,158
72.65
Black or African American Alone
34
1.54
477
1.36
1,213
1.57
American Indian and Alaska Native Alone
32
1.45
414
1.18
856
1.11
Asian Alone
50
2.27
778
2.21
2,307
2.98
Native Hawaiian and Other Pacific Islander Alone
11
0.50
198
0.56
506
0.65
482
21.84
7,328
20.82
13,883
17.96
86
3.90
1,094
3.11
2,380
3.08
Some Other Race Alone Two or More Races 2013 Est. Average Household Income
$67,522
$67,882
$70,158
2013 Est. Median Household Income
$57,136
$54,479
$52,078
2011 Est. Per Capita Income
$31,270
$28,454
$23,644
stan johnson company | 918.494.2690 | PAGE 7
NET LEASED INVESTMENT OFFERING
OFFERED EXCLUSIVELY BY Gill Warner | Senior Director [email protected] In Cooperation with: Jeff Nicholas, Arkansas License #PB00058032 Stan Johnson Company 6120 S. Yale Ave., Suite 813 Tulsa, Oklahoma 74136 Actual Location P: 918.494.2690 | F: 918.794.9713 www.stanjohnsonco.com
stan johnson company | 918.494.2690 | PAGE 8
1074 W. Pleasant Grove Road | Lowell, Arkansas 72745
Actual Location
CONFIDENTIAL OFFERING MEMORANDUM
STANJOHNSONCO.COM
Tulsa Atlanta Chicago New York
Houston Los Angeles Phoenix San Francisco
NET LEASED INVESTMENT OFFERING
CONFIDENTIAL DISCLAIMER This Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you solely for the purpose of your review of the commercial property located at 1074 W. Pleasant Grove Road in Lowell, Arkansas 72745 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Stan Johnson Company (“Broker”). By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC. This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon SJC, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither SJC, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.
stan johnson company | 918.494.2690 | PAGE 2
NET LEASED INVESTMENT OFFERING
INVESTMENT HIGHLIGHTS
Purchase Price: $1,994,600 Cap Rate: 6.75%
Representative Photo
OFFERED EXCLUSIVELY BY Gill Warner | Senior Director [email protected] In Cooperation with: Jeff Nicholas, Arkansas License #PB00058032 Stan Johnson Company 6120 S. Yale Ave., Suite 813 Tulsa, Oklahoma 74136
Stan Johnson Company is pleased to offer for sale to qualified investors an AutoZone located at 1074 W. Pleasant Grove Road in Lowell, Arkansas. Lowell is part of the Fayetteville–Springdale–Rogers Metropolitan Statistical Area (464,623). Lowell is a high-growth area, with a 67% population growth within 1-mile of the subject property. The property is 100% leased to Auto Zone under a fifteen (15) year lease with four (4), five (5) year renewal options and attractive 10% renal increases in each option. The subject property is located off of West Pleasant Grove Road, approximately 1 mile east of Interstate 540 (69,000 VPD) and Walmart Supercenter. Other nearby tenants include Kum & Go, World’s Gym, First National Bank of Rogers, Walgreens, McDonald’s, Academy, and Ashley Furniture Home Store, among others.
• Approximately Ten (10) years remaining on a Fifteen (15) year lease term • 100% leased and guaranteed by AutoZone, Inc. (S&P: BBB/Stable) • Increases every 5 years during the lease term and 10% rental increases in each option period • The subject property is located off of West Pleasant Grove Road, approximately 1 mile east of Interstate 540 (69,000 VPD) and Walmart Supercenter. • Surrounding tenants include Kum & Go, World’s Gym, First National Bank of Rogers, Walgreens, McDonald’s, Academy, and Ashley Furniture Home Store, among others. • As of May 4, 2012, AutoZone, Inc. reported total revenues of $8.4 billion and a net income of $908 million. The company currently holds an S&P credit rating of BBB/Stable.
P: 918.494.2690 | F: 918.794.9713 www.stanjohnsonco.com
stan johnson company | 918.494.2690 | PAGE 3
NET LEASED INVESTMENT OFFERING
lease abstract 1074 W. Pleasant Grove Road | Lowell, AR 72745 Offering Price:
$1,994,600
Offering Cap Rate:
6.75%
Tenant:
AutoZone, Inc.
Building Size:
+/- 7,370 SF
Land Area:
+/- 1.02 Acres
Year Built:
2007
Rent Commencement:
September 2007 (approximate)
Rent Expiration:
August 31, 2022
Lease Term:
Fifteen (15) years
Renewal Options:
Four (4), Five (5) year renewal options
Expenses:
Landlord is responsible for roof and structure.
annual rent Term
Rent
Percent Increase
6 – 10 (Current)
$134,640
2%
11 – 15
$137,328
2%
16 – 20 (Option 1)
$151,068
10%
21 – 25 (Option 2)
$166,176
10%
26 – 30 (Option 3)
$182,784
10%
31 – 35 (Option 4)
$201,072
10%
The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notice.
stan johnson company | 918.494.2690 | PAGE 4
NET LEASED INVESTMENT OFFERING
Tenant OVERVIEW
Location overview
AutoZone, Inc. (NYSE: AZO) is the No. 1 retailer and distributor of aftermarket automotive parts and accessories in the United States. The company’s stores offer various products for cars, sport utility vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance items, accessories, and non-automotive products.
Lowell is a city in Benton County, Arkansas and is part of the Fayetteville–Springdale–Rogers, Metropolitan Statistical Area. The US Census estimated the population of the MSA to be 473,830 in 2011. From 1990-2000 the Fayetteville-Springdale-Rogers MSA was the sixth fastest growing area in the nation.
As of May 5, 2012, AutoZone had 4,613 stores in the United States, the District of Columbia, and Puerto Rico; and 297 stores in Mexico. AutoZone was founded in 1979 and is based in Memphis, Tennessee.
Actual Location
As of May 4, 2012, AutoZone, Inc. reported total revenues of $2.11 billion and a net income of $248 million. The company currently holds an S&P credit rating of BBB/Stable.
The metropolitan area is the home of Wal-Mart and Tyson Foods — global leaders in retail and meat and poultry processing, respectively. Over 1,300 Wal-Mart vendors have added corporate branches or offices in the area including: Coca-Cola, Procter and Gamble, Unilever, Motorola, Nestlé, Dell, General Mills, Kellogg, and PepsiCo. The subject property is located off of West Pleasant Grove Road, approximately 1 mile east of Interstate 540 (69,000 VPD) and Walmart Supercenter. Other nearby tenants include Kum & Go, World’s Gym, First National Bank of Rogers, Walgreens, McDonald’s, Academy, and Ashley Furniture Home Store, among others.
City Hall - Lowell, AR
stan johnson company | 918.494.2690 | PAGE 5
NET LEASED INVESTMENT OFFERING
Area Map
Pleasant Grove Self Storage
Boomerang Carwash
W Pleasant Grove Rd: 21,000 VPD
First National Bank of Rogers
Interiors Galleria
25
,40
0V
PD
NWA Chiropractic
Metropolitan National Bank
Fellowship Bible Church of Northwest Arkansas
PD
0V
,00
69 stan johnson company | 918.494.2690 | PAGE 6
NET LEASED INVESTMENT OFFERING
Demographics 1074 W PLEASANT GROVE RD | LOWELL, AR 72745
0-1 Mile
%
0-3 Miles
%
0-5 Miles
%
Population 2018 Projection
2,466
38,552
83,573
2013 Estimate
2,207
35,202
77,303
2010 Census
2,018
32,842
72,927
2000 Census
1,207
20,754
50,361
67.19%
58.24%
44.81%
2018 Projection
815
12,809
29,019
2013 Estimate
735
11,752
26,931
2010 Census
676
11,046
25,558
2000 Census
421
7,405
18,402
60.57%
49.17%
38.89%
2,207
35,202
77,303
Growth 2000 - 2010 Households
Growth 2000 - 2010 2013 Est. Population by Single Classification Race White Alone
1,511
68.46
24,912
70.77
56,158
72.65
Black or African American Alone
34
1.54
477
1.36
1,213
1.57
American Indian and Alaska Native Alone
32
1.45
414
1.18
856
1.11
Asian Alone
50
2.27
778
2.21
2,307
2.98
Native Hawaiian and Other Pacific Islander Alone
11
0.50
198
0.56
506
0.65
482
21.84
7,328
20.82
13,883
17.96
86
3.90
1,094
3.11
2,380
3.08
Some Other Race Alone Two or More Races 2013 Est. Average Household Income
$67,522
$67,882
$70,158
2013 Est. Median Household Income
$57,136
$54,479
$52,078
2011 Est. Per Capita Income
$31,270
$28,454
$23,644
stan johnson company | 918.494.2690 | PAGE 7
NET LEASED INVESTMENT OFFERING
OFFERED EXCLUSIVELY BY Gill Warner | Senior Director [email protected] In Cooperation with: Jeff Nicholas, Arkansas License #PB00058032 Stan Johnson Company 6120 S. Yale Ave., Suite 813 Tulsa, Oklahoma 74136 Actual Location P: 918.494.2690 | F: 918.794.9713 www.stanjohnsonco.com
stan johnson company | 918.494.2690 | PAGE 8
