Ground Lease AutoZone for sale
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Ground lease for sale in Memphis MSA

Ground lease for sale in Memphis MSA

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Ground Lease AutoZone for sale Document Transcript

  • 1. NET LEASED INVESTMENT OFFERING AutoZone (Ground Lease) Lease) 7322 Hacks Cross RoadOlive Branch, MS 38654 (Memphis MSA) www.bouldergroup.com
  • 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Aerial5) Site Plan6) Map7) Tenant Profile8) Demographic Comparison Report9) Location Overview10) Contact Information www.bouldergroup.com
  • 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from The Boulder Group and should not be made available toany other person or entity without the written consent of The Boulder Group. This Offering Memorandum has beenprepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. The Boulder Group has not made any investigation, and makes no warranty orrepresentation. The information contained in this Offering Memorandum has been obtained from sources webelieve to be reliable; however, The Boulder Group has not verified, and will not verify, any of the informationcontained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all of the information set forth herein. www.bouldergroup.com
  • 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a single tenant AutoZone ground lease property within theMemphis MSA. The property is located in Olive Branch, Mississippi, which is located 23 miles southeast of downtownMemphis. The 7,008 square foot AutoZone property was built in 2004 and is located on a 40,843 square foot parcel ofland. The ground lease features a 10% rental escalation in 2014.The subject property is located on the hard corner of a signalized intersection along Hacks Cross Road, less than one-halfmile north of Mississippi State Highway 302. Mississippi State Highway 302 is a major thoroughfare in the area, andexperiences traffic volumes in excess of 20,000 vehicles per day. The property is located next to Whispering Woods Hoteland Conference Center, the newest hotel and event space in northeastern Mississippi, and a recently constructedWalgreens. The property also benefits from the close proximity to Metro Industrial Park. Metro Industrial Park includes 52tenants and has the largest concentration of employees in Olive Branch. William-Sonoma has a distribution center locatednorth of the property and is the third largest employer in DeSoto County.AutoZone’s original ground lease term was for fifteen years and expires in December 2019. The base rent increases by10% in 2014 as well as in each of the four 5-year option periods. AutoZone is a publicly traded company on the New YorkStock Exchange (AZO), with a market capitalization of $13 billion. AutoZone is an investment grade rated company with aStandard and Poor’s rating of BBB.INVESTMENT HIGHLIGHTS • Located within the Memphis MSA • Zero landlord responsibilities • Located on the hard corner of a signalized intersection • Investment grade tenant (S&P: BBB) • Rental escalations of 10% in primary term and each option period • Positioned north of Mississippi Highway 302 (20,000 VPD) • Close proximity to a major industrial park featuring 52 tenants www.bouldergroup.com
  • 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $1,296,000Cap Rate: 5.50%Rent Schedule: NOI Escalation Date $ 71,280 $ 78,408 12/16/2014 $ 86,244 12/16/2019 (Option 1) $ 94,872 12/16/2024 (Option 2) $ 104,364 12/16/2029 (Option 3) $ 114,792 12/16/2034 (Option 4)Renewal Options: Four 5-YearLease Commencement Date: December 16, 2004Lease Expiration Date: December 15, 2019Tenant: AutoZoneCredit Rating: BBB (S&P)Year Built 2004Lease Type: NNN Ground LeaseRentable Square Feet: 7,008Land Size: 40,843 SF www.bouldergroup.com
  • 6. AERIALNET LEASED INVESTMENT OFFERING AERIAL AERIAL AERIALwww.bouldergroup.com
  • 7. SITE PLANNET LEASED INVESTMENT OFFERING SITE PLANwww.bouldergroup.com
  • 8. MAPNET LEASED INVESTMENT OFFERING MAPwww.bouldergroup.com
  • 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEAutoZone is a leading automotive aftermarket retailer in the United States based off both sales and store count.AutoZone sells automotive parts, accessories, batteries and other maintenance items. AutoZone is a Fortune 500company and is ranked #320. AutoZone is headquartered in Memphis, Tennessee and operates more than 5,000stores throughout 49 states, Puerto Rico, Mexico and Brazil. AutoZone sales have increased 6.6% from fiscal year2011 to $8.6 billion. AutoZone is a publicly traded company on the New York Stock Exchange (AZO) and has amarket cap of $13 billion.Website: www.autozone.comNumber of Locations: 5,000 +Stock Symbol: AZO : NYSECredit Rating: BBB (S&P)Market Capitalization: $13 billionEmployees: 65,000 + www.bouldergroup.com
  • 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 3-mi. 5-mi 7-miTotal Population 29,003 78,391 138,497Total Households 10,439 27,558 50,571IncomeMedian Household Income $63,978 $66,682 $62,014Average Household Income $75,100 $77,953 $77,842 www.bouldergroup.com
  • 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW Olive Branch is a city in DeSoto County, Mississippi, and is part of the Memphis MSA. Olive Branch is located 22 miles southeast of Downtown Memphis and has a population of 33,484 according to the 2010 U.S. Census. Olive Branch has a large logistic presence as many national corporations have large logistic facilities located in Olive Branch. These companies include Sears, Williams Sonoma, Parker Parker-Hannifin Chelsea, Snap on Tools, Brinkman Corporation, International Paper, and Heartland Express. In 2011, Businessweek named Olive Branch the f fastest growing city in the United States. www.obms.us Memphis is located in the southwestern corner of Tennessee and the Memphis metropolitan statistical area includes counties in Tennessee, Mississippi and Arkansas. Memphis is the largest city in Tennessee and according to the 2010 U.S. census Memphis had a population of 646,889. According to the 2010 U.S. census the population Memphis metropolitan statistical area had a population of 1,305,946, making it the second largest metropolitan area in Tennessee. Memphis is home to Graceland, the former home of music legend Elvis Presley, attracting 600,000 visitors a year. The Presley, University of Memphis is located five miles east of downtown Memphis and has a student population of over 21,000.The Memphis economy benefits from its central location along the Mississippi river and access to numerousinterstate highways. Memphis International Airport is the second busiest cargo airport in the world and serves as theprimary hub from FedEx Express shipping. Memphis is home to three Fortune 500 companies including FedEx, hipping.International Paper and AutoZone.www.cityofmemphis.org www.bouldergroup.com
  • 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003 847.562.8500rblank@bouldergroup.com jimmy@bouldergroup.com www.bouldergroup.com