AUTOZONE - STAN JOHNSON COMPANY
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Subject Property
AutoZone
S79W18907 Janesville Rd | Muskego (Milwaukee), WI 53150
Strong Investment Grade AutoZone (NYSE: AZO) | 10% Rental Escalations | Milwaukee MSA
Outstanding Upside to Leasing Vacant Space with 12.70% Unleveraged Return | Highly Visible, Easily Accessible Location
Confidentiality and Restricted Use Agreement
Offered Exclusively by
This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your
consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM
may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without
Brad Feller
prior written authorization and consent of SJC.
Senior Director
bfeller@stanjohnsonco.com
This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This
P: +1 312.240.0194
COM contains descriptive materials, financial information and other data compiled by SJC for the convenience
WI Lic #57176-90
of parties who may be interested in the Property. Such information is not all inclusive and is not represented to
include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has
not independently verified any of the information contained herein and makes no representations or warranties Isaiah Harf
of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation Director
iharf@stanjohnsonco.com
and/or financial information contained herein are qualified in their entirety by reference to the actual documents
P: +1 312.777.2437
and/or financial statements, which upon request may be made available. An interested party must conduct its
own independent investigation and verification of any information the party deems material to consideration of
the opportunity, or otherwise appropriate, without reliance upon SJC. Blaise Bennett
Associate
The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right bbennett@stanjohnsonco.com
to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) +1 312.777.2449
as is, where is, and with all faults, without representation or warranty of any kind except for any customary
warranties of title.
Brandon Duff
BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you Regional Director
have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other
form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your
own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any
time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4)
for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release
and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents
and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or
use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any
of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms,
Stan Johnson Company
conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and
303 East Wacker Drive | Suite 1111
(6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be
Chicago, IL 60601
entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection
P: +1 312.240.0127 | F: +1 312.240.0158
with such a violation and shall not be required to post a bond when obtaining such relief.
stanjohnsonco.com
Table of Contents Section 1 - About the Investment The Offering........................................................................................................................................................5 Investment Highlights...................................................................................................................................6 Pricing and Property Overview..............................................................................................................7 Rent Roll................................................................................................................................................................8 Pro Forma NOI Underwriting...................................................................................................................9 Site Plan...............................................................................................................................................................10 Section 2 - Tenant Information Lease Abstract & Rent Schedule..........................................................................................................12 Tenant Overview............................................................................................................................................ 13 Section 3 - Location Information Location Overview.........................................................................................................................................15 Strip Map............................................................................................................................................................ 16 Subject Property Photos...........................................................................................................................17 Surrounding Retail........................................................................................................................................ 18 Demographics................................................................................................................................................. 19
Section One
About the Investment
SW
Subject Property
The Offering
Stan Johnson Company is pleased to exclusively offer for
sale to qualified investors, the opportunity to purchase a
100% fee-simple interest in the AutoZone Retail Center
located at S79W18907 Janesville Rd in Muskego, WI (the
“Property”). The Property is located on Janesville Road
directly next to a highly trafficked Walgreens property
and is approximately 20 miles southwest of downtown
Milwaukee.
Built in 2006, the Property is 12,905 square feet on
1.30 acres. The Property currently has one tenant
in place, AutoZone Development Corporation, who
occupies 7,370 square feet. The Property also includes
approximately 5,535 square feet of vacant space which
offers outstanding value-add potential. If leased at
market rates, this could add an additional $106,206 to
current in-place NOI, bringing the “stabilized NOI” to
$203,279 and pro-forma cap rate to 12.70%.
AutoZone is operating under a twenty (20) year base
lease term with ten (10) years of base term remaining,
immediately followed by four, 5-year option periods.
The lease features 10.00% rental escalations every five
years throughout the base term and at the beginning of
each option period. Additionally, the lease is NNN with
the Tenant responsible for its pro rata shares of taxes,
insurance and CAM. Subject to reimbursement by Tenant,
the Landlord is responsible for exterior and structural
components of the building, roof and parking lot.
Positioned next to a highly trafficked Walgreens that is on
the intersection of Janesville Road and Racine Avenue,
the Property benefits from combined traffic counts of
30,320 VPD. The asset is surrounded by dense residential
neighborhoods and is near a strong retail corridor. The
demographics are excellent, with a population of 18k+
within 3 miles/46k+ within 5 miles, and an average
household income of $89k+ within 1 mile/$102k+ within
5 miles.
AutoZone, Inc. (NYSE: AZO) is the nation’s #1 leading
automotive retailer. The company operates over 5,589
stores worldwide and currently employs approximately
46,980 full-time employees. As of August 29, 2015, SE
AutoZone, Inc. reported total revenues of $10.19 billion
and a net income of more than $1.16 billion. The company
currently holds an S&P credit rating of BBB/Stable.
Subject Property
Section 1 • AutoZone • Muskego, WI • 5
Investment Highlights
Strong Investment Grade Tenant
AutoZone Inc., is the nation’s #1 leading automotive retailer with $10.19
billion in revenues, an EBITDA of $2.26 billion and a current S&P rating of
BBB/Stable
Outstanding Value-Add Potential
Opportunity to lease the 5,535 square-foot vacant space which could add
an additional $106,206 to current in-place NOI, bringing the “stabilized
NOI” to $203,279 and pro-forma cap rate to 12.70%
Rental Escalations
Lease features 10% rental increases every five years through the base term
and at the beginning of each renewal option period
10 Years Base Lease Term Remaining
AutoZone is operating under a 20 year base lease term, followed by four,
5-year renewal option periods
NNN Lease Structure
Property offers investors a truly passive investment with no landlord
responsibilities, aside from capital expenses for exterior and structural
portions of Premises, inclusive of roof and parking which are subject to
reimbursement by Tenant
Highly Visible, Easily Accessible Location
The Property is located less than 20 miles southwest of downtown
Milwaukee, and is less than three miles south of I-43, one of Wisconsin’s
major north/south thoroughfares with daily traffic counts of 33,333 VPD
Newly Constructed Janesville Road in Highly Trafficked Area
Due to increased demand, Janesville Road was recently expanded to a
four-lane divided roadway with sidewalks on both sides of the road, curb
and gutter and a new storm sewer system. Property is next to the newly
constructed road, benefitting from its high traffic counts (30,320 VPD)
Section 1 • AutoZone • Muskego, WI • 6
Pricing Overview
AutoZone
Offering Price: $1,600,000
Current In-Place NOI: $97,073
Current In-Place Cap 6.07%
Rate:
Stabilized NOI: $203,279
Pro-Forma Cap Rate on 12.70%
Stabilized NOI:
AutoZone Development Corporation
Current Tenant:
d/b/a AutoZone (S&P Rated: BBB/Stable)
Property Type: Multi-Tenant Retail
Property Overview
S79W18907 Janesville Rd | Muskego, WI 53150
Total Building Size (SF): 12,905 SF
Lot Size (Acres): 1.30 Acres
Year Built: 2006
Property ID: MSKC-2225-987-001
Encumbrances: None, Delivered Free & Clear
Parking: 35+ Spaces
Approx. 57.11% N
Occupancy:
AutoZone – 7,370 SF
Approx. 42.89%
Vacancy:
5,535 SF – FMR: $15/SF NNN
Section 1 • AutoZone • Muskego, WI • 7
Rent Roll
Lease Term Current Rent Expense Reimbursement Revenues*
%
Tenant SF
Share Begins Ends Annual Monthly PSF CAM Admin Fee* Taxes Insurance Total
Annual $15,071 $830 $13,428 $1,537 $30,867
7,370 57.11% 4/1/2006 3/31/2026 $118,800 $9,000 $16.12
PSF $2.04 $0.11 $1.82 $0.21 $4.19
Vacant 5,535 42.89%
Total 12,905 100% $118,800 $9,000 $9.21 $15,071 $830 $13,428 $1,537 $30,867
*Admin Fee is equal to 5% of AutoZone’s proportionate share of CAM and Insurance
Subject Property Photos
Section 1 • AutoZone • Muskego, WI • 8
Pro Forma NOI Underwriting
2016 Stabilized NOI
Building Vacancy No Vacancy
Allocation
Base Rent
AutoZone Base Rent 7,370 $118,800.00 $118,800.00
Vacant space leased @ 5,535 - $83,025.00
$15/SF
Total Base Rent 12,905 $118,800.00 $201,825.00
CAM Reimbursement
AutoZone CAM 57.11% $15,071.02 $15,071.02
New Tenant CAM 42.89% - $11,318.61
Administrative Fee*
AutoZone Admin Fee $830.40 $830.40
New Tenant Admin Fee - $623.65
Taxes Reimbursement
AutoZone Taxes $13,428.10 $13,428.10
New Tenant Taxes - $10,084.74
Insurance Reimbursement
AutoZone Insurance $1,537.04 $1,537.04
New Tenant Insurance - $1,154.35
Total Additional Rent $30,866.57 $54,047.91
TOTAL INCOME $149,666.57 $255,872.91
Recoverable Expenses
Real Estate Taxes ($23,512.84) ($23,512.84)
CAM ($26,389.63) ($26,389.63)
Insurance ($2,691.39) ($2,691.39)
Total Expenses ($52,593.86) ($52,593.86)
NOI $97,073 203,279
Cap Rate 6.07% 12.70%
*Admin Fee is equal to 5% of AutoZone’s proportionate share of CAM and Insurance
All 2016 numbers are based off of 2015 Income Statement increased at 3%
Subject Property Photos
Section 1 • AutoZone • Muskego, WI • 9
Site Plan
JANESVILLE RD (12,500 VPD)
NE
Section 1 • AutoZone • Muskego, WI • 10Section Two
Tenant Information
W
Subject PropertyLease Abstract
AutoZone Development Corporation, d/b/a
Tenant:
AutoZone
Lease Guarantor: Corporate Guarantee (Corporate Store)
Address: S79W18907 Janesville Rd, Muskego, WI
Building Size (SF): 7,370
Lot Size (Acres): 1.30 Acres
Pro Rata Share: 57.11%
Year Built: 2006
Lease/Rent
4/1/2006
Commencement:
Lease/Rent Expiration: 3/31/2026
Base Lease Term: 20 years
Subject Property
Base Lease Term
10 years
Remaining:
Annual Base Rent: $118,800
Annual Base Rent PSF: $19.50
Rent Schedule
Rental Increases: 10% increases every 5 years
Renewal Options: 4, 5-Year renewal options Annual Monthly
Years Dates Rent PSF Increase
Rent Rent
Renewal Notice: 6 Months
Renewal Option 1-10 4/1/2006 - 3/31/2016 $108,000 $9,000.00 $14.65
10% at the beginning of each option
Increases:
11-15 4/1/2016 - 3/31/2021 $118,800 $9,900.00 $16.12 10.0%
Lease Type: NNN
Exterior and structural components of the 16-20 4/1/2021 - 3/31/2026 $130,680 $10,890.00 $17.73 10.0%
Landlord Responsibilities: building, roof and parking lot (subject to
Tenant reimbursement) 21-25
4/1/2026 - 3/31/2031 $143,748 $11,979.00 $19.50 10.0%
(Option 1)
Parking: +/- 35 spaces
26-30
4/1/2031 - 3/31/2036 $158,123 $13,176.90 $21.45 10.0%
(Option 2)
Property ID: MSKC-2225-987-001
31-35
4/1/2036 - 3/31/2041 $173,935 $14,494.59 $23.60 10.0%
Ownership Interest: Fee-Simple (Option 3)
36-40
Encumbrances: None, Delivered Free & Clear 4/1/2041 - 3/31/2046 $191,329 $15,944.05 $25.96 10.0%
(Option 4)
Section 2 • AutoZone • Muskego, WI 12Tenant Overview
AutoZone, Inc. (NYSE: AZO) is the nation’s leading retailer and a leading distributor of automotive
Corporate Profile
replacement parts and accessories. The company’s stores offer various products for cars, sport utility
vehicles, vans, and light trucks, including new and remanufactured automotive hard parts, maintenance Company: AutoZone, Inc. (“AutoZone”)
items, accessories and nonautomotive products. AutoZone was founded in 1979 and is headquartered
Number of Locations: 5,609 worldwide (FYE15)
in Memphis, Tennessee.
Stock Symbol: AZO
As of fiscal year ending 2015, AutoZone operates 5,609 stores—5,141 units in 49 states, the District
of Columbia, and Puerto Rico in the U.S.; 441 stores in Mexico; and 7 stores in Brazil. In addition, the Exchange: NYSE
company currently employs over 71,000 personals, approximately 58 percent of whom are employed
Total Revenue: $10.19 billion (FYE15)
full-time (FYE15).
Net Income: $1.16 billion (FYE15)
Originally a division of Memphis-based wholesale grocer Malone & Hyde, the company initially operated
under the name Auto Shack. After the sale of the grocery operation to the Fleming Companies of Tenant Industry: Auto Parts
Oklahoma City, the name of the company was changed to AutoZone to reflect the new focus. Since Year Founded: 1979
then, AutoZone has joined the New York Stock Exchange (NYSE: AZO) and earned a spot in the
Fortune 500. Headquarters: Memphis, Tennessee
Website: autozone.com
For fiscal year ending 2015, AutoZone, Inc. reported total revenues of $10.19 billion and a net income
of more than $1.16 billion. The company currently holds an S&P credit rating of BBB/Stable.
Section 2 • AutoZone • Muskego, WI 13Section Three
Location Information
SE
Subject PropertyLocation Overview
Muskego is located in Waukesha County, Wisconsin, nestled between two major
thoroughfares and the major cities of Milwaukee and Madison, Muskego. Muskego has
been experiencing steady growth with new developments, high-quality residential
subdivisions, business districts, beautiful lakes and improved roads that have added to
the appeal for many businesses and potential homeowners. Muskego is located just 20 Muskego, WI
miles west of downtown Milwaukee. Muskego is the fifth largest community in Waukesha
County, easily accessible by Interstate Highway 43 (located immediately north of the
city), U.S. Highway 45, WI Highway 36 and county highways G, L, O, Y, HH and OO.
The city of Muskego and the Waukesha County Department of Public Works completed
a reconstruction project on June 26, 2014, of the 2.5-mile section of Janesville Road
from Racine Avenue to Moorland Road through downtown Muskego. Due to increased
demand, Janesville Road was expanded to a four-lane divided roadway with sidewalks
on both sides of the road, curb and gutter and a new storm sewer system that runs
the entire length of the roadway. The Subject Property is located directly next to this
reconstructed road, signalizing high traffic counts on a daily basis.
Muskego, WI
Muskego Economic Development promotes Muskego as a vibrant business location to
new businesses and works to provide opportunities to retain current businesses. The
economic base is very diverse, with retail, commercial districts and major distribution
and manufacturing centers. Responsible economic growth and preservation of its
natural resources enables Muskego citizens to enjoy a superior quality of life. To maintain
Muskego’s natural appeal, discrete business and industrial parks have been established.
Muskego is a spot for recreation enthusiasts where they can fish, boat, tube, hike, bike,
snowmobile and cross-country ski throughout the entire area.
Muskego, WI
Section 3 • AutoZone • Muskego, WI 15LITTLE MUSKEGO LAKE
BAY LANE DRIVE
MUSKEGO
ELEMENTARY BAY LANE
SCHOOL MIDDLE SCHOOL
MANCHESTER
HILL PARK
)
0 VPD
7,30
PARKLAND DRIVE
D ( 1
R OA
LLE
E SVI
JAN
,949 VPD)
RA
LANNON DRIVE (3,395 VPD)
MUSKEGO RECREATION TRAIL
CI
NE
PIONEER DRIVE (1
HORN
AV
FIELD
E
NU
MUSKEGO PARK
E(
HARDWOODS
13
STATE NATURAL AREA
,02
0V
PD
VETERANS BASS BAY
)
MEMORIAL
PARK
)
MUSKEGO INDUSTRIAL
PD
3V
PARK
1
,1
(5
SATURN DRIVE
AD
RO
DS
O
O
W
Section 3 • AutoZone • Muskego, WI 16Subject Property Photos
Section 3 • AutoZone • Muskego, WI 17Surrounding Retail Photos
Section 3 • AutoZone • Muskego, WI 18Demographics
S79W18907 Janesville Rd | Muskego, WI 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.
Population
2015 Population 4,924 18,522 46,652
2020 Population 4,889 18,803 47,283
2000-2010 Annual Rate 0.26% 1.12% 1.05%
2010-2015 Annual Rate -0.44% 0.20% 0.22%
2015-2020 Annual Rate -0.14% 0.30% 0.27%
2015 Median Age 43.1 43.5 44.8
Households
2015 Total Households 2,106 7,123 17,716
2020 Total Households 2,107 7,270 18,063
2000-2010 Annual Rate 1.19% 1.74% 1.79%
2010-2015 Annual Rate -0.23% 0.34% 0.40%
2015-2020 Annual Rate 0.01% 0.41% 0.39%
2015 Average Household Income $89,200 $98,037 $102,023
N
Section 3 • AutoZone • Muskego, WI 19Offered Exclusively by
Brad Feller
Senior Director
bfeller@stanjohnsonco.com
+1 312.240.0194
WI Lic #57176-90
going beyond
Isaiah Harf
Director
iharf@stanjohnsonco.com
+1 312.777.2437
Blaise Bennett
Associate
bbennett@stanjohnsonco.com
+1 312.777.2449
Brandon Duff
Regional Director
Stan Johnson Company
303 East Wacker Drive | Suite 1111
Chicago, IL 60601
P: +1 312.240.0127 | F: +1 312.240.0158
stanjohnsonco.com
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 notices.You can also read
