NEW TWO-TENANT BUILDING OFFERING MEMORANDUM - LoopNet
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Proposed Elevation
NEW TWO-TENANT BUILDING
OFFERING MEMORANDUM
PHOENIX, ARIZONA
Currently Under Construction
(O'Reillys sign superimposed)
NET LEASE INVESTMENTS
EXCLUSIVELY OFFERED BY:
CHRIS HOLLENBECK SHANE CARTER
+1 602 224 4475 | AZ Lic #SA584876000 +1 602 224 4442 | AZ Lic #SA673156000
chris.hollenbeck@cushwake.com shane.carter@cushwake.com
EXECUTIVE SUMMARY
INVESTMENT HIGHLIGHTS
PRICING SUMMARY
• New two-tenant retail investment opportunity featuring O'Reilly Auto
Parts and Rent-A-Center.
PRICE: $3,219,610
• Property completely renovated in 2018.
• Property is located at the NWC of 19th Avenue and Buckeye Road in CAP RATE: 6.00%
Phoenix, AZ.
• Limited landlord responsibilities.
NOI: $193,176.60
• O'Reilly Auto Parts (NYSE: ORLY) signed a brand new 15 year lease.
• High population density of 335,000 in 5 mile radius.
• Rent-A-Center (NYSE: RCII) signed a 5 year lease with a 4.5% increase at
the beginning of their option period. PROPERTY SUMMARY
• O'Reilly large format location which is mission critical to service a large
amount of commercial auto shops. 1928 West Buckeye Road
ADDRESS Phoenix, AZ 85009
• Rent set at below market rents.
• Both tenants are corporate leases. W/NWC 19th Ave. & Buckeye Rd.
LOCATION Phoenix, AZ
• Numerous automotive services in trade area.
• Adjacent to the I-17 freeway. BUILDING SIZE ±14,477 SF
• Ideal demographics for existing tenants. O'Reilly's & Rent-A-Center
TENANTS (Corporate Leases)
OCCUPANCY 100%
YEAR BUILT Renovated (2018)
LEASE TYPE Double Net (NN)
DESCRIPTION Two-Tenant Freestanding
PARCEL NUMBER 109-63-173B
PARCEL SIZE ±1 AC
COUNTY Maricopa
ZONING C-3 City of Phoenix
1
EXECUTIVE SUMMARY
LEASE ABSTRACTS
O'REILLY AUTO ENTERPRISES, LLC DBA O'REILLY
TENANTS NAME TENANTS NAME RENT-A-CENTER WEST, INC. DBA RENT-A-CENTER
AUTOPARTS
SUITE/ADDRESS 1928 W BUCKEYE RD SUITE/ADDRESS 1926 W BUCKEYE RD
RENTABLE SF 11,524 SF RENTABLE SF 2,953 SF
LEASE TYPE NN LEASE TYPE NN
ORIGINAL LEASE TERM 15 YEARS ORIGINAL LEASE TERM 5 YEARS
LEASE TERM REMAINING 15 YEARS LEASE TERM REMAINING 3 YEARS
LEASE COMMENCEMENT DATE OCTOBER 2018* LEASE COMMENCEMENT DATE JAN 1, 2017
LEASE EXPIRATION DATE OCTOBER 2033* LEASE EXPIRATION DATE DEC 31, 2021
CURRENT ANNUAL RENT $159,876.60 CURRENT ANNUAL RENT $33,300.00
6% INCREASE YEAR 11 AND EVERY 5 YEARS IN THE RENT INCREASES 4.5% IN OPTION PERIOD
RENT INCREASES
OPTION PERIOD
OPTIONS TO RENEW FOUR (4), FIVE-YEAR OPTION PERIOD OPTIONS TO RENEW ONE (1), FIVE-YEAR OPTION
TENANT SHALL PAY THEIR PRO RATA SHARE OF TENANT SHALL PAY THEIR PRO RATA SHARE OF
ALL OPERATING EXPENSES INCURRED AT THE ALL OPERATING EXPENSES INCURRED AT THE
TENANT OBLIGATIONS TENANT OBLIGATIONS
PROPERTY, EXCEPT THOSE LISTED AS LANDLORD PROPERTY, EXCEPT THOSE LISTED AS LANDLORD
OBLIGATIONS OBLIGATIONS
LANDLORD SHALL MAINTAIN ROOF, STRUCTURE, LANDLORD SHALL MAINTAIN ROOF, STRUCTURE,
LANDLORD OBLIGATIONS LANDLORD OBLIGATIONS
AND PARKING LOT AND PARKING LOT
TENANT SHALL PAY THEIR PRO RATA SHARE OF TENANT SHALL PAY THEIR PRO RATA SHARE OF
TAXES AND INSURANCE TAXES AND INSURANCE
PROPERTY TAXES AND INSURANCE PROPERTY TAXES AND INSURANCE
TENANT'S PROPORTIONATE SHARE 80% TENANT'S PROPORTIONATE SHARE 20%
PARKING 50 SPACES AND 2 HANDICAPPED SPACES PARKING 50 SPACES AND 2 HANDICAPPED SPACES
*ESTIMATED
2
EXECUTIVE SUMMARY
RENT ROLL
TENANT SF % START END BEGIN MONTHLY ANNUAL PSF
O'REILLY AUTO PARTS 11,524 80% OCT 2018* OCT 2033* OCT 2018 $13,323.05 $159,876.60 $13.87
OCT 2019 $13,323.05 $159,876.60 $13.87
OCT 2020 $13,323.05 $159,876.60 $13.87
OCT 2021 $13,323.05 $159,876.60 $13.87
OCT 2022 $13,323.05 $159,876.60 $13.87
OCT 2023 $13,323.05 $159,876.60 $13.87
OCT 2024 $13,323.05 $159,876.60 $13.87
OCT 2025 $13,323.05 $159,876.60 $13.87
OCT 2026 $13,323.05 $159,876.60 $13.87
OCT 2027 $13,323.05 $159,876.60 $13.87
OCT 2028 $14,122.43 $159,876.60 $13.87
OCT 2029 $14,122.43 $169,469.16 $14.71
OCT 2030 $14,122.43 $169,469.16 $14.71
OCT 2031 $14,122.43 $169,469.16 $14.71
OCT 2032 $14,122.43 $169,469.16 $14.71
TENANT HAS FOUR (4), FIVE (5) YEAR OPTION PERIODS TO RENEW FEATURING 6% INCREASES EVERY FIVE (5) YEARS IN THE OPTION PERIOD
RENT-A-CENTER 2,953 20% JAN 2017 DEC 2021 JAN 2017 $2,775.00 $33,300.00 $11.28
JAN 2018 $2,775.00 $33,300.00 $11.28
JAN 2019 $2,775.00 $33,300.00 $11.28
JAN 2020 $2,775.00 $33,300.00 $11.28
JAN 2021 $2,775.00 $33,300.00 $11.28
TENANT HAS ONE (1), FIVE (5) YEAR OPTIONS PERIOD TO RENEW FEATURING A 4.5% INCREASE AT THE BEGINNING OF THE OPTION (YEAR 6)
RENTABLE SF 14,477 100% TOTALS $16,098.05 $193,176.60 $12.58 (AVG.)
OCCUPIED 14,477 100%
VACANT 0 0%
*ESTIMATED
3
EXECUTIVE SUMMARY
FINANCIAL SUMMARY
REVENUES
Scheduled Base Rent $193,176.60
Operating Expense Reimbursement $35,395.15
EFFECTIVE GROSS REVENUE $228,500.48
EXPENSES
Insurance $5,923.27
Real Estate Taxes $14,477.00
CAM $15,024.88
TOTAL EXPENSES $35,395.15
NET OPERATING INCOME $193,176.60
Cap Rate 6.00%
PRICE $3,219,610
PPSF $222.86
Square Footage ±14,447
3
EXECUTIVE SUMMARY
TENANTS PROFILE
https://www.oreillyauto.com https://www.rentacenter.com
O’Reilly Auto Parts is one of the largest suppliers of auto parts, offering retail Rent-A-Center stores offer name brand furniture, electronics, appliances,
customers, jobbers, and professional installers the best combination of price and computers through various adjustable rent to own agreements. This
and quality. They officially opened for business in 1957. The company history enables their customers to own their merchandise upon the conclusion
began in 1914, with Charles Francis O’Reilly, who was working as a traveling of the previously determined rental period. Some other services Rent-A-
salesman for Fred Campbell Auto Supply in St. Louis. By 1924, Charles had Center provides is same-day delivery, 90 days same as cash, and an early
become familiar with the Springfield area, having traveled by train to sell auto purchase option. In addition, should the rented merchandise require repair
parts throughout the territory. By 1932, he had become manager of Link Motor during the rental period, Rent-A-Center will provide a substitute and repair
Supply in Springfield. One of his sons, Charles H. (Chub) O'Reilly, had also joined the rental at no extra cost. Rent-A-Center is a simple and affordable way
the company. Together they provided the leadership and management that to furnish a home without incurring a continuing obligation and without
made Link the predominant auto parts store in the area. In 1957, Link planned a needing access to credit.
reorganization, which would have included the retirement of 72-year-old Charles
F. O'Reilly, and the transfer of C. H. O'Reilly to Kansas City. Since neither agreed
with these plans, they made the decision to form their own company, O'Reilly
Automotive, Inc. They opened for business on December 2, 1957 with one store
and 13 employees at 403 Sherman in Springfield. O’Reilly Auto Parts has since
grown to 4,985 stores in 47 states and they continue to specialize in the sale of
auto parts, tools, supplies, equipment, and accessories.
TENANT HIGHLIGHTS TENANT HIGHLIGHTS
• $8.5 billion in revenue • NYSE Stock Symbol: ORLY • $3 billion in revenue • NYSE Stock Symbol: RCII
• Market Cap of $22.62 billion • Credit Rating: S&P BBB+ / Moody's Baa1 • Market Cap of $608 million • 20,000 Employees
• 4,985 Locations • 75,000 Employees • Over 3,000 locations in the United
states, Canada, and Mexico.
PROPOSED ELEVATION
2
AERIAL MAP PROPERTY OVERVIEW
VICTOR’S AUTO
SERVICE
JOE’S AUTO
DUNBAR SCHOOL
PAUL LAURENCE
SERVICE
JESSE’S BODY
SHOP
SANTIAGO COPPERSTATE ASADERO LAS
AUTO REPAIR TRANSMISSIONS ADELITAS
SITE DINER 50
ARIZONA CARBURETOR AUTOFIT, INC.
SADDLE HORN
& AUTO SERVICE
BAR
BUCKEYE ROAD
W Y MARKET
ELEMENTARY SCHOOL
ALFRED F. GARCIA
RAY & BOB’S TRUCK &
TRAILER SALES
ARIZONA AUTO PARTS
GILL’S *COMING MARY MCLEOD
AUTO REPAIR SOON BETHUNE SCHOOL
19TH AVE
A-1 AUTO
PARTS
NEW FAMILY
MARKET
ARTHUR M. HAMILTON
SCHOOL
N
5
SITE PLAN PROPERTY OVERVIEW
PARCEL LOTS
SIT
E
19TH AVE
JESSE’S BODY AUTOFIT, INC.
SHOP
BUCKEYE RD 1 8 ,90 4 VP D
1 8,8 63 V PD
W Y MARKET
RAY & BOB’S
TRUCK & TRAILER
SALES *COMING
SOON
No representation or warranty is made as to the accuracy of any aspect 6
of this drawing. It is provided strictly for illustration purposes.
DEMOGRAPHICS MARKET OVERVIEW
GLEN LAK ES MUNI
G OLF COURSE NO RTH ER N AV E
GL EN DAL E AV E
DENSLEY POPULATED
27 TH AV E
TRADE AREA
C EN TR AL AVE
BE TH AN Y H OM E RD
7 TH AV E
7 TH ST
A R I Z O N A B I LT MO R E
16 TH ST
G OLF COURSE More than 335,005 residents within 5
C AME L BAC K RD CAMELBACK miles with an average household income
CORRIDOR of $33,907
19 TH AV E
24 TH ST
32ND ST
MA RY VA L E M U N I C I PA L
G OLF COURSE I ND I AN SC H O O L RD
67 T H AVE
59TH AV E
MIDTOWN
PHOENIX
TH O MAS RD
VET ERAN S M EM ORI AL
POPULATION GROWTH
C OLI SE U M MC DOW E L L RD
1 MILE 3 MILE 5 MILE
VA N BU RE N ST
2010 10,048 88,194 303,234
DOWNTOWN
27 TH AV E
WASH I N GTON ST
2017 11,178 97,093 335,005
35 TH AV E
43R D AVE
51 ST AV E
PHOENIX
BU C KE Y E RD
^ BU C KE Y E RD P HO E N IX
S KY HA RBO R
IN T L A I RP O RT
2022 11,955 103,475 360,742
LOW E R BU C KE Y E RD 1 MILE
AVERAGE HH INCOME
3 MILES BROADWAY RD 1 MILE 3 MILE 5 MILE
2017 $19,389 $29,709 $33,907
SO UT H E RN AVE
5 MILES
BOU GAIN VI LLEA TH E L E G A C Y 2022 $19,932 $32,604 $36,926
G OLF CLUB G OLF R E SO RT
BASE L I N E RD
DO BBI N S R D
TH U N D E R B I R D
C O U N T R Y C L UB
7
AREA OVERVIEW
PHOENIX is the capital, and largest city, of
the state of Arizona as well as
the county seat of Maricopa County. With 1,445,632
total population of the state of Arizona.
The greater Phoenix area’s sunny climate, vibrant
people (as of the 2010 U.S. Census), Phoenix is the lifestyle and prospering business community attract
most populous state capital in the United States, as thousands of visitors, new residents and entrepreneurs
well as the fifth most populous city nationwide. The annually. The nation’s fifth-largest city, Phoenix
Phoenix Metropolitan Statistical Area (MSA) (officially continues to grow and remains a desirable destination
known as the Phoenix-Mesa-Glendale MSA), is one of for travelers and dreamers alike. The population
10 MSAs in Arizona, and is the 12th largest in the United growth rate of the Phoenix metro area has been nearly
States, with a total population of 4,574,351 according 4% per year for the past 40 years. While that growth
to the Census Bureau's 2015 population estimates. rate slowed during the Great Recession, it has already
Consisting of parts of both Pinal and Maricopa begun to rebound. Phoenix is the cultural center of the
counties, the Phoenix MSA accounts for 65.5% of the Valley of the Sun, as well as the rest of Arizona.
The Gateway Arch &
DowntownSt.
Old Courthouse, Phoenix, AZ
Louis, MO
2
8AREA OVERVIEW
A branch of the University of Arizona College of Medicine Diversity is the strength of the economy and reflects the
is located near ASU’s downtown Phoenix campus. ASU is community-wide consensus for business development and quality
currently one of the largest public universities in the U.S., with job creation. The city provides an educated, qualified workforce.
a fall of 2017 student enrollment of nearly 72,000. There is also Companies are attracted to the Greater Phoenix region’s low cost
a small satellite campus for Northern Arizona University (based of doing business.
in Flagstaff) located in Phoenix.
Whether one pursues a career in the bioscience or technology
The Maricopa County Community College District includes fields, or desires to own and operate their own business, the
ten community colleges and two skills centers throughout Greater Phoenix region is a hotbed for job and business ownership
opportunities. With over 57,000 employers in the Valley of the
Maricopa County, providing adult education and job training.
Sun, several major corporations call the region home.
Phoenix College, part of the district, was founded in 1920 and
is the oldest community college in Arizona and one of the Housing prices are affordable with the median house price in
oldest in the country. Greater Phoenix around $233,700. The various corners of the
Valley offer distinct vibes and perspectives for their residents.
Each city offers something different, from the rising steel and
glass of Phoenix to stylish Scottsdale and from active, rapidly-
ECONOMY
growing Glendale to the East Valley communities of Tempe,
Phoenix is now the fifth-most-populated city in the United Mesa, Gilbert and Queen Creek that offer a great work-life mix.
From historic homes to new community developments, and
States and boasts one of its fastest-growing metropolitan
from exciting urban living to active senior neighborhoods, the
areas. The city offers proximity to major population centers
Greater Phoenix area truly has something for every lifestyle
in the Southwest including Los Angeles, San Diego and Las and taste.
Vegas, as well as strategic placement along the Mexico/North
American Free Trade Agreement (NAFTA) corridor, which https://www.phoenix.gov/
provides direct access to international trade and business http://www.phoenixchamber.com/
opportunities. An international airport, major highways and
http://www.visitphoenix.com/index.aspx
railroads, and public transportation through light rail and bus
service support the strength of the Greater Phoenix region’s http://www.visitarizona.com/
transportation infrastructure.
http://en.wikipedia.org/wiki/Phoenix,_Arizona
Phoenix, AZ
9OFFERING MEMORANDUM
NET LEASE INVESTMENTS
P H O E N I X , A R I ZO N A
EXCLUSIVELY OFFERED BY:
CHRIS HOLLENBECK SHANE CARTER
+1 602 224 4475 | AZ Lic #SA584876000 +1 602 224 4442 Currently Under Construction
chris.hollenbeck@cushwake.com shane.carter@cushwake.com
CONFIDENTIALITY & DISCLAIMER
The information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is intended however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent
to be reviewed only by the person or entity receiving the Materials from Cushman & Wakefield (“Agent”). makes no representation or warranty regarding the Property, including but not limited to income, expenses,
The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property/ or financial performance (past present, or future); size, square footage, condition, or quality of the land and
properties (“Property”) for potential purchase. improvements; presence or absence of contaminating substances (PCB’s, asbestos, mold, etc.); compliance
with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant
The Materials have been prepared to provide unverified summary financial, property, and market information (tenants’ intentions regarding continued occupancy, payment of rent, etc). A prospective purchaser must
to a prospective purchaser to enable it to establish a preliminary level of interest in potential purchase of independently investigate and verify all of the information set forth in the Materials. A prospective purchaser
the Property. The Materials are not to be considered fact. The information contained in the Materials is not a is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating
substitute for thorough investigation of the financial, physical, and market conditions relating to the Property. and evaluating the Property.
The information contained in the Materials has been obtained by Agent from sources believed to be reliable; By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.You can also read
