Offering Memorandum - Exclusive Net-Lease Offering - NNN Properties
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Exclusive Net-Lease Offering
Subject Property
Offering
Memorandum 1300 S Main St, Roswell, NM 88203
Confidentiality and Disclaimer
Marcus & Millichap hereby advises all prospective purchasers of properties, including newly-constructed facilities or newly- income or expenses for the subject property, the future projected
Net Leased property as follows: acquired locations, may be set based on a tenant’s projected financial performance of the property, the size and square
sales with little or no record of actual performance, or footage of the property and improvements, the presence or
The information contained in this Marketing Brochure has been comparable rents for the area. Returns are not guaranteed; the absence of contaminating substances, PCB’s or asbestos, the
obtained from sources we believe to be reliable. However, tenant and any guarantors may fail to pay the lease rent or compliance with State and Federal regulations, the physical
Marcus & Millichap has not and will not verify any of this property taxes, or may fail to comply with other material terms of condition of the improvements thereon, or the financial
information, nor has Marcus & Millichap conducted any the lease; cash flow may be interrupted in part or in whole due to condition or business prospects of any tenant, or any tenant’s
investigation regarding these matters. Marcus & Millichap makes market, economic, environmental or other conditions. Regardless plans or intentions to continue its occupancy of the subject
no guarantee, warranty or representation whatsoever about the of tenant history and lease guarantees, Buyer is responsible for property. The information contained in this Marketing Brochure
accuracy or completeness of any information provided. conducting his/her own investigation of all matters affecting the has been obtained from sources we believe to be reliable;
intrinsic value of the property and the value of any long-term however, Marcus & Millichap has not verified, and will not verify,
As the Buyer of a net leased property, it is the Buyer’s lease, including the likelihood of locating a replacement tenant if any of the information contained herein, nor has Marcus &
responsibility to independently confirm the accuracy and the current tenant should default or abandon the property, and Millichap conducted any investigation regarding these matters
completeness of all material information before completing any the lease terms that Buyer may be able to negotiate with a and makes no warranty or representation whatsoever regarding
purchase. This Marketing Brochure is not a substitute for your potential replacement tenant considering the location of the the accuracy or completeness of the information provided. All
thorough due diligence investigation of this investment property, and Buyer’s legal ability to make alternate use of the potential buyers must take appropriate measures to verify all of
opportunity. Marcus & Millichap expressly denies any obligation property. the information set forth herein.
to conduct a due diligence examination of this Property for Buyer. By accepting this Marketing Brochure you agree to release
Marcus & Millichap Real Estate Investment Services and hold it NON-ENDORSEMENT NOTICE
Any projections, opinions, assumptions or estimates used in this harmless from any kind of claim, cost, expense, or liability arising
Marketing Brochure are for example only and do not represent out of your investigation and/or purchase of this net leased Marcus & Millichap Real Estate Investment Services, Inc.
the current or future performance of this property. The value of a property. (“M&M”) is not affiliated with, sponsored by, or endorsed by any
net leased property to you depends on factors that should be commercial tenant or lessee identified in this marketing package.
evaluated by you and your tax, financial and legal advisors. CONFIDENTIALITY AND DISCLAIMER The presence of any corporation’s logo or name is not intended
to indicate or imply affiliation with, or sponsorship or
Buyer and Buyer’s tax, financial, legal, and construction advisors The information contained in the following Marketing Brochure is endorsement by, said corporation of M&M, its affiliates or
should conduct a careful, independent investigation of any net proprietary and strictly confidential. It is intended to be reviewed subsidiaries, or any agent, product, service, or commercial listing
leased property to determine to your satisfaction with the only by the party receiving it from Marcus & Millichap and should of M&M, and is solely included for the purpose of providing
suitability of the property for your needs. not be made available to any other person or entity without the tenant lessee information about this listing to prospective
written consent of Marcus & Millichap. This Marketing Brochure customers.
Like all real estate investments, this investment carries significant has been prepared to provide summary, unverified information
risks. Buyer and Buyer’s legal and financial advisors must request to prospective purchasers, and to establish only a preliminary ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE
and carefully review all legal and financial documents related to level of interest in the subject property. The information CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE
the property and tenant. While the tenant’s past performance at contained herein is not a substitute for a thorough due diligence DETAILS.
this or other locations is an important consideration, it is not a investigation. Marcus & Millichap has not made any investigation,
guarantee of future success. Similarly, the lease rate for some and makes no warranty or representation, with respect to the
Table of Contents
Investment Highlights 4
Financial Analysis 5
Tenant Overview 6
Surrounding Area 7
Location Overview 8
Maps 9-10
Demographics 11
Representative Photo
Investment Highlights
PRICE: $1,042,800 | CAP: 6.00% | RENT: $62,568
About the Investment
10 Year Double Net (NN) Lease Extension with 7.5 Years Remaining | Tenant at
this Location Since 1993
Attractive Rent Increases | 15.0% in 2023 and 9.0% at Each Option
Four (4), Five (5)-Year Tenant Renewal Options
Corporate Guaranty | O’Reilly Automotive Stores, Inc. | S&P BBB+
About the Location
Dense Retail Corridor | Nearby National Tenants Include Albertsons, Dollar
General, Family Dollar, Ashley Homestore, Church’s Chicken, Walgreens, KFC,
Sonic, Sherwin Williams, Dollar Tree, U-Haul, Planet Fitness, Wells Fargo, and
Many More
Strong Demographics | More than People within a 5-Mile Radius Actual Site
High Traffic Counts | Average Vehicles Per Day Respectively
Exceptional Real Estate Fundamentals | Located within 3 Miles from Lovelace
Regional Hospital and New Mexico Military Institute
About the Tenant/Brand
O’Reilly Auto Parts is the Dominant Auto Parts Retailer
Publicly Traded (NASDAQ: ORLY)
Investment Grade Credit Rating | S&P BBB+
$11.6 Billion in Revenue (FY 2020)
$1.75 Billion in Net Income (FY 2020)
5,594 stores in 47 U.S. states and 22 ORMA stores in Mexico
82,000+ Total Employees
Representative Photo
Representative Photo
O'Reilly Auto Parts – Roswell, NM 4
Financial Analysis
PRICE: $1,042,800 | CAP: 6.00% | RENT: $62,568
Property Description RENT SCHEDULE
Property O’Reilly Auto Parts Lease Year(s) Monthly Amount Annual Amount Escalation (%)
Property Address 1300 S Main St
7/1/2018 - 6/30/2019 $5,214.00 $62,568.00 -
City, State, ZIP Roswell, NM 88203
7/1/2019 - 6/30/2020 $5,214.00 $62,568.00 -
Year Built 1995
7/1/2020 - 6/30/2021 $5,214.00 $62,568.00 -
Building Size 10,396 SF
7/1/2021 - 6/30/2022 $5,214.00 $62,568.00 -
Type of Ownership Fee Simple
7/1/2022 - 6/30/2023 $5,214.00 $62,568.00 -
The Offering 7/1/2023 - 6/30/2024 $5,996.10 $71,953.20 15.00%
Purchase Price $1,042,800
7/1/2024 - 6/30/2025 $5,996.10 $71,953.20 -
CAP Rate 6.00%
7/1/2025 - 6/30/2026 $5,996.10 $71,953.20 -
Annual Rent $62,568.00
7/1/2026 - 6/30/2027 $5,996.10 $71,953.20 -
Lease Summary 7/1/2027 - 6/30/2028 $5,996.10 $71,953.20 -
Property Type Net Leased Autoparts 1st Renewal Term $6,535.75 $78,429.00 9.00%
Tenant / Guarantor O’Reilly Automotive Stores, Inc.| Corporate 2nd Renewal Term $7,123.97 $85,487.64 9.00%
Ownership Type Public (NASDAQ: ORLY) 3rd Renewal Term $7,765.12 $93,181.44 9.00%
Original Lease Commencement January 1993
4th Renewal Term $8,463.98 $101,567.76 9.00%
Lease Renewal Commencement July 1, 2018
Lease Renewal Term 10 Years
Lease Expiration June 30, 2028 INVESTMENT SUMMARY
Lease Term Remaining 7.5 Years Marcus & Millichap is pleased to present the exclusive listing for an O’Reilly
Lease Type Double Net (NN) Auto Parts located at 1300 S Main St in Roswell, NM. The site consists of
10,396 rentable square feet of building space. The investment property is
Roof & Structure Landlord Responsible subject to a 10-year double-net lease with 7.5 years remaining with 4, 5-year
Rent Increases 15.0% on July 1, 2023 tenant renewal options. O’Reilly Auto Parts first signed this lease in 1993 and
Options to Renew Four (4), Five (5) Year Options has renewed multiple times.
Increases in Options Nine Percent (9.0%) Every Five (5) Years
O'Reilly Auto Parts – Roswell, NM 5Tenant Overview
About O’Reilly Auto Parts General Information
Founded 1957
O’Reilly Auto Parts is the dominant auto parts retailer in all market areas Website www.oreillyauto.com
from their roots as a single store in 1957 to their current size of 5,594 stores
Headquarters Springfield, MO
in 47 U.S. states and 22 ORMA stores in Mexico (and growing). O'Reilly
Automotive, Inc. officially started in the auto parts business in Springfield, Ownership Public (NASDAQ: ORLY)
Missouri, in November of 1957. However, its historical background in the Market Cap $33.24 Billion (as of 3/10/2021)
automotive business, as well as the family's quest for opportunity and Total Location Count 5,594+
advancement, may be traced back to a much earlier time. The long range
plans and stability of the company were solidified by a public offering of Total Revenue $11.6 Billion (FY 2020)
company stock in April 1993. Since that time, the Company has grown
Net Income $1.75 Billion (FY 2020)
through the opening of new stores, as well as through numerous mergers
and acquisitions, and currently operates stores in 47 states, including Alaska
and Hawaii. As of (3/10/2021)
Throughout this time the underlying spirit and philosophy of O'Reilly
Automotive, Inc., has been one of growth and progress, both for the
company and its team members. This remains the policy to which the
company is dedicated today.
Representative Photo
Representative Photo
O'Reilly Auto Parts – Roswell, NM 6Surrounding Area
Property Address: 1300 S Main St, Roswell, NM 88203
Chaves County
Administrative Center
O'Reilly Auto Parts – Roswell, NM 7Location Overview
Property Address: 1300 S Main St, Roswell, NM 88203
The subject investment property is situated on S Main St in Roswell,
NM, which boasts average daily traffic counts of 16,548 vehicles.
There are 34,863 individuals residing within a three-mile radius of the
property and 52,304 individuals within a five-mile radius of the
property.
The subject property benefits from being well-positioned in a dense
retail corridor with national tenants in the immediate area including ADTC: 16,548
Albertsons, Dollar General, Family Dollar, Ashley Homestore, Church’s
Chicken, Walgreens, KFC, Sonic, Sherwin Williams, Dollar Tree, U-Haul,
Planet Fitness, Wells Fargo, and many more. The property also
benefits from its proximity to Lovelace Regional Hospital – a 27 bed
full-service hospital backed by the Lovelace Health System, which is
one of the largest health care systems in New Mexico.
Roswell is a growing city that is home to a thriving population of
almost 50,000 residents. Roswell is well known not only for aliens,
but for their hospitality in welcoming new businesses (while
supporting existing ones) and visitors alike. Roswell has been the
home to New Mexico Military Institute since 1891, which holds a long
history of appointing its graduates to West Point and other military
academies. Roswell has benefited from interest in the alleged UFO
incident of 1947. In recent times, the business community has
deliberately sought out tourists interested in UFOs, science fiction,
and aliens. Roswell capitalizes on its pleasant climate and as a great
place to live, work and retire.
O'Reilly Auto Parts – Roswell, NM 8Local Map
Property Address: 1300 S Main St, Roswell, NM 88203
Roswell International Air Center Airport
O'Reilly Auto Parts – Roswell, NM 9Regional Map
Property Address: 1300 S Main St, Roswell, NM 88203
O'Reilly Auto Parts – Roswell, NM 10Demographics
Property Address: 1300 S Main St, Roswell, NM 88203
1 Mile 3 Miles 5 Miles
Population Trends:
2010 Population 11,884 35,929 52,984
2020 Population 11,128 34,863 52,304
2025 Population Projection 10,839 34,213 51,510
Growth 2010 - 2020 -0.60% -0.30% -0.10%
Growth 2020 - 2025 -0.50% -0.40% -0.30%
Population by Race (2020):
White 90.8% 91.2% 91.6%
Black 3.2% 3.0% 2.6%
American Indian/Alaskan Native 2.7% 2.5% 2.3%
Asian 1.0% 1.1% 1.3%
Hawaiian & Pacific Islander 0.1% 0.3% 0.3%
Two or More Races 2.1% 1.9% 1.9%
Hispanic Origin 71.5% 63.8% 57.4%
Household Trends:
2010 Households 4,256 13,114 19,388
2020 Households 3,980 12,701 19,131
2025 Household Projection 3,875 12,455 18,833
Growth 2010 - 2020 0.20% 0.30% 0.30%
Growth 2020 - 2025 -0.50% -0.40% -0.30%
1 Mile Owner Occupied 2,470 8,116 12,806
Renter Occupied 1,405 4,339 6,027
Average Household Income (2020): $47,505 $53,413 $59,570
Households by Household Income
(2020):E XC LU S I V E N E T L EA S E O F F E R I N G Matthew Reeves Title: Qualifying Broker of Record 5600 Eubank Blvd. NE, Suite 200 Albuquerque, NM 87111 Tel: 505-445-6333 License: 19583 1300 S Main St, Roswell, NM 88203
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