HOME  |  ABOUT  |  NET LEASE 101  |  CONTACT  |  SUBSCRIBE



7-Eleven
Advance Auto Parts
Affordable Dentures
ALDI
Applebee's
Arby's
Ashley Furniture
AutoZone
Bank of America
BankUnited
BB&T Bank
Best Buy
BMO Harris Bank
Bojangles'
Burger King
Captain D's
Chase Bank
Chick-fil-A
Chipotle
Church's Chicken
Circle K
Cracker Barrel
CVS
Dairy Queen
DaVita
Dollar General
Dollar Tree
Dunkin' Donuts
Family Dollar
FedEx
Fred's Super Dollar
Fresenius Medical Care
Hardee's
Hobby Lobby
IHOP
KFC
Kohl's
Mattress Firm
McDonald's
Napa Auto Parts
O'Reilly Auto Parts
Panera Bread
PDQ
Pep Boys Auto
PNC Bank
Red Lobster
Rite Aid
Sheetz
Shell Oil
Sherwin-Williams
Starbucks
Steak 'n Shake
SunTrust
Taco Bell
TD Bank
Tractor Supply Co.
Verizon
Walgreens
Walmart
Wawa
Wegmans
Wendy's
Zaxby's
  Advance Auto Parts


Average Property & Lease

Average Sale Price$1,949,290
CAP Rate (12mo avg with 10+ lease term)6.04%
NOI$115,186
$/Square Foot$200.00
Building Size7,000 sf
Lot Size0.90 +/- acres
Lease Term5 - 15 Years
EscalationsVaries
CREDIT RATING
BBB-
S&P
Baa2
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: September 9, 2016
Net Lease Advisor Overview

Net lease assets occupied by Advance Auto Parts fill a highly desired price range, generally trading between $1.0M - $2.0M. Additionally, the prototypical Advance Auto store lends itself to a wide array of reuses in the unlikely event of a vacancy. Advance Auto Parts prefers 0.75 - 1.25 acres of land for their 7,000 SF rectangular retail buildings.

Lease agreements can vary between 5 and 15 years in length, however a 15-year NN term seems to be most common Advance Auto lease structure. Specific lease terms and landlord obligations vary, but generally the landlord is responsible for maintenance of the roof and structure. Alternatively, some sites have been leased on an absolute NNN basis with no landlord responsibility. The difference between these a NN and NNN Advance Auto lease is usually offset by rent escalations. It is common for the NN lease to include rental increase in lease year 11, while the NNN leases are based on a flat rental rate over the entire primary lease term.

Pros

Cons

  • Corporate backed leases
  • Footprint allows for adaptive reuse
  • NN leases make Landlord responsible for roof and structure
  • Flat rental rates, varying lease structure
Tenant Description

Advance Auto Parts is leading automotive aftermarket parts provider in North America, serving "do-it-for-me", or Commercial, and "do-it-yourself", or DIY, customers as well as independently-owned operators. They were founded in 1929 and is headquarters in Roanoke, Virginia.

Advance Auto Parts which is consisted of 4,102 stores is generally located in freestanding buildings with a heavy focus on both commercial and DIY customers. The average size of an Advance store is approximately 7,500 square feet with the size of a typical new stores ranging from approximately 6,000 to 8,500 square feet. These stores carry a wide variety of products serving aftermarket auto part needs for both domestic and import vehicles.

Advance Auto Parts plans to open and operate stores in both large, densely-populated markets and small, less densely-populated areas. Advance Auto which consisted of "Advance Auto Parts", "Carquest", and "Worldpac" have increased their store count significantly in the last ten years from 2,872 stores in 2005 to 5,135 stores in the United States in 2015. They intend to continue to increase the number of their stores and expand the markets they serve as part of their growth strategy.


ADVANCE AUTO PARTS TREND
CAP Rate

2015 avg: 7.49%

2016 avg: 5.63%

RECENT SALES

Covington, TN

$700,000 | 8.00%

Plymouth, WI

$1,540,000 | 6.25%

MORE INFO
www.advanceautoparts.com
Google Finance: AAP
Google News: AAP