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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
  O'Reilly Auto Parts


Average Property & Lease

Average Sale Price$1,932,941
CAP Rate (12mo avg with 10+ lease term)5.81%
NOI$110,582
$/Square Foot$150 - $350
Building Size7,000 +/- sf
Lot Size0.5 -2.0 acres
Lease Term20 Years
Escalations6% - 10% Every 5 Years
CREDIT RATING
BBB+
S&P
Baa1
Moody's
view credit rating chart
View Net Lease Property Listings at CALKAIN.COM Last Updated: January 12, 2017
Net Lease Advisor Overview

O'Reilly auto Parts continues to be an attractive investment for investors due to the typical long term initial leases (20 years), periodic rent increases, four-five renewal options, and investment grade rating.

Pros

Cons

  • Investment Grade Tenant
  • Corporate guaranteed
  • NNN leases
  • Generally well located in both urban and suburban settings
  • Some NN leases holds landlord responsible for roof and structure
Tenant Description

Auto parts store properties remain in high demand among net lease investors as there are very few investment grade options that are priced below $2 million with the exception of dollar stores. The retail auto parts industry continues to thrive as the age of vehicles on the road continues to increase.

O'Reilly Auto Parts (ORLY), is one of the dominant retailers in the auto parts sector. It was founded in 1957 as a single store in Springfield, Missouri and its headquarters are still located there. As of September 30, 2016, it has grown to 4,712 stores in 45 states with 27 distribution centers.

O'Reilly sells an extensive line of new, aftermarket and re-manufactured automotive parts, maintenance items, tooling supplies, accessories, automotive tools and professional service equipment. For years, it has focused on a dual-market strategy catering to both the "Do It For Me" (DIFM) professional service providers (PSPs) as well as "Do It Yourself" (DIY) individual consumers. Forty-two (42%) percent of its sales comes from PSPs. This dual strategy contributes to O'Reilly's success and is one of the competitive advantages O'Reilly has over its competitors, along with its strong distribution network.


O'REILLY AUTO PARTS TREND
CAP Rate

2015 avg: 5.97%

2016 avg: 5.81%

RECENT SALES

Jasper, TN | 6.08%

Lakeland, FL | 5.85%

MORE INFO
www.oreillyauto.com
Google Finance: ORLY
Google News: ORLY