Take 5 Oil Tenant Overview
Updated: October 22, 2024
Pros
- Frequent rent increases
- Absolute NNN leases
- Essential service tenant
Cons
- Small plots of land
- Franchisee owned and operated
Earnings Highlights
- 15th consecutive quarter of same-store sales growth at 1.1%
- Take 5 Oil Change segment achieved 15% revenue growth
- Adjusted EBITDA increased 14% to $138.8 million
- Adjusted Net Income improved to $41.8 million vs $29.9 million prior year
- Strong liquidity position of $655.3 million
Tenant Description
Investing in a Take 5 Oil Change net lease property offers a compelling opportunity for investors looking to tap into the thriving service retail sector. As a leader in quick, drive-thru oil changes, Take 5 fills a crucial niche in automotive maintenance, offering convenience and efficiency that appeals to time-strapped consumers. Unlike many retail tenants, service-oriented businesses like Take 5 are insulated from the challenges of e-commerce disruption. Cars still need regular maintenance, regardless of economic trends, making Take 5 a recession-resistant tenant with consistent demand.
Take 5’s business model focuses on high-traffic locations near residential areas and busy thoroughfares, ensuring steady customer flow and long-term viability. The company operates under long-term triple-net (NNN) leases, shifting responsibilities for property taxes, insurance, and maintenance to the tenant. This structure provides landlords with stable, predictable income and minimal oversight, making it an ideal passive investment.
Moreover, Take 5’s focus on essential services rather than discretionary spending ensures its resilience even during economic downturns. People prioritize maintaining their vehicles, as transportation remains a necessity in most communities. This enduring demand bolsters Take 5’s reliability as a tenant, offering investors a low-risk opportunity in a growing service retail market. With its focus on convenience, essential services, and a recession-proof business model, Take 5 Oil Change represents a smart, forward-thinking addition to any investment portfolio.
Take 5 Oil operates a network of convenient drive-thru locations across the United States. With a strong focus on providing quick and efficient services, Take 5 Oil has become a trusted name in the industry, serving millions of customers each year. With over 800 locations in the US.
Average Cap Rate
5.93%
Trailing 12-month average
Average Property & Lease
| Average Sale Price |
$1,708,304 |
| NOI |
$101,406 |
| $/Square Foot |
$854 - $1,708 |
| Building SF |
1,000 - 2,000 |
| Lot Size |
0.67 - 1.25 acres |
| Lease Term |
15 years |
| Escalations |
varies |
| Stock Symbol |
DRVN |
Average Cap Rate Trend
Rates reflect year-over-year comparison
Recent Sales Comps
| Holland, OH |
5.40% |
| Avondale, AZ |
5.69% |
| Myrtle Beach, SC |
6.25% |
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