offering memorandum - loopnet...replacement parts and accessories with more than 5,000 stores in us,...

P H I L I P L E V Y972.755.5225SENIOR MANAGING [email protected]

OFFERING MEMORANDUM

2

PROPERTY INFORMATION 3

Executive Summary 4

Property Description 5

Complete Highlights 6

LOCATION INFORMATION 7

Regional Map 8

Location Maps 9

Aerial Map 10

Aerial Map 11

FINANCIAL ANALYSIS 12

Financial Summary 13

Income & Expenses 14

Tenant Profiles 15

DEMOGRAPHICS 16

Demographics Report 17

Demographics Map 18

IABS 19

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ContentsConfidentiality & Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictlyconfidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichapand should not be made available to any other person or entity without the written consent ofMarcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes nowarranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of theproperty and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of theimprovements thereon, or the financial condition or business prospects of any tenant, or anytenant’s plans or intentions to continue its occupancy of the subject property. The informationcontained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information containedherein, nor has Marcus & Millichap conducted any investigation regarding these matters andmakes no warranty or representation whatsoever regarding the accuracy or completeness of theinformation provided. All potential buyers must take appropriate measures to verify all of theinformation set forth herein.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant orlessee identified in this marketing package. The presence of any corporation’s logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporationof Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lesseeinformation about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS

AutoZone509 East Belt Line Road, Cedar Hill, TX 75104

TABLE OF CONTENTS

Section 1 PROPERTY INFORMATION

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OFFERING SUMMARY

Sale Price: $1,720,000

Cap Rate: 5.50%

NOI: $94,619

Lot Size: 0.9 Acres

Year Built: 1999

Building Size: 5,317

Price / SF: $323.49

Marcus & Millichap is pleased to offer the opportunity to acquire a 5,317-square foot freestanding AutoZone located in Cedar Hill,TX (Dallas-Fort Worth).

PROPERTY OVERVIEW

DEMOGRAPHICS

1 MILE 3 MILES 5 MILES

Total Households 5,656 22,244 48,212

Total Population 15,570 64,905 137,605

Average HH Income $70,466 $85,249 $80,341


PROPERTY INFORMATION | EXECUTIVE SUMMARY

5

The subject property is a 5,317-square foot freestanding AutoZone located in Cedar Hill, Texas (DFW). The

absolute net lease has a corporate guarantee from a publicly traded company (NYSE: AZO), and the tenant has a

‘BBB’ investment grade credit rating from Standard & Poor's. The tenant recently extended the term an additional

five years, leaving over nine years remaining on the primary term. There are four five-year options for renewal with

10 percent rent escalations scheduled at the beginning of each option period. Constructed in 1999, the building is

situated on 0.9 acres.

PROPERTY OVERVIEW

The subject property is located on East Belt Line Road near the signalized intersection with Cannady Drive. Traffic

counts are approximately 24,000 vehicles per day in front of the property. AutoZone lies in the northeastern

quadrant of the dense retail trade area located at the intersection of Belt Line Road and J Elmer Weaver Freeway

(US 67). Numerous national and regional retailers are in the area, including Walgreens, The Home Depot,

Albertsons, Petco, Marshalls, DSW Designer Shoe Warehouse, Hobby Lobby, Toys ‘R Us, Ross Dress for Less,

OfficeMax, Pier 1 Imports, CVS, Aldi, Romano’s Macaroni Grill, Chili’s Grill & Bar, Men’s Wearhouse, Kohl’s,

Walmart, Kroger, Burlington Coat Factory, Haverty’s Furniture, JCPenney, Tuesday Morning, 24 Hour Fitness,

Cinemark, and many others. Over 137,600 residents are within five miles of the property, and the three-mile

average household income is $85,250.

Cedar Hill is a city in Dallas and Ellis counties. It is located approximately 16 miles southwest of downtown Dallas

and is situated along the eastern shore of Joe Pool Lake and Cedar Hill State Park. Cedar Hill is part of the Best

Southwest area, which includes the nearby cities of DeSoto, Duncanville, and Lancaster. Cedar Hill’s commercial

development is situated in the heart of the city along Highway 67, and includes the three areas of Uptown,

Midtown, and Downtown.

LOCATION OVERVIEW


PROPERTY INFORMATION | PROPERTY DESCRIPTION

6

SALE HIGHLIGHTS

• Absolute Net Lease | No Landlord Responsibilities

• Corporate Guarantee from a Publicly Traded Company (NYSE: AZO)

• Tenant Recently Extended the Lease Term an Additional Five Years, Leaving 9.5

Years Remaining on the Primary Term

• Lease Includes Four Five-Year Options for Renewal with 10% Rent Bumps

• Tenant has a 'BBB' Investment Grade Credit Rating from S&P

• Located in the Northeastern Quadrant of a Dense Retail Trade Area at the

Intersection of Belt Line Road and J Elmer Weaver Freeway (US 67)

• Strong Demographics | Three-Mile Average Household Income is $85,250 |

Over 137,600 Residents Within Five Miles

• Cedar Hill is Approximately 16 Miles Southwest of Downtown Dallas


PROPERTY INFORMATION | COMPLETE HIGHLIGHTS

Section 2 LOCATION INFORMATION

8

AutoZone


LOCATION INFORMATION | REGIONAL MAP

9


LOCATION INFORMATION | LOCATION MAPS

1 0


LOCATION INFORMATION | AERIAL MAP

1 1


LOCATION INFORMATION | AERIAL MAP

Section 3 FINANCIAL ANALYSIS

1 3

INVESTMENT OVERVIEW

Price $1,720,000

Price per SF $323.49

CAP Rate 5.50%

Total Return (yr 1) $94,619

OPERATING DATA

Gross Income $94,619

Operating Expenses -

Net Operating Income $94,619

FINANCING DATA

Down Payment $1,720,000

Loan Type All Cash


FINANCIAL ANALYSIS | FINANCIAL SUMMARY

INCOME SUMMARY PER SF

Current – 11/30/2027 $94,619 $17.80

Option 1: 12/01/2027 – 11/30/2032 $104,393 $19.63

Option 2: 12/01/2032 – 11/30/2037 $114,833 $21.60

Option 3: 12/01/2037 – 11/30/2042 $126,316 $23.76

Option 4: 12/01/2042 – 11/30/2047 $138,947 $26.13

Net Operating Income $94,619 $17.80

1 4


FINANCIAL ANALYSIS | INCOME & EXPENSES

1 5

Lease Term: 27 Years

Lease Type: Absolute Net

Roof And Structure: Tenant Responsible

Lease Commencement Date: 11/16/2000

Lease Expiration Date: 11/30/2027

Term Remaining On Lease: 9.5 Years

Options For Renewal: (4) 5-Year

First Right Of Refusal: Yes

OVERVIEW

• Publicly Traded Company (NYSE: AZO)

• Standard & Poors Credit Rating of 'BBB'

• More than 5,000 Stores in the U.S., Puerto Rico, Mexico, and Brazil

• Tenant Highlight 4



TENANT HIGHLIGHTS

AutoZone is the nation’s leading retailer and a leading distributor of automotive

replacement parts and accessories with more than 5,000 stores in US, Puerto Rico, Mexico,

and Brazil. Each store carries an extensive line for cars, sport utility vehicles, vans and light

trucks, including new and remanufactured hard parts, maintenance items and accessories.

AutoZone also sells automotive diagnostic and repair software through ALLDATA,

diagnostic and repair information through alldatadiy.com, and auto and light truck parts and

accessories through their website.

For more than 30 years, AutoZone has been committed to providing the best parts, prices

and customer service in the automotive aftermarket industry. Since opening its first store in

Forrest City, Ark. on July 4, 1979, the company has joined the New York Stock Exchange

(NYSE: AZO) and earned a spot in the Fortune 500.

TENANT SUMMARY


FINANCIAL ANALYSIS | TENANT PROFILES

Section 4 DEMOGRAPHICS

1 7

1 MILE 3 MILES 5 MILES

Total population 15,570 64,905 137,605

Median age 31.6 33.9 35.4

Median age (male) 29.0 31.8 32.9

Median age (female) 32.2 35.2 37.1

Total households 5,656 22,244 48,212

Total persons per HH 3.0 3.0 2.9

Average HH income $70,466 $85,249 $80,341

Average house value $164,486 $175,636 $173,762

Total Population - White 2,300 18,369 50,265

% White 14.8% 28.3% 36.5%

Total Population - Black 5,252 30,125 58,746

% Black 33.7% 46.4% 42.7%

Total Population - Asian 324 1,617 2,851

% Asian 2.1% 2.5% 2.1%

Total Population - Hawaiian 0 0 1

% Hawaiian 0.0% 0.0% 0.0%

Total Population - American Indian 3 50 206

% American Indian 0.0% 0.1% 0.1%

Total Population - Other 625 3,863 11,728

% Other 4.0% 6.0% 8.5%

Total Population - Hispanic 1,245 8,676 24,455

% Hispanic 8.0% 13.4% 17.8%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS REPORT

1 8

POPULATION 1 MILE 3 MILES 5 MILES

Total population 15,570 64,905 137,605

Median age 31.6 33.9 35.4

Median age (male) 29.0 31.8 32.9

Median age (Female) 32.2 35.2 37.1

HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES

Total households 5,656 22,244 48,212

# of persons per HH 3.0 3.0 2.9

Average HH income $70,466 $85,249 $80,341

Average house value $164,486 $175,636 $173,762

ETHNICITY (%) 1 MILE 3 MILES 5 MILES

Hispanic 8.0% 13.4% 17.8%

RACE (%)

White 14.8% 28.3% 36.5%

Black 33.7% 46.4% 42.7%

Asian 2.1% 2.5% 2.1%

Hawaiian 0.0% 0.0% 0.0%

American Indian 0.0% 0.1% 0.1%

Other 4.0% 6.0% 8.5%

* Demographic data derived from 2010 US Census


DEMOGRAPHICS | DEMOGRAPHICS MAP

INFORMATION ABOUT BROKERAGE SERVICES Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

TYPES OF REAL ESTATE LICENSE HOLDERS: • A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. • A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker.

A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): • Put the interests of the client above all others, including the broker’s own interests; • Inform the client of any material information about the property or transaction received by the broker; • Answer the client’s questions and present any offer to or counter-offer from the client; and • Treat all parties to a real estate transaction honestly and fairly.

A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION:

AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker’s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer’s agent.

AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker’s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller’s agent.

AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary:

• Must treat all parties to the transaction impartially and fairly; • May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to,

and carry out the instructions of each party to the transaction. • Must not, unless specifically authorized in writing to do so by the party, disclose:

that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law.

AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: • The broker’s duties and responsibilities to you, and your obligations under the representation agreement. • Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated.

LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker’s services. Please acknowledge receipt of this notice below and retain a copy for your records.

Information available at www.trec.texas.gov Regulated by the Texas Real Estate Commission IABS 1-0

11-2-2015

Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Email Phone

Designated Broker of Firm License No. Email Phone

Licensed Supervisor of Sales Agent/Associate License No. Email Phone

Sales Agent/Associate’s Name License No. Email Phone

Buyer/Tenant/Seller/Landlord Initials Date

P H I L I P L E V YSenior Managing DirectorDallas Office

972.755.5225 Office817.380.1153 [email protected]: TX 0522087

5001 Spring Valley RoadDallas, TX 75244

offering memorandum - loopnet...replacement parts and accessories with more than 5,000 stores in us,...

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