offering memorandum o’reilly auto parts · cleveland is based on the southern shore of lake erie...

Offering Memorandum 1O’Reilly Auto Parts1 3 0 M i l a n A v e n u e | N o r w a l k , O H

Representative Photo

OFFERING MEMORANDUM

™

O’Reilly Auto Parts - Norwalk, Ohio2™

e x c l u s i v e l i s t i n g a g e n t s

L a u r e n c e b e r g m a nBROKER OF RECORD

LIC # 000348029

C a lv i n S h o r t

FVP & Senior Director

[email protected] (949) 432-4506MOB (310) 567-3525LIC # 01927216

c h a d k u r z

SVP & National Director


C o n r a d S a r r e a l

Associate


Offering Memorandum 3

c o n t e n t

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P r o p e r t yD e ta i l s 0 8

LEASE

• Brand new, high quality construction

• Minimal landlord responsibilities, concrete parking lot and roof/structure limited warranty make for nearly a true NNN investment

• 20 Year lease with four (4), five (5) year options to extend

• 6% rent increase in year 10 and 6% increases throughout option periods

LOCATION

• Solid demographics, over 20,000 people in 3-mile radius

• Good retail synergy anchored by Walmart Supercenter with numerous national and local retailers nearby

• Located off Milan Avenue, which serves as the main artery for Norwalk, OH

TENANT

• O’Reilly Automotive Inc. has S&P BBB+ credit, better than Walgreens

• O’Reilly Automotive Inc. has a market cap of over $23 Billion

• O’Reilly Auto Parts is one of the largest auto parts suppliers in the United States

i n v e s t m e n t h i g h l i g h t sASSET

OVERVIE W


O ’ R e i l ly A u t o P a r t s130 Milan AvenueNorwalk, OH 44857

List Price .....................................................................................................................$1,702,138

CAP Rate - Current ..........................................................................................................5.80%

Gross Leasable Area ..............................................................................................± 7,225 SF

Lot Size ...................................................................................................................± 1.21 Acres

Year Built ...............................................................................................................................2017

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Years 1 - 10 $8,227.00 $98,724.00 $13.66 5.80%

Years 11 - 20 $8,720.62 $104,647.44 $14.48 6.38%

Option 1 $9,243.86 $110,926.32 $15.35 7.02%

Option 2 $9,788.49 $117,461.88 $16.26 7.72%

Option 3 $10,386.40 $124,636.80 $17.25 8.49%

Option 4 $11,009.58 $132,114.96 $18.29 9.34%

Tenant Summary

Tenant Trade Name O’Reilly Auto Parts

Type of Ownership Fee Simple

Lease Type NN+

Roof and Structure Landlord Responsible

Original Lease Term 20 Years

Lease Commencement Date 4/20/2016

Rent Commencement Date 5/20/2017

Lease Expiration Date 5/19/2037

Term Remaining on Lease 20 Years

Increases 6% Increases

Options Four (4), Five (5) Year Options


O’Reilly Auto Parts - Norwalk, Ohio6

TENANT

OVERVIEW



Property Name O’Reilly Auto Parts

Ownership Public

Revenue $7.97B

Net Income $931.22M

No. of Locations ± 4,570

No. of Employees ± 71,943

Headquartered Springfield, MO

Website http://www.oreillyauto.com

Year Founded 1957

TENANT OVERVIEW

The fast-growing company sells automotive aftermarket parts (both new and remanufactured), maintenance supplies, professional service equipment, tools, and accessories through some 4,570 stores across some 44 US states and online. Many O’Reilly stores also offer customers a range of services, including oil and battery recycling, battery testing, paint mixing, and tool rental. The family founded and operated company wheels and deals with automotive professionals, as well as do-it-yourself customers.

STRATEGY

O’Reilly is a company dedicated to providng their customers with amazing service. Their customer service culture is their greatest competitive advantage and the driving force behind their marketing strategy. Their constant priority is to identify, hire, and develop exceptional team members, while teaching them the culture values of hardwork, enthusiasm, professionalism, teamwork, respect, and honesty.


p a r c e l m a p

t h e o f f e r i n g

Property Name O’Reilly Auto Parts

Property Address 130 Milan Avenue

Norwalk, OH 44857

Assessor’s Parcel Number 33-0290-03-007-0000

Site DescriptionNumber of Stories One

Year Built 2017

Gross Leasable Area (GLA) ± 7,225 SF

Lot Size ± 1.21 Acres (52,707 SF)

Type of Ownership Fee Simple

Parking ± 43 Surface Spaces

Parking Ratio 5.90 : 1,000 SF

Landscaping Professional

Topography Generally Level

Property

details

P r o p e r t y d e m o g r a p h i c s

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Norwalk Korners Plaza

Main Street School

Norwalk FireDepartment

League Elementary

Subject Property

Norwalk Square

Norwalk Catholic School St. Paul Elementary

®

Milan Avenue± 14,000 ADT


Cleveland is based on the southern shore of Lake Erie near the mouth of the Cuyahoga River. It is 90 miles west of the Pennsylvania border and the county seat of Cuyahoga County. Considered part of the “Great Lakes Region”, Cleveland has access to major waterways, namely the Ohio and Erie Canals. The city’s geographic location has been instrumental to its growth and establishment as an important business center. Consequently, the steel and manufacturing industries emerged as leading sectors of Cleveland’s economy. Through the promotion of the technology sector, city leaders have propagated the diversification of the economy. The new economic powerhouses include health care and academics, with major hospital systems, universities and related businesses. Cleveland’s largest employer is the Cleveland Clinic, which carries the distinction of being among America’s best hospitals. Combining its strengths in technology and health care, Cleveland is also growing its biotech and medical research industries.

C l e v e l a n d , o h i o

area overview


The Greater Cleveland area, Cleveland’s metropolitan area, had a GDP of $134.4 billion in 2011, which ranked it 57th among countries. Nearly 2.1 million people inhabit Greater Cleveland. Many people are drawn to the area for work, the relatively low cost of living and the quality of life. More than 37% of Fortune 500 companies have a presence in Northeast Ohio. Additionally, the region is currently boasting more than $17 billion in capital developments, some of which is tourism related.


N O R W A L K , O H I OKnown as the Maple City for its urban forest, Norwalk is strategically located in north central Ohio 20 minutes south of Lake Erie. The city offers all the benefits of small-town living with a progressive and diverse business environment while being within an hour’s drive of both Toledo and Cleveland.

Aided by its central location at the core of Ohio’s industrial corridor, Norwalk has a longstanding history of excellence in the manufacturing, agriculture and construction industries. Workers from around the region are drawn to the area due to the quality of life and easy access to regional resources. In the Norwalk area, there is tremendous support for Workforce Development and assistance is provided through a variety of partners and programs. We are also open to the opportunity to create and develop new opportunities as needed by our private sector partners and the community.

Norwalk’s infrastructure continues to evolve to answer the demands of an expanding economy. Improving utilities, roadways and telecommunications reach two established industrial parks, with a planned connecting corridor and flexible zoning promising room to grow.

T O P E M P L O Y E R S

Subject Property


C l e v e l a n d M S A D e m o g r a p h i c s

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Formerly a rust belt manufacturing center, Cleveland had experienced decades of retrogression. However, recent years have incited the city’s initiatives towards reinvention into a 21st century city. Cleveland is an up and coming city, abuzz with the excitement of change brought by sizeable planned developments and recently finished construction projects. A total of $8 billion of public and private investment has gone towards new development in addition to $350 million that AT&T spent on building out their Cleveland area network the last few years. 2016 in particular was an actively successful year as investments fruited renovations of historic buildings, new construction projects, and entrepreneurial businesses.

With a downtown apartment occupancy of about 97%, the city has seen an increase in college educated young professionals relocating there, an occurrence that has been a strong driving force in its rebirth. This increased demand for housing has instigated numerous housing developments, including about 1,500 new units in the downtown area, more than 600 at Nautica in the Flats and 400 in Cleveland’s illustrious Terminal Tower.

B O O M T O W N C L E V E L A N D : A R E N A I S S A N C E

Currently in construction, the Lakefront Plan is a $280 million development of Cleveland’s downtown waterfront from its original warehousing use into a mixed-use neighborhood. The Lakefront Plan includes six development sites that will result in the addition over 1,000 apartments, 80,000 square feet of office space and 50,000 square feet of retail space in the city’s central business district.

P R O J E C T S U N D E R W AY

LAKEFRONT PLAN

Abbreviated as UH, University Hospitals is one of the top cancer centers and one of the top three neonatology hospitals in the United States. UH celebrated its 150-year anniversary in 2016, thereby spurring the construction of the $15 million, integrated primary care facility: The UH Rainbow Center for Woman and Children. This off-campus, state-of-the-art facility will be centrally located in the Health-Tech Corridor, offering convenient access for the community.

UNIVERSITY HOSPITALS RAINBOW CENTER FOR WOMAN AND CHILDREN

One University Circle is a $116 million twenty-story tower with 280 luxury residential units, a 300-space parking garage and a bistro/market on the ground floor. Construction workers broke ground at the 1.3-acre site in June of 2016. Located on Euclid Avenue in the University Circle neighborhood, the market rate residential rental project is Cleveland’s tallest residential tower project in the past few decades.

ONE UNIVERSITY CIRCLE


Cleveland State University is an urban public university located in the heart of downtown Cleveland. Once a commuter campus, the university has seen a 56% increase in enrollment throughout the past decade, particularly in its freshmen classes. The campus recently experienced a $500 million renovation that has catalyzed a resurgence in the downtown area, bringing to life the university president’s transformative vision of establishing Cleveland State University as a best-in-class urban university for the 21st century.

With a mantra of engaged learning, Cleveland State offers over 200 academic programs at its eight colleges to its 17,000 enrolled students. Faculty and students connect over the university’s commitment to providing an experiential learning environment where students can mesh ideas with real-world understanding.

C L e v e l a n d s tat e u n i v e r s i t y

Known for its world class research, Case Western Reserve University is a private institution about twenty minutes from downtown Cleveland. It has been ranked on U.S. News & World Report’s 2017 edition of Best Colleges as #37 in National Universities.

Case Western Reserve University’s 185-acre campus houses over 12,000 undergraduate, graduate and professional enrolled students. The university offers a broad range of top-rated specialty graduate programs in health law, biomedical engineering and nonprofit management. About 10 miles from the main campus, Case Western Reserve also owns a 389-acre plot of land known as University Farm. Here, students research and take biology, ecology and art courses. There are more than 150 student organizations providing an abundance of opportunities for students to get involved outside of the classroom as well.

c a s e w e s t e r n r e s e r v e u n i v e r s i t y


Nine miles southwest of Cleveland’s central business district, Cleveland Hopkins International airport is the largest and busiest airport in Ohio seeing appriximately 8.5 million annual passengers. It is the primary airport serving the Northeast Ohio region and is distinguished of having the first airport-to-downtown rapid transit connection in the continent.

The HealthLine is the Cleveland Regional Transit Authority’s (RTA) newist transit line that serves the Euclid Avenue Health-Tech Corridor, one of Cleveland’s busiest routes. Featuring dedicated lanes along Euclid, 24/7 operations and off-board fare collection, the Healthline has signficantly decreased the commute time into and out of downtown.

Known as RTA Rapid Transit, three major rail lines and one special service rail line, the Waterfront Line, service Cleveland’s city core, providing people transportation into and throughout the downtown area. Meeting at the main terminal at Tower City Center, the rail lines bring people within minutes of anywhere in downtown.

CLEVELAND HOPKINS INTERNATIONAL AIRPORT

THE HEALTHLINE RAIL/RAPID TRANSIT

G E t t i n g a r o u n d

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of O’Reilly Auto Parts located at 130 Milan Avenue, Norwalk, OH Zip (“Property”) . I t has been prepared by Matthews Real Estate Investment Servies. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Servies. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Servies expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Servies or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T


E x c l u s i v e l i s t i n g a g e n t s

O’Reilly Auto Parts1 3 0 M i l a n A v e n u e | N o r w a l k , O H

L a u r e n c e b e r g m a nBROKER OF RECORD

LIC # 000348029

C a lv i n S h o r t

FVP & Senior Director


C o n r a d s a r r e a l

Associate


™

c h a d k u r z

SVP & National Director


offering memorandum o’reilly auto parts · cleveland is based on the southern shore of lake erie...

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