Advance Auto Parts | Alexandria, LA
7.11% Cap | NNN+ | ±5 Yrs Remaining

In by NNN Properties Group

$ 1,799,500

920 MacArthur Dr, Alexandria, LA 71303


  • Status:
  • Type:
  • Property Address:
    920 MacArthur Dr, Alexandria, LA 71303
  • Building Size:
    6,972 SF
  • Year Built:
    2005
  • Lot Size:
    1.17 Acres
  • Cap Rate:
    7.11%
  • Base Annual Rent:
    $127,887
  • Tenant:
    Advance Auto Parts
  • Guaranty:
    Corporate (Advance Auto Parts Inc. / NYSE:AAP)
  • Lease Structure:
    Modified NNN
  • Years Remaining:
    < 5
  • Extension Options:
    2 5-Year Remaining (In Option 1)

Executive Summary

  • Offering Summary: We are pleased to present for sale fee simple interest in a single tenant investment property leased to Advance Auto Parts (“the Offering”) in a densely populated infill location along the primary retail corridor in Alexandria, Louisiana. The Buyer of this passive net lease investment opportunity will enjoy a stable cash flow stream backed by an national “essential service”- providing auto parts retailer offering an investment-grade corporate guaranty, along with a triple net lease structure featuring minimal landlord responsibilities. The Offering consists of an approximately 6,972 square foot freestanding steel and masonry building on a large 1.16- acre lot leased to Advance Auto Parts, Inc., one of the largest discount auto parts retailers in the country. Advance Auto Parts has been operating at this location since 2005, and its lease is modified triple net (“NNN”) in structure, with the tenant responsible for property taxes (reimbursed), insurance, roof, HVAC and parking lot repairs, and the landlord responsible for the slab, foundation and structure. Advance Auto Parts recently waived its contractual right to terminate the lease, and will enter its first of three five-year extension options on August 1st, 2020.
  • Tenant Summary: Founded in 1932 and headquartered in Raleigh, North Carolina, Advance Auto Parts is a publicly traded company that operates over 5,000 stores in 46 states, Puerto Rico, the U.S. Virgin Islands and Canada. The company’s fiscal year 2019 revenues totaled $9.7 billion, and the company has an investment-grade credit rating of BBB- with S&P and Baa2 with Moody’s.
  • Location Summary: Strategically located on a hard signalized corner featuring excellent access and visibility from MacArthur Drive (U.S. Highway 71), the primary north-south commercial corridor in Alexandria, Louisiana featuring over 37,000 vehicles per day, the Offering is within immediate proximity to a dominant cluster of national credit retailers. Unlike many Advance Auto Parts net lease properties on the market today, the Offering also benefits from being located near the urban core of a well-populated metropolitan statistical area featuring over 40,000 residents in a 3-mile radius. Most importantly, if Advance Auto Parts were to ever vacate in the future, the investor would be left with an ideal commercial development parcel that would be desirable to many national retailers looking to relocate or penetrate the Alexandria market.

Highlights

  • Investment Highlights: ‣ 5+ years of firm term remaining on passive NNN lease with two (2) remaining five (5) year extension options; Ideal 1031 exchange property under $2MM Located on signalized corner directly off US Hwy 71, boasting strong traffic counts in excess of 37,000 vehicles per day ‣ Investment-grade, national credit tenant (NYSE: AAP; S&P :BBB-; Moody’s: Baa2) considered “Essential” service provider by Federal Government ‣ Advance Auto recently waived their right to terminate lease, and will enter first extension option on August 1, 2020; sales have been increasing YOY 163 feet of frontage on dominant north/south retail corridor in Alexandria featuring bevy of national credit tenants ‣ High quality, steel-reinforced concrete block construction on an oversized lot; ideal for redevelopment in the event AAP ever vacates premises

Offering Memorandum

  • Download OM:

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