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™AutoZone1 7 2 0 S N A P PA N E E S T E L K H A R T, I N
O F F E R I N G M E M O R A N D U M
Representative Photo
2 | M a t t h e w s
™
E XC LU S I V E LY L I S T E D BY
Chad KurzSVP & National Director
[email protected] (214) 692-2927MOB (562) 480-2937LIC # 01911198 (CA)
Kyle MatthewsBroker of RecordLIC # RC51700140 ( IN)
Representative Photo
Calv in ShortFVP & Senior Director
[email protected] (949) 432-4506MOB (310) 567-3525LIC # 01927216 (CA)
4 Executive SummaryInvestment Highl ightsFinancia l Analys isAnnual ized Operat ing DataTenant Summary
1 0 Tenant OverviewAutoZone Overview
1 2 Area OverviewElkhart , IN Demographics
6 Property OverviewThe Offer ing Parcel MapSurrounding Tenants Regional Map
Contents
1 7 2 0 S N A P PA N E E S T E L K H A R T, I N
4 | M a t t h e w s
PROPERTY HIGHLIGHTS
• Absolute NNN lease, no management responsibilities
• ± 11 years remaining on the initial lease term – tenant exercised an early extension, showing commitment to the location
• Strong rental increases, 10% throughout option periods
• Replaceable rent, less than $13 PSF
• High-quality construction, steel framed with all block construction
• Recent lease extension shows long-term commitment to the site
LOCATION HIGHLIGHTS
• Infill location, ± 100,000 residents in 5-mile radius
• Consistent population growth: Area has seen an increase in population for the past several decades
• Demographics fit well for AutoZone “do-it-yourself” customers
• Located on major thoroughfare
• Elkhart, IN is next to South Bend, IN, which is home to Notre Dame University
TENANT HIGHLIGHTS
• AutoZone, Inc. (NYSE: AZO) has strong investment grade credit with an S&P rating of BBB
• AutoZone operates ±5,814 stores in the United States, ±450 in Mexico and ±10 stores in Brazil
• AutoZone, Inc. has a market CAP of $21.3 Billion
Investment Highl ights
Execut ive Summary
A u t o Z o n e | E l k h a r t , I N | 5
Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate
Current $7,782.00 $93,384.00 $12.69 5.25%
Option 1 $8,560.00 $102,720.00 $13.96 5.77%
Option 2 $9,416.00 $112,992.00 $15.35 6.35%
Option 3 $10,358.00 $124,296.00 $16.89 6.99%
Option 4 $11,394.00 $136,728.00 $18.58 7.69%
Tenant Summary
Tenant Trade Name AutoZone
Type of Ownership Fee Simple
Lease Guarantor Corporate
Lease Type NNN
Roof & Structure Tenant Responsible
Original Lease Term 15 Years
Lease Commencement Date 1/25/2008
Lease Expiration Date 10/31/2028
Term Remaining on Lease ±11 Years
Increases 10% Every Five (5) Years
Options Four, 5-Year Options
F inancial Analysis
Property Name
Location
List Price
Year Built
Address
Zip Code
AutoZone
Elkhart, IN
$1,778,742
2008
1720 S Nappanee St
46516
Cap Rate
5.25%
Square Footage
± 7,360
6 | M a t t h e w s
Col
lege
Blv
d ±
40,11
6
Property Name AutoZone
Property Address1720 S Nappanee St
Elkhart, IN 28451
APN 20-06-07-304-021.000-012
Site DescriptionNumber of Stories One
Year Built 2008
Gross Leasable Area (GLA) ±7,360 SF
Lot Size ±0.94 Acres (41,310 SF)
Type of Ownership Fee Simple
Parking ±46 Surface Spaces
Parking Ratio 6.25 : 1,000 SF
Landscaping Professional
Topography Generally Level
Property Overview
Representative Photo
Parcel Map
A u t o Z o n e | E l k h a r t , I N | 7
NA
PPA
NEE ST
8 | M a t t h e w s
Surrounding Tenants
A u t o Z o n e | E l k h a r t , I N | 9
Regional Map
1 0 | M a t t h e w s
Tenant Overview
Representative Photo
A u t o Z o n e | E l k h a r t , I N | 1 1
For more than 30 years, AutoZone has been committed to providing the best parts, prices and customer service in the automotive aftermarket industry. To stay out of the no-driving zone, DIY car repairers with auto problems often enter the AutoZone. With more than 5,190 stores in the US and Puerto Rico, AutoZone is the nation’s #1 auto parts chain. The company also operates 24 Interamerican Motor Corporation (parts distribution) branches in the US. AutoZone stores sell hard parts (alternators, engines, batteries), maintenance items (oil, antifreeze), accessories (car stereos, floor mats), and non-automotive merchandise under brand names, as well as under private labels. AutoZone’s commercial sales program distributes parts and other products to garages, dealerships and other businesses.
OPERATIONS
As part of its business, AutoZone operates through one reportable segment: Auto Parts Stores. Besides being a retailer and distributor of auto parts and accessories, AutoZone produces, sells, and maintains diagnostic and repair information software used in the auto repair industry through its ALLDATA business and sells directly to customers through its e-commerce site, autozone.com.
SALES AND MARKETING
AutoZone relies on targeted advertising and promotions to build its brand, offer advice about the overall importance of vehicle maintenance, and position its business as a great value. To drive traffic to its stores, the retailer advertises on broadcast and Internet media. It works to educate consumers about which products they need through the use of in-store signage and circulars, as well as creative product placement and promotions.
Tenant Overview
Parent Company Trade Name
AutoZone
Ownership
Publ ic
No. of Locat ions
±5,814
No. of Employees
± 84,000
Year Founded
1979
Area Overview
Elkhart , IN
Elkhart is a city in Elkhart County, Indiana, United States. Elkhart is a safe and family-friendly community affording a leisurely lifestyle within easy access of large metropolitan populations within a couple hours. Chicago, Indianapolis, and Lake Michigan are all just a short drive away for a range of activities from shopping and dining, to watching NASCAR racing or swimming at the Indiana Dunes. Many local colleges and universities add zest to the lifestyle and culture of the region. Elkhart is a great location for business and family.
The quality of life in Elkhart is one of its main attractions for businesses and their employees and managers. Located within 2 hours of Chicago, Elkhart County offers a vibrant live-work community without the hassle of big city living, and close proximity to the I-80/90 Interstate provides easy access toa range of nearby amenities. The city features magnificent homes, with large sites or river views, and the cost of living is much more affordable than in other parts of the country.
DemographicsPOPULATION 1-Mile 3-Mile 5-Mile
2022 Projection 4,875 53,579 103,288
2017 Estimate 4,787 52,561 100,705
2010 Census 4,696 51,548 97,682
Growth 2017-2022 1.84% 1.94% 2.56%
HOUSEHOLDS 1-Mile 3-Mile 5-Mile
2022 Projection 1,764 19,382 37,924
2017 Estimate 1,732 19,028 37,052
2010 Census 1,698 18,691 36,115
Growth 2017-2022 1.85% 1.86% 2.35%
INCOME 1-Mile 3-Mile 5-Mile
2017 Est. Average Household Income
$52,239 $51,386 $62,534
A u t o Z o n e | E l k h a r t , I N | 1 3
The city sits on the St. Joseph and Elkhart Rivers. TheElkhart River drains into the St. Joseph at Island Parkjust north of downtown. There are also numeroussmall lakes around the city.
Due to its proximity to the South Bend metropolitan area, the commercial sectors of the city are small. The city’s main shopping mall is the Concord Mall, located on the city’s south side. A second shopping mall, Pierre Moran Mall, was torn down in 2006 for a new development called Woodland Crossing. Many residents prefer to shop and dine in neighboring Mishawaka due to that city’s larger selection ofstores and restaurants.
Locat ion
Elkhart is best known for two industries: recreational vehicles and musical instruments. It has been referenced as the “RV Capital of the World” and the “Band Instrument Capital of the World” for decades. Other notable industries in Elkhart include; pharmaceuticals, electronic components, manufactured housing and mobile homes. Numerous manufacturers of musical instruments and accessories, of which most of the surviving companies have been absorbed into the Conn-Selmer conglomerate, have a long history in the city. Elkhart is also home to the Robert Young Rail Yards, which are the second-largest freight classification yards in the world.
Elkhart is home to many Recreational vehicle (RV) manufacturers, boat manufacturers, and van conversion companies, including Bennington Marine, Forest River Inc Hy-Line, Keystone, Skyline, Sun Valley, Travel Supreme, Thor Motor Coach, and many other manufacturers, including Gulf Stream, and Jayco can be found nearby in Goshen, Middlebury, Nappanee, and Wakarusa.
Locat ion
This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of AutoZone located at 1720 S Nappanee St, Elkhart, IN. I t has been prepared by Matthews Real Estate Investment Services. 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 Services. 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 Services 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 Services 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
T E N A N T C I T Y , S T A T E | 1 5
™
E XC LU S I V E LY L I S T E D BY
AutoZone1 7 2 0 S N A P PA N E E S T E L K H A R T, I N
Calvin ShortFVP & Senior Director
[email protected] (949) 432-4506MOB (310) 567-3525LIC # 01927216 (CA)
Chad KurzSVP & National Director
[email protected] (214) 692-2927MOB (562) 480-2937LIC # 01911198 (CA)
Kyle MatthewsBroker of RecordLIC # RC51700140 ( IN)
Representative Photo
