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O’REILLY AUTO PARTS 1010 MISSOURI BLVD | JEFFERSON CITY, MO OFFERING MEMORANDUM

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Page 1: O’REILLY AUTO PARTS - images1.loopnet.comimages1.loopnet.com/d2/aoxlZewAcgHW5u7oIcAgimUmbEeTRDnumUxIPn7BXXI/...• Larger Format – Subject property is larger than O ... and steel

O ’ R E I L L Y A U T O P A R T S1 0 1 0 M I S S O U R I B LV D | J E F F E R S O N C I T Y, M O

O F F E R I N G M E M O R A N D U M

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LISTED BY03 E X E C U T I V E S U M M A R Y

A R E A O V E R V I E W10

T E N A N T O V E R V I E W06

F I N A N C I A L O V E R V I E W04

P R O P E R T Y O V E R V I E W08

K YL E M AT T H E W SL I C # 2 0 1 7 0 1 0 1 6 4 (M O)

B R O K E R O F R E C O R D

M i c h a e l M o r e n oSenior Associate

m i c h a e l . m o r e n o @ m a t t h e w s . c o mD I R 9 4 9 . 4 3 2 . 4 5 1 1M O B 8 1 8 . 5 2 2 . 4 4 9 7

L I C # 0 1 9 8 2 9 4 3 ( C A )

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

c o n r a d . s a r r e a l @ m a t t h e w s . c o mD I R 3 1 0 . 9 1 9 . 5 7 6 0M O B 6 2 6 . 2 3 0 . 1 0 0 6

L I C # 0 1 9 8 2 8 7 5 ( C A )

R a h u l C h h a j e dSenior Associate

r a h u l . c h h a j e d @ m a t t h e w s . c o mD I R 9 4 9 . 4 3 2 . 4 5 1 3M O B 8 1 8 . 4 3 4 . 1 1 0 6

L I C # 0 1 9 8 6 2 9 9 ( C A )

TABLE OF CONTENTS

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E X E C U T I V E O V E R V I E WPROPERTY HIGHLIGHTS• Larger Format – Subject property is larger than O’Reilly’s typical “Hub store” that

typically carries double the amount of inventory as a normal store• Proven Commitment to Location – O’Reilly extended the lease by 10 years in 2010

and then extended it again this year for an additional 5 years and included 4 more options to extend

• Extremely Low Price/SF – $74 at list price• Irreplaceable Rent – O’Reilly is only paying $5.10/SF of base rent

LOCATION HIGHLIGHTS• State Capitol – Located in the Missouri State Capitol, the subject property is only ±1

mile from the capitol building• Freeway Exit – Subject property is located right off of Highway 54 that sees an • average of ±53,000 VPD• Busiest Street in Town – Missouri Blvd is the main thoroughfare in Jefferson City and

sees an average of ±24,000 VPD• Great Retail Synergy – Walmart Supercenter, Target, Menards, Aldi, and a recently

constructed Sam’s Club are located within 2 miles of the subject property

TENANT HIGHLIGHTS• Most Stable Outlook - O’Reilly Automotive Stores, Inc. (NYSE:ORLY) has the highest

investment credit rating of all auto parts retailers (S&P BBB+)• Expansion Mode - ±200 net, new stores are planned for 2018 in addition to current

±4,984 stores in 47 states• Billion Dollar Revenue - Reported Revenue for 2016 was ±$8.6 Billion

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F I N A N C I A L O V E R V I E W

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T E N A N T S U M M A R YTenant Trade Name O’Reilly Auto Parts Type of Ownership Fee SimpleLease Guarantor CorporateLease Type NNStructure *Landlord ResponsibleOriginal Lease Term 10 YearsRent Commencement Date 1/1/2002Lease Commencement Date 1/1/2002Lease Expiration Date 2/28/2027Increases 5% in each OptionOptions Five, 5-Year Options

LIST PRICE$836,100

CAP R ATE5.75%

TERM REMAINING

± 9 YEARS

*Landlord responsible for partial taxes (fixed amount), property insurance (not liability), and structure (including roof but not roof membrane)

A N N U A L I Z E D O P E R AT I N G D ATAMonthly NOI Annual NOI Gross Rent/SF

Current *$4,006.37 *$48,076.41 $5.10Option 1 $4,246.37 $50,956.41 $5.36Option 2 $4,498.37 $53,980.41 $5.63Option 3 $4,762.97 $57,155.61 $5.91Option 4 $5,040.80 $60,489.57 $6.21Option 5 $5,332.52 $63,990.21 $6.52

*($57,600 base rent - $5,823.59 (taxes) - $3,700 (insurance)

**Assumes that the tax and insurance expenses remain constant to current amounts

GL A± 11 ,283 SF

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T E N A N T O V E R V I E W

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O’REILLY AUTO PARTSThe 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.

STRATEGYO’Reilly is a company dedicated to providing 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 cultural values of hard work, enthusiasm, professionalism, teamwork, respect, and honesty.

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CR E D I T R AT I N G : BBB + (S & P)P U BL I C (N Y S E : O R LY )

R E V E N U E$ 8 .6 B

H E A D Q UA R T E R E DS P R I N G F I E L D, M O

N O. O F E M P LOYE E S$ 7. 9 7 B

N O. O F LO C AT I O N S± 4 , 9 8 4

N E T I N C O M E$ 9 3 1 . 2 2 M

W E B S I T EWWW.O R E I L LYA U TO.C O M

YE A R F O U N D E D1 9 5 7

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S I T E D E S C R I P T I O NNumber of Stories OneGLA ± 11,283 SFLot Size ± 0.37 Acres (16,117 SF)Parking Spaces 25 Surface SpacesParking Ratio 2.22 : 1,000 SFLandscaping ProfessionalTopography Generally LevelExterior MetalRoof Flat

T H E O F F E R I N G T H E PA R C E L

O ’REILLY AUTO PARTS

1010 MISSOURI BLVDJEFFERSON CITY, MO 65109

P R O P E R T Y O V E R V I E W

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S U R R O U N D I N G T E N A N T S

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A R E A O V E R V I E W

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J E F F E R S O N C I T Y, M O

Jefferson City is the capital of the U.S. state of Missouri and the fifteenth most populous city in the state. It is also the county seat of Cole County and the principal city of the Jefferson City Metropolitan Statistical Area and currently holds, per Rand McNally, the title of America’s “Most Beautiful Small Town.” Often referred to as “Jeff”, many of Jefferson City’s primary employers fall within the service and manufacturing industries, similar to other Midwestern capital cities. Jefferson City is also home to Lincoln University, a public historically black land-grant university founded in 1866 by the 62nd Regiment of U.S. Colored Troops with additional support from the 65th Regiment of U.S. Colored Troops.

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P O P U L AT I O N

3-Mile 5-Mile 7-Mile2023 Projection 30,301 47,762 64,7652018 Estimate 30,243 47,882 64,9742010 Census 29,973 47,496 64,599

H O U S E H O L D S

3-Mile 5-Mile 7-Mile2023 Projection 14,740 22,471 29,3692018 Estimate 14,052 21,579 28,3152010 Census 13,142 20,357 26,881

I N C O M E

3-Mile 5-Mile 7-MileAverage Household Income $63,554 $69,406 $73,654

D E M O G R A P H I C S

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M A J O R I N D U S T R I E S A N D C O M M E R I C A L A C T I V I T YThe major business in Jefferson City is government, which provides more than 28,000 local jobs; nearly 17,000 of these jobs are for the Missouri state government. Much of the state government business is carried on in the city, home of the Missouri Legislature, Missouri Supreme Court, and many offices that house the different state departments.

Jefferson City also serves as a trading center for the agricultural produce grown in the area. The main cash crops raised are corn, wheat, and soybeans. Between 1997 and 2002, the number of farms in the county decreased by 6 percent, from 1,162 farms to 1,098; however, the size of farms increased by 4 percent, from 162 acres to 169 acres.

More than 20 different industries make up the economic base of Jefferson City, including the manufacture of electric appliances, bookbinding, shoemaking, and steel fabrication. Per capita, personal income in the county increased by 51.7 percent from 1991 to 2001, and the city has one of the lowest costs of living in the state; these factors, plus an increase in visitors to Jefferson City, have boosted local retail in recent years.

T O P E M P LOY E R S

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of O’Reilly Auto Parts located at 1010 Missouri Blvd, Jefferson City, MO 65109 ( “Property” ) . 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

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LISTED BY

1 0 1 0 M I S S O U R I B LV D | J E F F E R S O N C I T Y, M O

O F F E R I N G M E M O R A N D U M

O ’ R E I L L Y A U T O P A R T S

K YL E M AT T H E W SL I C # 2 0 1 7 0 1 0 1 6 4 (M O)

B R O K E R O F R E C O R D

M i c h a e l M o r e n oSenior Associate

m i c h a e l . m o r e n o @ m a t t h e w s . c o mD I R 9 4 9 . 4 3 2 . 4 5 1 1M O B 8 1 8 . 5 2 2 . 4 4 9 7

L I C # 0 1 9 8 2 9 4 3 ( C A )

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

c o n r a d . s a r r e a l @ m a t t h e w s . c o mD I R 3 1 0 . 9 1 9 . 5 7 6 0M O B 6 2 6 . 2 3 0 . 1 0 0 6

L I C # 0 1 9 8 2 8 7 5 ( C A )

R a h u l C h h a j e dSenior Associate

r a h u l . c h h a j e d @ m a t t h e w s . c o mD I R 9 4 9 . 4 3 2 . 4 5 1 3M O B 8 1 8 . 4 3 4 . 1 1 0 6

L I C # 0 1 9 8 6 2 9 9 ( C A )