Investment Grade Credit -The lease is guaranteed by Advance Auto Parts which boasts an investment grade credit rating of BBB- and has a market capitalization of over $11 billion.
Rent Growth -The lease features 5% rent escalation every 5 years, including the option periods. This helps to maintain value in case market cap rates rise.
Growing Company– Last year Advance Auto Parts opened roughly 170 stores and acquired General Parts strengthening the commercial side of their business.
Rare NNN lease -The lease is an absolute triple-net (NNN), with no landlord responsibilities, making this property a true “coupon clipper” asset. Typical Advance Auto leases are double-net with the landlord responsible for roof and structure.
Retail Corridor – Along with Advance Auto there are several other major retailers in the area. These retailers include Kroger, Dollar General, Family Dollar, Marathon, Shell, Domino’s Pizza, BP, Pizza Hut, Subway, Cash Advance, Verizon, H & R Block, McDonald’s, Burger King, Sonic, Speedway, and Curves.
Excellent Visibility-Advance Auto benefits from having signage as well as frontage on East Canal Street which sees roughly 19,000 vehicles per day.