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The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
NNN AutoZone, Inc. ORLANDO SUBURB
Price: $2,440,000 — 6.15% Cap Rate
Fortune 500 Investment-Grade Tenant
17-Year NNN Lease Fee Simple Lease (Not a Ground Lease)
Recession-Proof Tenant
High-Growth Bithlo, Florida
Actual Property
In Association with: For more information, please contact:
Robert C. Sanner
Partner/Broker
415-677-0439
[email protected] LIC #00869657
Rick Sanner
Vice President
415-677-0429
[email protected] LIC #01792433
Matt Ebert
Associate
415-677-0469
[email protected] LIC #01890572
Ron Ruffner
Cassidy Turley
A Florida Licensed Broker LIC #BK313649
Cassidy Turley Northern California www.ctbtnnn.com
EXCLUSIVE LISTING
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
LOCATION 17026 Old Cheney Highway, Bithlo, Florida. About 15 miles east of downtown
Orlando.
LOT SIZE 0.86± acres — 37,435± square feet.
IMPROVEMENTS Completed August 2009, a 6,840 square foot freestanding AUTOZONE retail store.
The building is not the standard AutoZone prototype and has pigmented split face
blocks, metal awnings, and faux windows.
This is NOT a ground lease. The property for sale includes land and building.
LEASE Leased to AUTOZONE, INC., for 20 years from September 1, 2009, until September
2029 at the annual net rent of $150,000 (17 years remaining). The lease is net with
tenant responsible for all taxes, maintenance and insurance including roof and
structure. There are four five-year renewal options at 10% increases each option
period.
NET ANNUAL INCOME
PRICE $2,440,000 — 6.15% Cap Rate
RENT PER SQUARE FOOT $21.93 net per year — $1.83 net per month
YEARS NET ANNUAL RENT
1-20 $150,000
21-25 Option 1 $165,000
26-30 Option 2 $181,500
31-35 Option 3 $199,650
36-40 Option 4 $219,612
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
ABOUT THE TENANT
AUTOZONE, INC. (NYSE: “AZO”) is the leading retailer and a leading distributor of
automotive replacement parts and accessories in the U.S. with 4,613 retail stores in
the U.S. and 297 in Mexico as of May 5, 2012. Each store carries an extensive line
of maintenance items and accessories for cars, sport utility vehicles, vans and light
trucks. Headquartered in Memphis, the company has been in business since 1979
and has 55,000 employees.
AutoZone serves two markets:
DIY — Do It Yourself: Individual consumers who come to the store to
purchase the merchandise and who, typically, work on their own vehicles.
DIFM — Do It For Me: Auto repair professionals and service shops working
on an individual’s vehicle, who usually order by phone, fax, or e-mail. Many
service shops order daily from the store for same- or next-day delivery.
Strong DIFM sales depend upon a good distribution/inventory system. If the
ordered item is in stock, there is next-day availability to the ultimate
consumer; if not; the objective is to ship from an AutoZone warehouse
overnight, providing second-day delivery. To that end, AutoZone has
developed a system of warehouses, such that any parts order placed by a
given store will be delivered the next morning. To achieve these efficiencies,
there are different sizes of highly computerized warehouses, all within an
overnight drive of every store.
AutoZone, Inc. reported net sales of $2.1 billion for its third quarter (12 weeks) ended
May 5, 2012, an increase of 6.7% from the third quarter of fiscal 2011 (12 weeks).
Domestic same store sales increased 3.9% for the quarter.
Net income for the quarter increased $21.2 million, or 9.3%, over the same period
last year to $248.6 million, while earnings increased 18.6% to $6.28 per share from
$5.29 per share in the year-ago quarter.
AutoZone reported net sales of $5.84 billion for the nine months ended May 5, 2012,
and net income was $607 million.
For the fiscal year ended August 27, 2011, AutoZone reported sales of $8.07 billion
(a 9.6% increase over the prior year) and net income of $849 million (a 15% increase
over the prior year).
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
ABOUT THE TENANT
(CONTINUED)
Since the low point in 2009, the AZO stock price has more than tripled.
The company is ranked #322 in the 2011 Fortune 500. Standard & Poor’s rates the
company as “BBB”, investment grade.
More information is available at www.autozone.com
AUTO PARTS RETAIL
INDUSTRY PROGNOSIS
The following is taken from a stock-market-oriented internet article on
www.thestreet.com, May 17, 2010. The article is entitled “Auto Parts Retail is
Stepping on the Gas.”
“[The auto parts retail] segment looks poised to prosper in any sort of macroeconom-
ic environment...
During periods of prosperity when folks may be inclined to buy new cars..., a new car
replaces the old car, which is often sold and put back on the road.
[During periods] of economic contraction, [there is] deferment of new car purchases,
which increases the wear and tear on used vehicles.
[When] an individual with a mortgage and a car payment suddenly falls on tough
times... [this individual is] often likely to abandon the home before giving up the
automobile (A)*.
A car has a hundred parts under the hood. As cars have evolved, they’ve included
more components. More components create greater sales opportunity for a parts
store.
[There is] great long-term potential in the auto parts business. The climate for growth
looks assured over the future.”
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
AUTO PARTS RETAIL
INDUSTRY PROGNOSIS
(CONTINUED)
*(A) Broker Note: The comment about giving up the home before the car is self-
evident from foreclosure activity of the last several years. People can move out of
the home into a different residence. But they really need their cars!
According to industry data, the median age of the average vehicle on the road went
from 6.58 years in the year 1990 to 9.2 years in the year 2007. A January, 2012
article stated the average age is now 10.8 years. Vehicles are staying on the road
longer, and, of course, need parts. The number of vehicles produced annually,
domestically and internationally, has dropped dramatically. Much of the actual
worldwide manufacturing capability has been permanently retired or dismantled.
American consumers have discovered that:
They DON’T NEED new cars so often, and/or
They CAN’T AFFORD to buy new cars so often, and/or
They CAN’T GET LOANS to buy new cars so often.
Thus, the need for parts seems to be ever-growing
SITE INFORMATION The subject site is located along Highway 50 (East Colonial Drive), which goes 40 to
50 miles east-west from the eastern suburbs through the heart of downtown Orlando
to the western suburbs. Highway 50 continues east almost to the Atlantic Ocean —
the “Space Coast” (Cape Canaveral) area.
The subject address is on Old Cheney Road, which is the frontage road for East
Colonial Drive. It is about 15 miles west on Colonial to the heart of downtown
Orlando.
At the subject store East Colonial drive is a four-lane commercial road divided by a
grassy median. From either direction on East Colonial, a motorist could turn onto
Story Partin road and proceed directly into the property (see “Site Plan”). Visibility
from East Colonial is excellent in both directions.
This property is centered around a developed area with numerous retailers and
single-family residential developments
Retailers in the area include: Wal-Mart, Walgreens, Publix, Advance Auto Parts,
Circle K, Fifth Third Bank, McDonald’s, Taco Bell, Whataburger, Burger King and
other local, national and regional retailers.
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
BITHLO, FLORIDA Bithlo is part of the Orlando metropolitan area, 15 miles east of downtown Orlando.
As of 2012, Bithlo's population is 8,268 people. Since 2000, it has had a population
growth of 103.29 percent.
ORLANDO, FLORIDA Orlando is located in the central region of Florida. According to the 2010 US Census,
the city had a population of 238,300, making Orlando the 79th largest city in the
United States. The Greater Orlando metropolitan area has a population of 2,134,411,
making it the 26th largest metro area in the United States, the sixth largest metro
area in the Southeastern United States, and the third largest metro area in Florida.
Orlando is the fifth largest city in Florida, and the state's largest inland city.
The area is best known for the Walt Disney World Resort (located approximately 21
miles southwest of Downtown Orlando), and for the Universal Orlando Resort (which
consists of two parks, Universal Studios Florida and Islands of Adventure, as well as
other attractions, including City Walk). Orlando is also home to the SeaWorld theme
park, Gatorland, and Wet 'n Wild Water Park. The city is one of the busiest American
cities for conferences and conventions.
Orlando attracts over 51 million tourists a year (3.6 million of them are international
tourists). Its airport, the Orlando International Airport (MCO), is the thirteenth busiest
airport in the United States, and the 29th busiest in the world.
Economy
Orlando is a major industrial and hi-tech center. The metro area has a $13.4 billion
technology industry employing 53,000 people; and is a nationally recognized cluster
of innovation in digital media, agricultural technology, aviation, aerospace, and
software design. More than 150 international companies, representing approximately
20 countries, have facilities in Metro Orlando.
Orlando has the 7th largest research park in the country, Central Florida Research
Park, with over 1,025 acres. It is home to over 120 companies, employs more than
8,500 people, and is the hub of the nation’s military simulation and training programs.
Metro Orlando is home to the simulation procurement commands for the U.S. Army,
Navy, Air Force, Marines and Coast Guard.
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
ORLANDO, FLORIDA
(CONTINUED)
Lockheed-Martin has a large manufacturing facility for missile systems, aeronautical
craft and related high tech research. Other notable engineering firms have offices or
labs in Metro Orlando: KDF, General Dynamics, Harris, Mitsubishi Power Systems,
Siemens, Veritas/Symantec, multiple USAF facilities, Naval Air Warfare Center
Training Systems Division (NAWCTSD), Delta Connection Academy, Embry-Riddle
Aeronautical University, GE, Air Force Agency for Modeling and Simulation
(AFAMS), U.S. Army Program Executive Office for Simulation, Training, and
Instrumentation (PEO STRI), United States Army Research, Development and
Engineering Command United States Army Simulation and Training Technology
Center (STTC), AT&T, Boeing, CAE Systems Flight & Simulation Training, Hewlett-
Packard, Institute for Simulation and Training, National Center for Simulation,
Northrop Grumman, and Raytheon Systems.
Orlando is close to Patrick Air Force Base, Cape Canaveral Air Force Station, and
Kennedy Space Center. It is also near Port Canaveral, a cruise ship terminal.
Orlando is the home base of Darden Restaurants, the parent company of Red
Lobster and Olive Garden and the largest operator of restaurants in the world by
revenue. In September 2009 it moved to a new headquarters and central distribution
facility.
A vital part of the Orlando area economy is tourism. The Orlando area is home to
Walt Disney World Resort, Universal Orlando Resort, and SeaWorld Orlando. Over
48 million visitors came to the Orlando region in 2004. The convention industry is
also critical to the region's economy. The Orange County Convention Center,
expanded in 2004 to over two million square feet of exhibition space, is the second-
largest convention complex in terms of space in the United States.
The Walt Disney World resort is the area's largest attraction with its many facets such
as the Magic Kingdom, Epcot, Disney's Hollywood Studios, Disney's Animal
Kingdom, Typhoon Lagoon, Blizzard Beach, and Downtown Disney. SeaWorld
Orlando is a large park that features numerous zoological displays and marine
animals alongside an amusement park with roller coasters and water park. Universal
Orlando, like Walt Disney World, is a multi-faceted resort comprising Universal
Studios Florida, CityWalk, and Islands of Adventure. The Wet 'n Wild water park is
another famous attraction. SeaWorld Orlando also comprises more than one park,
including Aquatica and Discovery Cove.
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
ORLANDO, FLORIDA
(CONTINUED)
University of Central Florida (UCF)
Orlando is home to the University of Central Florida, the second largest university
campus in the United States with 58,698 students (as of 2011).
Airports
The Orlando International Airport (MCO) is Orlando's primary airport and is currently
the second busiest airport in the state of Florida closely behind Miami International
Airport. The airport serves as a secondary hub and corporate headquarters for
AirTran Airways and focus city for Southwest Airlines and JetBlue Airways. The
airport serves as a major international gateway for the mid-Florida region with major
foreign carriers including Lufthansa, British Airways, Air France, Virgin Atlantic, Aer
Lingus, TAM, and Aeromexico.
DEMOGRAPHICS
NOTE The information set forth herein has been received by us from sources we believe to
be reliable, but we have made no independent investigation of the accuracy or
completeness of the information and make no representations with respect thereto.
The above is submitted subject to errors, prior sale or lease, change in status, or
withdrawal without notice.
FLORIDA
3-MILE 5-MILE 7-MILE
Population (2011) 38,662 97,248 179,191
Avg. Household Income $68,490 $71,356 $71,590
% Growth (2000-2011) 116.80% 101.73% 74.10%
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
GROUND PHOTOS
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
SITE PLAN
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
AERIAL
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
MAP
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
MAP
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.
MAP
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
Updated Summary Report (%)
August 23, 2012
Longitude: -81.12809150
Latitude: 28.56017320
3 mi
Ring
5 mi
Ring
7 mi
Ring
POPULATION
1990 Total Population 9,074 20,789 41,958
2000 Total Population 17,833 48,207 102,927
2011 Total Population 38,662 97,248 179,191
2016 Total Population 42,301 106,728 196,745
% Population Change 1990-2000 96.53% 131.89% 145.31%
% Population Change 2000-2011 116.80% 101.73% 74.10%
% Population Change 2011-2016 9.41% 9.75% 9.80%
HOUSEHOLDS
1990 Total Households 3,465 7,159 14,811
2000 Total Households 6,875 16,557 35,329
2011 Total Households 14,201 31,583 58,133
2016 Total Households 15,975 35,824 65,880
% Households Change 1990-2000 98.41% 131.28% 138.53%
% Households Change 2000-2011 106.56% 90.75% 64.55%
% Households Change 2011-2016 12.49% 13.43% 13.33%
2011 RACE
% 2011 White Population 75.36% 75.44% 75.16%
% 2011 Black Population 9.02% 9.28% 9.85%
% 2011 American Indian/Alaska Native .42% .37% .34%
% 2011 Asian/Hawaiian/Pacific Islander 5.62% 5.56% 5.66%
% 2011 Other Population (Incl 2+ Races) 9.58% 9.35% 8.99%
% 2011 Hispanic Population 27.59% 27.07% 26.52%
% 2011 Non-Hispanic Population 72.41% 72.93% 73.48%
AutoZone, Inc. Bithlo, Florida
The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27
Updated Summary Report (%)
August 23, 2012
Longitude: -81.12809150
Latitude: 28.56017320
3 mi
Ring
5 mi
Ring
7 mi
Ring
INCOME
2011 Per Capita Income $25,158 $23,174 $23,225
2011 Median Household Income $52,911 $57,436 $63,328
2011 Average Household Income $68,490 $71,356 $71,590
% 2011 Household Income < $10,000 5.49% 5.11% 5.95%
% 2011 Household Income $10,000-$14,999 3.75% 3.01% 2.87%
% 2011 Household Income $15,000-$19,999 6.86% 5.50% 4.13%
% 2011 Household Income $20,000-$24,999 5.13% 4.59% 3.67%
% 2011 Household Income $25,000-$29,999 4.77% 4.51% 3.88%
% 2011 Household Income $30,000-$34,999 3.92% 3.53% 3.18%
% 2011 Household Income $35,000-$39,999 6.27% 5.56% 4.38%
% 2011 Household Income $40,000-$44,999 5.25% 4.97% 4.06%
% 2011 Household Income $45,000-$49,999 5.46% 5.24% 4.46%
% 2011 Household Income $50,000-$59,999 10.68% 10.72% 10.36%
% 2011 Household Income $60,000-$74,999 11.17% 13.18% 13.80%
% 2011 Household Income $75,000-$99,999 15.89% 18.80% 19.24%
% 2011 Household Income $100,000-$124,999 6.06% 6.88% 8.07%
% 2011 Household Income $125,000-$149,999 4.46% 4.50% 5.36%
% 2011 Household Income $150,000-$199,999 3.97% 3.08% 4.96%
% 2011 Household Income $200,000-$249,999 .43% .30% .87%
% 2011 Household Income $250,000-$499,999 .35% .42% .67%
% 2011 Household Income $500,000+ .11% .09% .09%
2011 Average Household Size 2.8 2.9 2.9
% 2011 Total Owner Occupied Housing Units 69.07% 69.32% 70.19%
% 2011 Total Renter Occupied Housing Units 30.93% 30.68% 29.81%
2011 Total Daytime Population 26,780 72,208 139,052
2011 Total Daytime Work Population 6,439 26,583 50,416
2011 Total Establishments 677 1,564 2,899