Single-Tenant NNN | Corporate Guarantee · 2016-04-26 · Business Disclosure & Confidentiality Agreement This executive summary is not intended to constitute an offer, but is merely

EXCLUSIVELY PRESENTED BY

S/SWC Chandler Heights & Power RoadQueen Creek, AZ 85142

O’Reilly Auto Parts Single-Tenant NNN | Corporate Guarantee

CAP RATE: 6.25%PRICE: $2,305,600

Business Disclosure & Confidentiality Agreement

This executive summary is not intended to constitute an offer, but is merely a solicitation of interest with respect to a possible single tenant offering of the O’Reilly Auto Parts at 23980 S Power Road and 3 additional pads sites located south of the southwest corner of Chandler Heights Road and Power Road, Queen Creek, AZ 85142, (must be sold together).

This executive summary has been prepared by SRS and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser.

Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require.

All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this executive summary. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

Environmental matters can and do have dramatic impact not only on the physical conditions of a property but also on its economic performance and underlying value. If such substances exist, special governmental approvals and permits may be required. Purchasers are encouraged to engage qualified professionals to determine whether hazardous or toxic substances or wastes, including asbestos, PCB’s, petrochemicals or other contaminants or conditions are present at the property. Neither SRS nor the owner performs or conducts investigations or analyses of environmental matters. It is the sole responsibility of qualified purchasers to review all applicable laws and regulations applying to either the existence, transportation or removal of hazardous materials and to prudently have an on site investigation and inspection of the property conducted. The cost and removal of hazardous materials may be substantial; therefore, SRS strongly encourages qualified purchasers to engage legal counsel and appropriate technical professionals if any of these conditions are discovered during the inspection. No person, firm or entity is authorized to make or submit offers on behalf of anyone or divulge or reproduce the contents of this executive summary or discuss the availability or the purchase of the property without first having registered in writing the name of the party receiving the material and received written authorization to proceed from SRS. The owner and SRS reserve the right, at their discretion, to reject any or all expressions of interest with any party at any time with or without notice. The terms and conditions stated herein apply to all sections of the executive summary.

SRS is acting as exclusive disposition agent, and the owner reserves the right to withdraw the property from the market, to change the price and terms or sell the property at any time without notice being given.

This information has been secured from sources believed to be reliable, but SRS makes no representations or war-ranties, expressed or implied as to the accuracy of the in-formation. References to square footage or age are ap-proximate. Buyer must verify the information and shall

Alfred HackbathSenior Vice President - Investment [email protected]

Ed BeehExecutive Vice President [email protected]

OFFERING SUMMARY

• Offering Summary

• Lease Summary

• Investment Highlights

• Location Highlights

• Surrounding Retail

MARKET OVERVIEW

• Market Profile

• Retail Trade Area Aerial

• Tenant Profile

• Location Map

• Demographic Summary

Table of Contents

OFF

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This information has been secured from sources believed to be reliable, but SRS makes no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and shall bear all risk and responsibility for any inaccuracies. SRS

Exclusively Presented By

Offering Summary

INVESTMENT HIGHLIGHTS

• Corporate guarantee from CSK Auto, Inc (now O’Reilly Automotive)

• 10% Rental Increase every 5-years including option periods

• Located in vibrant retail and residential market

• High traffic location with more than 29,000 cars per day

• Located with strong grocery anchored neighborhood center

Offering Price................$2,305,600.00

O’REILLY AUTO PARTS HIGHLIGHTSPrice...............................................................$2,305,600

Annual Rent.....................................................$144,100

CAP Rate...............................................................6.25%

Price/SF...............................................................$327.31

Parcel Size.......................................................32,806 SF

Net Rentable SF................................................7,040 SF



O’Reilly Lease Summary

LEASE SUMMARY

O’REILLY AUTO PARTSGuaranty: CorporateLease Guarantor: CSK Auto, Inc. (O’Reilly)S&P Rating: BBBPublic NASDAQ: ORLYLease Type: Absolute NNN Lease Commencement: March 18, 2008Lease Expiration: March 31, 2023Lease Term: 15 yearRental Increase: 10% every 5-yearsOptions to Renew: Two 5-yearOption 1: $14,530.08/moOption 2: $15,983.33/mo

PROPERTY SUMMARY

CURRENTPrice: $2,305,600Annual Rent: $144,100CAP Rate: 6.25%Net Rentable Area: 7,040 SFLot Size: 32,806 SFYear Built/Renovated: 2007Parking: 204 SpacesParking Ratio: 4.02 spaces per 1,000 SFZoning: C-2, City of Queen CreekParcel Number: 304-79-940



Development Pad Highlights

O’ReillyLand Area................32,806 SFBuilding Size..............7,040 SFParcel....................304-79-940

FUTURE RETAIL DEVELOPMENT PADS*

PAD 1 Land Area..............39,700 SFBuildable SF............3,100 SFParcel..................304-79-944



PADS TOTALLand Area............126,184 SFBuildable SF......... 18,700 SF

*Pads Available for sale at $450,000in separate transaction



Location Highlights

• Dense Infill Trade Area: Over 102,626 people located within 5-mile radius with average household income greater than $93,824

• Strategic Market Location: Limited retail options in immediate surrounding vicinity allow for maxim demand for new retail pad development

• Strong High Traffic Location: Property located just south of SWC Power Road and E. Chandler Heights Road with more than 10,700 cars per day

• Exceptional Neighboring Retail: Site directly adjacent to strong neighborhood retail center anchored by Bashas Grocery and including such notable

tenants as Pet Club, Native New Yorker, Burger King, Subway and Edward Jones

• Close Proximity to Residential: Property is surround on sides by dense established residential neighborhoods with more than 31,415 homes and

10,626 estimated residents within 5 miles



Available Property



Site Plan

POW

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Retail Trade Area Aerial



Surrounding Retail

MA

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ET O

VER

VIEW



Queen Creek Community

Queen Creek Market Profile

OVERVIEW• Queen Creek is a town in Maricopa and Pinal counties in the suburbs of

Phoenix• Total Population: 31,187• Between 2000 - 2013 Queen Creeks’ population grew 814.7%, the second

fastest growth in Arizona when combining the statistics of Queen Creek and San Tan Valley

• Total Households: 8,247• Median Household Income: $80,932• Median Age: 30.3Average • Household size: 3.42

QUEEN CREEK TOP EMPLOYERS

• Queen Creek Unified School District• Town of Queen Creek• Target• Walmart• Canyon State Academy

Sources: Town of Quuen Creek, 7/2013

TOWN OF QUEEN CREEKThe Town of Queen Creek is primarily located in the southeast corner of Maricopa County with some overlap into Pinal County. The Town is within 10 minutes of Phoenix-Mesa Gateway Airport and 45 minutes of Sky Harbor International Airport. This small town is an oasis in the East Valley of the Phoenix metropolitan area and is a world apart from city life. Queen Creek offers residents and businesses a unique experience that offers a small town rural atmosphere within a short distance from one of the largest metropolitan areas in the United States.

Queen Creek Library

Queen Creek Town Hall



Phoenix Market Profile

OVERVIEW• PHOENIX CBSA is located in central Arizona and is home to the following key

counties: Maricopa and Pinal.• Phoenix major thoroughfares: I-17, I-10 Loop 101,

Loop 202, SR 51 & US 60• Phoenix has 2 commercial airports: Sky Harbor International Airport and Phoenix-

Mesa Gateway Airport• Total Population: 4,380,905• 12th Largest CBSA in the U.S.• 12,884 single-family home permits in 2013

(5th in the U.S.)• 5 Fortune 500 companies are headquartered in Phoenix including: Avnet,

Freeport-McMoRan, Republic Services, Petsmart and Insight.• The June 2014 Year-over-Year Job Growth Rate for Phoenix was 2.12% - above

the national average. Projected annual population growth for 2013-2014 is 2.0%.

ECONOMIC SUMMARY• Median Household Income: $56,239• College Graduates: 28.3%• Work Force: 2,080,100• U.S. Unemployment Rate: 6.2%• Arizona Unemployment Rate: 6.9%• Phoenix Unemployment Rate: 6.5%• Phoenix Cost of Living: 94 (U.S.: 100)• Attractions: Heard Museum, Chase Field, Desert Botanical Garden, Phoenix

Zoo, US Airways Center, Camelback Mountain, Piestewa Peak, Arizona Science Center, Frank Lloyd Wright/Taliesin West, Arizona Museum of National History and many more

• Major Universities: Arizona State University including several campuses making it the largest public university in the US by enrollment and a large community college system.

Arizona Sunset

Downtown Phoenix

AREA’S LARGEST EMPLOYERS

• State of Arizona• Walmart• Banner Health• City of Phoenix• Wells Fargo• Bank of America• Maricopa County• Arizona State University• Apollo Group• JP Morgan Chase

Sources: Greater Phoenix Economic Council



Phoenix Market Profile

Phoenix Premium Outlets

University of Phoenix Stadium

RETAIL MARKET• Phoenix Vacancy Rate: 10.3%• Major Regional Malls: Desert Sky, Chandler Fashion Center, Arrowhead Towne Center,

Superstition Springs Center, Biltmore Fashion Park, Keirland Commons, Fiesta Mall, San Tan Village, Outlets at Anthem, Paradise Valley Mall, Scottsdale Fashion Square, Tempe Marketplace, The Pavilions at Talking Stick, Arizona Mills, Metrocenter Mall, Phoenix Premium Outlets, Desert Ridge Marketplace, Westgate Mall

• Under Construction/Planned: Estrella Falls• Total Market GLA: 216,033,155 SF (existing inventory)• Total Retail Sales: $49,798,553,133

Scottsdale Fashion Square

TRANSPORTATION• Phoenix is bisected by two major freeway, I-17 (north/south) and I-10 (east/west) which

meet in the heart of Phoenix. Additional state routes Loop 101, Loop 202 and Loop 303, SR-51, & US-60 give commuters alternate routes to destinations throughout the metro Phoenix area.

• Phoenix’s Sky Harbor International Airport ranks 9th in the world for takeoffs and landings. On a typical day more than 1,200 aircraft arrive & depart with more than 100,000 passengers, and more than 600 tons of air cargo is handled.

• The Metro Light Rail system provides direct access from Downtown Phoenix to Mesa with the capacity to carry up to 15,000 people per hour.

• Modern infrastructure makes Greater Phoenix an excellent location for business growth. Greater Phoenix has made strategic transportation investments, making easy commutes possible for the region’s abundant labor force.

• Greater Phoenix is also well-positioned for distribution to Southwestern markets including California and Mexico through our interstate highways.



O’Reilly Auto Parts is the dominant auto parts retailer in all of their market areas. From their roots as a single store in 1957 to our current size of 4,257 locations in 42 states, they have come a long way. O’Reilly Automotive, Inc. opened for business on December 2, 1957 with one store and 13 employees at 403 Sherman in Springfield. Their sales totaled $700,000 in 1958, their first full year of business. Due to the hard work and ability of the original employees, several of whom were stockholders in the com-pany, the business grew and prospered from its very first year. By 1961, the company’s volume had reached $1.3 million – the combined volume of O’Reilly Automo-

tive Distributors, a division formed to serve independent automotive jobbers in the area. In March of 1975, annual sales volume rose to $7 million, and a 52,000-square-foot facility at 233 S. Patterson was built for the O’Reilly/Ozark warehouse operation. By that time, the company had nine stores, all located in southwest Missouri.

The long range plans and stability of the company were solidified by a public offering of company stock in April 1993. Since that time, the Company has grown through the opening of new stores, as well as through numerous mergers and acquisitions, and currently operates stores in 42 states, including Alaska and Hawaii.

The company continues to plan for growth and expansion, projecting the addition of 200 new locations in 2014.

Executive officers of the company include David O’Reilly, Chairman of the Board; Greg Henslee, President and Chief Executive Officer; Tom McFall, Executive Vice President/Chief Financial Officer; Ted Wise, Executive Vice President of Expansion; and Jeff Shaw, Executive Vice President of Store Operations and Sales.

Throughout this time the underlying spirit and philosophy of O’Reilly Automotive, Inc., has been one of growth and progress, both for the company and its team members.

O’Reilly Auto Parts intends to be the automotive aftermarket industry leader by focusing on “The O’Reilly Culture”, which is… The O’Reilly Culture...Our COMMITMENT To Our Customers and Our Team Members.

Tenant Profile



Property Location Map



Demographics

1 Mile 3 Mile 5 Mile POPULATION: 2015 Total Population 1,776 35,885 124,010 Male Population 49.7% 49.4% 48.1% Female Population 50.3% 50.6% 51.9% Median Age 36.7 35.6 43.3 Employees 552 9,845 19,548 Establishments 87 899 1,893

INCOME: 2015 Median HH Income $113,050 $87,088 $75,446 Per Capita Income $44,099 $36,350 $36,780 Average HH Income $141,724 $112,154 $108,889

HOUSEHOLDS: 2015 Total Households 553 11,518 47,666 Average Household Size 3.21 3.10 2.59

HOUSING: 2015 Owner Occupied Housing Units 71.1% 75.6% 70.9% Renter Occupied Housing Units 17.6% 16.1% 21.6% Vacant Housing Units 11.3% 8.2% 7.5%

RACE: 2015 White 88.5% 85.7% 87.1% Black 2.0% 2.3% 2.3% Asian & Pacific Islander 3.2% 4.8% 4.5% Other 7.9% 9.1% 9.8%

ETHNICITY: 2015 Hispanic 10.8% 11.5% 9.7% Non-Hispanic 89.2% 88.5% 91.3%

www.srsre.com

3131 E. Camelback Rd., Suite 110Phoenix, AZ 85016

602-682-6000

Documents

Single-Tenant NNN | Corporate Guarantee · 2016-04-26 · Business Disclosure & Confidentiality Agreement This executive summary is not intended to constitute an offer, but is merely