Advance Auto Parts|
Average Property & Lease
|Average Sale Price||$1,949,290|
|CAP Rate (12mo avg with 10+ lease term)||6.04%|
|Building Size||7,000 sf|
|Lot Size||0.90 +/- acres|
|Lease Term||5 - 15 Years|
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Last Updated: September 9, 2016
Net Lease Advisor Overview|
Net lease assets occupied by Advance Auto Parts fill a highly desired price range, generally trading between $1.0M - $2.0M. Additionally, the prototypical Advance Auto store lends itself to a wide array of reuses in the unlikely event of a vacancy. Advance Auto Parts prefers 0.75 - 1.25 acres of land for their 7,000 SF rectangular retail buildings.
Lease agreements can vary between 5 and 15 years in length, however a 15-year NN term seems to be most common Advance Auto lease structure. Specific lease terms and landlord obligations vary, but generally the landlord is responsible for maintenance of the roof and structure. Alternatively, some sites have been leased on an absolute NNN basis with no landlord responsibility. The difference between these a NN and NNN Advance Auto lease is usually offset by rent escalations. It is common for the NN lease to include rental increase in lease year 11, while the NNN leases are based on a flat rental rate over the entire primary lease term.
- Corporate backed leases
- Footprint allows for adaptive reuse
- NN leases make Landlord responsible for roof and structure
- Flat rental rates, varying lease structure
Advance Auto Parts is leading automotive aftermarket parts provider in North America, serving "do-it-for-me", or Commercial, and "do-it-yourself", or DIY, customers as well as independently-owned operators. They were founded in 1929 and is headquarters in Roanoke, Virginia.
Advance Auto Parts which is consisted of 4,102 stores is generally located in freestanding buildings with a heavy focus on both commercial and DIY customers. The average size of an Advance store is approximately 7,500 square feet with the size of a typical new stores ranging from approximately 6,000 to 8,500 square feet. These stores carry a wide variety of products serving aftermarket auto part needs for both domestic and import vehicles.
Advance Auto Parts plans to open and operate stores in both large, densely-populated markets and small, less densely-populated areas. Advance Auto which consisted of "Advance Auto Parts", "Carquest", and "Worldpac" have increased their store count significantly in the last ten years from 2,872 stores in 2005 to 5,135 stores in the United States in 2015. They intend to continue to increase the number of their stores and expand the markets they serve as part of their growth strategy.