Investment Overview

Marcus & Millichap is pleased to present the opportunity to purchase the fee simple interest in a net leased Pep Boys, built in 2014 and located on an outparcel to a Walmart Supercenter anchored power center in suburban New Lenox, Illinois. This location is the primary retail hub in New Lenox, a wealthy suburb of Chicago. Additional co-tenants within this shopping center include T.J. Maxx, Ross, and Petco. Built in 2014, this Pep Boys location incorporates the brand’s latest store prototype design language. There are currently over five years remaining on the lease, with four five-year options remaining, each of which features 10 percent rent bumps at the start of each renewal period. Landlord responsibilities are minimal, with the lease requiring that the landlord be responsible for repairing or replacing the roof, walls, and foundation. This is a corporate Pep Boys lease with the tenant The Pep Boys Manny Moe & Jack of California Inc. as Lessee. This Pep Boys site is prominently positioned on U.S. Highway 30, with exposure to over 22,000 vehicles per day. The over 5,500-square-foot building is situated on a land parcel that is over two-thirds of an acre, and Pep Boys pays a per square foot rent of $25, a highly replaceable rent for a Walmart pad. Average household incomes within a five-mile radius approach $140,000 annually, about 20 percent higher than the current average household income in the state of Illinois and nearly double the national average. Over 90,000 people live within five miles of this Pep Boys location.