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Auto Parts

America's Tire Co. (Discount Tire)

10101 Chapman Ave, Garden Grove, CA 92840

Listing Price: $3,100,000

Cap Rate
3.50%
Tenant Name
America's Tire Co.
Years Remaining On Lease
3.6
Guarantor
Corporate Guarantee
Rentable SF
7,530
Lease Type
Double Net
Rent Per Square Feet
$14.24

Investment Overview

Marcus & Millichap is pleased to offer for sale the rare, fee simple interest in a freestanding, single-tenant wheel and tire service center occupied by America’s Tire Co. (the “Property” or “Asset”) located in Garden Grove, California. America’s Tire Co., known as Discount Tire outside of California, operates in the majority of the lower 48 states, and is the largest independent tire and wheel retailer in the world. The company is headquartered in Scottsdale, Arizona and as of 2020 operates over 1,000 stores with approximately 9,500 employees. In operation since 1994, this location has 3.8 years of lease term remaining at rents dramatically below market and two (2) 5-year extension options, each containing 10% rent increases. The lease is a structured as NN with the Landlord only responsible for roof and structure. The Property is positioned off of Chapman Avenue, an east/west arterial connecting to I-5 to the east and Hwy 39 to the west. The area is highly desirable due to its dense infill location, with over 293,000 residents in 3-mile radius of the Asset. This offering presents the rare opportunity to acquire a tire service center occupied by a long-standing national chain, with minimal landlord responsibilities, at rents well below market, and outstanding security in the value of the underlying real estate.

Investment Highlights

  • The in-place rent of $107,242 ($14.24/SF NN) is well below market, with auto shops in the greater Los Angeles area consistently leasing space at double or triple this rate.
  • Strategic infill location with frontage on Chapman Avenue, which sees 31,800 VPD.
  • The Asset is well located in Garden Grove, with the I-5 / Hwy 22 / Hwy 57 interchange located 4.5 miles east.
  • Located within 3.5 miles of Disneyland and a very in-fill location that is not easy to replicate with zoning providing long-term residual value.
  • America's Tire Co. has occupied the site since 1994 and the lease is structured as NN, with Landlord only responsible for structure and roof.
  • The Tenant is undertaking an extensive remodel at their own cost and expense.
  • Third party reports consisting of a survey, property condition assessment, and clean environmental reports are available and being completed. The phase II was done out of an abundance of caution and is clean.
  • Additional features include a large waiting room, eight (8) service bays (5 operational, 3 used for storage), tire storage space, and ample parking in the rear lot.

Exclusively Listed By

  • Peter Bauman

    Senior Vice President Investments

    (602) 687-6685

    Email Peter

    License(s): AZ: SA647389000, NV: S.0186153

    Phoenix

  • Tivon Moffitt

    Senior Vice President Investments

    (602) 687-6688

    Email Tivon

    License(s): AZ: BR639369000, NV: S.0186027, UT: 11178542-AB00

    Phoenix

  • Cesar A. Talavera

    Vice President Investments

    (702) 215-7132

    Email Cesar

    License(s): NV: BS.0045231

    Las Vegas

Broker of Record

  • Jonathan Giannola

    Regional Manager

    (949) 419-3274

    License(s) CA: 01315359

    California

Auto Parts

America's Tire Co. (Discount Tire)

Listing Price: $3,100,000

Cap Rate
3.50%
Tenant Name
America's Tire Co.
Years Remaining On Lease
3.6
Guarantor
Corporate Guarantee
Rentable SF
7,530
Lease Type
Double Net
Rent Per Square Feet
$14.24

Investment Highlights

  • The in-place rent of $107,242 ($14.24/SF NN) is well below market, with auto shops in the greater Los Angeles area consistently leasing space at double or triple this rate.
  • Strategic infill location with frontage on Chapman Avenue, which sees 31,800 VPD.
  • The Asset is well located in Garden Grove, with the I-5 / Hwy 22 / Hwy 57 interchange located 4.5 miles east.
  • Located within 3.5 miles of Disneyland and a very in-fill location that is not easy to replicate with zoning providing long-term residual value.
  • America's Tire Co. has occupied the site since 1994 and the lease is structured as NN, with Landlord only responsible for structure and roof.
  • The Tenant is undertaking an extensive remodel at their own cost and expense.
  • Third party reports consisting of a survey, property condition assessment, and clean environmental reports are available and being completed. The phase II was done out of an abundance of caution and is clean.
  • Additional features include a large waiting room, eight (8) service bays (5 operational, 3 used for storage), tire storage space, and ample parking in the rear lot.

Investment Overview

Marcus & Millichap is pleased to offer for sale the rare, fee simple interest in a freestanding, single-tenant wheel and tire service center occupied by America’s Tire Co. (the “Property” or “Asset”) located in Garden Grove, California. America’s Tire Co., known as Discount Tire outside of California, operates in the majority of the lower 48 states, and is the largest independent tire and wheel retailer in the world. The company is headquartered in Scottsdale, Arizona and as of 2020 operates over 1,000 stores with approximately 9,500 employees. In operation since 1994, this location has 3.8 years of lease term remaining at rents dramatically below market and two (2) 5-year extension options, each containing 10% rent increases. The lease is a structured as NN with the Landlord only responsible for roof and structure. The Property is positioned off of Chapman Avenue, an east/west arterial connecting to I-5 to the east and Hwy 39 to the west. The area is highly desirable due to its dense infill location, with over 293,000 residents in 3-mile radius of the Asset. This offering presents the rare opportunity to acquire a tire service center occupied by a long-standing national chain, with minimal landlord responsibilities, at rents well below market, and outstanding security in the value of the underlying real estate.

Exclusively Listed By

  • Peter Bauman

    Senior Vice President Investments

    (602) 687-6685

    Email Peter

    License(s): AZ: SA647389000, NV: S.0186153

    Phoenix

  • Tivon Moffitt

    Senior Vice President Investments

    (602) 687-6688

    Email Tivon

    License(s): AZ: BR639369000, NV: S.0186027, UT: 11178542-AB00

    Phoenix

  • Cesar A. Talavera

    Vice President Investments

    (702) 215-7132

    Email Cesar

    License(s): NV: BS.0045231

    Las Vegas

Broker of Record

  • Jonathan Giannola

    Regional Manager

    (949) 419-3274

    License(s): CA: 01315359

    California

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