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Auto Parts

Advance Auto Parts - Saginaw

2119 Bay St, Saginaw, MI 48602

Listing Price: $1,560,000

Cap Rate
7.25%
Tenant Name
Advance Auto Parts
Years Remaining On Lease
2.8
Guarantor
Corporate Guarantee
Rentable SF
10,880
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$10.40

Investment Overview

The 10,880-square foot freestanding building is located in Saginaw, Michigan and spans an entire block, from Highway 58 W. State Sreet. to Highway 58 E. State Street. With visibility and access from two lighted intersection, the property benefits from exposure to over 55,000 vehicles per day and three points of access in one of the busiest areas of Saginaw. Advance Auto Parts has a 23-year operating history at this location, which was originally constructed as a drugstore. The prime real estate, oversized parcel, and larger store footprint supports the tenant’s utilization of this location as a HUB store, providing neighboring stores and businesses with convenient access to additional inventory. The location’s HUB store status makes it an integral part of the tenant’s strategy in this market. Advance Auto closed the nearby Carquest store, a predominantly auto parts wholesaler, in 2017 and consolidated into the subject property. The Subject property is 3,000-square feet larger than the average store, allowing additional inventory to service wholesale and retail customers as well as augment inventory at other Advance Auto Parts stores in the region. Advance Auto Parts extended their lease early, in 2019, for an additional five years, demonstrating their commitment to the market. Just under three years remain on the current term. The lease is NNN and has a current net operating income of $113,097 with a scheduled 10 percent rental escalation in 2024.

Investment Highlights

  • In 2019 the tenant executed an early five-year lease extension, demonstrating their commitment to the location and market
  • The property is a HUB store, serving surrounding locations with additional inventory and making it an integral part of the tenant's strategy in this market
  • Base rent is scheduled to increase 10 percent in 2024, upon exercise of an option, bringing the average cap rate to 7.7 percent

Exclusively Listed By

Auto Parts

Advance Auto Parts - Saginaw

Listing Price: $1,560,000

Cap Rate
7.25%
Tenant Name
Advance Auto Parts
Years Remaining On Lease
2.8
Guarantor
Corporate Guarantee
Rentable SF
10,880
Lease Type
Triple Net (NNN)
Rent Per Square Feet
$10.40

Investment Highlights

  • In 2019 the tenant executed an early five-year lease extension, demonstrating their commitment to the location and market
  • The property is a HUB store, serving surrounding locations with additional inventory and making it an integral part of the tenant's strategy in this market
  • Base rent is scheduled to increase 10 percent in 2024, upon exercise of an option, bringing the average cap rate to 7.7 percent

Investment Overview

The 10,880-square foot freestanding building is located in Saginaw, Michigan and spans an entire block, from Highway 58 W. State Sreet. to Highway 58 E. State Street. With visibility and access from two lighted intersection, the property benefits from exposure to over 55,000 vehicles per day and three points of access in one of the busiest areas of Saginaw. Advance Auto Parts has a 23-year operating history at this location, which was originally constructed as a drugstore. The prime real estate, oversized parcel, and larger store footprint supports the tenant’s utilization of this location as a HUB store, providing neighboring stores and businesses with convenient access to additional inventory. The location’s HUB store status makes it an integral part of the tenant’s strategy in this market. Advance Auto closed the nearby Carquest store, a predominantly auto parts wholesaler, in 2017 and consolidated into the subject property. The Subject property is 3,000-square feet larger than the average store, allowing additional inventory to service wholesale and retail customers as well as augment inventory at other Advance Auto Parts stores in the region. Advance Auto Parts extended their lease early, in 2019, for an additional five years, demonstrating their commitment to the market. Just under three years remain on the current term. The lease is NNN and has a current net operating income of $113,097 with a scheduled 10 percent rental escalation in 2024.

Exclusively Listed By

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