STNL AutoZone/BBB Credit/10 Yr Lease

Highlights:

• AutoZone: Largest U.S. auto parts retailer (NYSE: AZO) with 7,100+ stores worldwide, $18.5B+ in 2024 revenue, and BBB (S&P) credit rating.
• Easy Management & Single-Tenant NNN Lease: Tenant covers all expenses, including maintenance, taxes, and insurance, ideal for passive or 1031 investor
• Long-Term Lease: New 10-year AutoZone lease with four 5-year renewal options provides up to 30 years of stable income.
• Growing Income Stream: 8% rent increases every 5 years provide rising cash flow, value growth, and an inflation hedge.
• Prime Metairie, LA Location: 4th largest city in Louisiana with 133,000+ residents nearby, just 6 miles from downtown New Orleans

Description:

LOUISIANA BROKER OF RECORD ….SRSA Commercial Real Estate / Steve Reisig / License No. 14916A

Faris Lee Investments is pleased to present the unique opportunity to acquire a single-tenant, triple-net (NNN) leased property occupied by AutoZone, a dominant force in the automotive aftermarket industry. This asset represents a premier passive investment, secured by a long-term lease with a high-credit national tenant located in a core market of the New Orleans MSA.
This specific location is in Metairie, Louisiana, which is a strategically positioned suburb just six miles northwest of downtown New Orleans. Metairie is a robust market, ranking as the fourth most populous community in Louisiana and boasting a high-density population of over 133,000 residents within a three-mile radius. This area is a significant regional economic hub and is notably home to the corporate headquarters and training facilities for both the New Orleans Saints (NFL) and the New Orleans Pelicans (NBA).
The investment is backed by an exeptionally strong corporate guarantee. AutoZone (NYSE: ATO) is the largest auto parts retailer in the U.S. and carries an investment-grade credit rating of ‘BBB’ from S&P. AutoZone demonstrates exceptional financial strength with a massive market capitalization of approximately $67.42 billion and fiscal year 2024 revenues exceeding $18.5 billion.
An ideal feature is the triple-net (NNN) lease structure, which transfers sole responsibility for property taxes, insurance, and CAM directly to the tenant. Landlord is responsible for roof and structure, as well as parking lot repairs only for the first three years. This complete delegation of responsibilities provides a management-free asset perfect for a passive investor, a 1031 exchange, or anyone seeking a secure addition to their portfolio.
Long-term stability and income growth are built directly into the lease. AutoZone recently executed a new 10-year primary lease term with 4 (5-year) options, creating a potential total lease term of up to thirty years. Furthermore, the lease includes a growing income stream with 8% rental increases every five years. These scheduled escalations ensure consistently increasing cash flow for the investor, creating long-term value appreciation and serving as a robust hedge against inflation.

Metairie, Louisiana, is a prominent suburb of New Orleans that evolved from an agricultural hub into a vibrant residential and commercial area following the development of the Lake Pontchartrain Causeway in the 1950s. Known for its family-friendly neighborhoods and excellent schools, Metairie boasts a strong retail sector led by Lakeside Shopping Center. Its economy also benefits from its proximity to New Orleans, offering diverse job opportunities in healthcare, particularly at East Jefferson General Hospital, and other professional services.
New Orleans, founded in 1718, is rich in history and culture, significantly shaping the economic landscape of the region. The city’s economy is deeply intertwined with the oil industry, hosting 15 refineries that account for nearly one-sixth of the U.S. refining capacity, and playing a critical role in the national and global energy markets. In 2022, the state shipped 63% of the nation’s liquefied natural gas exports and about 14% of its coal exports, with New Orleans being the third-largest coal exporting port in the U.S.
Economically, New Orleans is powered by several key sectors. The Port of New Orleans remains one of the busiest ports in the world, crucial for handling diverse cargo such as agricultural products, oil, and natural gas. The tourism industry is another cornerstone, drawing millions of visitors annually. Events like Mardi Gras generate nearly $900 million annually, contributing 3.07% to the city’s GDP. The festival not only boosts local businesses but also supports thousands of jobs and increases state tax revenues by over $14 million.
In 2019, New Orleans welcomed over 19 million visitors, contributing $10.05 billion in spending. The city’s cultural richness, with over 135 annual festivals, generates significant economic impact and supports over 62,000 hospitality jobs. The average visitor spends about 2.59 days in the city, with a substantial portion of their expenditure going towards food, beverages, and entertainment, primarily in the French Quarter. This vibrant tourism sector continues to be a cornerstone of New Orleans’ economy

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