DriveTime NNN Lease Investment Opportunity | 7.02% Cap Rate

Highlights:

• LEASE: 15-YEAR NNN lease with 6.5 years remaining AND 15% ANNUAL rent increase AND 3 renewal options.
• TENANT: DriveTime, a leading national used car dealership with over 140 locations in 30 states, offering sales, financing, and extended warranties.
• Placer.ai PERFORMANCE: Placer.ai ranks this location in the Top 30% of all DriveTime locations.
• LOCATION: Union City (Atlanta MSA) just off Interstate 85 (over 153K VPD), near Hartsfield Jackson International Airport, along with 10 other new and used car dealerships.
• REAL ESTATE: Recently remodeled and expanded showroom on ±4.72-acre parcel with over 27K VPD.
• DEMOGRAPHICS: Five-mile population of over 119K and an average household income of $87,305.
• ABOUT THE AREA: Union City is one of the fastest growing metro Atlanta areas, with a population increase of over 22% between 2020 and 2022.
• MAJOR AREA EMPLOYERS: Delta Airlines, Southern Regional Medical Center, Fulton County Government, UPS, Kraft Foods, DHL, Coca-Cola, Atlanta Metro Studios, and the city of Union City.
• AUTO INDUSTRY OUTLOOK: The used car market forecasted to have a compounded annual growth rate of 7.3% from 2025 to 2033 according to Dimensions Market Research.
• GUARANTOR: DriveTime, headquartered in Tempe, AZ, with over 3,100 employed and an estimated annual revenue of $1.5B.

Description:

DriveTime, located in Union City, GA just south of Hartsfield-Jackson Atlanta International Airport, is an exceptional single tenant NNN property to add to your portfolio. Located less than ½ mile from Interstate 85 (over 153K VPD), DriveTime sits on nearly 5 acres on a busy retail auto sales corridor on Jonesboro Road, (Hwy 138) with traffic counts of over 26K vehicles per day. This 15-year, true NNN, corporate guaranteed lease, with no landlord responsibilities, has a remaining initial lease term through January 31, 2032. It also features annual rent increases of 1.5% and three renewal options.

DriveTime just completed an expansion of the ±3,060 SF office/showroom and a total interior renovation. Their business model as a dealership is to offer one stop sales, financing and extended warranties to customers of late model used cars. They are one of the largest national used car dealers with approximately 144 locations in 30 states. Placer.ai ranks this DriveTime 43rd nationwide in volume and customer visits and in the top 30% of DriveTime locations. This busy S. Fulton County auto sales corridor has over 10 major brands within a half mile including Ford, Audi, Volkswagen, Kia, BMW, Nissan, Chevrolet, Honda, Toyota, Lexus, Chrysler Dodge Jeep Ram Fiat, and Land Rover dealerships along with Caliber Collision and Classic Collision.

Union City is one of the fastest growing metro Atlanta areas with a 5 mile population of 119,758 and an average household income of $87,305. They have experienced growth of over 22% between 2020 and 2022. In anticipation of continued population growth and industry projections of used vehicle sales growth of 7.3% annually thru 2033, DriveTime appears to be at the right place at the right time.

DriveTime is privately held and headquartered in Tempe, AZ. They also own subsidiary, Bridgecrest Acceptance Corporation, their financing division and SilverRock Automotive, their auto warranty division whose major clients include both DriveTime and Carvana. They employ over 3100 and have an estimated annual revenue of $1.5B. This DriveTime location is corporate owned and operated.

This property is located in Union City, Georgia.

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