Anchorage, AK - O'Reilly Auto Parts

Description:

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in an absolute NNN leased, freestanding, investment grade (S&P: BBB), corporate guaranteed (NASDAQ: ORLY) O’Reilly Auto Parts investment property located in Anchorage, Alaska. The tenant, O’Reilly Automotive Stores, Inc., has occupied the site for 24+ years and has over 3-years remaining on its lease with 3 (5-year) options to extend. The lease features 8% rental increases at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is absolute NNN with zero landlord responsibilities making it an ideal, management free investment opportunity for a passive investor. Founded in 1957, O’Reilly Auto Parts is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories, with over 6,200 locations.

O’Reilly Auto Parts has excellent visibility, and multiple points of entry, at the signalized, hard corner intersection of Muldoon Road (36,900 VPD) and E. 16th Avenue. The tenant has occupied the site for over 24 years and has performed exceptionally well, ranking in the 88th percentile among brand locations with 100k+ annual visits (per Placer.ai). The site benefits from crossover retail exposure it receives from the nearby Walmart Supercenter and Fred Meyer grocer, located along DeBarr Road
(34,100 VPD), and the Tikahtnu Commons. The 900k SF power center is 2-miles from the property and features major national retailers including Target, Costco, Lowe’s, and Best Buy, and ranks among the 98th percentile of shopping centers nationwide with 6.8M+ annual visits (per Placer.ai). The asset is strategically situated within a dense, affluent suburb of Anchorage, providing a direct consumer base from which to draw. The site is within 7-miles of downtown Anchorage, and 5-miles from the Elmendorf Air Force Base, with over 10,000 personnel on site, and the University of Alaska Anchorage with over 10,000 students enrolled. The 5-mile trade area is supported by a population of over 119,100 residents and 72,100 employees with an average household income of $102,451 within 1-mile of the site.