• Minimal Landlord Responsibilities: This lease provides a passive ownership structure where the landlords maintenance obligations are only the roof, structure and foundation.
• Below Replacement Costs: Annual rents are significantly below new development costs, positioning the store as a low-cost location for O’Reilly Auto Parts and help keep margins high.
• Long Term Operator: Previously Napa Auto Parts, this location has been operated as Auto Parts for over 50 years.
• Early 10-year Extension: In October 2022, O’Reilly elected to extend their lease for 10 years rather than a traditional 5-year term, further demonstrating a high-level commitment to this store and community.
• Attractive Increase Schedule: The lease an 8% rent increase in options 1 and 2, followed by a 12% increase in the 3rd option period.
• Limited Competition: O’Reilly is the only national brand retailer in Hot Springs County. The only other parts store being a single unit, franchisee operation.
• Economic Synergy: Hot Springs County’s economy includes a significant base of over 160 working ranches and agricultural operations that rely heavily on trucks, tractors, implements, and other heavy equipment.
• Best in Class Tenant: O’Reilly Automotive (NASDAQ: ORLY) is the largest Auto Parts retailer in America with a market cap of ±$75B and Investment grade Credit Rating of BBB from S&P Global Ratings.