Dan Cooper Bob Havasi
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Dan Cooper [email protected] (216) 562-1981 x12 Cooper Commercial Investment Group Bob Havasi 6120 Parkland Blvd., Suite 206 [email protected] Cleveland, OH 44124 (216) 562-1981 x10 www.coopergrp.com In Cooperation with Licensed PA Broker INVESTMENT SUMMARY Investment Highlights …...………… 4 Investment Overview .……..………. 5 Location Overview …………...……. 6 Offering Summary …………….….… 7 Tenant Overview ………………..….. 8 PROPERTY ANALYSIS Site Plan ………….………….……… 10 Aerial Maps ……………...……….…. 11-12 Location Maps .…………………..…. 13 Demographics ..………………...…... 14 Disclosure & Confidentiality ........…. 15 2 3 O’Reilly Auto Parts INVESTMENT HIGHLIGHTS • Brand-New 2019, Build-to-Suit Single-Tenant Construction for National Retailer O’Reilly Auto Parts: Rare 20-Year NNN Lease and Mid-Term Rental Increase • Corporately Backed, Publicly Traded (NASDAQ: ORLY), Fortune 500 and Investment Grade Credit of BBB+/Baa1 • NNN Lease Structure with No Daily Management Responsibilities: Tenant Handles ALL Expenses Directly and 25-Yr. Transferable Roof Warranty • Market Leader in Auto Parts Sector: O’Reilly Reports $8.98 Billion in Revenue and a Market Cap of Over $30 Billion • Surrounded by High-Traffic Generating Retailers (Dunkin’, KFC, Wendy’s, Taco Bell, First National Bank and Subway) on Route to West View Park Shopping Center, Anchored by Giant Eagle and Dollar Tree ADDITIONAL HIGHLIGHTS • Strong Demographics in One of Pittsburgh’s Most Desirable Suburbs (5 Miles Outside of Downtown): Average Household Incomes Over $83,500 Within a 1-Mile Radius and High Population Density of 195,000 Residents Within 5-Miles • 68 Colleges/Universities Nearby, Including Carnegie Mellon University (14,000 Students) and the University of Pittsburgh (29,000 Students), the Largest Single Employer in Education with 10,700 Employees • Heavy Concentration of Major Employers: University of Pittsburgh Medical Center with 48,000 Employees, 1,600 Technology Firms Generating $20.7 Billion in Annual Pittsburgh Payrolls, and Several Fortune 500 Companies, Including: PNC Financial Services, PPG Industries, U.S. Steel, The Kraft Heinz Company, WESCO International and Dick's Sporting Goods Among Many More 4 INVESTMENT OVERVIEW The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the brand-new, single-tenant O’Reilly Auto Parts location in the desirable community of West View, a suburb just north of Pittsburgh (5 miles), Pennsylvania. The property is being offered for $2,100,000, representing a 5.19% CAP Rate, and was just built to accommodate O’Reilly Auto Parts, who hand-picked this particular location for its robust expansion in Western Pennsylvania. O’Reilly’s is the leading automotive parts provider with over 5,300 stores in 47 states, and their continued growth can be evidenced by their $8.98 billion in annual revenue and a market cap of over $30 billion. O’Reilly’s lease commenced 1/2/2019 on a 20-year NNN structure with a mid-term rental increase. The lease also offers 6% rental increases in each option period, and O’Reilly handles all on-site maintenance leaving ownership with no daily management responsibilities. Furthermore, the property comes with a 25-year transferable roof warranty. The asset is positioned on a main retail roadway surrounded by other high-traffic generating retailers, Dunkin’, Wendy’s, Taco Bell, KFC, First National Bank and Subway. West View Park Drive is also the route to West View Park Shopping Center, which anchors Giant Eagle Grocery further enhancing traffic flow in front of the featured property. The retail corridor is positioned just off Route 19 with traffic counts of 32,000 VPD and sits just north of I-279, a direct route to Downtown Pittsburgh. The center is surrounded by an economically strong residential community with average household incomes of over $83,500 within a 1-mile radius and a whopping population of 195,000 residents within 5 miles. The Pittsburgh region is also rich with major employers. The largest employer in the city is the University of Pittsburgh Medical Center, with 48,000 employees. All hospitals, outpatient clinics, and doctor's office positions combine for 116,000 jobs, approximately 10% of the jobs in the region. Google, Apple Inc., Bosch, Facebook, Uber, Nokia, Autodesk, Microsoft and IBM are among 1,600 technology firms generating $20.7 billion in annual Pittsburgh payrolls. A number of Fortune 500 companies are also located in Pittsburgh and include, PNC Financial Services, PPG Industries, U.S. Steel, The Kraft Heinz Company, WESCO International, and Dick's Sporting Goods. Additionally, six of the top 300 U.S. law firms make their global headquarters in the area, while RAND, BNY Mellon, Nova, FedEx, Bayer and NIOSH have regional bases that have helped Pittsburgh become the sixth-best area for U.S. job growth according to the Pittsburgh Post-Gazette. Furthermore, the area is home to 68 colleges and universities, including research and development leaders Carnegie Mellon University (14,000 students) and the University of Pittsburgh. In fact, the University of Pittsburgh (29,000 students) is the largest single employer in education with 10,700 employees. If arts and entertainment are your sort of thing, the non-profit arts and cultural industry in Allegheny County generates $341 million in economic activity that supports over 10,000 full-time equivalent jobs. Bundling all of the attributes, this new O’Reilly location provides an investor the opportunity in today’s market to purchase a superior location, quality brand-new construction with excellent visibility and curb appeal, poised to be a quality investment 5 well into the future. LOCATION OVERVIEW West View Borough is a quaint community just 5 miles north of the City of Pittsburgh. The borough may be acclaimed for its rich history but is better known as one of the safest, family friendly, green communities in the area. The community is considered part of Pittsburgh with the city’s population of about 301,048 residents within the city limits, making it the 66th-largest city in the U.S. The metropolitan population of 2,324,743 is the largest in both the Ohio Valley/Appalachia, the second -largest in Pennsylvania, and the 27th-largest in the U.S. Downtown Pittsburgh can be reached via I-279, which can be accessed just 1.5 miles south of the property and is the direct route to the city. I-279 connects with I-376 near downtown and I-79 a few miles north of the featured property. The property is also just 20 miles east of Pittsburgh International Airport. Pittsburgh is a leader in manufacturing of aluminum, glass, shipbuilding, petroleum, along with leading food, sports, transportation, computing, auto, electronics and health industries. The largest employer in the city is the University of Pittsburgh Medical Center, with 48,000 employees. All hospitals, outpatient clinics, and doctor's office positions combine for 116,000 jobs, approximately 10% of the jobs in the region. Pittsburgh ranks high behind New York and Chicago in corporate headquarters employment as it has the most U.S. stockholders per capita. Google, Apple Inc., Bosch, Facebook, Uber, Nokia, Autodesk, Microsoft and IBM are among 1,600 technology firms generating $20.7 billion in annual Pittsburgh payrolls. The area has served as the long-time federal agency headquarters for cyber defense, software engineering, robotics, energy research and the nuclear navy. The area is home to 68 colleges and universities, including research and development leaders Carnegie Mellon University (14,000 students) and the University of Pittsburgh. In fact, the University of Pittsburgh (29,000 students) is the largest single employer in education with 10,700 employees. A number of Fortune 500 companies are located in Pittsburgh and include, PNC Financial Services, PPG Industries, U.S. Steel, The Kraft Heinz Company, WESCO International, and the Findlay Township, Pennsylvania based Dick's Sporting Goods., Additionally, six of the top 300 U.S. law firms make their global headquarters in the area, while RAND, BNY Mellon, Nova, FedEx, Bayer and NIOSH have regional bases that helped Pittsburgh become the sixth-best area for U.S. job growth and a giant hub for financial services and medical industries. The list of major employers creating stable residency to the area continues with the region being is home to Allegheny Technologies, American Eagle Outfitters, CONSOL Energy, Kennametal, Mylan Bayer USA, and Alcoa headquarters. Other major employers include, GlaxoSmithKline, Thermo Fisher Scientific, and Lanxess. The Northeast U.S. regional headquarters for Chevron Corporation, Nova Chemicals, Deloitte Touche Tohmatsu and Ariba, call the area home. 84 Lumber, Giant Eagle, Highmark, Rue 21, General Nutrition Center (GNC), CNX Gas (CXG), and Genco Supply Chain Solutions are major non-public companies headquartered in the region. The nonprofit arts and cultural industry in Allegheny County generates $341 million in economic activity that supports over 10,000 full-time equivalent jobs. Pittsburgh has a long history with its major professional sports teams. The Steelers (NFL), the Penguins (NHL), and the Pirates (MLB), along with Division 1 Pitt Panthers 6 are all popular events giving year-round entertainment to every kind of sports fans. TENANT SUMMARY Tenant Name: O’Reilly Auto Parts Lease Type: Triple Net (NNN) Remaining Lease Term: 19.5 Years Tenant Since: 2019 Commencement Date: 01/02/2019 OFFERING SUMMARY Lease Expiration Date: 01/31/2039 Option to Extend: (4) 5-Yr. Options Price: $2,100,000 Rental Increase (s): Year 11 (2029) 7,000 S.F. Gross Leasable Area: Options to Terminate: None NOI: $109,004 Right of First Refusal: Yes CAP Rate: 5.19% Roof: Landlord Responsibility Year Built: 2019 HVAC: Tenant Responsibility Lot Size: 0.51 Acres Parking Lot Repairs & Maintenance: Tenant Responsibility Parking: Approx. 29 Spaces Parking Lot Replacement: Landlord Responsibility Foundation: Concrete Common Area Maintenance: Tenant Handles Direct Exterior: Brick Real Estate Taxes: Tenant Handles Direct Roof: 25-Yr.