Low Rent Across Portfolio: The average rent for a fee simple O’Reilly Auto Parts is roughly $110,000. However, they’re only paying $63,780 here, promoting long-term profitability and tenancy via one of the lowest rental rates across the thousands of leased stores.
Continuous Proven Commitment: O’Reilly Auto Parts initially signed a 10-year lease starting in 2001, followed by a series of extensions or 5-year renewals, and most recently an extension through 2034. These numerous decisions demonstrate O’Reilly’s strong commitment to the location, indicating its favorable performance and importance to its operations.
Bull Run in a Bear Market: O’Reilly Auto Parts has grown their revenue by an astounding average of nearly 10% per year since 2019, which demonstrates the auto parts sector’s resiliency in struggling markets. In 2023, revenue was $15.8 Billion. As of 11/11/2024, ORLY’s stock price is $1,228/share, which is up 175.93% over the past 5 years, and equating to a market valuation of $71.06 Billion.
Strategic Positioning: The subject property already sees 19,400 VPD on E Johnson Ave but also gains additional access and visibility from E Main St, which leads to both Downtown Jonesboro and Arkansas State University, and benefits from an additional 15,000 VPD.
Minimal Responsibilities: O’Reilly Auto Parts is solely and directly handles insurance, taxes, and insurance while offering the ability to receive rent systematically through direct deposit. These features make this a passive investment.
Recent Roof Reinforcement: A new coating was added to the roof in 2019 that came with a 10-year warranty, further reducing a new landlord’s responsibilities in the near term.
Broker of Record
Kyle Matthews
License No. PB00084217 (AR)