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American Tire Distributors Net Lease Investment | 7% Cap Rate

500 U.S. 49 Frontage Rd
Richland, MS 39218
PRICE : $6,154,000
CAP RATE: 7%
PROPERTY TYPE: Industrial
BUILDING SIZE: 127,500 SF

Highlights

  • 127,500 SF single tenant net leased industrial building occupied by American Tire Distributors, the nations largest tire distributor
  • Recent major upgrades included a 55,500 SF addition and renovation in 2015
  • 10% rent escalations every 5 years with the next escalation occuring in July 2020
  • New 10-year lease was put into place in June of 2015 (7+ years remaining)
  • Located along U.S. 49 on a major industrial corridor surrounded by other national tenants
  • Offered at $6,154,000 ($48.26/SF) which is a 7% cap rate on year one income
  • ATD has a proven operating history at the location and has occupied the building since 2005

Description

Bull Realty Inc. is pleased to exclusively offer to qualified investors the opportunity to acquire a single tenant net leased industrial property in Richland, Mississippi, occupied by American Tire Distributors (ATD), the nation's largest tire distributor. The property is strategically located for a distribution center along U.S. 49, approximately 2 miles from Interstate 20 and less than 3 miles from the Interstate 20/Interstate 55 axis. The location also benefits from being approximately 1.3 miles from Kansas City Southern Railway intermodal center with truck-to-rail cargo container transfer.

The building underwent a major renovation in 2015 which included a 55,500 SF expansion, which brought the building's total square footage to 127,500. At the time of the upgrade and expansion, the lease was extended through June of 2025. The current lease includes escalations of 10% on each five-year anniversary of the commencement date. The current Net Operating Income is $432,000 and in 2020 the NOI increases to $475,200.

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