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O'Reilly Auto Parts Ground Lease Investment Opportunity | 4.2% Cap Rate

2431 University Blvd E
Tuscaloosa, AL 35404
PRICE : $550,000
CAP RATE: 4.2%
PROPERTY TYPE: Retail
SITE SIZE: 0.79 Acres
BUILDING SIZE: 6,400 SF
YEAR BUILT: 2004

Highlights

  • Easy, “bite-size” ground lease investment with long-term NNN lease
  • A+ location on busy University Boulevard E with over 18,500 VPD and a five-mile population of over 114,000
  • Corporate-guaranteed lease with O’Reilly’s Auto Parts through May of 2031 with three 5-year options and 8% rent increases in the option periods
  • No Landlord responsibilities of totally reconstructed building in 2012 due to tornado damage
  • Major national retailers located within walking distance of the subject property
  • The University of Alabama main campus is within two miles with an enrollment of over 37,000
  • This “buy and hold” ground lease is offered at a 4.2% cap rate
  • Nancy Miller AL License #93159

Description

This O’Reilly Auto Parts NNN ground lease, located in Tuscaloosa, AL is an easy “bitesize” opportunity to invest in a strong tenant, outstanding real estate and no ownership responsibilities. The ground lease runs through May 2031 with three 5-year options, each with 8% increases. While originally built in 2003, the ± 6,400 SF building, situated on a ± 0.79-acre parcel, was rebuilt in 2012 as a result of a tornado. This location is highly-desirable Tuscaloosa real estate! It is situated on a corner lot on busy University Boulevard East with nearby traffic counts of 18,500 VPD.

Tuscaloosa is the home of the University of Alabama, the “Crimson Tide”, which has an enrollment of over 37,00 and is located two miles west of the subject property. The full-time population within a five-mile radius is 114,300 with an average household income of $65,247. Nearby retailers include the all the major big box retailers including Home Depot, Target, the ± 733,000 SF University Mall, major grocery chains, casual dining, many national QSR, banks, discount retailers, drug chains, and more. Bryce Hospital, the state’s main psychiatric hospital, Tuscaloosa’s Gateway Center, a new state-of-the-art technology center and The Albert School of Performing Arts are across the street.

Investors can safely “park their money” and have a 4.2% return with no Landlord responsibilities. If O’Reilly Auto Parts decides to relocate or not renew in the future, the ground lease investor now owns a valuable piece of real estate in a vibrant college town with a building to potentially repurpose.

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