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AutoZone | Orangevale CA $2,584,280 | 5.35% CAP

Patrick Follett916.274.4433pf@corecre.comCA BRE #01796180

Long Term Corporate Lease | Exposure to 91K VPD | Densely-Populated Trade Area

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CORE Commercial is pleased to offer this corporate-guaranteed AutoZone for sale in Orangevale, CA (Sacramento County). This offering provides an investor the rare opportunity to acquire an established and secure investment in Northern CA. The long term lease has approximately 6 years and 8 months of primary term remaining as well as 6, 5 year options to renew. The lease calls for a 10% rental increase in June 2021 with additional 10% increases in each of the 6, 5 year options to follow.

The subject property sits as an outparcel to the Cable Park Shopping Center, which is anchored by Grocery Outlet, Ross, Goodwill, CVS and America’s Tire. Additional anchor tenants in the immediate trade area include Walmart and WinCo Foods. AutoZone benefits from convenient access from both east and west bound Greenback Lane traffic as well both north and south bound traffic along Hazel Ave. The next nearest AutoZone from the subject property is approximately 3.5 miles away in the city of Citrus Heights.

The freestanding building totals 6,000 SF of improvements and is situated on 1.05 acres. The offering includes two parcels (0.66 acres & 0.39 acres) which not only provide for an abundance of parking, but also present the opportunity for future redevelopment at the property (contact broker to discuss).

AutoZone benefits from excellent exposure at the signalized intersection of Greenback Lane and Hazel Ave. Combined traffic counts at the intersection total 91,000 vehicles per day. In addition to the retail presence in the immediate area, there is also a densely populated and established residential community with a population of 14,129 people within a one mile radius. The population within a three mile radius totals 97,352.

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• Corporate guarantee by S&P rated BBB tenant

• Long term lease with approximately 6 years and 8 months of term remaining

• Excellent exposure at signalized intersection with combined traffic counts of 91,100 VPD

• Outparcel location to a well-established shopping center

• Additional land presents future upside through development

• Densely populated trade area with 3-mile population of 97,352

• Synergy with neighboring tenants including Walmart, WinCo Foods, Grocery Outlet, Ross, CVS, America’s Tire and Goodwill

Investment Highlights

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Asking Price $2,584,280

Cap Rate 5.35%

Price Per Sq Ft $431 PSF

Base Rent $108,000

Additional Rent $38,259 (increases 2% annually)

Gross Rents $146,259

Net Operating Income $138,259

Lease Term Remaining Approximately 6 years and 8 months

Base Rent Increases 10% increase on June 1, 2021 (year 6 of primary term)

Options 6, 5-year options to renew

Option Increases 10% Base Rent increases in each of the 5-year option periods

Property Address 8895 Greenback Lane, Orangevale CA 95662

Building Size 6,000 SF (per the lease)

Parcel Size 0.66 acres & 0.39 acres totaling 1.05 acres

APN (Sacramento County) 223-0081-022 & 223-0081-023

Parking Spaces 36 total spaces

Zoning SPA

Remodeled/Renovated 2016

Traffic Counts (VPD) Greenback Lane 62,667; Hazel Ave 28,433

Offering Summary

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Tenant AutoZone Inc

Term Commencement June 1, 2016

Primary Lease Expiration May 31, 2026

Type of Ownership Fee Simple

Right of First Refusal No

Property Taxes Tenant pays directly

Insurance Tenant pays general liability insurance directly & reimburses landlord for additional policies required to be held pursuant to the lease

Parking Lot Tenant is responsible

HVAC Tenant is responsible

Lighting & Landscaping Tenant is responsible

Roof, Structure & Utility lines Landlord is responsible

Lease Information

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Valuation Summary In-Place Proforma

AutoZone Base Rent 108,000 0AutoZone Additional Rent 38,259

Effective Gross Income 146,259 0Expenses $0

Common Area Charges 6,000 1Repairs, Maintenance & Reserves 2,000 2 2,000

Total Expenses (8,000) Net Operating Income 138,259 (2,000)

($2,000)Pricing 2,584,280$ Cap Rate 5.35%Price Per Square Foot 431$

1 CAM Estimate. (AutoZone's prorata share of shopping center = 3.4714%)2 Repairs, Maintenance & Reserves for Misc. Items

Income & Expense

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Site Aerial

SUBJECT

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Sunrise Mall

Marketplace at Birdcage

HA

ZEL A

VE - 28,433 V

PD

GREENBACK LANE - 62,667 VPD

SUBJECT

Retail Aerial

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Additional AutoZone Parking (included in sale)

NAPNAP

NAP

Surrounding Properties

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Corporate Profile

AutoZone, Inc (NYSE: AZO) is the largest retailer and distributor of automotive replacement parts and accessories in the U.S. with a 2018 annual revenue of $11.22 billion, a 3.05% increase from 2017.

Founded in 1979, they sell auto and light truck parts, chemicals and accessories through AutoZone stores in 50 U.S. states plus the District of Columbia, Puerto Rico, Mexico and Brazil. They also sell automotive diagnostic and repair software through ALLDATA, a company they purchased in 1998.

As of August 25, 2019, AutoZone operated 5,618 locations in the United States and opened 173 new stores in 2018. The Fortune 500 company is based in Memphis, Tennessee.

https://www.autozone.com/company/our-company/

NYSE:AZO

LOCATIONS:5,618+

ANNUALREVENUE:$11.22B

S&P RATING:

BBB

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The Sacramento MSA

Orangevale is a census-designated place in Sacramento County, California, United States. It

is part of the Sacramento–Arden-Arcade–Roseville Metropolitan Statistical Area.

The Sacramento-Roseville-Arden-Arcade Metropolitan Statistical Area encompasses nearly

5,300 square miles and is comprised of El Dorado, Placer, Sacramento and Yolo counties.

Home to more than 2.3 million residents, the metropolitan area experienced a growth of nearly

20% in the last decade. The Sacramento MSA is the fifth most populated metro area in the State and the 27th largest MSA in the USA.

The Sacramento area is situated at the hub of several highways, a deep-water inland port, an

international airport and transcontinental railroad lines. As the State capital of California, the city of Sacramento is the political, economic and cultural center of the metro area.

Because of its natural beauty (including waterways and mountain views), recreational opportunities,

high-ranking schools and the industrial growth of Sac-ramento and Placer Counties, people continue to settle into Orangevale. In the midst of this growth remain many original oak trees, trails, and a unique rural char-acter which express the essential character of Orangev-ale.

Industry continues to grow in Sacramento and Placer Counties, especially in the insurance, medical, retail,

and high-technology fields. The continued allure of Orangevale and Sacramento and Placer Counties is an industry-friendly environment.

There is easy access to transit and affordable housing in a very desirable area. Orangevale’s 2019 popu-

lation is approximately 36,157 in its 10.4 square miles. Estimated population density is 3,105 PSM. Orangevale is 25 miles northeast of Sacramento.

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1 mile 14,129

3 mile 97,352

5 mile 257,091

Population

1 mile 5,373

3 mile 38,084

5 mile 99,204

Households

1 mile $96,366

3 mile $105,368

5 mile $107,781

Average HH Income

1 mile 500

3 mile 3,623

5 mile 12,482

Total Businesses

1 mile 3,074

3 mile 26,686

5 mile 100,542

Total Employees

Demographic Data

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COPYRIGHT © 2019. ALL RIGHTS RESERVED. CORE Commercial (“Agent”), CA DRE Lic. 01904661, has presented this

brief, selected information pertaining to the Property and shall not be considered all-inclusive or unchanged since the

date of preparation. No warranty as to the accuracy or completeness is expressed or implied. The information has

been received from sources believed to be reliable but is not guaranteed. Prospective purchasers and tenants should

independently verify each item of information and have the same reviewed by its tax advisor and/or legal counsel. The

Property is being offered on an “as-is, where-is” and “with all faults” basis unless otherwise specified. Owner reserves

the right to withdraw this offering at any time, without further notice, with or without cause.

Presented by:

Patrick Follett916.274.4433pf@corecre.comCA BRE #01796180

2264 Fair Oaks Blvd, Suite 201 | Sacramento, CA 95825www.corecre.com