Advance Auto Parts
6.1 Years Remaining on Base Term
- High Yield: 7.75% Cap Rate at Ask – 8.39% Cap 1/1/2020
- Corporate Guarantee
- Investment Grade Tenant
- Structured Rent Increases in Base Term and Options
- NN Lease – Limited Landlord Responsibilities
Marcus and Millichap is pleased to exclusively present for sale a 7,000 square foot Advance Auto Parts in Mexico, Maine. The property is subject to a NN corporately guaranteed lease with 6 years remaining on the base term and two 5-year options. There is a rental increase coming up on January 1, 2020 which would bring the cap rate up to 8.39%.
Advance Auto Parts is an investment grade tenant with a credit rating of BBB-. They operate over 5,000 stores and continue to expand with the opening of 79 stores in the last quarter. They are also a publicly traded company (AAP) whose stock is up an impressive 70% year-over-year.
The subject property is located along Route 2 and is about a mile from both downtown areas of Mexico and Rumford, Maine. Other national retailers in the area include Walmart, Dunkin Donuts, Rite Aid and Family Dollar. In addition, Oakdale Country Club, Hotel Rumford, and Rumford Hospital are all less than two miles away. The city’s largest employer, Catalyst Paper Operations Inc, is located less than a mile from the subject property.