AutoZone Ground Lease,
Denton, TX Investment Summary
| Price | $2,390,000 |
| Cap Rate | 3.95% |
| NOI | $94,380 |
| Lease Term | 8+ Years Remaining |
| Lease Type | NNN Ground Lease, with Tenant Responsible for All Taxes, Insurance, and Maintenance, Including Roof, Structure, and Parking Lot |
| Rental Increases | 10% Rental Increases Every Five (5) Years |
| Year Built | 2009 |
| Building Size | 6,840 SF |
| Lot Size | 1.17 Acres (50,747 SF) |
| Status | Sold |
| Lead Brokers | Ryan Forsyth Executive Managing Director 415.413.3005 ryan.forsyth@cushwake.com CA RE License #01716551 Vincent Aicale Executive Managing Director 415.690.5522 vince.aicale@cushwake.com CA RE License #01728696 Michael T. Yuras, CCIM Vice Chairman 415.481.0788 michael.yuras@cushwake.com CA RE License #01823291 Scott Crowle Executive Managing Director 415.604.4288 scott.crowle@cushwake.com CA RE License #01318288 |
Investment Highlights
LONG-TERM GUARANTEED NNN GROUND LEASE
» Long-term NNN ground lease to AutoZone (NYSE: “AZO”)
» 10% rental increases in initial term and option periods, providing an excellent hedge against inflation
» AutoZone has been a Fortune 500 company for the past 20 years
LOCATED IN A HIGHLY POPULATED, AFFLUENT, AND GROWING TEXAS SUBURB
» Located near the signalized hard corner of Teasley Lane and Hickory Creek Road (26,004 AADT)
» 149,616 residents live within a five-mile radius of the property, creating a large customer base for the site
» Located in an affluent area, with an average annual household income of $122,385 within three miles
» Population increase of 30% since 2010, demonstrating Denton’s recent rapid growth
PRIME LOCATION NEAR LARGE EMPLOYERS, RETAILERS, AND COMMUNITY HUBS
» Surrounded by a strong mix of local and national retailers, including Kroger, Sprouts, Walgreens, Starbucks, Chase Bank, and many more
» Three miles from Medical City Denton, one of Denton’s largest employers (208 beds, 1,700 employees and physicians)
» Six miles from University of North Texas, a major Denton community hub (40,796 students, 4,500 faculty and staff, $1.65 billion economic impact)
» Beneficial proximity to Denton’s most highly attended universities and schools, including NCTC North Central Texas College – Corinth Campus, John H. Guyer High School, and Lake Dallas High School (combined 7,686 students)
» Surrounded by high-density single family housing developments and large townhouse complexes
Property Description
SOLD
The property is conveniently located near the signalized hard-corner of Teasley Lane and Hickory Creek Road (26,004 AADT). 149,616 residents live within a five-mile radius of the property, creating a large customer base for the site. This AutoZone is located in an affluent area as well, with an average annual household income of $122,385 within three miles. The area has also experienced a population increase of 30% since 2010, demonstrating Denton’s recent rapid growth. With a projected 10% average annual household income increase within a three-mile radius of the site in the next five years, Denton and AutoZone are poised for steady concurrent growth.
The property has a prime location near large employers, retailers, and community hubs. The site is surrounded by a strong mix of local and national retailers, including Kroger, Sprouts, Walgreens, McDonald’s, Taco Bell, Starbucks, Domino’s, Chase Bank, and many more. The property resides three miles from Medical City Denton, one of Denton’s largest employers (208 beds, 1,700 employees and physicians), and six miles from University of North Texas, a major Denton community hub (40,796 students, 4,500 faculty and staff, $1.65 billion economic impact). The site features a beneficial proximity to Denton’s most highly attended universities and schools, including NCTC North Central Texas College – Corinth Campus, John H. Guyer High School, and Lake Dallas High School (combined 7,686 students). The property is also surrounded by high-density single family housing developments and large townhouse complexes.
