confidential offering memorandum autozone

CONFIDENTIAL OFFERING MEMORANDUM
AUTOZONE GROUND LEASE
1885 W. Buckeye Rd.
Phoenix, AZ 85007
Josiah Byrnes
719.243.6569
JByrnes@EmbreeGroup.com
Representative Photo
CONFIDENTIALITY AND RISK DISCLOSURE
The information contained herein is proprietary and strictly confidential. It is intended to be reviewed only by the party
receiving it from Embree Group and should not be made available to any other person or entity without the written consent of Embree Group (the Embree Group collectively refers to Embree Capital Markets Group, Inc., Embree Asset
Group, Inc., Embree Healthcare Group, Inc., and Embree Construction Group, Inc.). This Brochure has been prepared
to provide summary information to prospective investors and to establish a preliminary level of interest in establishing
an investment relationship with Embree, which may or may not include the sale or purchase of any specific property
referenced herein. Several Embree Group employees are licensed real estate agents and brokers in various states.
The subject property is currently under construction and photos shown herein are representative only. The information
contained herein is not a substitute for a thorough due diligence investigation. Embree Group has supplied information
in this Brochure from sources we believe are reliable; however, all potential Buyers and Investors must take appropriate measures to investigate and verify the income and expenses for any specific property, the future projected financial
performance of any specific property, the size and square footage of any specific property and its improvements, the
presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant
or any tenant’s plans or intentions to continue its occupancy of any specific property.
Embree Group reserves the right to withdraw this solicitation at any time without prior notice. The information contained herein is based upon sources deemed to reliable, but the accuracy of the information is not guaranteed, nor
should the information contained herein be considered all inclusive. Statements contained herein which involve matters of opinion, whether or not identified to be that only, are not representations of fact. The price and terms of this offering may be subject to change at any time.
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PROPERTY AND LEASE SUMMARY
OFFERING
Embree Capital Markets Group is pleased to offer for sale
a high-quality, single-tenant, ground-leased retail asset.
This property is newly developed in 2014 and is being
offered free and clear of any debt. It is a unique opportunity for an investor to acquire an investment-grade,
credit-tenant ground lease near a large central business
district with unusually dense demographics.
ADDRESS
1885 W. Buckeye Rd., Phoenix, AZ 85007
TENANT
AutoZone Development Corporation
GUARANTOR
AutoZone, Inc.
BUILDING SIZE
Approximately 7,400 rentable square feet
LOCATION DESCRIPTION
The property is located in the heart of Phoenix, which is
the capital city of the U.S. state of Arizona and the seat of
government of Maricopa County. With approximately 1.5
million residents, Phoenix is the most populous state capital in the United States, as well as the sixth most populous city, behind New York, Los Angeles, Chicago, Houston, and Philadelphia, respectively.
CONSTRUCTION TYPE
Structural steel, concrete block, and stucco
LAND SIZE
Approximately 1.1 acres
ASSET CLASS
Single-tenant, net-leased retail
ANNUAL RENT
$72,000
CAPITALIZATION RATE
5.00%
PURCHASE PRICE
$1,440,000
RENT COMMENCEMENT
April 30, 2014 (Est.)
PRIMARY LEASE END
April 30, 2029 (Est.)
PRIMARY LEASE TERM
15 years
LEASE TYPE
Ground Lease
LEASE ESCALATIONS
10% every five years, including primary term
RENEWAL OPTIONS
Three five-year renewal options
Settled in 1867 as an agricultural community near the
confluence of the Salt and Gila Rivers, Phoenix incorporated as a city in 1881. Located in the northeastern
reaches of the Sonoran Desert, Phoenix has a subtropical desert climate, but its canal system led to a thriving
farming community. In fact, the "Five C's" (Cotton, Cattle,
Citrus, Climate, and Copper), remained the driving forces
of Phoenix's economy until after World War II, when hightech industries began to move into the valley.
The population growth rate of the Phoenix metro area
has been nearly 4% per year for the past 40 years. While
that growth rate slowed during the Great Recession, it
has already begun to rebound. Currently ranked 6th in
population, it is predicted that Phoenix will rank 4th by
2020. Being near the center of the state, Phoenix is the
launching point for various attractions in the Valley of the
Sun, as well as the rest of Arizona.
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TENANT PROFILE
Company Type: Public - NYSE (AZO)
2013 Revenue: $9.1 billion+
Store Count: 5,200+
Employees: 42,000+
S&P Credit Rating: BBB (Investment Grade)
Website: www.AutoZone.com
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Concept Photo
AutoZone is the number #1 auto parts retailer in America operating over 5,200 stores in 49 states and the District of Columbia.
A Fortune 300 company, AutoZone had sales over $9.1 billion in fiscal 2013.
AutoZone is based in Memphis, Tennessee, and is engaged primarily in the business of the retail sale of automotive parts
and accessories. It was originally a division of Memphis-based wholesale grocer Malone & Hyde, and went under the
name Auto Shack. After the sale of the grocery operation to the Fleming Companies of Oklahoma City, the name of the
company was changed to AutoZone to reflect the new focus.
Its major competitors include Pep Boys, Advance Auto Parts, O'Reilly Auto Parts, CSK Auto, Checker Auto Parts, CARQUEST
and NAPA.
AutoZone maintains investment-grade credit ratings from both Standard & Poor’s (BBB) and Moody’s (Baa1).
Sources: Hoover’s, D&B, S&P, Moody’s, and SEC filings. All information believed to be accurate, but not guaranteed.
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STATE CONTEXT MAP
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AERIAL - CONTEXT
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19,000+ VPD
AERIAL WITH TRAFFIC COUNTS AND SURROUNDING RETAILERS
16,000+ VPD
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SITE PLAN
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DEMOGRAPHIC SUMMARY
Radius
1 Mile
3 Mile
5 Mile
10,738
91,756
340,072
9,941
85,730
316,441
2010 Census
9,219
82,010
297,368
Growth 2014-2019
8.02%
7.03%
7.47%
Growth 2010-2014
7.83%
4.54%
6.41%
2014 Population Hispanic Origin
7,515
59,375
208,573
White
7,515
70,441
252,389
Black
1,594
8,023
33,654
Am. Indian & Alaskan
446
3,756
13,602
Asian
126
1,353
8,019
11
232
940
249
1,926
7,837
2019 Projection
3,097
28,323
104,784
2014 Estimate
2,872
26,379
97,119
2010 Census
2,679
25,018
90,549
Growth 2014 - 2019
7.83%
7.37%
7.89%
Growth 2010 - 2014
Population:
2019 Projection
2014 Estimate
2014 Population by Race:
Hawaiian & Pacific Island
Other
Households:
(0.97%)
(2.10%)
0.62%
Owner Occupied
932
10,983
44,634
Renter Occupied
1,940
15,396
52,485
2014 Avg Household Income
$27,350
$40,771
$43,587
2014 Med Household Income
$20,719
$25,652
$31,073
1,723
12,976
41,789
$25,000 - $50,000
724
6,472
25,916
$50,000 - $75,000
2014 Households by Household Inc:
<$25,000
9
319
3,265
13,862
$75,000 - $100,000
50
1,720
7,314
$100,000 - $125,000
12
777
4,086
$125,000 - $150,000
8
446
1,669
$150,000 - $200,000
$200,000+
32
1
379
343
1,484
1,001
DEMOGRAPHICS CONTINUED
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prototype Photo
For further inquiries, please contact:
Josiah Byrnes
719.243.6569
JByrnes@EmbreeGroup.com
ABOUT EMBREE
The Embree Group of Companies provide nationwide, turnkey real estate
services, specializing in build-to-suit development, design/build, general
construction, program management, and capital markets for retail, financial,
automotive, restaurant, pharmacy, and healthcare facilities. Embree’s fully
integrated, in-house services allow us to become an extension of the tenant's
organization. Since 1979, Embree’s foundation has been built on developing tailored programs for 350+ national clients. The firm is headquartered
near Austin, Texas, with regional offices located in Arizona, Colorado, and
California. Over the past 35 years, Embree’s executive team has developed,
built, or transacted more than 8,500 assets in all 50 states and Canada with a
total market value exceeding $10 billion.