O'Reilly - Madera, CA

O’REILLY AUTO PARTS

301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

MARKETING PACKAGE TABLE OF CONTENTS 03 Investment Summary 04 Property Photo 05 Lease Summary 06 Rent Schedule 07 Retail Aerial 09 Site Plan 10

About the Brand

11

Location Overview

CONTACT INFORMATION

joel cukier

Senior Associate (424) 325-2618

02

301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

INVESTMENT SUMMARY Tenant Street Address City State Zip GLA Lot Size Year Built

O’Reilly Auto Parts 301 W. Olive Ave Madera CA 93637 7,560 SF

$

$2,456,038 LIST PRICE

% 5.30% CAP RATE $

$130,170

NET OPERATING INCOME

0.61 AC

Price / SF

$324.87

1998

Rent / SF

$17.22

Absolute Net (NNN) Lease with Zero Landlord Responsibilities - O’Reilly is operating under a true Absolute Net (NNN) lease giving the investor the peace of mind of a truly passive real estate investment with zero landlord responsibilities.

Strong Corporate Guarantee | Investment Grade Credit - The lease is corporately guaranteed by O’Reilly Auto Enterprises, LLC (NASDAQ: ORLY) with an S&P investment-grade credit rating of BBB respectively.

Strategic Location Along the 99 State Highway - The subject site is strategically located at the corner of Olive Ave and the Golden State Highway US - 99, a major north-south state highway in the state of California, stretching almost the entire length of the Central Valley which sees over 81,000 daily vehicles passing the site.

Long Operating History & Early Lease Extension - O’Reilly Auto Parts has operated at this location for over 20 years, and recently extended their lease for an additional 10 years demonstrating their long-term commitment to the site.

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301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

Property Photo

04

301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

LEASE SUMMARY Lease Type

Type of Ownership

Absolute Net (NNN) Fee Simple

Real Estate Taxes

Tenant Responsible

Insurance

Tenant Responsible

Original Lease Term

20 Years

Roof & Structure

Tenant Responsible

Commencement Date

10/1/1998

Lease Guarantor

Corporate

Lease Expiration

9/30/2028

Company Name

O’Reilly Auto Parts

Term Remaining

8+ Years

Increases Options

12.5% in Each Option Two (2), 5-Year

Ownership Years in Business Number of Locations

Public 62 Years 5,460

Excellent Rent Growth - The lease calls for 12.5% rental increases at the beginning of each of the the 5-year option periods, providing an investor with an excellent hedge against inflation.

Excellent Demographics & Population Growth - The site benefits from its dense demographics and year over year population growth with an additional 4% population growth by 2025. There are currently over 86,000 residents in the five-mile radius to the property with an average annual household income of over $50,000.

Leading Auto Parts Retailer - O’Reilly Auto Parts has grown to 5,460 locations and continue to lead their sector in all areas of the market. Their large distribution network and list of competitive advantages add value to their company and make their stores stable, lucrative net-lease investments.

Neighboring Retailers - The subject site is surrounded by national and regional retailers including Walmart, Lowe’s, Planet Fitness, Food 4 Less, Home Depot, Dollar Tree, Rite Aid, and a brand new Starbucks next door further increasing consumer traffic and crossover shopping.

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301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

RENT SCHEDULE Period

Term

Annual Rent

Monthly Rent

Increase

CAP Rate

10/1/2018 - 9/30/2028

Base Term

$130,170.00

$10,847.50

-

5.30%

10/1/2028 - 9/30/2033

1st Option

$146,441.25

$12,203.44

12.5%

5.96%

10/1/2033 - 9/30/2038

2nd Option

$164,746.41

$13,728.87

12.5%

6.71%

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301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

RETAIL AERIAL

07

301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

RETAIL AERIAL

08

301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

SITE PLAN

09

301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

ABOUT THE BRAND O’Reilly Auto Parts O’Reilly Auto Parts is an American auto parts retailer that provides automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States serving both the professional service providers and do-ityourself customers. Founded in 1957 by the O’Reilly family, the company operates more than 5,460 stores in 47 states. O’Reilly Automotive intends to be the dominant supplier of auto parts in their market areas by offering their retail customers, professional installers, and jobbers the best combination of price and quality provided with the highest possible service level.

Their dedication to the professional helped set the stage for O’Reilly Auto Parts to be one of the largest aftermarket parts suppliers in the United States. On August 20, 2019, O’Reilly Auto announced it would be acquiring Mayasa Auto Parts. This marks O’Reilly Auto Parts first venture into international markets. Mayasa has 5 distribution centers, 20 company stores, and more than 2000 independent jobber locations throughout Mexico.

2019 Increase in Sales and Net Income Sales for the year ended December 31, 2019, increased $614 million, or 6%, to $10.15 billion from $9.54 billion for the same period one year ago. Gross profit for the year ended December 31, 2019, increased 7% to $5.39 billion (or 53.1% of sales) from $5.04 billion (or 52.8% of sales) for the same period one year ago. Net income for the year ended December 31, 2019, increased $67 million, or 5%, to $1.39 billion (or 13.7% of sales) from $1.32 billion (or 13.9% of sales) for the same period one year ago.

5,460

BBB

$10.15 Billion

6%

NUMBER OF LOCATIONS

$

10

ANNUAL SALES

S&P CREDIT RATING

2018-2019 SALES GROWTH

301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

LOCATION OVERVIEW Madera, CA “The Perfect Location” Madera, CA is in the “heart” of California as it serves as the “Passageway to the Sierras”; and is located in the exact center of California. Madera residents find they have easy access to Yosemite, Kings Canyon and Sequoia National Parks along with access to the Pacific Coast, Bay Area and Southern California.

Located in the San Joaquin Valley, Madera is a principal city of the Madera–Chowchilla Metropolitan Statistical Area, which encompasses all of Madera County, and Metropolitan Fresno. It is located in California’s San Joaquin Valley. Madera County encompasses 2,147 square miles, with the City of Madera covering approximately 14 square miles.

From stagecoach holdups to the hunt for notorious outlaw Black Bart, Madera County has a rich history of the gold rush, the logging industry, and the struggle to become its own county. Madera, which means “wood” in Spanish, shifted from a thriving timber market to a bountiful agriculture industry. It is now a gateway to Yosemite National Park hosting tourist and locals alike in quaint towns and cities that evolved from a lively past.

Fresno, CA Madera, CA is part of the Fresno–Madera, CA CSA, a metropolitan area in the San Joaquin Valley, consisting of Fresno and Madera counties. It is the third-largest metropolitan region in Northern California, behind the Bay Area and Greater Sacramento Metropolitan. Fresno is anchored by Fresno, the fifth-largest city in California and the 35th-largest in the United States. The metropolitan area is located in the Central Valley, which is one of the world’s most productive agricultural regions. It has a large agricultural economy despite being increasingly urbanized.

The city growth rate has never dropped below zero. Within the period of the 2000-2010 year, the population of Fresno has increased 41% and it continues to grow very fast. Amongst a growing populatiom, residents talk about their city’s lively arts scene, fine state university and easygoing vibe. The city is situated in the middle of the state, allowing residents to get into the Sierra Nevada in under two hours and to the Pacific in under three.

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301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

LOCATION OVERvIEW 1.

Forestiere Underground Gardens 5021 W. Shaw Ave, Fresno, CA 93722 14.5 MILES FROM SUBJECT PROPERTY

2. Fresno Chaffee Zoo 894 W. Belmont Ave, Fresno, CA 93728 19.9 MILES FROM SUBJECT PROPERTY

3. Island Waterpark 6099 W. Barstow Ave, Fresno, CA 93723 15.2 MILES FROM SUBJECT PROPERTY

4. Shinzen Friendship Garden 114 W. Audubon Dr, Fresno, CA 93720 20.6 MILES FROM SUBJECT PROPERTY

5. Fresno County Blossom Trail Fresno County Blossom Trail, Fresno, CA 93725 29 MILES FROM SUBJECT PROPERTY

6. Fresno Art Museum 2233 N. First St, Fresno, CA 93703 21.4 MILES FROM SUBJECT PROPERTY

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301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

LOCATION OVERvIEW

01 FORESTIERE UNDERGROUND GARDENS

Multiple subterranean structures built by Baldasare Forestiere.

02 FRESNO CHAFFEE ZOO

This zoo covers 39 acres and houses over 190 species.

04 SHINZEN FRIENDSHIP GARDEN INC.

Serene garden built by the local Japanese-American community.

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03 ISLAND WATERPARK

Summertime spot for amusement water rides, pools and more.

05 WOODWARD PARK

It is the largest of the three major public parks in the Fresno area.

06 FRESNO ART MUSEUM

The collection includes modern Mexican and Mexican-American art.

301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

DEMOGRAPHICS

POPULATION

1-Mile

3-Mile

5-Mile

2025 Projection

20,733

79,362

89,910

2020 Estimate

19,909

76,431

86,604

2010 Census

18,107

70,745

80,233

Growth ‘20 - ‘25

4.14%

3.83%

3.82%

Growth ‘10 - ‘20

9.95%

8.04%

7.94%

1-Mile

3-Mile

5-Mile

2025 Projection

5,158

20,693

23,480

2020 Estimate

4,941

19,879

22,567

2010 Census

4,443

18,184

20,701

Growth ‘20 - ‘25

4.39%

4.09%

4.05%

Growth ‘10 - ‘20

11.21%

9.32%

9.01%

Average Income

$48,036

$60,891

$64,416

Median Income

$40,303

$46,183

$49,419

HOUSEHOLDS

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301 W. OLIVE AVE, MADERA, CA 93637

O’REILLY AUTO PARTS

DISCLAIMER

The information contained in this Marketing Brochure has been obtained from sources believed to be reliable, but the accuracy or completeness of the information contained therein cannot be guaranteed. James Capital Advisors, Inc. (“Broker”) has not, and will not, verify any of this information, nor has Broker conducted, nor will it conduct, any investigation regarding these matters. Broker makes no representations, guarantees, or warranties of any nature about the accuracy or completeness of any information provided. The information provided in this brochure is in no way a substitute for a thorough due diligence investigation

by Buyer. Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to income and expenses for this property nor the future financial performance of the property. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties as to the size and square footage of the property, the presence of any contaminating substances at the property, the physical condition of the property or compliance with any State, Local or Federal regulations. In addition, Broker has made no investigation of, and has made no representations, guarantees, or warranties of any nature, with regard to the financial condition or future financial condition of any tenants, nor any future plans or intentions of tenants with regard to the continued occupancy of the property. All parties are aware that Broker has no affirmative obligation to conduct a due diligence examination of the property for any Buyer. Any and all projections or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. Therefore, Broker assumes no legal responsibility for accuracy or completeness of this information, and expressly disclaims all representations, guarantees, or warranties related thereto.

The value of the property to any Buyer depends on numerous factors that must be evaluated by Buyer and Buyer’s legal, tax, construction, and financial advisors. Buyer and Buyer’s advisors should conduct a thorough, independent investigation of the property to determine its suitability for Buyer’s intended usage. This investment, as with all real estate investments, carries a substantial risk. As such, Buyer and Buyer’s legal and financial advisors are strongly advised to request and review all legal and financial documentations related to the property and tenants.

A tenant’s past performance is not a guarantee of future performance. The lease rate stated for some properties may be based on a tenant’s projected sales with little or no record of actual performance or comparable rents for the area in question. Returns are in no way guaranteed. Tenants may fail to pay the rent or property taxes or any other tenant obligations under the terms of the lease or may default under the terms of such lease. Regardless of tenant’s history of performance, and/or any lease guarantors and/or guarantees, Buyer is responsible for conducting Buyer’s own investigation of all matters related to any and all tenants and lease agreements. Broker is not, in any way, responsible for the performance of any tenant or for any breach or default by any tenant of any terms of any lease agreement related to the property.

Further, Buyer is responsible for conducting Buyer’s own independent investigation of all matters related to the value of the property, including, but not limited to, the value of any long-term leases. Buyer must carefully evaluate the possibility of tenants vacating the property or breaching their leases and the likelihood and financial impact of being required to find a replacement tenant if the current tenant should default and/or abandon the property. Buyer must also evaluate Buyer’s legal ability to make alternate use of the property in the event of a tenant abandonment of the property.

CONFIDENTIALITY This Marketing Brochure and the information contained within, is propriety and strictly confidential. It is intended to be used only by the party receiving it from Broker. It should not be made available to any other person or entity without the express written consent of Broker.

RELEASE This Marketing Brochure has been prepared to provide basic, unverified information for prospective purchasers. By accepting this Marketing Brochure, the recipient agrees to release and hold harmless Broker from any claim, demand, liability or loss arising out, or relating in any way, to the information contained in this Marketing Brochure and from Buyer’s investigation of the property. In no event shall James Capital Advisors, Inc. or Broker be liable to any party for any direct, indirect, special, incidental, or consequential damages of any kind whatsoever arising out of the use of this Marketing Brochure or any information contained herein.

NON-ENDORSEMENT Broker is not affiliated with, endorsed by or sponsored in any way by any tenant or lessee identified in this Marketing Brochure. The presence of any entity’s logo or name is not intended in any way to indicate affiliation, sponsorship or endorsement by said entity of Broker.

15

www.jamescapitaladvisors.com

@jamescapitaladvisors

CONTACT INFORMATION LISTING AGENT

joel cukier

Senior Associate (424) 325-2618 joel@jamescapitaladvisors.com CA RE Lic. 02005095

James Capital Advisors, Inc.

www.jamescapitaladvisors.com

@jamescapitaladvisors