For Sale O'Reilly Auto Parts

Confidential Offering Memorandum presented by:

Randy Sheinbeintel 310.936.9320rsheinbein@naicapital.comCA BRE #00700543

854 Summit StreetElgin, IL

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ExecutiveSummary

Property Details

Sale Price $2,797,000

Cap Rate 6.75%

Building Size 7,616 SF

Lot Size 33,290 SF

Property OverviewThe 7,616 square foot O'Reilly retail building was constructed in 2008 alongSummit Street, a primary east-west thoroughfare in the area. The surrounding areais densely populated with over 21,000 people living within a one mile radius of theproperty. Additionally, there are over 186,600 people living within a five mile radiusearning average annual household incomes of approximately $75,000. Theproperty benefits from its location adjacent to a Jewel-Osco grocery anchoredshopping center. The property is centrally located within a strong retail corridor thatfeatures Walgreens, Sears Outlet, Chase Bank, PNC Bank, Fifth Third Bank, andElgin Fresh Market. Access to Interstate 90 is located approximately two milesnorth of the property and Interstate 90 experiences traffic counts in excess of103,000 vehicles per day.

O’Reilly Auto Parts has approximately 5.5 years remaining on their net lease thatexpires in February 2023. The lease features a 10% rental escalation in the primaryterm and in each renewal option period. O’Reilly Auto Parts is an investment graderated tenant (S&P: BBB) and is publicly traded (NASDAQ: BBB) with a marketcapitalization in excess of $15.5 billion.

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Property

DetailsPROPERTY NAME: O'Reilly Automotive

PROPERTY ADDRESS: 854 Summit Street

Elgin, IL 60120

PROPERTY TYPE: Retail

LOT SIZE: 33,290 SF

BUILDING SIZE 7,616 SF

PRICE: $2,797, 000.00

CAP RATE: 6.75%

RENT SCHEDULE: NOI Escalation Date

$188,800 3/1/18 (Rent differential prorated at closing)

$207,680 3/1/2023 (Option 1)

$228,400 3/1/2028 (Option 2)

RENTAL ESCALATIONS: 10% Every Five Years

RENEWAL OPTIONS: Two 5-Year

LEASE COMMENCEMENT

DATE:

February 29, 2008

LEASE EXPIRATION DATE: February 29, 2023

TENANT: O'Reilly Auto Parts

CREDIT: Investment Grade (S&P: BBB)

YEAR BUILT: 2008

LEASE TYPE: NN (Structure, Parking, HVAC*)

*roof has a 20 year warranty with 9.5 years remaining

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HighlightsComplete

Property Highlights

• O'Reilly net lease with corporate guaranty

• Price: $2,797,000- 6.75% cap

• Remaining Term: 5.5 years

• Income: $188,800/year, NN

• Building 7,616 SF, lot 33,290 SF

• Good location within Chicago MSA

• Investment-grade rated tenant (S&P: BBB)

• 10% rental escalation in each of two 5-yearrenewal option periods

• Densely populated area

• Centrally located in a strong retail corridor

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Location

DescriptionProperty Overview

Retail O'Reilly Auto Parts store for sale

Location Overview

Elgin is a city located in both Cook and Kane countiesin the northern part of Illinois approximately 35 milesnorthwest of downtown Chicago. As of 2015 the cityhad a population of 114,145. Elgin has three stationson Metra's Milwaukee District/West Line, whichprovides daily rail service between Elgin and Chicago.Additionally, Elgin is served by Interstate 90 whichleads to downtown Chicago.

Chicago is one of the most populous cities in theMidwestern United States and the third most populouscity in the United States with over 2.7 million residents.Chicago is the county seat of Cook County, thesecond largest county in the United States. TheChicago MSA is the third most populated metropolitanarea in the United States with an estimated populationof 9.4 million residents. The MSA covers over 1,300square miles and six counties. The Chicagometropolitan area is home to the corporateheadquarters of 57 Fortune 1000 companies,including Boeing, McDonald's, Motorola, DiscoverFinancial Services, and United Airlines. Chicago is amajor hub for industry, telecommunications, andinfrastructure, and O'Hare International Airport is thesecond busiest airport in the world in terms of volume.

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PlanSite

MapRetailer

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• Website: www.oreillyauto.com

• Credit Rating:Investment Grade (S&P: BBB)

• Stock Symbol: ORLY (NASDAQ)

• Market Capitalization: $17.7 Billion

• Number of Locations: 4,935

• Headquarters: Springfield, MO

ProfilesTenant

O'Reilly Auto Parts

O'Reilly Automotive, Inc., together with its subsidiaries, is engaged in theretail of automotive aftermarket parts, tools, supplies, equipment, andaccessories in the United States. The company provides new andre-manufactured automotive hard parts, including alternators, starters, fuelpumps, water pumps, brake system components, batteries, belts, hoses,temperature controls, chassis parts, and engine parts; maintenance itemscomprising oil, antifreeze products, fluids, filters, wiper blades, lightingproducts, engine additives, and appearance products; and accessories,such as floor mats, seat covers, and truck accessories. Its stores offerauto body paint and related materials, automotive tools, and professionalservice provider service equipment. Its stores provide do-it-yourself anprofessional service, providing customers with a selection of brand name,house brand, and private label products for domestic and importedautomobiles. As of June 30, 2017, the company operates 4,935 stores in47 states. O'Reilly Automotive, Inc. was founded in 1957 and isheadquartered in Springfield, Missouri.

O'Reilly Auto Parts is publicly traded on the NASDAQ (ORLY) and has amarket capitalization in excess of $17.7 billion. O'Reilly's is an investmentgrade rated company with a Standard & Poor's rating of BBB.

Tenant Highlights

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