Strong Corporate Guaranty – Express Oil Change, LLC (550+ Locations)
– The Lease is backed by a best -in-class corporate guaranty from Express Oil Change, LLC, which is a 550+ unit entity.
– Mavis is one of the largest tire and automotive service operators in the US, boasting a family of brands which include: Mavis Discount Tire, Mavis Tires & Brakes, Midas, Express Oil Change & Tire Engineers, Brakes Plus, Tire Kingdom, NTB (National Tire & Battery), Town Fair Tire, and Tuffy.
– From tires, oil changes, brakes, alignments, and batteries, to suspensions, exhaust work, and state inspections, they serve 3,500+ owned and franchised retail locations across the U.S. and Canada.
Absolute NNN Lease | 10+ Years Remaining | 10.00% Rent Increases Every 5 Years
– The tenant operates on an Absolute NNN lease at each location, with the landlord having zero management or maintenance responsibilities whatsoever.
– Mavis originally signed 20-year leases at each site, and there are now 10+ years of term remaining.
– The lease calls for 10.00% rental increases every five years throughout both the base term and option periods.
Ideal 1031 Exchange Price Points & Well-Below Market Rents
– The average rent/sf for single-tenant retail in the Huntsville, AL market is $19.27. With the three subject properties paying rents are $7.42/sf (Jordan), $11.67/sf (Memorial) and $13.45/sf (University), each of the sites are paying replaceable rents that are below market by a substantial margin.
– Additionally, through compiling a sample size of 91 recent Mavis sales, the average price point for a Mavis deal across this set was $2,811,000. The average price point across this 3-unit portfolio is $1,432,000.
Huntsville, AL – #1 Most Populated City in Alabama
– With 230,402 people, Huntsville is the most populated city in the state of Alabama (US Census data).
– Huntsville has seen a 15.9% growth rate over the last 5 years, which is one of the highest across all cities nationwide.
– Huntsville is recognized for its robust job market, featuring low unemployment and major expansions in aerospace, defense, tech, and biotech sectors (FBI, Redstone Arsenal, Space Command, Toyota, Mazda, Blue Origin).
