Publicly Traded Tenant (NYSE: VVV) | $1.71+ Billion in 2025 Revenue
– Valvoline reported $1.71 billion in fiscal 2025 net revenue, up 5.6% from approximately $1.62 billion in 2024.
– 2025 marked Valvoline’s 19th consecutive year of system-wide same-store sales growth. Same-store sales increased 6.1% in 2025.
– Valvoline added 170 net new stores in 2025, an 8.5% increase in its system-wide store count, bringing the total to approximately 2,180 locations.
– For fiscal 2026, Valvoline projected 330–360 additional system-wide stores, 4%–6% same-store sales growth, and $2.0–$2.1 billion of net revenue.
Located in the Highly Affluent Ooltewah, TN Market (Chattanooga MSA)
– The subject property is located in an area with an average household income exceeding $155,000+ in a 2-mile radius.
– The Chattanooga metro area’s population grew by 5.3% between 2020 and 2025, more than twice the national average.
– Chattanooga’s major employers include Volkswagen, BlueCross BlueShield, Erlanger Health System, Tennessee Valley Authority, Chi Memorial and more.
Adjacent to New Publix Grocer Anchored Shopping Center (Shops At Enclave)
– The Shops at Enclave is a 200,000-square-foot, Publix-anchored shopping center featuring more than 60 high-caliber tenants.
– Tenants include Starbucks, Heartland Dental, Great Clips, Jimmy John’s, Beef ‘O’ Brady’s, and many more.
Absolute Net Ground Lease with 13+ Years of Base Lease Term Remaining
– Valvoline signed a 15-year lease commencing in 2025, with four 5-year option periods.
– The lease features 10% rent increases every five years throughout the base lease term and option periods, providing a strong hedge against inflation.
– As a ground lease, the property is leased on an absolute net basis, with no maintenance or repair responsibilities retained by the Landlord.
Major Road Improvements Planned for East Brainerd Road & Ooltewah Ringgold Road
– The project will widen and reconstruct SR 320 and portions of SR 321, creating a consistent five-lane roadway with bicycle lanes and sidewalks.
– Construction is anticipated to begin in Spring 2027. The improvements are intended to address increasing traffic demand.
