The subject property is a 7,000-square foot freestanding O’Reilly Auto Parts in Indianapolis, Indiana. The double-net lease has a corporate guarantee from a publicly traded company (NASDAQ: ORLY). O’Reilly has a BBB+ credit rating from Standard & Poors. Over fourteen years remain on the primary term, and the lease has eight percent rent escalations scheduled every five years. The tenant has three, five-year options for renewal. Originally built in 1985, the building was renovated in 2010 and sits on 1.07 acres.
The subject property is located on East 82nd Street in a dense retail trade area in between Interstate 465 and Interstate 69. The subject property is two block east of Castleton Square Mall, the largest mall in the state of Indiana serving the northern Indianapolis metro area which includes the affluent communities of Carmel, Fishers, and Noblesville. The mall features 130 stores, anchored by JCPenney, Macy’s, Dick’s Sporting Goods, Sears, AMC Theater, and Von Maur. Other national tenants in the surrounding area include Olive Garden, Red Lobster, Hooters, Men’s Wearhouse, Best Buy, Toys ‘R Us, Guitar Center, On the Border, Outback Steakhouse, Dave & Buster’s, HobbyTown, Golfsmith, Haverty’s, Denny’s, , Discount Tire, Starbucks, and numerous others. The five mile population exceeds 170,900 residents, with an average household income of $86,743.
