Description

Marcus & Millichap exclusively offers for sale a new 6,784-square foot Advance Auto Parts located at the University of Delaware in Newark, Delaware, at a purchase price of $2,935,000 or a 8.00 percent cap rate. Advance Auto Parts has a new 15 year NNN lease with a rare 10 percent increase in year 10 of the lease. They have three-five year options with 5 percent increases in each option. Advance Auto Parts has a healthy balance sheet and is doing very well compared to other tenants due to the non-discretionary nature of what they are offering to the market. They have a $1 billion net worth and annual revenues close to $5 billion, making them the second largest auto parts retailer in the country with over 3,000 stores. Their focus moving forward is to attack the commercial side of the auto parts industry by delivering and supplying parts to local and regional car dealerships and manufacturers. They are still expanding given the economy with over 100 new stores planned for 2009 and plans on renovating a few hundred existing stores.

The subject is ideally located just off the intersection of Marrows Road and Chestnut Hill Road, Route 4 in Newark, New Castle County, Delaware. The city of Newark is located in western New Castle County, conveniently situated off of Interstate 95 and just 25 miles to the Aberdeen Proving Ground, Maryland. Newark is served by both the SEPTA and AMTRAK regional rail systems that offer regular passenger and freight train service to destinations north and south. Newark is the second largest city in New Castle County, located just 20 minutes from Wilmington, 45 minutes to Philadelphia and 55 minutes to Baltimore.