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AutoZone Ground Lease, Cleveland, TN

AutoZone Ground Lease

Cleveland, TN

Price $1,800,000
Cap Rate 4.00%
NOI $72,000
Lease Term 15 Years
Lease Type Absolute NNN Ground Lease, With Tenant Responsible For All Taxes, Insurance, Maintenance, And Repair, Including Roof, Structure, And Parking Lot
Rental Increases 8% Rental Increases Every Five (5) Years
Year Built 2021
Building Size 7,054 SF
Lot Size 0.86 Acres (37,462 SF)
Status Available
Lead Broker Information Michael T. Yuras, CCIM
Executive Managing Director
415.481.0788
michael.yuras@cushwake.com
CA RE License #01823291

Scott Crowle
Managing Director
415.604.4288
scott.crowle@cushwake.com
CA RE License #01318288

Vincent Aicale
Executive Director
415.690.5522
vince.aicale@cushwake.com
CA RE License #01728696

Ryan Forsyth
Executive Director
415.413.3005
ryan.forsyth@cushwake.com
CA RE License #01716551

Investment Highlights

LONG-TERM ABSOLUTE NNN GUARANTEED GROUND LEASE TO NATIONAL TENANT
» 15-year absolute NNN ground lease to AutoZone (NYSE: “AZO”)
» New 2021 construction featuring latest AutoZone store prototype
» Eight percent rental increases in initial term and option periods, providing an excellent hedge against inflation
» No landlord management, ideal for an out of area investor

HIGH-TRAFIFIC LOCATION IN DENSELY POPULATED AND GROWING AREA
» Located along Southeast Dalton Pike (16,774 AADT), a major North-South thoroughfare connecting Tennessee and Georgia
» Beneficial proximity to highly trafficked Tennessee thoroughfares, including U.S. Route 74/ Appalachian Highway (35,293 AADT)
» Excellent location in a major commuter corridor, with close proximity to several high-density single-family developments
» 59,221 residents live within five miles of the location, establishing regular local traffic to the property
» Projected 10 percent average household income increase within one mile of the site in the next five years, poising Cleveland and AutoZone for significant growth

CENTRAL LOCATION NEAR LARGE RETAILERS AND COMMUNITY HUBS
» Infill location at the confluence of highly-trafficked Tennessee thoroughfares, attracting shoppers directly to the site
» Surrounded by a strong mix of well-established national retailers, including Walmart Supercenter, Food City, Walgreens, McDonald’s, Zaxby’s, Wendy’s, and many more
» Three miles from Whirlpool Corporation, Cleveland’s largest employer (1,503 employees)
» Beneficial proximity to highly attended area schools, including Lee University and Blythe-Bower Elementary School (combined 6,008 students)
» Gateway to Chattanooga, Tennessee’s fourth-largest city and one of the two principal cities of East Tennessee, along with Knoxville
» 12 miles from the Tennessee/Georgia borderline, attracting significant commuter traffic to the location



Property Description

The property is located along Southeast Dalton Pike (16,774 AADT), a major North South thoroughfare connecting Tennessee and Georgia. The location maintains a beneficial proximity to highly trafficked Tennessee thoroughfares, including U.S. Route 74/Appalachian Highway, which experiences 35,293 vehicles per day. The site maintains an excellent location in a major commuter corridor, with close proximity to several high-density single-family developments. 59,221 residents live within five miles of the location, establishing regular local traffic to the property. AutoZone is primed to grow along with the surrounding area, with a projected 10 percent average annual household income increase within a one mile radius of the site in the next five years.

The property features a strategic infill location near large retailers and community hubs in a major Tennessee retail corridor. The site is surrounded by a strong mix of national and local retailers, including Walmart Supercenter, Food City, Walgreens, McDonald’s, Zaxby’s, Wendy’s, and many more. The location benefits from its proximity three miles from Whirlpool Corporation, Cleveland’s largest employer (1,503 employees). Visibility is also increased by the site’s location near highly attended area schools, including Lee University and Blythe Bower Elementary School (combined 6,008 students). The location is perfectly situated to service out-of-area shoppers, as the site serves as a common gateway to Chattanooga, Tennessee’s fourth-largest city and one of the two principal cities of East Tennessee, along with Knoxville. The property also resides 12 miles from the Tennessee/Georgia borderline, attracting significant commuter traffic to the location.

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