Mavis Discount Tire
East Norriton, PA
Key Details
| Price: | $2,125,568 |
|---|---|
| Cap Rate: | 5.50% |
| Annual Rent: | $116,906 |
| Address: | 24 West Germantown Pike, East Norriton, Pennsylvania 19401 |
| Property Type: | Retail |
| Lease Type: | Triple Net (NNN) |
Property Data
| Original Lease Term: | 20 Years |
|---|---|
| Lease Commencement: | 12/1/2020 |
| Lease Expiration: | 11/30/2040 |
| Lease Term Remaining: | 15.9 Years |
| Rental Increases: | 7.50% Every 5 Years |
| Lot Size: | 2.22 Acres |
| Building Size: | 11,706 SF |
| Year Built: | 2000 |
NNN Pro is pleased to present the exclusive listing for a Mavis Discount Tire located at 24 West Germantown Pike, East Norriton, Pennsylvania 19401. The site consists of roughly 11706 rentable square feet of building space on an estimated 2.22-acre parcel of land. This Mavis Discount Tire is subject to a 20-year Triple Net (NNN) lease, which commenced 12/1/2020. The current annual rent is $116,906 and has scheduled increases of 7.50% Every 5 Years.
About the Investment
- Long-Term Triple Net (NNN) Lease | The investment property is subject to a long-term, triple net (NNN) lease with 16 years remaining. The lease has no landlord responsibilities.
- Strong Corporate Guarantee | The lease is subject to a strong corporate guarantee from Mavis Tire Express Services TopCo Corp, a 2000+ unit guarantee, the largest tire service operator in the US. Mavis currently operates the following brands with a highly diversified business mix: Mavis Discount Tire, Express Oil Change, Brakes Plus, NTB, Tire Kingdom, Tuffy Tire, and Town Fair Tire.
- Recession Resistent Due to Non Discretionary Nature of Services | The tire services business is highly recession-resistant. During COVID-19, tire shops and maintenance experienced an average revenue increase of 44%.
- Attractive Rent Increases and Renewal Options | The lease features scheduled increases of 7.50% every 5 years. It is also subject to 6, 5-year options to extend lease term for an additional 30 years.
- Low Rent and Price Point Deal | With a price per SF of $182, this investment property is an attractive opportunity that is priced below development cost. Compared to other tire retailers, this investment also has a significantly lower r/sf at $9.99.
Key Details
| Price: | $2,125,568 |
|---|---|
| Cap Rate: | 5.50% |
| Annual Rent: | $116,906 |
| Address: | 24 West Germantown Pike, East Norriton, Pennsylvania 19401 |
| Property Type: | Retail |
| Lease Type: | Triple Net (NNN) |
Property Data
| Original Lease Term: | 20 Years |
|---|---|
| Lease Commencement: | 12/1/2020 |
| Lease Expiration: | 11/30/2040 |
| Lease Term Remaining: | 15.9 Years |
| Rental Increases: | 7.50% Every 5 Years |
| Lot Size: | 2.22 Acres |
| Building Size: | 11,706 SF |
| Year Built: | 2000 |
Talk to the Pros
Glen Kunofsky
gkunofsky@nnnpro.com
License: NY: 49KU1129178
Alexandre Marietto
amarietto@nnnpro.com
License: NY: 10401294047
Kyle Karsian
kkarsian@nnnpro.com
License: NY: 10401321452
Broker of Record
Brian Brockman
Bang Realty-Pennsylvania, Inc
License: RM432816
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This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs.