INVESTMENT GRADE TENANT • AutoZone is a publicly traded (NYSE: AZO) Fortune 500 company and currently holds an investment grade credit rating of BBB with S&P. • #2 auto parts retailer with 6,000+ locations in the United States and 40 new locations expected in 2019. • AutoZone has been in business for 39 years and has a current net worth of over $22.9B.
CORPORATE NNN GROUND LEASE WITH INCREASES • 20-year NNN Ground Lease with 7 years remaining and 10% rent increases in lease and each of the four, 5-year options. • Tenant is 100% responsible for all expenses, which include taxes, CAM, insurance, roof and structure.
CLEVELAND • Cleveland is the 2nd largest city in Ohio (pop. 388,072). • Cleveland is a manufacturing hub, and other economic drivers include financial services, healthcare and biomedicals.
PRIME METRO LOCATION • Subject property is within a half mile of I-490 (144,695 VPD) and I-71 (118,569 VPD). • 2M square feet of retail within a 2-mile radius, which includes Walmart, Home Depot, Target, McDonald's, Walgreens and more. • Subject property is less than 1 mile from the MetroHealth System, which recently began a $2M renovation that includes redevelopment of surrounding properties. • 3-mile population is 132,399 and 5-mile population is 305,757.
DESIGNATED OPPORTUNITY ZONE • Opportunity Zone Program is an exciting new investment incentive program designated to provide investors with significant tax benefits for investing capital gains in a Qualified Opportunity Fund (QOF). • Investors can defer tax on capital gains invested in a QOF until the earlier of the date when the investment is sold or exchanged, or December 31, 2026. • If the QOF investment is held for longer than 5 years, there is a 10% exclusion of the deferred gain. If held for more than 7 years, the 10% becomes 15%. • After holding the QOF investment for 10 years, taxpayers may sell the investment in the QOF at any time before 2048 and exclude the gain resulting from the sale.