Corporate Guaranteed NAPA Auto Parts New Orleans

10150 I-10 Service Rd, New Orleans, LA 70127, USA
$1,100,000

Description

The Tenant, Genuine Auto Parts (NAPA Corporate), has been operating at this location since 2014. The double net lease has 7.5 years of term remaining with three five year options behind it. The rent is well below market at $6.60 per square foot. This store is one of two NAPA Auto Parts in all of New Orleans. These factors all demonstrate the importance of this location to the Tenant. Auto parts retailers historically perform very well in recessionary environments due to increased aging vehicles and DIY repairs. Auto Parts are considered essential retail and remained open throughout the pandemic. The landlord is responsible for roof, structure, HVAC, and parking lot, all of which are in good condition. The adjacent property is entirely separate, does not share a wall or cross access, and operates as a medical transportation company.
New Orleans is considered a Tier 1 MSA renowned for its cuisine and culture but is also one of the busiest hubs in the world for the distribution and transportation of waterborne cargo. The store benefits from a high population density of 82,645 people within a 5 mile radius. Interstate 10 is the only interstate highway that runs through New Orleans, West to Los Angles, CA, and East Jacksonville, FL. A new poly sign has been installed, visible on Insterstate 10 to over 98,000 vehicles per day. Interstate 10 is highly accessible, with entrance and exit ramps within a 1 minute’s  drive. Other major national retailers in the immediate trade area include Walmart Super Center, CVS, Walgreens, Chase, Mcdonald’s, Popeye’s, and many more.
New Orleans’ retail vacancy rate of 2.5% remains near a record low for the metro and is far below the market’s 10-year average of 4.5%. A persistently low vacancy rate has helped landlords maintain pricing power over the past few years and throughout the pandemic. Trailing 12-month rent growth of 4.6 percent is slightly above the national benchmark of 4.1%. The major draw to living in New Orleans appears to continue to be quality of life, as New Orleans offers one of the most walkable, different cities and cultures in the United States. This lifestyle has attracted transplants seeking a more affordable lifestyle in one of America’s quintessential cities.

  • Double Net (NN) Lease Allows For a Passive Investment With Minimal Landlord Responsibilities
  • Corporate Guarantee From Genuine Parts Company Which is the Largest Global Auto Parts Network
  • Tenant Has a Long Term History at This Location Operating Since 2014
  • Below Market Rent
  • 10% Rent Increases in Option Periods
  • One of Two (2) NAPA Auto Part Stores in All of New Orleans
  • Essential Business – Open Throughout the Pandemic
  • Excellent Access and Visibility Along I-10 With Over 98,274 Vehicles Per Day
  • Interstate 10 is a Major Freight Route from California to Florida
  • Over 82,645 Residents Making an Average Household Income of $51,258 Within a 5-Mile Radius
  • Nearby Tenants Include: Walmart Supercenter, Home Depot, CVS, Walgreens, Chase, Popeyes, Best Western, McDonald’s, Big Lots, Enterprise, and Many More

Property Documents

  • City: New Orleans
  • State/county: Louisiana
  • Zip/Postal Code: 70127
  • Country: United States

Detail

  • Price: $1,100,000
  • Year Built: 2006

Additional details

  • CAP RATE: 6.00%
  • NOI: $66,000

Features