592 south broadway single tenant net leased...bridgestone corporation backed down from a bidding war...

5 9 2 S O U T H B R O A D W A Y

8 0 2 0 9D E N V E R , C O

OFFERING MEMORANDUM

SINGLE TENANT NET LEASEDINVESTMENT OPPORTUNITY

2 592 SOUTH BROADWAY | DENVER, CO 80209

NAI Shames Makovsky is pleased to offer a corporately-guaranteed NNN leased Pep Boys retail opportunity located on

South Broadway in Denver, Colorado.

Fully-renovated in 2016, the property includes a 11+-year lease with four five-year extension options, 2% annual rent

increases starting in 2022 and continuing through the extension terms, and is backed by a corporate guarantee. This true

NNN opportunity provides a passive ownership opportunity for investors looking for high-quality commercial real estate

with strong corporate tenancy.

Located on South Broadway, this high traffic count (38,501 cars daily) location provides excellent access to regional

transportation arteries (I-25 / I-70) and an established population base with 218+K residents within a three-mile radius.

Nearby Tenants Include: Sams Club, Ace Hardware, Alberton’s, Home Depot, Taco Bell, Starbucks and many others.

INTRODUCTIONPEP BOYS AUTO SERVICE & TIRE

E X E C U T I V E S U M M A R Y

O F F E R I N GM E M O R A N D U M


INVESTMENT HIGHLIGHTS• Prospective buyer inherits a 900+ UNIT CORPORATE GUARANTEE from one of the largest providers of

automotive parts & services in the world. The parent company is Icahn Automotive Group, LLC, which has $33B in total assets.

• Offering comes with an ideal rent structure for the passive investor; lease is structured as ABSOLUTE NNN with zero landlord responsibil it ies.

• Property sees consistent rent growth over the remainder of the intitial term with 2.0% ANNUAL INCREASES and potentially into the option periods. Pep Boys has the option to extend the lease four (4) consecutive periods of five (5) years each.

• Property is strategically located on one of DENVER'S BUSIEST ARTERIALS, SOUTH BROADWAY, that sees 38,000+ vehicles per day alongside national brands including Sam's Club, Ace Hardware, Albertsons, Starbucks, Home Depot, and many others.

• Pep Boys is a known market leader with TREMENDOUS BRAND RECOGNITION that offers both the sale of automotive parts along with tire, repair, and other related services.

• Located within a dense retail trade area that consists of 318,000 PEOPLE WITHIN A 5-MILE RADIUS of the subject property with proximity to the University of Denver and a short drive from Downtown Denver.

E X E C U T I V E S U M M A R Y



P R O P E R T YO V E R V I E W



FINANCIAL SUMMARYPRICE $1,741,400

CAP RATE 5.35%

ANNUAL NOI $95,949

FINANCING Free & Clear

LEASE SUMMARYTENANT Pep Boys

GUARANTORThe Pep Boys - Manny, Moe, and Jack, a Pennsylvania Corporation

LEASE TYPE Absolute NNN Lease

YEARLY NOI $86,949 (as of 09/2020)

RENT PSF $42.62

TENANT RESPONSIBILITY

Tenant shall keep and maintain premises and improvements, including maintenance of interior & exterior building, all maintenance /repair of HVAC, plumbing, and electrical

LANDLORDRESPONSIBILITY

None

COMMENCEMENT December 22, 2012

EXPIRATION December 31, 2032

ORIGINAL TERM 20 Years

REMAINING TERM 11+ Years

OPTIONS Four 5-Year Options (Fair Market Value)

RENT INCREASES 2.0% Annually






LEASE SUMMARYTENANT Lamar Outdoor Advertising

GUARANTOR Lamar Advertising Company

OWNERSHIP Public REIT (LAMR)

MARKET CAP $6.68B

LEASE TYPE Absolute NNN Lease

LANDLORDRESPONSIBILITY

None

COMMENCEMENT November 1, 2020

EXPIRATION October 31, 2030

ORIGINAL TERM 10 Years

RENTYears 1-5: $9,000/Year*Years 6-10: $10,000/Year

*Per the lease, Year 1 rent is $6,750. At closing, Seller

will credit $3,250 to Buyer to cover the rent difference.


HISTORY Pep Boys Auto, founded in 1921, operates in the automotive

aftermarket industry, providing services, t ires, parts, and

accessories throughout the United States and Puerto Rico.

With over 7,500 service bays in more than 900 locations in 35

states and Puerto Rico, Pep Boys is one of the longest-running

and world’s largest automotive parts retail chains.

JUST BRAKES ACQUISITIONIn January of 2017, Pep Boys announced the purchase of the privately held Just Brakes

company, an automotive repair and maintenance chain. Just Brakes, has been in business

for 36 years, has 134 locations, and operates in 8 states and 14 major metropolitan markets.

Following the closing of the transaction, all Just Brakes locations wil l assume the Pep Boys

banner, pushing the company’s total store count to more than 900 locations across the

country.

PEP BOYS COMPANY OVERVIEW

T E N A N TP R O F I L E



ICAHN ENTERPRISES In December of 2015, Pep Boys agreed to be acquired by Carl lcahn’s

Icahn Enterprises LP. for more than $1 bil l ion after the Japanese

Bridgestone Corporation backed down from a bidding war with the

bil l ionaire investor. Pep Boys benefits from being housed within lcahn’s

Automotive segment, allowing it to leverage synergies with other Icahn-

held companies including Federal-Mogul, a major global supplier of technology and innovation in vehicle and industrial

products, and Auto Plus, a smaller automotive aftermarket company with more than 270 locations around the country.

PRE-ACQUISITION PERFORMANCEPrior to the Icahn acquisition, Pep Boys was its own publicly-traded company

with shares l isted on the New York Stock Exchange trading under the ticker

symbol, PBY. The company’s performance at that time can be characterized

by a combination of growth and fall ing debt levels. Since the mid-2000s, Pep

Boys has grown its store base from approximately 550 locations to more

than 800 prior to the Icahn acquisition - since the December 2015 purchase,

Pep Boys has added roughly 150 locations, pushing the total store count

north of 900. During that same time period, Pep Boys cut its debt-to-equity

ratio and total long-term debt levels by more than half. Additionally, since

2009, Pep Boys has increased its revenues by nearly $500 mill ion, currently

generating upwards of $2 bil l ion in annual revenues.




HISTORY Founded in 1902, Lamar Advertising Company (Nasdaq: LAMR) is one of the

largest outdoor advertising companies in the world, with approximately 385,000

displays across the United States and Canada. Lamar offers advertisers a

variety of bil lboard, interstate logo, transit and airport advertising formats,

helping both local businesses and national brands reach broad audiences every day. In addition to its more traditional

out of home inventory, Lamar is proud to offer its customers the largest network of digital bil lboards in the United States

with over 3,600 displays.

LAMAR ADVERTISING COMPANY OVERVIEW



http://www.lamar.com/http://www.lamar.com/Products/Bulletinshttp://www.lamar.com/Products/Bushttp://www.lamar.com/airportadvertisinghttp://www.lamar.com/Products/Digital


DOWNTOWN DOWNTOWN DENVERDENVER

L O C A T I O NO V E R V I E W



SITESITE

1 MILE 3 MILE 5 MILE

CURRENT POPULATION 21,206 229,023 558,350

TOTAL HOUSEHOLDS 13,097 114,717 261,987

AVERAGE HOUSEHOLD INCOME $99,339 $95,137 $95,091

TOTAL EMPLOYEES 17,142 186,449 354,086

TOTAL BUSINESSES 1,335 11,310 21,623

CONSUMER SPENDING $872M $7.38B $17.01B

DEMOGRAPHICS




The information contained herein does not purport to

provide a complete or fully accurate summary of the

Property or any of the documents related thereto,

nor does it purport to be all-inclusive or to contain

all of the information which prospective buyers may

need or desire. All f inancial projections are based

on assumptions relating to the general economy,

competition, and other factors beyond the control

of the Owner and Broker and, therefore, are subject

to material variation. This Marketing Package does

not constitute an indication that there has been any

change in the business or affairs of the Property

or the Owner since the date of preparation of the

information herein. Additional information and an

opportunity to inspect the Property wil l be made

available to interested and qualif ied prospective

buyers.

Neither Owner nor Broker nor any of their respective

officers, Agents or principals has made or wil l make

any representations or warranties, express or

implied, as to the accuracy or completeness of this

Marketing Package or any of its contents, and no

legal commitment or obligation shall arise by reason

of the Marketing Package or its contents. Analysis

and verif ication of the information contained in the

Marketing Package is solely the responsibil ity of the

prospective buyer, with the Property to be sold on

an as is, where-is basis without any representations

as to the physical, f inancial or environmental

conditional of the Property.

Owner and Broker expressly reserve the right, at

their sole discretion, to reject any or all expressions

of interest or offers to purchase the Property and/

or terminate discussions with any entity at any

time with or without notice. Owner has no legal

commitment or obligations to any individual or entity

reviewing the Marketing Package or making an offer

to purchase the Property unless and until such sale

of the Property is approved by Owner in its sole

discretion, a written agreement for purchase of the

Property has been fully delivered, and approved by

Owner, its legal counsel and any conditions to the

Owner's obligations there under have been satisfied

or waived.

This Marketing Package and its contents, except

such information which is a matter of public record

or is provided in sources available to the public (such

contents as so limited herein called the "Contents"),

are of a confidential nature. By accepting this

Marketing Package, you unconditionally agree that

you wil l hold and treat the Marketing Package and

the Contents in the strictest confidence, that you wil l

not photocopy or duplicate the Marketing Package

or any part thereof, that you wil l not disclose the

Marketing Package or any of the Contents to any

other entity (except in the case of a principal, who

shall be permitted to disclose to your employees,

contractors, investors and outside advisors

retained by you, or to third-party institutional

lenders for financing sought by you, if necessary,

in your opinion, to assist in your determination of

whether or not to make a proposal) without the

prior authorization of the Owner or Broker, and that

you wil l not use the Marketing Package or any of

the Contents in any fashion or manner detrimental

to the interest of the Owner or Broker.

1400 Glenarm Place, Suite 100Denver, CO 80202naishamesmakovsky.com

CHRIS WIEDENMAYER +1 303 565 [email protected]

I N V E S T M E N TOPPORTUNITY

C O N F I D E N T I A L I T YD I S C A L I M E R

NAI Shames Makovsky1400 Glenarm Place, Suite 100Denver, CO 80202+1 303 534 5005naishamesmakovsky.com

CHRIS WIEDENMAYER +1 303 565 [email protected]

592 south broadway single tenant net leased...bridgestone corporation backed down from a bidding war...

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