Contact us for a complimentary broker opinion of value for your off-market Advance Auto Parts NNN property for sale or Advance Auto Parts ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Advance Auto Parts NNN property or the inclusion of an Advance Auto Parts ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Advance Auto Parts properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
Number of locations
As of January 2023, Advance Auto Parts has over 5,000 stores in the United States, Canada, Puerto Rico, and the U.S. Virgin Islands.
Revenue and income
In 2022, Advance Auto Parts’ total revenue was $11.2 billion. Net income was $400 million.
Future plans
Advance Auto Parts plans to continue expanding its retail presence. In 2023, the company plans to open over 200 new stores across North America. Advance Auto Parts is also investing in new technologies, such as digital ordering and automated inventory systems.
Corporate vs. franchise
About 70% of Advance Auto Parts stores are company-owned. The remaining 30% operate as independent Carquest franchise locations. Franchisees typically pay a franchise fee of $10,000 to $20,000, as well as a royalty fee of 5% of gross sales.
Additional information Sprint Properties
Advance Auto Parts was founded in 1932 in Roanoke, Virginia.
The company’s name reflects its focus on providing parts for various types of automobiles.
Advance Auto Parts is one of the largest automotive aftermarket parts providers in North America.
The company’s most popular products include batteries, brake pads, and motor oil.
Advance Auto Parts is a publicly traded company listed on the New York Stock Exchange under the symbol AAP.
Advance Auto Parts History
Advance Auto Parts traces its beginnings to 1932, when Arthur Taubman purchased three struggling stores in Roanoke, Virginia. Over the decades, Advance Auto Parts expanded by offering quality automotive parts and exceptional customer service, catering to the growing demand for vehicle maintenance and repair. The company became a trusted name in the aftermarket automotive industry, distinguishing itself with knowledgeable staff and a wide selection of products. Through strategic acquisitions, including the purchase of Carquest in 2014, Advance Auto Parts solidified its position as a market leader. Today, Advance Auto Parts operates thousands of stores across North America and continues to innovate by enhancing its e-commerce platform and expanding delivery services. The company remains committed to supporting DIY customers and professional mechanics alike, adapting to the evolving automotive landscape with new technologies and product offerings.
Why Invest in Ground Lease and NNN Lease of Advance Auto Parts?
Investing in Advance Auto Parts’ ground lease and triple net (NNN) lease properties presents numerous advantages:
1) Advance Auto Parts NNN Property Investment: Stable income
Advance Auto Parts’ strong market presence and loyal customer base provide consistent income streams. Ground and NNN leases ensure predictable, long-term cash flow.
2) Advance Auto Parts NNN Property Investment: Established tenant
As a leading automotive parts retailer, Advance Auto Parts offers stability as a tenant. The brand’s market leadership reduces the risk of vacancy or default, ensuring dependable returns.
3) Advance Auto Parts NNN Property Investment: Low management responsibility
In-ground and NNN leases, tenants handle property maintenance and operating expenses, allowing investors to enjoy passive income with minimal oversight.
4) Advance Auto Parts NNN Property Investment: Favorable lease terms
Long-term leases with built-in rent escalations provide security and the potential for rental income growth over time, enhancing the value of the investment.
5) Advance Auto Parts NNN Property Investment: Real estate value
Advance Auto Parts’ stores are often located in prime, high-traffic areas, boosting the property’s market value and offering potential for capital appreciation.
Pros and Cons of Advance Auto Parts Ground Lease and NNN Lease Investment
Pros:
Consistent income supported by a reputable automotive parts retailer.
Reduced risk of lease default due to an established tenant.
Minimal management requirements, providing investors with passive income.
Long lease agreements with structured rent increases.
Cons:
Potential lease renewal risk upon expiration.
Investment performance is linked to Advance Auto Parts’ operational success.
Market competition and economic factors can impact profitability.
Limited property control, with decisions made by the tenant.
Real estate investments are subject to economic fluctuations.
Conduct thorough due diligence, assess property location and lease terms, and consult with real estate professionals and financial advisors to align your investment with personal goals and risk preferences.