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 October 5, 2024, Advance Auto Parts operated approximately 4,780 stores and serviced 1,125 independently owned Carquest locations in the U.S., Canada, Mexico, and the Caribbean.
Revenue and income
In 2023, Advance Auto Parts reported total revenue of $11.3 billion, a 1.2% increase from 2022. However, operating income decreased to $114.4 million, or 1.0% of net sales, compared to $670.3 million, or 6.0% of net sales, in the prior year. In the third quarter of 2024, the company reported net sales of $2.1 billion, down from $2.2 billion in the same period the previous year.
Future plans
In November 2024, Advance Auto Parts announced a strategic plan to enhance operational productivity, which includes closing 523 corporate stores, exiting 204 independently owned locations, and closing four distribution centers in the United States by mid-2025. Despite these closures, the company plans to open at least 60 market hub locations by mid-2027.
Corporate vs. franchise
As of 2023, Advance Auto Parts operated 4,935 company-owned stores and serviced 1,245 independently owned Carquest-branded stores. The company is in the process of exiting 204 independently owned locations as part of its strategic plan.
Additional information Advance Auto Parts Properties
In September 2023, Shane O’Kelly joined Advance Auto Parts as President and Chief Executive Officer. Prior to this role, he was the CEO of HD Supply, a subsidiary of The Home Depot. In July 2024, the company announced a data breach affecting nearly 3 million customers, involving the theft of personally identifiable information. Advance Auto Parts continues to be 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.