Net Lease Profile: Napa Auto Parts
Napa Auto Parts locations can offer an unique opportunity for a buyer to acquire a recession resistant investment, with an attractive lease with rental escalations and minimal landlord responsibility, guaranteed by an investment grade tenant, located on a busy retail corridor in an attractive geographic area. Corporate guaranteed leases are available, and offer another advantage to investors.
Lease agreements can vary between 5 and 20 years in length, however a 15-year NN term seems to be most common Napa Auto Parts lease structure. Specific lease terms and landlord obligations vary, but generally the landlord is responsible for maintenance of the roof and structure. Alternatively, some sites have been leased on an absolute NNN basis with no landlord responsibility. There are usually five percent rent bumps every five years during the initial lease term and 10 percent rent bumps in both of the two, five year option periods.
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