Investment Offering
Pittsburgh, PA - Carvana
1300 Brockwell Street | Bridgeville, PA 15017
$8,200,000
Price7%
Cap Rate$574,000
NOI8,500
± SF Offering GLADescription
SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land & building ownership) in a brand new construction, freestanding, corporate guaranteed, Carvana Car Vending Machine, sale leaseback investment opportunity located in Presto, PA (Pittsburgh). The tenant, Carvana LLC, will execute a brand new 20-year lease at the close of escrow with 4 (5-year) options to extend, demonstrating their commitment to the site. The lease features 10% rental increases every 5 years throughout the initial term and at the beginning of each option period, steadily growing NOI and hedging against inflation. The lease is corporate guaranteed and is absolute NNN with zero landlord responsibilities, making it an ideal, management-free investment opportunity for a passive, out of state investor.
Carvana is a leading e-commerce platform for buying and selling used cars. The company is transforming the used car buying experience by giving customers a wide selection, great value and quality, transparent pricing and a simple, no pressure transaction. Using the Company’s website, customers can research and identify a vehicle, inspect it using the Company’s proprietary 360-degree vehicle imaging technology, obtain financing, purchase the vehicle, and schedule deliver or pick-up, all from their desktop or mobile devices. Purchased cars can be delivered as soon as the next day or picked up at one of Carvana’s 16 coin-operated Car Vending Machines. The Company was the fastest growing automotive retailer in 2018 by units (94,108 units sold; up 113% YOY), and expects to open 60+ new Carvana Markets and Car Vending Machines through 2019.
Location
Carvana is located along Interstate 79, the primary north/south commuter thoroughfare traveling through Pittsburgh, averaging 84,000 vehicles passing by daily. The site features an 8-story car vending machine Carvana prototype, providing excellent visibility along the Interstate. The asset was constructed as an introductory phase to Newbury Market, a brand new, 300-acre, $450MM mixed-use development underway in the Southwest-Pittsburgh market. The development will ultimately feature 1.2MM square feet of unique retail space, 225 single family homes, and 150 luxury garden apartments. Besides Carvana, the development already has commitments from Top Golf (constructed 2018), Cinergy Entertainment (90,000 SF theatre and entertainment center), as well as dining tenants Blaze Pizza, Five Guys, and First Watch. Newbury Market retail tenants will benefit from the exceptional visibility provided by the developments large pylon sign near the Interstate 79 and State Highway 50 (31,200 VPD) junction. Other nearby national/credit tenants include The Home Depot, Giant Eagle, LA Fitness, and more, further increasing consumer draw to the trade area and promoting crossover traffic to the site. The subject 5-mile trade area is supported by a dense population of nearly 140,000 residents with an affluent average household income of $106,000.
Contact
Matthew Mousavi
Sr Managing Principal & Co-Head of National Net Lease
949.698.1116949.698.1116[email protected]CA #: 01732226
Patrick Luther, CCIM
Sr Managing Principal & Co-Head of National Net Lease
949.698.1115949.698.1115[email protected]CA #: 01912215