Mavis - 15 Year Lease 816 Black Horse Pike

Encore REIS is please to present this net leased auto repair facility located at 816 Black Horse Pike in Mount Ephraim, NJ. The tenant is Mavis Discount Tire, one of the largest independent automotive service businesses in the U.S. Mavis operates over 1,050 service centers in 29 states and has a total revenue of $1.5 billion. They offer a range of services including tire sales, brakes, alignments, and oil changes.
The property features a 15-year double net lease with minimal landlord responsibilities. The lease term commenced on December 2nd, 2019, and has a remaining term of 15+ years, with options for five additional 5-year terms. The current term expires on December 31st, 2039. The lease includes rental increases every 5 years and throughout the option periods. Mavis Tire Supply, LLC is the guarantor of the lease.
The property itself is a 7,128 square foot building on a 0.36-acre lot. It was renovated in 2019, with significant investments made into the building, including a brand-new roof with a 15-year warranty. The property is in a prime retail corridor on Black Horse Pike, a heavily traveled road with strong traffic counts. It is situated at a hard corner location, directly across the street from the Audubon Shopping Center, which is anchored by Walmart. Other national tenants in the area include Chick Fil A, Ross Dress for Less, Five Below, and Applebee's.
In addition to the property's strong location and tenant profile, the financials of the investment are also attractive. The property is listed for $2,361,332, with a net operating income (NOI) of $141,679. This represents a cap rate of 6.0%. The rent per square foot is $18.4, and the price per square foot is $331.28.
It is worth noting that Mavis recently acquired NTB, another major player in the automotive service industry. This acquisition further strengthens Mavis' position as a leading provider of automotive services in the U.S.