Net Lease CarMax Property Profile and Cap Rates Date September 9, 2020
Net Lease CarMax – Typical Property and Lease Terms
| Price Range: | $8 mm - $17 mm |
| Cap Rate: | 6.40% |
| Net Income: | $1,000,000 |
| Price Per foot: | $400 PSF |
| Building Size: | 20,000-60,00 SF |
| Lot Size: | 14 AC |
| Escalations: | 10% every 5 Years |
| Lease Term: | 20 Years |
| Lease Type: | NNN |
| Credit Rating: | Not Rated |
Tenant Company Information:
CarMax is America’s largest used-car retailer and a Fortune 500 company.[3] The corporate entity behind the formation of CarMax was Circuit City Stores, Inc. The first CarMax used-car store opened in September 1993, 1.7 miles (2.7 km) from Circuit City’s corporate offices in Richmond, Virginia. As of November 30, 2018, CarMax operated 195 locations in 95 television media markets.[4]
While CarMax stores focus on marketing used vehicles, the company acquired its first new car franchise with Chrysler Corporation in 1996.[5] By 1999, it added new vehicle franchises for Mitsubishi Motors, Toyota, and Nissan as well.[6] As of November 2018, the only CarMax new vehicle dealerships that remain are the two Toyota stores located in Kenosha, Wisconsin and Laurel, Maryland.
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