O'Reilly Auto Parts NNN
For Sale
$2,665,600
1487 N REDWOOD RD, Saratoga Springs, UT 84045
Long-term lease in place with scheduled contractual rent growth.
Property Size7,000 SF
Days on Market11
Property Features for 1487 N REDWOOD RD
General Information
Standard status
Active
Size
7,000 SF
Property subtype
Retail
Net Operating Income
$146,608
Building Details
Building Size
7,000 SF
Year Built
2006
Listing Agency:
Trico Property Management & Real Estate LLC
(801) 571-8833
Listed By:
Stacie Papanikolas
(801) 518-3999
Source:
Liftrealty
Added: Aug 25
Changed: Sep 3
Last Checked: Sep 2 at 2:13PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Trico Property Management & Real Estate LLC
Investment Insights
Based on property information with market context.
This NNN retail property is leased to O'Reilly Auto Parts under a newly executed 10-year lease. The agreement provides for a 20% scheduled rent increase in 2031, while the tenant reimburses real estate taxes, insurance, CAM, and various property-level expenses. The building was constructed in 2006.
The property is located on Redwood Road in Saratoga Springs, within Utah County and near the Lehi / Silicon Slopes employment corridor. Continued residential development shapes the surrounding market, and recorded reciprocal parking rights provide shared access within the shopping center.
The property is located on Redwood Road in Saratoga Springs, within Utah County and near the Lehi / Silicon Slopes employment corridor. Continued residential development shapes the surrounding market, and recorded reciprocal parking rights provide shared access within the shopping center.
Key Highlights
- Newly executed 10‑year lease with O'Reilly Auto Parts
- NNN structure includes reimbursement of real estate taxes, insurance, CAM, and various property‑level expenses
- 20% scheduled rent increase in 2031
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$117,167
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.40%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,343,340
$2.3M
Cap Rate 7%
$1,673,814
$1.7M
Cap Rate 9%
$1,301,856
$1.3M
Market Conditions
NOI Build-Up for 7,000 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$174.7K $24.96/SF
− Vacancy
−$7.3K −$1.05/SF
EGI
$167.4K $23.91/SF
− OpEx
−$50.2K −$7.17/SF
NOI
$117.2K $16.74/SF
Area
Utah County, UT
Vacancy
4.20%
Lease Rate
$24.96 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$2,343,340
Cap Rate 7%
$1,673,814
Cap Rate 9%
$1,301,856
Alternative Uses
Best Use
Retail
$1.67M
$1.46M – $1.95M
NOI $117,167 @ 7.0% cap · market cap 4.40%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$1.93M
$1.69M – $2.25M
NOI $135,072 @ 7.0% cap · market cap 5.07%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
136
Businesses Nearby
Explore this area
Business Placement
Demographics for 84045, UT
36,898
Population
11,273
Households
3.3
Avg Household Size
24
Median Age
52%
College-Educated
99%
High-School Grad
51.9 sq mi
ZIP Area
711
Density / Sq Mi
$123,870
Median Household Income
$48,493
Median Earnings
$2,201
Median Rent
$566,200
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Long-term lease in place with scheduled contractual rent growth.
Where is this nnn property located?
The property is located at 1487 N REDWOOD RD Saratoga Springs, UT.
What is the asking price?
The asking price for this property is $2,665,600.
What are key features of this property?
This property features: Newly executed 10‑year lease with O'Reilly Auto Parts; NNN structure includes reimbursement of real estate taxes, insurance, CAM, and various property‑level expenses; 20% scheduled rent increase in 2031
