Advance Auto Parts NNN
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For Sale
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505 South Main Street, Lexington, NC 27292
National automotive retailer occupies the building under an NN lease with limited landlord responsibilities.
Property Size7,000 SF
Price / SF$240.14
Days on Market6
Property Features for 505 South Main Street
General Information
Standard status
Active
Size
7,000 SF
Property subtype
Retail
Lease Type
NN
Investment Type
Net Lease
Net Operating Income
$123,519
Site & Location
Traffic Count
13,000 vehicles/day
Highway Access
Yes
Road Access
Yes
Building Details
Year Built
2004
Buildings
1
Tenancy
Single
Listing Agency:
JLL - Dallas | Cedar Springs, Texas
Listed By:
Caroline Pinkston · License #601565
Source:
Crexi
Added: Aug 5
Changed: Aug 10
Last Checked: Aug 10 at 4:22AM
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 JLL - Dallas | Cedar Springs, Texas
Investment Insights
Based on property information with market context.
The fee-simple property contains a 7,000-square-foot Advance Auto Parts location completed in 2004. The occupant operates under an NN lease, with 3.7 years remaining and one additional five-year renewal option that includes a 5% rent escalation. Landlord obligations are described as limited, and the retailer has operated at the site for 21 years.
Located at 505 South Main Street in Lexington, the property fronts the city’s primary thoroughfare and has direct access to approximately 13,000 VPD. Interstate 85 provides regional connectivity to Winston-Salem, Greensboro, and Charlotte. The site is 22 miles from downtown Winston-Salem and 35 miles from downtown Greensboro within North Carolina’s Piedmont Triad Region.
Located at 505 South Main Street in Lexington, the property fronts the city’s primary thoroughfare and has direct access to approximately 13,000 VPD. Interstate 85 provides regional connectivity to Winston-Salem, Greensboro, and Charlotte. The site is 22 miles from downtown Winston-Salem and 35 miles from downtown Greensboro within North Carolina’s Piedmont Triad Region.
Key Highlights
- 7,000‑square‑foot automotive parts retail property built in 2004
- Advance Auto Parts operates under an NN lease with 3.7 years remaining
- One, five‑year renewal option with a 5% rent escalation
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
$85,730
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
5.10%
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%
$1,714,600
$1.7M
Cap Rate 7%
$1,224,714
$1.2M
Cap Rate 9%
$952,556
$952.6K
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
$126.0K $18.00/SF
− Vacancy
−$3.5K −$0.50/SF
EGI
$122.5K $17.50/SF
− OpEx
−$36.7K −$5.25/SF
NOI
$85.7K $12.25/SF
Area
Davidson County, NC
Vacancy
2.80%
Lease Rate
$18.00 /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%
$1,714,600
Cap Rate 7%
$1,224,714
Cap Rate 9%
$952,556
Alternative Uses
Best Use
Retail
$1.22M
$1.07M – $1.43M
NOI $85,730 @ 7.0% cap · market cap 5.10%
Second Best
Industrial
$580.2K
$507.7K – $676.9K
NOI $40,616 @ 7.0% cap · market cap 2.42%
Theoretical Best
Office A
$1.78M
$1.55M – $2.07M
NOI $124,320 @ 7.0% cap · market cap 7.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
13,000 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
588
Businesses Nearby
3k
Monthly Visits Nearby
Explore this area
Business Placement
Foot Traffic Nearby
Shops & Services 100%
Mobil
Shops & Services
2,975 visits/mo
0.2 miles
Demographics for 27292, NC
39,337
Population
18,749
Households
2.1
Avg Household Size
44
Median Age
17%
College-Educated
85%
High-School Grad
144.0 sq mi
ZIP Area
273
Density / Sq Mi
$54,468
Median Household Income
$34,776
Median Earnings
$831
Median Rent
$193,300
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - National automotive retailer occupies the building under an NN lease with limited landlord responsibilities.
Where is this nnn property located?
The property is located at 505 South Main Street Lexington, NC.
What is the asking price?
The asking price for this property is $1,681,000.
What are key features of this property?
This property features: 7,000‑square‑foot automotive parts retail property built in 2004; Advance Auto Parts operates under an NN lease with 3.7 years remaining; One, five‑year renewal option with a 5% rent escalation
