O'Reilly Auto Parts
O'Reilly Auto Parts | 12 Years Term Remaining | Byron, MN
Marketing description
Northmarq is pleased to present the opportunity to acquire a premier net lease retail
investment located at 819 Frontage Rd NE in Byron, MN. This 2023 build-to-suit facility is
tenanted by O'Reilly Auto Parts, offering a secure income stream backed by an investment
grade corporate credit rating (S&P: BBB). With almost 12 years of firm lease term
remaining, this property represents the latest prototypical design of a dominant national
retailer and is strategically positioned to capture the rapid growth of the surrounding
submarket.
The Byron asset is situated in an affluent and expanding bedroom community within the
Rochester MSA, which is anchored by the world renowned Mayo Clinic. Located with
direct frontage along US Highway 14, the property benefits from exceptional visibility and
a demographic profile characterized by household incomes exceeding $124,000 and
significant vehicle dependency. This location serves as a critical retail hub for a growing
population, ensuring long term demand and consistent foot traffic in a recession resilient
retail sector. Please contact the listing brokers for more information.
Investment highlights
Investment Grade Credit (S&P: BBB)
O'Reilly Auto Parts is a dominant "Top 3" player with an investment grade credit rating. In March 2026, S&P Global reaffirmed their BBB rating with a stable outlook, citing consistent revenue growth of approximately 6% year over year and strong cash flow projected at $2 billion for 2026.
Explosive Rochester MSA Growth
Byron is a premier bedroom community for the Rochester MSA, anchored by the world-renowned Mayo Clinic. The city is growing at nearly 2% annually, with median household incomes reaching a high of $124,010—significantly above the national average.
Critical Highway Visibility
The site is strategically located on the frontage of US Highway 14, the essential transit artery connecting Rochester to western Minnesota. This ensures high brand exposure and easy access for both local residents and regional commuters.
Dual-Market Revenue Stream
This location serves both the DIY retail customer and the Professional "Do-It-For-Me" (DIFM) market. O'Reilly's industry-leading distribution network allows for multiple daily deliveries to local mechanic shops, providing a diversified revenue base.
Record-Breaking Corporate Performance
O'Reilly recently reported record 2025 revenues of $17.78 billion. The company’s financial strength was recently highlighted by a 15-for-1 stock split in June 2025, aimed at making shares more accessible to their 90,000+ team members.
Amazon-Resistant "Need-It-Now" Retail
Automotive repair is one of the few retail sectors insulated from e-commerce. When a vehicle fails, customers require parts immediately to return to the road, ensuring consistent foot traffic that cannot be replaced by online shipping.
Aging Vehicle Fleet Tailwinds
As of 2026, the average age of vehicles on U.S. roads has reached an all-time high of over 12.5 years. This aging "car parc" directly correlates to increased sales of high-margin maintenance and repair parts that O'Reilly specializes in.
2023 Build-to-Suit Construction
This is a "new prototypical" site. Investors benefit from the latest O'Reilly architectural standards and high-quality construction, which significantly limits any near-term structural maintenance risks or capital expenditure needs.
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