600 Sunburst Hwy
Cambridge, MD 21613

Marcus & Millichap, on behalf of ownership, is pleased to exclusively offer the ground leased interest in this newly constructed AutoZone in Cambridge, Maryland. The Tenant, AutoZone, is subject to a new 15-year absolute NNN corporate ground lease with zero landlord responsibilities. The lease features a five percent (5%) rental increase in year eight and ten percent (10%) rental increases in each three, five-year option period. With the rent growth in the base term, the average cap rate at the asking price over the base term will be an attractive 5.13 percent. The lease is guaranteed by the corporate entity which carries an investment grade “BBB” rating by Standard & Poor’s, and is publicly traded. AutoZone operates more than 5,400 stores located throughout the United States, Mexico, the District of Columbia, Puerto Rico and Brazil. The Tenant is exceptionally well-located along U.S. Route 50/Ocean Gateway, the area’s main thoroughfare and a major east–west route connecting Maryland’s Western Shore with Ocean City, Maryland and the Delaware Beaches. The road posts an average of 36,000 VPD, although in the summer months traffic counts spike. AutoZone occupies a corner parcel at the signalized intersection of Route 50 and Meteor Avenue immediately in front of Shoal Creek Center anchored by Save-a-Lot and an inline Advance Auto Parts doing robust sales. There is limited competition for auto parts in the market, and the tenant will have a new, architecturally enhanced building (versus the tenant’s typical prototype) which should attract customers. The property is in close proximity, two-tenths-of-a-mile, to Cambridge Marketplace, an existing 263,805-square-foot center that was formerly occupied by Kmart. The center is in the midst of a complete redevelopment. The developer broke ground in summer 2017 and is close to completing the first phase of this 24-acre property. Presently, tenants include Taco Bell, Bank of America and Starbucks while Chick-fil-A is rumored to be opening a location. Development plans also include a sizable medical center which is expected to be completed by 2022. Further, the tenant is across the street from a newly renovated McDonalds and surrounded by notable retailers such as Walgreens, Wawa, Family Dollar, and M&T Bank. It is noteworthy that the town of Cambridge’s retail cluster draws from a wide trade radius of over 10 miles as the next nearest retail cluster is in Easton, Maryland approximately 15 miles north. Cambridge, Maryland, the seat of Dorchester County, is a historic waterfront community situated on the Chesapeake peninsula on Maryland’s Eastern Shore. Cambridge continues to experience a resurgence following the opening of the Hyatt Regency Chesapeake Bay Golf Resort, Spa, Marina and Conference Center. The Hyatt property is located approximately one mile away and draws visitors to the charming downtown and provides a base of employment in addition to fishing and agriculture. The town has also experienced redevelopment over the past few years as new stores, boutiques, galleries, and a variety of restaurants have opened. The town is an easy drive from the metropolitan areas of Baltimore, Washington, and Annapolis which make it an ideal location for those who enjoy outdoor recreation coupled with small town charm.