A private ownership group has sold a nine-property NAPA Auto Parts portfolio spanning nine states for $15,025,104, cashing out after years of ownership and a recent tenant lease renewal. The 56,976-square-foot package includes stores in Palmetto, Florida; Buford, Georgia; Southaven, Mississippi; Columbia, South Carolina; Richmond, Virginia; Liverpool, New York; West St. Paul, Minnesota; Universal City, Texas; and Phoenix, Arizona.
The deal, which works out to roughly $263.71 per square foot, was brokered by Marcus & Millichap, according to New York Real Estate Journal. Alex Zylberglait, executive managing director of investments in the firm's Miami office, marketed the properties exclusively on behalf of the seller. “This was a strategic acquisition allowing the buyer to control a diversified portfolio with a solid national tenant in the growing auto parts sector,” Zylberglait said.
Eight of the nine properties operate under master leases, while the Palmetto, Florida location is leased directly. Zylberglait worked with local brokers of record in the eight states besides Florida: Georgia, Mississippi, South Carolina, Virginia, New York, Minnesota, Texas, and Arizona — namely John Leonard, Mickey Davis, Ben Yelm, Brian Hosey, John Horowitz, Jon Ruzicka, Tim Speck, and Ryan Sarbinoff.
A Tenant With National Reach, Under Corporate Transition
NAPA Auto Parts, the automotive parts retailer and distributor behind the leases, operates more than 6,000 locations across the United States and Canada, serving both professional repair shops and individual consumers. More specifically, Genuine Parts Company's North American automotive network counted 6,864 locations as of the end of 2025, split between 2,471 corporate-owned stores and 4,317 independently operated jobber franchises, according to Investment Grade — a distinction that matters to buyers since Genuine Parts Company's credit applies only when it is the tenant or guarantor, while independent-store leases require separate underwriting.
Genuine Parts Company, NAPA's corporate parent, generated $24.3 billion in net sales in fiscal 2025, with automotive replacement parts making up roughly 60% of that total and industrial products accounting for the remaining 40%, per the same source. The company is also in the middle of a major corporate restructuring: it announced in February plans to split into two independent, publicly traded companies by separating its automotive replacement parts business from its industrial motion division, a separation targeted for completion in early 2027, according to a company announcement distributed via PR Newswire. Hoodline covered the executive appointments tied to that pending split last month in a prior report on new leadership.
Credit Ratings Under Pressure, But Still Investment Grade
Genuine Parts Company held investment-grade credit ratings of BBB- from S&P Global Ratings and Baa1 from Moody's Ratings as of late 2025, though S&P downgraded the company in October 2025 citing elevated leverage and placed its own outlook on negative, according to S&P Global Ratings. Moody's Baa1 outlook was negative as of December 31, 2025, according to Investment Grade. Those credit metrics matter directly to buyers of single-tenant net-lease real estate, since pricing on deals like this one hinges heavily on the financial strength of the corporate guarantor behind the leases.
Demand for auto parts real estate is also underpinned by an aging national vehicle fleet. A study from S&P Global Mobility published in May 2025 found that the average age of U.S. light vehicles climbed to a record 12.8 years, a trend that expands long-term demand for replacement parts and maintenance services as drivers hold onto older cars longer.
Auto Parts Net-Lease Market Data
Single-tenant net-lease research from The Boulder Group found median asking cap rates for auto parts retail properties stood at 6.65% in the first quarter of 2026, with properties carrying 11 to 15 years of remaining lease term averaging 6.10%, according to Investment Grade's net-lease coverage. Separate Boulder Group research published in July 2026 found that high-quality, investment-grade net-lease retail properties with long remaining lease terms made up less than 10% of total available net-lease retail listings nationwide in the second quarter of 2026, even as overall retail inventory expanded by 16.2%, according to MBA Newslink. The portfolio combined a recent tenant renewal with a multi-state master lease structure before heading to market.
The NAPA sale echoes another recent Marcus & Millichap deal: in March, the firm brokered the sale of an 11-property Midwest Sherwin-Williams net-lease portfolio totaling 55,590 square feet for $18.74 million, or roughly $337 per square foot, after securing multiyear lease extensions prior to marketing, as Hoodline reported on the Sherwin-Williams sale. Both trades followed a similar playbook — lock in tenant commitments, then bring a private portfolio to market — underscoring how corporate-backed retail leases continue to draw steady buyer interest even as broader retail real estate conditions shift.
