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1318 S Frontage RdHastings, MN 55033
Valvoline
Asset ClassRetail
Deal Size$1.77 M
Cap Rate: 5.5%Net Operating Income: $97.5 ThousandLease-Term Remaining: 15 YearsAccess Data Room
Fee Simple NNN
overview of deal

Overview

Valvoline Inc. (NYSE: VVV) is a premier provider of quick-preventive automotive maintenance and a dominant brand in the retail oil change sector. The company operates a robust network of over 2,200 locations with clientele that spans across key U.S. and Canadian markets.

Financially, Valvoline delivered another year of growth in fiscal 2025, reporting $1.71 billion in net revenues, $466.8 million in adjusted EBITDA, $214.8 million in income from continuing operations, and $48 million in free cash flow. The company also noted its 19th consecutive year of system-wide same-store sales growth, while ending the year with $1.1 billion of total debt and a strong national brand position in preventive auto care.

 

Valvoline's strategy emphasizes fast, trusted service—typically 10–15 minute oil changes—with convenience meeting customer needs. Its primarily franchise-based model (franchised stores slightly outnumber company-operated) spans more than 1,650 quick-lube centers, marking it as the second-largest operator in North America.

 

With over 36% growth in system sales and its pivot toward a higher-margin, service-focused model, Valvoline offers a compelling tenant profile. Its blend of recurring customer traffic, scalable real estate footprint, and consistent profitability positions it as a high-performing, low-risk tenant ideal for real estate portfolios seeking long-term stability and operational excellence.

Investment Highlights

Year Renovated
2026
Parking Spaces
16 Spaces
Square Feet
4,560
Land
1.27 Acres
  • New 15-year NNN lease to Valvoline, an iconic brand with global recognition (NYSE: 'VVV').
  • Fee simple structure may allow a portion of basis to qualify for 100% bonus depreciation via cost segregation — consult your tax advisor.
  • 10% rental increases every five years deliver steady growth through the initial term and four (4) option periods of five (5) years each.
  • Tenant covers all taxes, insurance, and maintenance, including roof, structure, and parking lot, providing a fully passive investment.
  • Valvoline ranks #2 in quick-lube chains in the U.S. by number of stores with over 2,200 locations.
  • Valvoline's expansion strategy aims to increase the number of stores to 3,500 service centers across North America.
  • Prominently located near the signalized intersection of Westview Dr and State Highway 55 / Olson Memorial Highway, the site benefits from exceptional visibility and accessibility with combined traffic volumes exceeding 23,000 vehicles per day.
  • Positioned within a dense retail corridor, the site is surrounded by leading national and regional retailers including Walmart Supercenter, Cub, Fleet Farm, AutoZone, McDonald's, Chipotle, and Arby's, reinforcing strong consumer draw and cross-shopping activity.
  • Located less than one mile from United Hospital – Hastings Regina Campus, one of the largest employers in Hastings with approximately 370 employees.
  • The property offers strategic regional connectivity with convenient access to U.S. Route 10, which leads directly to Downtown St. Paul (population of 306,000+ residents).
  • The surrounding trade area includes 30,414 residents within five miles.
  • Average household income within five miles has reached $122,928, reflecting strong affluence and supporting durable consumer spending fundamentals.
  • The MSP metro boasts one of the highest concentrations of Fortune 500 headquarters per capita in the U.S. (including Target, 3M, Ecolab, UnitedHealth Group, and General Mills), creating a resilient economy and consistent demand across office, industrial, and retail sectors
  • 2026 remodel featuring 3 service bays, ensuring high volume operations.
  • Streamlined layout minimizes upkeep while maximizing service speed, aligning with consumer demand for convenience.
  • 1.27-acre parcel ensures efficient parking and smooth customer access.
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1318 S Frontage RdHastings, MN 55033
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