Hanley Investment Group and ParaSell, Inc. Arrange Off-Market Sale of Three O'Reilly Auto Parts Stores in Wisconsin for Montana-Based Development Company

Hanley Investment Group, in association with ParaSell, Inc., has arranged the off-market sale of three single-tenant O'Reilly Auto Parts stores located across eastern Wisconsin, the firm announced July 22. The seller was a Montana-based development company, and the buyer was described as a highly qualified institutional investor.

Portfolio Overview: Three Wisconsin O'Reilly Auto Parts Locations

The three freestanding, single-tenant retail properties are situated within the Fox Valley and Greater Madison trade areas of eastern Wisconsin:

• 1611 West 20th Avenue, Oshkosh, WI 54904 — 7,735 square feet on 0.99 acres (Fox Valley trade area)
• 605 E. Glenbrook Drive, Pulaski, WI 54162 — 7,225 square feet on 1.44 acres
• 6209 Century Avenue, Middleton, WI 53562 — 7,150 square feet on 0.89 acres (Greater Madison trade area)

Each property is fully leased to O'Reilly Auto Parts and represents the small-format, purpose-built box design — typically ranging from 7,000 to 8,000 square feet — that institutional net-lease buyers commonly underwrite on standardized metrics including lease term, rent escalations, and tenant credit. The buildings carry minimal common area and low capital expenditure burdens relative to multi-tenant retail centers.

Off-Market Strategy and Transaction Structure

Hanley Investment Group's Executive Vice President Eric Wohl and Associate CJ Kiehler represented the seller in the transaction, working in association with ParaSell, Inc.

"Working off-market allowed us to move quickly and align the seller with a highly qualified institutional buyer," Wohl said. "By packaging three O'Reilly Auto Parts locations into a single transaction, we streamlined the process, reduced fees, and delivered a clean, efficient closing for both parties."

The off-market approach reflects broader dynamics in the net-lease retail sector, where a persistent bid-ask gap on publicly listed properties has led brokers to pursue known institutional buyers capable of transacting efficiently. Packaging the three stores into a single portfolio allowed for one negotiation and legal process, shared third-party reports, and a single closing — compressing transfer, legal, and lender costs on a per-asset basis.

The Montana-based development company's exit is consistent with a merchant-build model in which developers deliver stabilized, credit-backed single-tenant assets and sell to institutional or 1031 exchange buyers. Rising construction and debt costs have made it increasingly attractive for developers to monetize recently delivered, fully leased assets rather than hold them long-term.

Tenant Credit and Sector Fundamentals

"O'Reilly Auto Parts remains a top choice for net-lease investors due to its long-term corporate guarantees, investment-grade credit, and the recession-resilient nature of the auto parts industry. These Wisconsin stores offered the stability, credit, and operational durability investors prioritize, especially in a market where high-quality, single-tenant inventory remains limited," Wohl said.

O'Reilly Auto Parts (Nasdaq: ORLY) operated 6,644 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada as of March 31, 2026. The company reported $4.09 billion in sales and 3.0% comparable-store sales growth in the first quarter of 2026. Its dual-market strategy — serving both Do-It-For-Me (DIFM) professional service providers and Do-It-Yourself (DIY) consumers — provides a diversified revenue base that blends recurring contract-like business from repair shops with transactional consumer demand.

"The rising average age of vehicles on the road, now exceeding 12.5 years, continues to support strong demand for automotive maintenance and replacement parts," said Kiehler. "As consumers hold onto their vehicles longer, auto parts retailers like O'Reilly benefit from consistent, needs-based spending, which translates into durable store performance and long-term stability for net-lease investors."

The aging vehicle fleet dynamic reinforces the non-discretionary nature of auto parts spending: when a vehicle is essential for work or daily life, maintenance and repair parts represent necessary expenditures regardless of broader economic conditions. That characteristic supports sales durability through economic cycles and strengthens the income stability thesis for single-tenant auto parts assets.

Market Context: Net-Lease Demand in Secondary Midwest Markets

The transaction reflects sustained institutional demand for long-term, credit-backed net-lease retail in secondary Midwest markets, where supply of new, investment-grade single-tenant inventory remains constrained. Developers have pulled back on speculative single-tenant retail construction due to elevated construction and financing costs, limiting available product for buyers seeking passive, corporate-guaranteed income streams.

In the current environment, institutional investors have increasingly prioritized corporate leases over franchise arrangements, investment-grade or near-investment-grade tenants, long remaining lease terms, and predictable rent escalations — criteria that O'Reilly Auto Parts satisfies.

Hanley Investment Group has a transaction track record exceeding $12.9 billion and specializes in the sale of grocery-anchored, anchored, multi-tenant, and single-tenant retail properties nationwide. ParaSell, Inc. served as a co-broker in the transaction on behalf of the seller.

Sources

Hanley Investment Group – Official Announcement