SINGLE TENANT NNN INVESTMENT OPPORTUNITY PARKER COLORADO NYSE: AAP S&P: BBB- ACTUAL SITE

Transcription

1 SINGLE TENANT NNN INVESTMENT OPPORTUNITY NYSE: AAP S&P: BBB- PARKER COLORADO ACTUAL SITE

2 EXCLUSIVELY MARKETED BY JIM SCHUCHERT FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA M: CA License No JOE SCHUCHERT FIRST VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA M: CA License No Broker of Record: Tony Pierangeli, SRS Real Estate Partners CO License No. ER ACTUAL SITE

3 TABLE OF CONTENTS 4 INVESTMENT SUMMARY OFFERING SUMMARY INVESTMENT HIGHLIGHTS 7 PROPERTY OVERVIEW AERIALS SITE PLAN LOCATION MAP 16 AREA OVERVIEW DEMOGRAPHICS 18 FINANCIALS RENT ROLL BRAND PROFILE ACTUAL SITE

4 INVESTMENT SUMMARY SRS National Net Lease Group is pleased to present the opportunity to acquire the fee simple interest (land and building ownership) in an Advance Auto Parts property located in Parker, Colorado. Built in 2005, the lease has approximately 10+ years remaining in the current term with three (3) five (5) year options. Advance Auto Parts recently committed to an 8.75 year extension of the lease, reflecting their strong commitment to this location. The lease is NNN in nature as Advance Auto Parts is solely responsible for roof, parking lot, and HVAC. The lease is guaranteed by Advance Stores Company, Inc. (NYSE: AAP) with an investment grade credit rating of BBB- from Standard & Poor s. The subject property is strategically located on Jordan Road, a six-lane thoroughfare with traffic counts in excess of 24,400 vehicles per day. Parker is located in Douglas County the most affluent county in Colorado and the #5 richest county in America. Parker is located 23 miles southwest of Denver and 56 miles north of Colorado Springs. The 5-mile trade area is supported by a dense growing population of 126,141 residents with an affluent average household income in excess of $127, INVESTMENT SUMMARY SRS NATIONAL NET LEASE GROUP. ACTUAL SITE

5 OFFERING SUMMARY OFFERING PRICING: $2,392,233 NET OPERATING INCOME: $123,200 CAP RATE: 5.15% GUARANTY: Corporate CREDIT RATING: S&P: BBB- LEASE TYPE: NNN LANDLORD RESPONSIBILITIES: Structure PROPERTY SPECIFICATIONS RENTABLE AREA: 7,000 SF LAND AREA: 1.02 Acres PROPERTY ADDRESS: Lincoln Avenue, Parker, CO YEAR BUILT: 2004 PARCEL NUMBER: OWNERSHIP: Fee Simple (Land and Building) 5 OFFERING HIGHLIGHTS SRS NATIONAL NET LEASE GROUP. ACTUAL SITE

6 INVESTMENT HIGHLIGHTS ADVANCE AUTO PARTS CORPORATE GUARANTEED LEASE: 10 Years Remaining in the Current Term Tenant Recently Extended Their Lease for an Additional 8.75 Years, Reflecting their Strong Commitment to this Location Three (3) - Five (5) Year Option Periods with Increases; 15% at Option 1 and 5% at Options 2 & 3 High Quality Upgraded (All Brick) Construction NNN LEASE MINIMAL LANDLORD RESPONSIBILITIES: Tenant Responsible for Roof, Parking Lot, and HVAC Landlord Responsibilities Limited to Slab & Structure Ideal, Management-Free Investment for an Out-Of-State, Passive Investor PARKER, COLORADO: Located 30 Minutes from Downtown Denver, in Colorado s Fastest Growing County Parker Boasts a Highly Talented and Educated Workforce, a Quality of Life that Balances Rural Living with the Conveniences and Amenities of a Large City Enjoys Easy Access to Denver, Colorado Springs and the Rest of the Front Range Via the E-470 Toll Way, I-25, and Public Transportation Denver International Airport (DIA) is Located 30 Minutes Away, and Centennial Airport, a General Aviation Airport, is Located Just 10 Minutes Away As of November 14, 2017, Retail Sales in Parker were Projected to be About $1.4 Billion in 2017 #4 Best Places to Raise a Family in Colorado WalletHub (2017) # Safest Cities in America with Population of 50,000+ SafeHome (2017) TENANT: Advance Auto Parts (NYSE: AAP) Features Investment Grade Credit BBB by Standard & Poor s 5,026 Stores as of July 14, 2018 Shares of Advance Auto Parts Inc. Have Nearly Doubled in Price Since November 2017 Market Cap of $12.28 Billion as of October 5, 2018 Ranked #317 on the Fortune 500 List DOUGLAS COUNTY: Recognized for Being One of the Most Family Friendly Communities in Colorado, Offering a Quality of Life Unmatched Elsewhere in the State For the Fourth Year in a Row, Douglas County, Colorado Ranks in the Top Ten Happiest Counties in the United States Douglas County s Jobless Rate is the Lowest in Metro Denver at 2.5 Percent In 2018, Douglas Ranked No. 1 in Colorado for Overall Health Behavior for the Eight Consecutive Year #5 Top 10 Richest Counties in America Forbes (2017) Of All U.S. Counties with Population of 65,000 or Greater, Douglas County Ranked 4th for Highest Percentage of Residents with an Associate s, Bachelor s, or Graduate or Professional Degree 3,660 New Housing Permits Issued in 2016 (11.6% Increase from 2015) and 3,956 New Housing Permits Issued in 2017 (8.1% Increase from 2016) Approximately 843 Square Miles, of Which 63,037 Acres are Permanently Protected Land Through the Douglas County Open Space Program Recreational Areas Include More than 146,000 Acres of Pike National Forest, Roxborough State Park, Castlewood Canyon State Park and Chatfield State Recreation Area TRADE AREA DEMOGRAPHICS: 1-Mile: 17,376 Residents $119,832 Average Household Income 1.44% Annual Population Growth Projected Over the Next 5 Years 3-Mile: 59,814 Residents $116,452 Average Household Income 2.80% Annual Population Growth Projected Over the Next 5 Years 5-Mile: 122,359 Residents $126,929 Average Household Income 2.57% Annual Population Growth Projected Over the Next 5 Years 6 INVESTMENT HIGHLIGHTS SRS NATIONAL NET LEASE GROUP. ACTUAL SITE

7 PROPERTY OVERVIEW ACCESS Recreation Drive:... 1 Access Point Jordan Road:... 1 Access Point TRAFFIC COUNTS Jordan Road:...24,400 Cars Per Day Lincoln Avenue:...36,600 Cars Per Day S. Parker Road/ State Highway 83:...61,400 Cars Per Day IMPROVEMENTS There is approximately 7,000 SF of existing building area. PARKING There are approximately 35 parking spaces on the owned parcel. The parking ratio is approximately 5 stalls per 1,000 SF of leasable area. PARCEL MAP YEAR BUILT PARCEL 2004 Parcel Number: Acres: 1.02 Square Feet: 44,562 ZONING Commercial 7 PROPERTY OVERVIEW SRS NATIONAL NET LEASE GROUP. ACTUAL SITE

8 Broadstone Montene Apartments (400 Units) North Star Academy 24,400 Jordan Rd. Car Wash

9 36,600 Lincoln Ave. 24,400 North Star Academy Jordan Rd.

10 36,600 Lincoln Ave. Jordan Rd. 24,400

11 36,600 Lincoln Ave. Car Wash 24,400 Jordan Rd.

12 24,400 Car Wash 36,600

13 (XXX Beds) 61,400 36,600 24,400

14 CENTER CT. RECREATION DR. CHERRY VILLAGE JORDAN RD. MONUMENT SIGN

15 DENVER 26 Minutes 23 Miles To Denver AURORA 2018 ESTIMATED POPULATION 1 Mile... 17,376 3 Mile... 59,814 5 Mile...122, AVERAGE HOUSEHOLD INCOME 1 Mile...$119,832 3 Mile...$116,452 5 Mile...$126, ESTIMATED TOTAL EMPLOYEES 1 Mile... 2,882 3 Mile... 25,710 5 Mile... 93,261 PARKER

16 AREA OVERVIEW Parker, Colorado Parker is a home rule municipality in Douglas County, Colorado, United States. As a self-declared Town under the Home Rule statutes, Parker is the second most populous town in the county; Castle Rock is the most populous. In recent years, Parker has become a commuter town at the south eastern most corner of the Denver Metropolitan Area. The Town of Parker had a population of 53,921 as of July 1, Parker is now the 19th most populous municipality in the state of Colorado. From Parker, one can visit the Colorado Governor s Mansion and the Colorado State Capitol, which was built in The Denver Mint, which produced the first coins in America in 1906, is also easily accessible from the town. The Four Mile Historic Park, the Littleton Historical Museum, el Museo de las Americas, the Museum of Outdoor Arts and Wings over the Rockies Air & Space Museum have some very interesting exhibits. The Wildlife Experience Museum has an impressive collection of wildlife art. Parker is served by Douglas County School District RE-1. Douglas County School District has among the highest level of students in Colorado. Students have scored, on average, 12 to 19 percent above the state average. The district was rated 9th in the state in The Pine Lane Elementary School had the largest student enrollment in Parker until Mammoth Heights Elementary opened in January 2007 and took the overload. Douglas County is the seventh-most populous of the 64 counties of the U.S. state of Colorado. As of July 1, 2016, the population was 328,632. The county seat is Castle Rock. Douglas County is part of the Denver-Aurora-Lakewood, CO Metropolitan Statistical Area. It is located midway between Colorado s two largest cities, Denver and Colorado Springs. Douglas County has the highest median household income of any Colorado county or statistical equivalent. It is ranked ninth nationally in that category, and has the highest of any county or equivalent not in the eastern US. Douglas County is served by Douglas County School District RE-1, the third-largest school district in Colorado. In addition to traditional neighborhood schools, the district includes six charter schools, four option schools and an online school. Schools are rated generally high in the area. The University Center at Chaparral in Parker offers courses through Arapahoe Community College, University of Colorado Denver, University College of the University of Denver, and the Douglas County School District. The University of Phoenix has a campus in Lone Tree. The University of Colorado offers courses from both its Boulder campus (the state s flagship university) and its Denver campus at the CU-South Extension in Lone Tree. 16 AREA OVERVIEW SRS NATIONAL NET LEASE GROUP.

17 AREA DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2018 Estimated Population 17,376 59, , Projected Population 18,662 68, , Census Population 15,847 47,394 95,011 Projected Annual Growth 2018 to % 2.80% 2.57% Historical Annual Growth 2010 to % 2.86% 3.11% 2018 Estimated Households 6,227 22,111 45, Projected Households 6,695 25,527 51, Census Households 5,618 17,562 35,001 Projected Annual Growth 2018 to % 2.91% 2.66% Historical Annual Growth 2010 to % 2.83% 3.25% 2018 Estimated White 89.80% 88.60% 86.97% 2018 Estimated Black or African American 1.43% 1.85% 2.70% 2018 Estimated Asian or Pacific Islander 5.32% 5.51% 6.30% 2018 Estimated American Indian or Native Alaskan 0.38% 0.44% 0.39% 2018 Estimated Other Races 2.20% 2.26% 2.04% 2018 Estimated Hispanic 10.04% 10.02% 9.15% 2018 Estimated Average Household Income $119,832 $116,452 $126, Estimated Median Household Income $102,826 $98,851 $101, Estimated Per Capita Income $43,194 $43,635 $47, Estimated Total Businesses 332 2,255 5, Estimated Total Employees 2,882 25,710 93, AREA DEMOGRAPHICS SRS NATIONAL NET LEASE GROUP.

18 RENT ROLL LEASE TERM RENTAL RATES TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS Advance Auto Parts FINANCIAL INFORMATION 7,000 8/31/ /31/2028 Current - $10,267 $1.47 $123,200 $17.60 NNN Price:...$2,392,233 Net Operating Income:...$123,200 Cap Rate: % Lease Type:...NNN For financing options and loan quotes, please contact our SRS Debt & Equity team at debtequity-npb@srsre.com. PROPERTY SPECIFICATIONS 3 (5-Year) Opt 1: $142,222/Yr Opt 2: $149,333/Yr Opt 3: $156,800/Yr Year Built: Rentable Area:... 7,000 SF Land Area: Acres Address: Lincoln Avenue, Parker, CO RENT ROLL SRS NATIONAL NET LEASE GROUP. ACTUAL SITE

19 BRAND PROFILE ADVANCE AUTO PARTS Advance Auto Parts, Inc. provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. As of July 14, 2018, Advance operated 5,026 stores and 133 Worldpac branches in the United States, Canada, Puerto Rico and the U.S. Virgin Islands. The Company also serves approximately 1,219 independently owned Carquest branded stores across these locations in addition to Mexico and the Bahamas, Turks and Caicos, British Virgin Islands and Pacific Islands. Advance Auto Parts, Inc. was founded in 1929 and is headquartered in Roanoke, Virginia. Company Type:... Public (NYSE:AAP) 2017 Employees:... 40, Revenue:...$9.37 Billion 2017 Net income:...$ Million 201 Assets:...$8.48 Billion 2017 Equity:...$3.42 Billion Credit Rating:...S&P: BBB- Credit Rating:... Moody s: Baa2 19 BRAND PROFILE SRS NATIONAL NET LEASE GROUP. ACTUAL SITE

20 SRS GLOBAL STATS PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES *STATISTICS ARE FOR BROKERS, PROFESSIONALS, AND STAFF #1 LARGEST REAL ESTATE FIRM EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment. ACTUAL SITE