Advance Auto Parts 920 MacArthur Drive, Alexandria, LA 71303

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1 Representative Photo Advance Auto Parts 920 MacArthur Drive, Alexandria, LA OFFERING MEMORANDUM

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Marketing Brochure contains select information pertaining to the business and affairs of Advance Auto Parts located at 920 MacArthur Drive, Alexandria, LA here to referred to as Property. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. It is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for the Buyer s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the Property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future performance. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer s legal ability to make alternate use of the Property. By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property. NON-ENDORSEMENT NOTICE Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ii

3 TABLE OF CONTENTS PRICING AND FINANCIAL ANALYSIS Investment Overview Financial Overview Company Overview PROPERTY DESCRIPTION Property Overview Bird s Eye Tenant Map Regional Map DEMOGRAPHICS Demographics Report City Overview PRESENTED BY Chad Kurz SVP & National Director License No O M chad.kurz@matthews.com Maxx Bauman Associate License No O M maxx.bauman@matthews.com Beau Box Commercial Real Estate Beau Box 5500 Bankers Ave. Baton Rouge,LA (225) License No iii

4 Representative Photo

5 PRICING AND FINANCIAL ANALYSIS

6 Investment Overview Chad Kurz and Maxx Bauman of Matthews Retail Advisors are pleased to exclusively offer for sale to qualified investors a net leased Advance Auto Parts located in Alexandria, LA. The investment offers the ability to acquire a triple-net Advance Auto Parts with 4 years remaining on the lease. The lease is corporately guaranteed by Advance Auto Parts (Standard & Poor s rated BBB-) which is the country s largest automotive replacement parts and accessories chain with more than 5,293 stores. INVESTMENT HIGHLIGHTS PROPERTY DETAILS 4 Years Remaining on NNN Lease with Three (3), Five (5) Year Options Tenant Responsible for Roof, HVAC, and Parking Lot High Quality Construction, Steel Framed with Concrete Block LOCATION Located Directly Off of US Hwy 71, Boasting Traffic Counts in Excess of 36,000+ Alexandria Serves as the Crossroads of Louisiana, Being Only 2 Hours from Shreveport/Baton Rouge, and Just Over 3 Hours from New Orleans Located in a Do-It-Yourself City, Fits Into Advance Auto Parts Ideal Locations Average Household Income in Advance Auto Parts Sweet-Spot Out of 393 U.S. Cities Ranked, Alexandria Ranks as the 77th Best Place in Which to Conduct Business Nearby Retailers Include Home Depot, Kroger, Walmart, Sam s Club, Applebees, Walgreens, Academy Sports, Best Buy, Buffalo Wild Wings, Family Dollar, Chick-fil-A, McDonald s, Taco Bell, Circle K, Hobby Lobby, Target. and Starbucks TENANT Investment Grade Credit Tenant S&P Rated BBB- Market Cap of $11.84 billion 5,293 Stores Fortune 500 Company 2

7 Financial Overview EXECUTIVE SUMMARY 920 MacArthur Drive Alexandria, LA List Price $1,571,587 Gross Leasable Area ,972 SF CAP Rate - Current % Year Built Lot Size ± 1.16 Acres (50,835 SF) ANNUALIZED OPERATING DATA Monthly Rent Annual Rent Rent/SF CAP Rate Current - 7/31/2020 $10, $121, $ % Option 1-7/31/2025 $10, $127, $ % Option 2-7/31/2030 $11, $134, $ % Option 3-7/31/2035 $11, $140, $ % TENANT SUMMARY Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof, HVAC, Parking Lot Original Lease Term Advance Auto Parts, Inc. Fee Simple Corporate NNN Tenant Responsible 15 Years Lease Agreement Date 2/14/2005 Rent Commencement Date 7/31/2005 Lease Expiration Date 7/31/2020 Representative Photo Term Remaining on Lease Increases Options 4 Years 5% at Options Three (3), Five (5) Year Options 3

8 Company Overview Property Name Advance Auto Parts Property Type Net Leased Auto Parts Parent Company Trade Name Advance Auto Parts Ownership Public Credit Rating BBB- Rating Agency Standard & Poor s Revenue $11.84 Billion Net Income $493 Million Stock Symbol AAP Board NYSE No. of Locations 5,293 No. of Employees 73,000 Founded as Advance Stores Company in 1929, AAP was a general merchandise retailer until the 80s. From there the company shifted its focus to automotive parts retailing, targeting DIY customers. Advance Auto Parts (AAP) has taken the lead in the race to become the #1 provider of automotive aftermarket parts in North America. Serving both the do-it-yourself (DIY) and professional installer markets, AAP operates nearly 5,300 stores under the Advance Auto Parts, Autopart International (AI), Carquest, and Worldpac banners in the US and Canada. Its stores carry brand-name replacement parts, batteries, maintenance items, and automotive chemicals for individual car and truck owners. AAP s Carquest, AI, and Worldpac stores cater to commercial customers, including garages, service stations, and auto dealers. AAP s annual revenues and profits have been trending higher over the past several years with aggressive store expansion and as consumers continue to hold onto their cars and get them fixed more often. Headquartered Web Site Roanoke, VA autoparts.com Year Founded

9 PROPERTY DESCRIPTION

10 Property Overview THE OFFERING Property Name Advance Auto Parts Property Address MacArthur Dr Alexandria, LA Assessor s Parcel Number SITE DESCRIPTION Number of Stories One Year Built Gross Leasable Area (GLA) ,972 SF Lot Size ±1.16 Acres (50,835 SF) Type of Ownership Fee Simple Parking ± 35 Surface Spaces Parking Ratio : 1,000 SF Landscaping Professional Topography Generally Level CONSTRUCTION Foundation Concrete Slab Framing Steel Exterior Brick Parking Surface Asphalt Roof Flat Representative Photo 6 PROPERTY DESCRIPTION

11 Bird s Eye Highway 165 ± 37,000 ADT 7

12 Tenant Map 8 PROPERTY DESCRIPTION

13 Regional Map 9

14 DEMOGRAPHICS

15 Demographics Report Population 1-Mile 3-Mile 5-Mile 2021 Projection 8,444 44,078 65, Estimate 8,495 43,921 64, Census 8,671 44,469 64, Census 8,632 44,626 63,565 Growth % 0.36% 1.16% Growth % -1.23% 0.08% Growth % -0.35% 1.11% Households 2021 Projection 3,562 17,300 25, Estimate 3,564 17,145 24, Census 3,599 17,194 24, Census 3,642 17,066 24,157 Growth % 0.90% 1.64% Growth % -0.28% 0.78% Growth % 0.75% 2.58% Income $0 - $15, % 19.22% 20.25% $15,000 - $24, % 14.88% 15.50% $25,000 - $34, % 13.77% 14.02% $35,000 - $49, % 15.60% 15.59% $50,000 - $74, % 14.47% 14.44% $75,000 - $99, % 8.32% 7.67% $100,000 - $124, % 4.95% 4.71% $125,000 - $149, % 2.96% 2.72% $150,000 - $199, % 2.42% 2.26% $200,000 - $249, % 1.10% 0.95% $250,000 - $499, % 1.73% 1.42% $500, % 0.57% 0.47% 2016 Est. Average Household Income $62,077 $56,258 $53, Est. Median Household Income $41,356 $37,047 $35, DEMOGRAPHICS

16 City Overview ALEXANDRIA, LOUISIANA Alexandria is a city in and the parish seat of Rapides Parish, Louisiana. It lies on the south bank of the Red River in the center of the state. It is the principal city of the Alexandria Metropolitan Statistical Area. As Alexandria is at the cusp of Cajun culture s extension to the north, the city recognizes Mardi Gras as an official holiday. The annual Mardi Gras Krewes Parade occurring on the Sunday before Mardi Gras on Texas Avenue is a major cultural festivity in the area. Boasted as a true family oriented event, parade goers can enjoy over 20 New Orleans style floats, high school and college marching bands, as well as appearances by local celebrities. Downtown Alexandria, including the Alexandria Cultural Arts District, is currently in the process of revitalization. It is home to five museums, three performance venues, and several galleries. In recent years, several bars, cafes, and restaurants have opened. The Alexandria Museum of Art was founded in 1977 and occupies a historic Rapides Bank Building on the banks of the Red River. The building was built in 1898 and is listed on the National Historic Register. The Louisiana History Museum is located downtown on the bottom floor of the former library. A small facility, it showcases the history of all Louisiana, with emphasis on the central portion of the state, Rapides Parish, and Alexandria. Major exhibit areas concern Native Americans, Louisiana geography, politics, health care, farming, and the impact of war. The Kent Plantation House in Alexandria, completed by 1800, was located on a Spanish land grant. It is the oldest standing structure in Central Louisiana, one of only two buildings in the city to survive the burning of 1864 by Union troops fleeing after having been defeated at the Battle of Mansfield in DeSoto Parish. In 2007, Inc. Magazine rated Alexandria as the 77th best place in which to conduct business out of the 393 U.S. cities ranked, a significant increase from its ranking as No. 276 in The Alexandria workforce consists of about 55,000 residents. Union Tank Car Company has recently located a plant northwest of Alexandria near the airport creating hundreds of jobs. Expansions at the Procter & Gamble plant and the construction of a PlastiPak plant in nearby Pineville have also created a number of new jobs for the area. Sundrop Fuels Inc., a Colorado-based biofuels start-up, plans to construct an over 1,200 acre plant just northwest of Alexandria in Rapides Station area. The facility will serve as the headquarters for the company. 12

17 Advance Auto Parts 920 MacArthur Drive, Alexandria, LA OFFERING MEMORANDUM Chad Kurz SVP & National Director License No O M chad.kurz@matthews.com Maxx Bauman Associate License No O M maxx.bauman@matthews.com Beau Box Commercial Real Estate Beau Box 5500 Bankers Ave. Baton Rouge,LA (225) License No Apollo Street, Suite 150 El Segundo, CA