Advance Auto Parts OFFERING MEMORANDUM Asheville Hwy Hendersonville, NC

Transcription

1 Advance Auto Parts OFFERING MEMORANDUM 2302 Asheville Hwy Hendersonville, NC

2 2 Offering Memorandum

3 exclusively listed by contents GORDON MILLER Associate JOSH BISHOP VP & Director CHAD KURZ SVP & National Director 04 EXECUTIVE SUMMARY DIR MOB LIC # (TX) josh.bishop@matthews.com DIR MOB LIC # (TX) chad.kurz@matthews.com DIR MOB LIC # (CA) 06 financial OVERVIEW 10 tenant overview KYLE MATTHEWS BROKER OF RECORD LIC # (TX) 14 area OVERVIEW

4 ASSET OVERVIEW Advance Auto Parts 2302 Asheville Hwy Hendersonville, NC List Price...$2,052,160 CAP Rate - Current % Gross Leasable Area... ± 6,828 SF Lot Size... ± 0.72 Acres Year Built investment highlights This Advance Auto Parts store is located directly off of Asheville Highway and sees traffic counts of ± 23,000 ADT Strong Store Sales Attractive 5% increases in each of the four options Average household income within a 1-mile radius is $64,356, falling in Advance Auto Parts target demographic of Do-It-Yourself consumers High quality construction - Built with steel framing and concrete block Investment Grade Credit Tenant Advance Auto Parts has a S&P rating of BBB- Located in Hendersonville, North Carolina, a city that sees a significant amount of tourism and is expected to continue growing 4 Offering Memorandum

5 Annualized Operating Data Monthly Rent Annual Rent Rent/SF Increases Current $12, $153, $ % Option 1-4/1/2022 $13, $161, $ % Option 2-4/1/2027 $14, $169, $ % Option 3-4/1/2032 $14, $178, $ % Option 4-4/1/2037 $15, $187, $ % Tenant Summary Tenant Trade Name Advance Auto Parts Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof, HVAC and Parking Lot Tenant Responsible Original Lease Term 15 Years Lease Commencement Date 11/28/2006 Rent Commencement Date 3/22/2007 Lease Expiration Date 4/1/2022 Term Remaining on Lease ± 5 Years Increases 5% Increases in Options Options Four (4), Five (5) Year Options Advance Auto Parts, Hendersonville, NC 5

6 tenant overview 6 Offering Memorandum

7 Property Name Property Type Parent Company Trade Name Ownership Advance Auto Parts Net-Leased Auto Parts Store Advance Auto Parts, Inc. Public No. of Locations ± 5,185 No. of Employees ± 74,000 Headquartered Website Roanoke, Virginia Year Founded 1929 Credit Rating (S&P) BBB- TENANT OVERVIEW Headquartered in Roanoke, VA., Advance Auto Parts, Inc., the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. Advance Auto Parts operates over 5,185 stores, over 127 Worldpac branches and serves approximately 1,250 independently owned CARQUEST branded stores in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. Employing approximately 74,000 Team Members, the company works hard to create an environment of honesty, integrity, mutual trust and dedication. These values have remained the same since Advance Auto Parts founding in Advance Auto Parts operates stores that primarily offer auto parts such as alternators, batteries, belts and hoses, chassis parts, clutches, engines and engine parts. STRATEGY AAP continues to expand its store network in both new and existing markets to grow its commercial and DIY customer base. In a move that created the largest automotive aftermarket parts provider in North America and surpassed rival AutoZone in sales, AAP acquired privately-held General Parts International, a distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands. The company has also been moving into the commercial market in recent years. To better serve commercial customers, AAP has added more parts from key manufacturers to its inventory and expanded its workforce with parts professionals, delivery drivers, and sales representatives. SALES & MARKETING Advance Auto Parts builds it marketing and advertising campaigns around radio, television, direct marketing, mobile and social media, and local in-store marketing. Its Speed Perks customer loyalty campaign targets core DIY customers and emphasizes service. The company also employs Spanish-language television, radio, and outdoor ads to reach Latinos. GEOGRAPHIC REACH The auto parts chain has stores in all 50 states, as well as Puerto Rico, the US Virgin Islands, and Canada. Florida is the company s largest market with more than 500 stores. North Carolina, New York, Ohio, Pennsylvania, and Georgia are also major markets for Advance Auto Parts, each home to more than 250 stores. Advance Auto Parts, Hendersonville, NC 7

8 PROPERTY overview parcel map the offering Property Name Property Address Advance Auto Parts 2302 Asheville Hwy Hendersonville, NC Assessor s Parcel Number Zoning Site Description Number of Stories HC One Year Built 2007 Gross Leasable Area (GLA) Lot Size Type of Ownership Parking Parking Ratio Landscaping Topography ± 6,828 SF ± 0.72 Acres (31,363 SF) NNN ± 36 Surface Spaces 5.2 : 1,000 SF Professional Generally Level Oceanside Blvd ± 31,792 Property demographics Asheville Hwy ± 23,000 ADT POPULATION 3-Mile 5-Mile 10-Mile 2022 Projection 33,720 61, , Estimate 32,178 58, ,391 Growth % 5.05% 5.42% College Blvd ± 40,116 Construction Foundation Framing Exterior Parking Surface Roof Concrete Slab Steel Concrete Block Asphalt Flat Growth % 6.67% 7.32% HOUSEHOLDS 3-Mile 5-Mile 10-Mile 2022 Projection 15,366 27,408 57, Estimate 14,554 25,921 54,591 Growth % 5.73% 5.64% INCOME 3-Mile 5-Mile 10-Mile 2017 Est. Average Household Income $59,082 $59,564 $63,478 8 Offering Memorandum

9 TENANT MAP Advance Auto Parts, Hendersonville, NC 9

10 AREA overview Hendersonville, North Carolina Cradled amidst the Blue Ridge Mountains and the Great Smoky Mountains in western North Carolina, the city of Hendersonville is a charming mountain town steeped in history. This 2,200-foot elevated community offers the ideal combination of tasty food and an abundance of recreational activities, making it the perfect mountain getaway. A location of choice for those looking to relocate or retire in the Southeast, Hendersonville offers an escape from life s hectic pace with its beautiful scenery and southern hospitality. Historic Downtown Hendersonville is 16 blocks bustling with activity at its unique stores, Farmers markets and other enterprises. More than just a business district, this downtown area is the heart of an economically and culturally animated city. Just 22 miles north of Hendersonville, uptown neighbor Asheville offers a worldclass array of shopping and farm to table dining options as well as typical suburban fast food and big box store retailers surrounding the city. 10 Offering Memorandum

11 Henderson County is the largest apple-producing county in North Carolina and the seventh-largest in the nation. The area s abundance of orchards has positioned it as a home for the emerging hard cider market. Hendersonville has been a long-time leader in apple production, and now leads the way in hard cider. Home to three cideries, the mountain town takes pride in its locally sourced and produced hard cider. LOCAL ECONOMY Hendersonville has a healthy economic base that is heavily influenced by tourism, agriculture and industry. Henderson County has long been known for its quality apples; Apple production continues to be a major industry celebrated by the city every summer with its famous North Carolina Apple Festival. A proactive community, Hendersonville has preserved its traditional downtown Main Street area, and transformed it into a beautiful tree-lined avenue complete with flower-filled brick planters. With the goal to maintain its peaceful quality of life, city industrial development restrictions encourage small industries in lieu of larger ones. Retirement development has also assisted in establishing its hometown atmosphere as retirees continue to flock to the area, drawn by Hendersonville s unique lifestyle. Advance Auto Parts, Hendersonville, NC 11

12 Asheville, North carolina Originally settled in the 19th century as a health resort, Asheville is an eastern equivalent of the many mountain resort towns found throughout the American west, particularly those in the Rocky Mountains. The city lies at the foot of the Great Smoky Mountains along both banks of the French Broad River, near the center of the French Broad Basin. Repeatedly recognized as a top place to live, retire, golf and dine, Asheville enjoys an active economy and serves as a travel destination for many east coast city residents. An inviting, attractive downtown area offers an assortment of trendy restaurants and live-entertainment venues housed in a mix of modern and Art-Deco building. Other sites of interest throughout Asheville consist of museums, boutiques, posh hotels, retail outlets and independent breweries. 12 Offering Memorandum

13 LOCAL ECONOMY As a place that attracts educated young professionals, artisans and active retirees, Asheville benefits from its location at the crossroads of the two western North Carolina interstates I-26 and I-40. Businesses can take advantage of the city s proximity to major cities along the Eastern Seaboard, in the Midwest and the South logistically in terms of access and shipping costs. Asheville s economy is largely supported by the hospitality, education and health care industries. To that end, there is some manufacturing, led by GE lighting systems. In recent years, the city of Asheville has invested millions of dollars for new construction and building renovations to keep up with the continued influx of new enterprises given the growing number of education and medical facilities in addition to the already existing 9,000 businesses in the community. UNC ASHEVILLE Formally known as the University of North Carolina at Asheville, UNC Asheville is a is a four year, public liberal arts university located in the northern part of Asheville. UNC Asheville is the only dedicated liberal arts institution in the University of North Carolina system and has been ranked as one of the nation s top public liberal arts universities. With a focus on undergraduate studies, UNC Asheville offers its 3,891 students undergraduate programs in 36 majors and more than 60 clubs and organizations for students to partake in. For those interested in athletics, the university offers intramural sports and has 16 NCAA Division 1 teams. Advance Auto Parts, Hendersonville, NC 13

14 UPSTATE SOUTH CAROLINA Situated between Atlanta and Charlotte, the Upstate is the fastest-growing region in South Carolina. As a loosely defined term among locals, the Upstate refers to the area in the westernmost part of the state, which coincides with the Greenville- Spartanburg-Anderson, SC Combined Statistical Area. Propagated by BMW, many foreign companies, including others from Germany, have established a significant presence in the Upstate. Adidas, Bank of America, Bi-Lo, SunTrust, Bausch & Lomb, IBM and Lockheed Martin are just a few of the numerous corporations that have Greenville is the largest city in the Upstate and is the base of most commercial activity in the area. The city was long known as The Textile Capital of the World because the textile manufacturing industry was the backbone of the economy. Favorable wages and tax benefits continue to attract companies to the area, thereby diversifying the economy. Today, major industries of commerce include the auto industry, which is mainly concentrated along the corridor between Greenville and Spartanburg, healthcare and pharmaceuticals. 14 Offering Memorandum

15 greenville, south carolina Nestled into the foothills of the Blue Ridge Mountains in South Carolina, the city of Greenville combines traditional southern charm, stunning natural beauty and modernism to create a popular emerging destination. Greenville is in the mountainous northwest, or upstate, of South Carolina, in the center of an old textile and agricultural region. With an increasing population, Greenville is the largest city in the region. Living costs in the city are low and there is abundant quality housing close to the city. Greenville offers many activities and attractions from a world-class collection of museums, galleries, and theaters to plentiful outdoor activities in the Blue Ridge Mountains to the north. With quaint shops, boutiques and excellent restaurants, Greenville s downtown area houses the largest concentration of the city s businesses and financial institutions. It maintains its vibrant, revitalized downtown area, which has been ranked among America s Ten Best by Forbes. The BMW plant and several other new manufacturing entities have sprung up mostly to the east towards Spartanburg, all of which have contributed to a vibrant economy and new infrastructure. 15

16 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Advance Auto Parts located at 2302 Asheville Hwy, Hendersonville, NC ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

17 Advance Auto Parts 2302 Asheville Hwy Hendersonville, NC exclusively listed by GORDON MILLER Associate DIR MOB LIC # (TX) JOSH BISHOP VP & Director josh.bishop@matthews.com DIR MOB LIC # (TX) CHAD KURZ SVP & National Director chad.kurz@matthews.com DIR MOB KYLE MATTHEWS BROKER OF RECORD LIC # (TX) LIC # (CA) Advance Auto Parts, Hendersonville, NC 17