SINGLE TENANT INVESTMENT OPPORTUNITY

Transcription

1 SINGLE TENANT INVESTMENT OPPORTUNITY FAIRFIELD, ALABAMA(BIRMINGHAM MSA)

2 JIM SCHUCHERT SENIOR ASSOCIATE SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA DL: M: CA License No EXCLUSIVELY MARKETED BY MATTHEW MOUSAVI MANAGING PRINCIPAL SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA DL: M: CA License No PATRICK R. LUTHER, CCIM MANAGING PRINCIPAL SRS NATIONAL NET LEASE GROUP 610 Newport Center Drive, Suite 1500 Newport Beach, CA DL: M: CA License No 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. Broker of Record: Martin Smith - AL License No

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4 INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS PROPERTY OVERVIEW PARCEL MAP AERIALS SITE PLAN LOCATION MAP AREA OVERVIEW CITY OVERVIEW DEMOGRAPHICS FINANCIALS RENT ROLL PRICING SUMMARY TENANT OVERVIEW

5 INVESTMENT SUMMARY SRS National Net Lease Group is pleased to present the opportunity to acquire the fee simple interest (land and building) in a net leased Advance Auto Parts located in Fairfield, Alabama. Advance Auto Parts has approximately 3.25 years remaining in the current term. Tenant has zero options to extend the lease, providing the new owner with the opportunity to negotiate a new long term lease with Tenant. Tenant exercised their last option in 2015 at a 10% rental increase. The lease is NN+ in nature with landlord responsibilities limited to roof, structure, and parking lot. The roof was replaced in May 2008 (15 year warranty) and 2 HVAC units were replaced in The subject site is located along Wiebel Drive with over 25,000 vehicles passing by each day. Fairfield is located just 10 miles west of Birmingham and 50 miles northeast of Tuscaloosa. Nearby national retailers include CVS, McDonald s, Walgreens, Wendy s, Circle K, Hardee s, Burger King, Home Depot, Dollar Tree, and Wells Fargo. The 5-mile trade area is supported by a dense population of approximately 117,911 residents with an average household income of $46,078. OFFERING PRICING: $899,000 NET OPERATING INCOME: $72,600 CAP RATE: 8.08% GUARANTY: Corporate CREDIT RATING: S&P: BBB- LEASE TYPE: NN+ LANDLORD RESPONSIBILITIES: Roof*, Structure, and Parking Lot *Roof was replaced in May 2008 and is still under warranty (original 15 year warranty). PROPERTY SPECIFICATIONS RENTABLE AREA: LAND AREA: ± 8,075 SF ± 0.83 Acres PROPERTY ADDRESS: 6556 Aaron Aronov Drive, Fairfield, AL YEAR BUILT: 1995 PARCEL NUMBER: OWNERSHIP: Fee Simple (Land and Building) 5 / ADVANCED AUTO PARTS / FAIRFIELD, ALABAMA INVESTMENT SUMMARY / SRS NATIONAL NET LEASE GROUP

6 INVESTMENT HIGHLIGHTS PROPERTY DETAILS: 3.25 Years Remaining on NN+ Lease Tenant Has Zero Options to Renew Lease - Provides New Owner the Opportunity to Negotiate a New Long Term Lease with Tenant Tenant Exercised Last Option at 10% Increase Landlord Responsibilities Limited to Roof, Parking Lot, and HVAC Roof was Replaced in May 2008 (15 Year Warranty) and 2 HVAC Units Were Replaced in 2009 LOCATION: Located Along Wiebel Drive with Over 25,000 Vehicles Passing by Each Day Fairfield is Located Just 10 Miles West of Birmingham and 50 Miles Northeast of Tuscaloosa Nearby National Retailers Include CVS, McDonald s, Walgreens, Wendy s, Circle K, Hardee s, Burger King, Home Depot, Dollar Tree and Wells Fargo The 5-mile Trade Area is Supported by a Dense Population of Approximately 117,911 Residents with an Average Household Income of $46,078 TENANT: Investment Grade Credit Tenant S&P Rated BBB- Market Cap of $11.84 Billion 5,073 Stores Fortune 300 Company 6 / ADVANCED AUTO PARTS / FAIRFIELD, ALABAMA INVESTMENT HIGHLIGHTS / SRS NATIONAL NET LEASE GROUP

7 PROPERTY OVERVIEW ACCESS There is only one (1) access point with along Aaron Aronov Drive. PARCEL Parcel Number: Acres: ± 0.83 Square Feet: 36,216 SF TRAFFIC COUNTS Aaron Aronov Drive:...25,400 VPD Interstate 59 & 20:...61,500 VPD ZONING B2: General Business IMPROVEMENTS There is approximately ± 8,075 SF of existing building area. PARKING There are approximately 40 parking spaces on the owned parcel. The parking ratio is approximately 4.95 stalls per 1,000 SF of leasable area. YEAR BUILT 1995 PARCEL MAP 7 / ADVANCED AUTO PARTS / FAIRFIELD, ALABAMA PROPERTY OVERVIEW / SRS NATIONAL NET LEASE GROUP

8 25,400 CARS PER DAY N

9 61,500 CARS PER DAY 25,400 CARS PER DAY 20,400 CARS PER DAY N

10 PYLON SIGN AARON ARONOV DR. N

11 2017 ESTIMATED POPULATION 1 Mile... 8,196 3 Mile... 58,003 5 Mile...117, AVERAGE HOUSEHOLD INCOME 1 Mile...$48,069 3 Mile...$44,345 5 Mile...$46, ESTIMATED TOTAL EMPLOYEES 1 Mile... 3,117 3 Mile... 14,835 5 Mile... 44,500 BIRMINGHAM FAIRFIELD N

12 AREA OVERVIEW OF FAIRFIELD, ALABAMA Fairfield is a city in western Jefferson County, Alabama, United States. It is part of the Birmingham metropolitan area and is located southeast of Pleasant Grove. The City of Fairfield had a population of 11,200 as of July 1, Fairfield offers easy access to Birmingham Botanical Gardens, Sloss Furnaces National Historic Landmark, Southern Museum of Flight, Sixteenth Street Baptist Church, and Birmingham Museum of Art. You can also visit Fairfield City Park during your leisure time. The city is home to Western Hills Mall Shopping Center which has several specialty stores and two anchor department stores. Shopping can also be enjoyed at Bellview Plaza West Shopping Center Fairfield has its own school system, independent from Jefferson County. The system includes three elementary schools, Forest Hills Middle School, Fairfield High Preparatory School(formerly Fairfield High School), and an alternative all-grades school. Birmingham International Airport is the nearest airport. Jefferson County is the most populous county in the state of Alabama, in the United States. As of the 2010 census, the population was 658,466. Its county seat is Birmingham, which is also the most populous city in the state. Its growth as an industrial city in the 20th century established its dominance. Jefferson County is included in the Birmingham-Hoover, AL Metropolitan Statistical Area. Except for cities such as Birmingham that have established their own local school districts, all parts of Jefferson County are served by Jefferson County Board of Education. Parts within Birmingham are served by Birmingham City Schools. Other cities in the county that have established their own school systems are Gardendale, Bessemer, Fairfield, Midfield, Trussville, Homewood, Leeds, Hoover, Vestavia Hills, Tarrant, and Mountain Brook. Birmingham is the location of the Birmingham-Shuttlesworth International Airport, which provides service, either direct or connecting, to most of the rest of the United States. 12 / ADVANCED AUTO PARTS / FAIRFIELD, ALABAMA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP

13 AREA OVERVIEW (CONTINUED) DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2017 Estimated Population 8,196 58, , Projected Population 8,284 58, , Census Population 8,178 58, ,848 Projected Annual Growth 2017 to % 0.15% 0.21% 2017 Estimated Households 3,135 22,273 46, Projected Households 3,165 22,437 46, Census Households 3,140 22,292 46,161 Projected Annual Growth 2017 to % 0.15% 0.24% 2017 Estimated White 4.00% 7.30% 16.30% 2017 Estimated Black or African American 95.00% 90.40% 80.80% 2017 Estimated Asian or Pacific Islander 0.00% 0.10% 0.40% 2017 Estimated American Indian or Native Alaskan 0.00% 0.20% 0.20% 2017 Estimated Other Races 0.50% 1.20% 1.40% 2017 Estimated Hispanic 1.00% 2.20% 2.40% 2017 Estimated Average Household Income $48,069 $44,345 $46, Estimated Median Household Income $35,098 $32,892 $32, Estimated Per Capita Income $19,823 $17,418 $18, Estimated Total Businesses 246 1,197 3, Estimated Total Employees 3,117 14,835 44, / ADVANCED AUTO PARTS / FAIRFIELD, ALABAMA AREA OVERVIEW / SRS NATIONAL NET LEASE GROUP

14 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 8,075 5/1/ /31/2020 Current - $6,050 $0.75 $72,600 $8.99 NN+ None Corporate Guaranty FINANCIAL INFORMATION Price:...$899,000 Net Operating Income:...$72,600 Cap Rate: % Lease Type:... NN+ PROPERTY SPECIFICATIONS Year Built: Rentable Area:... ± 8,075 SF Land Area:... ± 0.83 Acres Address: Aaron Aronov Drive, Fairfield, AL TENANT PROFILE ADVANCE AUTO PARTS Advance Auto Parts, Inc., the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. As of July 15, 2017, the company operated 5,073 stores and 127 WORLDPAC branches; and served approximately 1,250 independently owned Carquest branded stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada, as well as Mexico and the Bahamas, Turks and Caicos, the British Virgin Islands, and the Pacific Islands. Advance Auto Parts, Inc. was founded in 1929 and is headquartered in Roanoke, Virginia. Company Type:... Public (NYSE:AAP) 2016 Employees:... 73, Revenue:... $9.57 Billion 2016 Net Income:...$ Million 2016 Assets:... $8.32 Billion 2016 Equity:... $2.92 Billion Ranking:... #293 in FORTUNE / ADVANCED AUTO PARTS / FAIRFIELD, ALABAMA RENT ROLL / SRS NATIONAL NET LEASE GROUP

15 SRS GLOBAL STATS 800+ PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES 250+ BROKERS, PROFESSIONALS, AND STAFF #1 LARGEST REAL ESTATE FIRM EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA *STATISTICS ARE FOR 2016.