ADVANCE AUTO PARTS. 470 Albany Avenue - KINGSTON, NEW YORK OFFERING MEMORANDUM ACTUAL PROPERTY

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1 ADVANCE AUTO PARTS OFFERING MEMORANDUM ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

2 Financial Overview OFFERING SUMMARY PRICE $1,376,552 CAP RATE 7.26% NOI $99,880 PRICE PER SQUARE FOOT $ RENT PER SQUARE FOOT $14.27 YEAR BUILT 2000 APPROXIMATE LOT SIZE 1.26 Acres GROSS LEASEABLE AREA 7,000 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Corporate Guaranty LEASE TYPE Double-Net (NN) ROOF AND STRUCTURE Landlord Responsible LEASE SUMMARY LEASE COMMENCEMENT DATE 2/15/2001 LEASE EXPIRATION DATE 12/31/2021 LEASE TERM TERM REMAINING INCREASES OPTIONS TO RENEW 20 Years 4 Years In Options 2, 5-Year ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

3 Investment Overview Marcus & Millichap is pleased to present this 7,000-square foot Advance Auto Parts in Kingston, New York; which is located 56 miles south of Albany. Advance has demonstrated commitment by exercising three extension options. This asset is operating under a double-net (NN) lease, where the landlord s responsibilities are limited to roof, structure, and parking lot. The lease is backed by a corporate guaranty from Advance Stores Company, Incorporated; a Fortune 500 Company that came in at number 292 on the June 2017 ranking. This highly visible Advance Auto Parts is located along Albany Avenue, a major corridor in Kingston with daily traffic counts that exceed 16,000 vehicles per day (VPD). Advance Auto benefits from not only being the only freestanding, national credit, auto parts store on Albany Avenue but also being nearby to seven used car dealerships. This asset is located within a dense retail trade area, there are more than 1.3 million square feet of retail within three miles. Some of the anchor tenants include Walmart, Target, Lowe s, and Sam s Club. There is significant capital entering the Kingston market for redevelopment opportunities. The most notable being the redevelopment of the Hudson Valley Mall. Acquired by Hull Property Group in early 2017, the mall owners and Kingston town officials have recently settled on an improved tax burden for the property so they begin redevelopment. Hull Property Group plans on doing significant renovations in the near future to retain and attract national tenants. The HealthAlliance Hospital is also undergoing an expansion, this project has been valued at $112 million. Advance Auto Parts in Kingston, New York 56 Miles South of Albany Tenant Demonstrates Commitment Exercised Three Extension Options Early More Than 16-Year Operating History Strong Unit Level Performance Healthy Rent-to-Sales Contact Listing Broker for Details Minimal Landlord Responsibilities Tenant Operating in Third, Five-Year Extension Two, Five- Year Extensions Remain Corporate Guaranty New York Stock Exchange (NYSE): AAP Number 292 in Forbes Fortune 500 (2017) Highly Visible Along Albany Avenue More Than 100 Feet of Frontage Along Four-Lane Thoroughfare More Than 16,000 Vehicles Per Day (VPD) Limited Competition Only Freestanding, National Credit, Auto Parts Store on Albany Avenue More Than 1.3 Million Square Feet of Retail Within Three Miles Anchored by Strong National Credits Walmart, Target, Lowe s, and Sam s Club Ideally Located Along the Same Corridor As Seven Used-Car Dealerships All Within Two Miles Significant Capital Entering Kingston $112-Million HealthAlliance Hospital Expansion Hudson Valley Mall Undergoing Major Redevelopment ACTUAL PROPERTY Additional Tenants in the Immediate Vicinity Include: Quickchek, KFC, McDonald s, Dollar General, NAPA Auto Parts, Dunkin Donuts, SUBWAY, ALDI, Starbucks, Jiffy Lube, Applebee s, HomeGoods, Five Guys, Popeyes, Verizon, Chipotle, Taco Bell, Wendy s, and Many More FILE PHOTO Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

4 Tenant Overview - Advance Auto Parts ACTUAL PROPERTY Advance Auto Parts was founded in 1929 as Advance Stores Company, Incorporated and operated as a retailer of general merchandise until the 1980s. During the 1980s, they began targeting the sale of automotive parts and accessories to do-it-yourself (DIY) customers. They began their commercial delivery program in 1996 and have steadily increased sales to Commercial customers since They have grown significantly as a result of comparable store sales growth, new store openings, and strategic acquisitions. Advance Stores Company (ASC), wholesales and retails automotive parts and maintenance items. In the retail segment, ASC s stores offer a selection of brand name and proprietary automotive products for domestic and imported cars, and light trucks. These stores carry between 16,000 and 21,000 stock keeping units. The dealer stores consist of associate, sales center, and franchise dealers. ASC also provides services to the wholesale dealer network through various administrative and support functions, as negotiated by each independent location. The company competes with AutoZone, O Reilly Automotive, The Pep Boys Manny; Moe & Jack; Wal-Mart; Target; and K-Mart. TENANT PROFILE TENANT TRADE NAME Advance Auto Parts OWNERSHIP Public TENANT Corporate Store LEASE GUARANTOR Corporate Guarantee NUMBER OF LOCATIONS 5,200+ HEADQUARTERED Roanoke, Virginia WEB SITE SALES VOLUME $9.6 Billion (2016) NET WORTH $2.9 Billion (2016) STOCK SYMBOL AAP BOARD New York Stock Exchange (NYSE) CREDIT RATING BBB- RATING AGENCY Standard & Poor (S&P) RANK Number 292 in Fortune 500 (June 2017) Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

5 Aerial Overview Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

6 Area Overview & Demographics Mt Marion Zena West Hurley 5 MILE RADIUS Ruby 87 9W Annandale-On-Hudson 9G Barrytown Red Hook Shokan 28A 28A Oliverbridge 213 Atwood Krumville The Vly A MILE RADIUS Lake Katrine East Kingston 1 MILE Lincoln Park 587 Kingston SITE Hillside Port Ewen 87 Eddyville 9W 9 9G Rhinebeck 9 9G Milan Taconic State Parkway 213 Cottekill Rosendale Ulster Park 9 Staatsburg Pleasant Plains 1-Mile 3-Mile 5-Mile Population 2000 Population 9,230 33,611 48, Population 9,706 33,805 48, Population 9,748 33,725 47, Population 9,712 33,549 47,480 1-Mile 3-Mile 5-Mile Households 2000 Households 3,776 13,944 19, Households 3,895 14,365 20, Households 3,940 14,358 20, Households 3,927 14,279 19,927 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2017 Average HH Income $58,606 $60,865 $65, Median HH Income $43,832 $45,292 $48, Per Capita Income $23,688 $25,913 $27,631 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

7 Market Overview - Kingston, New York Kingston is located in the Hudson Valley Region of New York, 50 miles south of Albany. Located at the foot of the Catskill Mountains and also less than 90 miles from Manhattan, Kingston is uniquely positioned to harness the economic and cultural potential of the New York City Metro area and what are arguably the finest natural environmental assets in the country. Kingston has always been a hub for culture, commerce and tourism. Today, this former state capital has evolved into a vibrant destination that attracts visitors from around the world. Kingston is an exciting intersection of natural beauty, history, the arts, and upscale urban chic. The Downtown Rondout Waterfront district is renowned for its lively marinas, award-winning restaurants, eclectic shops, art galleries, and a charming waterside promenade. Kingston Point Beach is a picturesque destination for swimming, picnicking and boat-launching. Along the Broadway corridor, Kingston s Midtown district features storefronts, restaurants and local businesses. Highlights include Ulster Performing Arts Center; the award-winning Keegan Ales brewery, which is also an entertainment venue with live music and a restaurant; and the newest addition to the cultural scene is Cornell Street Studios. In the Uptown Stockade District, Revolutionary-era stone buildings and National Historic Landmarks are nestled alongside an ever-growing array of contemporary restaurants, galleries, music venues and boutiques. The Farmers Market bustles with happy shoppers and offers a fine selection of seasonal Hudson Valley grown goods. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y

8 Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, 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 your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for 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 you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. 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 success. 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 Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

9 Advance Auto Parts Broker of Record J. D. Parker Marcus & Millichap REIBC of NY License: 31PA