ADVANCE AUTO PARTS Major Retail Corridor 15 YR. NN LEASE SW Oslo Rd & 27th Ave, Vero Beach, FL 32968 Representative Store FORTIS NET LEASE INVESTMENT REAL ESTATE SERVICES E S Bryan Bender Senior Director bbender@fortisnetlease.com 248.419.3810
TABLE OF CONTENTS Page 1: Page 2: Page 3: Page 4: Page 5: Page 6: Page 7: Page 8: Page 9: Page 10: Page 11: Cover Table of Contents Disclaimer Investment Summary Investment Overview Tenant Example Photo Site Plan Maps Aerial Map Surrounding Retial Demographics DISCLOSURE All materials and information received or derived from Fortis Net Lease (hereinafter collectively referred to as FNL ), its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty by FNL its directors, officers, agents, advisors, or affiliates as to completeness, veracity, or accuracy, condition of the property, compliance or lack of compliance with applicable governmental requirements, suitability, financial performance of the property, projected financial performance of the property for any party s intended use or any and all other matters. Neither FNL its directors, officers, agents, advisors, or affiliates makes any representation or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and information from any source, whether written or verbal, that may be furnished for review are not a substitute for a party s active conduct of its own due diligence to determine these and other matters of significance to such party. FNL will not investigate or verify any such matters or conduct due diligence for a party unless otherwise agreed in writing. ALL PARTIES SHALL CONDUCT THEIR OWN INDEPENDENT INVESTIGATION AND DUE DILIGENCE. Any party contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations including through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals. FNL makes no warranties and/or representations regarding the veracity, completeness, or relevance of any financial data or assumptions. FNL does not serve as a financial advisor to any party regarding any proposed transaction. All data and assumptions regarding financial performance, including that used for financial modeling purposes, may differ from actual data or performance. Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable contractual and governmental limitations as well as market conditions, vacancy factors and other issues in order to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the party with a certified public accountant or tax attorney. Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and services are marketed by FNL in compliance with all applicable fair housing and equal opportunity laws. AAP 2
INVESTMENT SUMMARY Financial Overview Market Price: $2,061,893 Current NOI: $116,497 Cap Rate: 5.65% Cap Price Per SqFt $298.30 Rent Per SqFt $16.85 Lease Summary Tenant: Advance Auto Parts Guarantor: Advance Auto Stores, Inc. Lease Type: Double Net Lease Lease Start: 11/2015 Lease End: 11/2030 Bumps: Flat During Term Options: Four (5 Yr.) Extensions Opt. Bumps: 10% At Each Option Roof & Structure: Landlord Responsibility Investment Highlights Brand New Construction 15 NN Advance Auto Parts 15 Year Term Four (5 Yr.) Options, 10% Bumps at Each Population Within a Five Mile Radius Exceeds 76,500 Household Income in a One Mile Radius Exceeds $62,500 Corporate Guarantee by AAP which carries BBB- Rating Average Annual Daily Traffic on 9th St - 9,700 Property Overview Year Built: 2015 Acreage: +/- 1.08 Acres Square Feet: 6,912 Architecture: Prototype Foundation: Concrete Block Roof: Standing Seam Roof HVAC: Ground Mounted Parking: Ample AAP 3
INVESTMENT OVERVIEW Fortis Net Lease is pleased to present this brand new 6,912 SF Advance Auto Parts store, located in Vero Beach, FL. The property is encumbered with a Fifteen (15) Year NN Lease, leaving limited landlord responsibilities. The landlord is responsible for the capital repair and replacement to the roof and structure. The lease contains four (5) Yr. options to renew, each with a 10% rental rate increase. The lease is corporately guaranteed by Advance Auto Parts Corporation which holds a credit rating of BBB-, and is classified Investment Grade. The store is currently under construction and will commence rent in November, 2015. This Advance Auto Parts is strategically positioned on the corner of 9th St & 27th Ave, Vero Beach, FL. The population within a five mile radius from the Advance Auto Parts location is greater than 76,500, with the average household income within a one mile radius exceeding $62,500. The Subject offering represents an ideal opportunity for a 1031 exchange buyer or a passive investor to attain the fee simple ownership of a new Advance Auto Parts. This investment will offer a new owner continued success due to the financial strength and the proven profitability of the tenant, the nation s top auto parts store. List price reflects a 5.65% cap rate based on NOI of $116,497. Similar Store AAP 4
TENANT Advance Auto Parts, is headquartered in Roanoke, Virginia, and is now the largest retailer of automotive replacement parts and accessories in the United States after acquiring CARQUEST in October 2013. AAP was founded in 1932 and had 2011 sales of approximately $6.2 billion. AAP operates over 3,800 stores in forty U.S. states and has over 55,000 employees. In 2005, Advance Auto Parts purchased Autopart International, Inc. which operates 202 stores along the Atlantic Seaboard. As of 2014, Autopart International still operates as a separate division within Advance Auto. In 2013 AAP Purchased General Parts Inc. including CARQUEST, CARQUEST Canada and WorldPac for $2.04 billion. In 1932, Arthur Taubman purchased from Pep Boys, the Advance Stores, with two stores in Roanoke, Virginia and one in Lynchburg, Virginia. The first major expansion of Advance Auto Parts was in 1998 when the company acquired the remaining operations of Western Auto, an auto parts and general store retailer. Most of the Western Auto operations had been taken over by Sears, Roebuck and Co. in 1987. Advance Auto Parts is now the largest automotive aftermarket retailer in the United States based on sales and store count. The company premiered on the Fortune 500 list of companies in 2003 at No. 466 and has remained on the list since that time. As of June 2014, it was ranked at No. 1,412 on the Forbes magazine World s Biggest Public Companies list. 5,000+ LOCATIONS 2014 SALES: $9.84 BILLION S & P CREDIT: BBB- INVESTMENT GRADE COMPANY TYPE: PUBLIC RANKED 294th FORTUNE 500 LIST 2014 NET INCOME: $493 MILLION COMMON STOCK VALUE: $11.80 BILLION AAP 5
EXAMPLE PHOTO AAP 6
SITE PLAN AAP 7
MAP AAP 8
AERIAL MAP AAP 9
SURROUNDING RETAIL AAP 10
DEMOGRAPHICS 1 MILE 3 MILES 5 MILES TOTAL POPULATION 5,805 42,966 76,600 TOTAL NUMBER OF HOUSEHOLDS 2,142 17,683 33,726 PERSONS PER HOUSEHOLD 2.70 2.40 2.20 MEDIAN HOUSE VALUE $158,291 $121,942 $119,724 AVERAGE HOUSEHOLD INCOME $62,564 $58,657 $57,826 AAP 11