ADVANCE AUTO PARTS 1380 N PERRY ST, PONTIAC, MI 48340 OFFERING MEMORANDUM
CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Advance Auto Parts located at 1380 N Perry St, Pontiac, MI 48340 ( Property ). It has been prepared by Matthews Retail Advisors. 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 Retail Advisors. 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 Retail Advisors 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 Retail Advisors 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.
ADVANCE AUTO PARTS 1380 N PERRY ST, PONTIAC, MI 48340 TABLE OF CONTENTS 04. Executive Summary 06. Property Overview 12. Tenant Overview 14. Area Overview 15. Demographics Jim Schuchert Senior Associate License No. 01969414 O 310.919.5834 M 310.971.3892 jim.schuchert@matthews.com Kyle Matthews Broker of Record License No. 6505399495
EXECUTIVE SUMMARY Investment Highlights PROPERTY DETAILS 10+ Years Remaining on NN Lease with Two (2), Five (5) Year Options Advance Auto Parts Recently Extended the Lease for an Additional 10+ Years at an 18% Increase From Previous Rent Replaceable Rent, Tenant Paying Just $8.65 PSF Long-term Operating History in Excess of 15+ Years High Quality Construction, Steel Framed with Concrete Block LOCATION Property is Located on Perry St, Boasting Traffic Counts in Excess of 23,000 VPD Consistent Population Growth Since 2010: 5.51% from 2010-2016 with a Projected Growth of 3.66% Over the Next Five Years Average Household Income in Advance Auto Parts Sweet-Spot Located in a Do-It-Yourself City, Fits into Advance Auto Parts Ideal Locations Nearby Retailers Include Sherwin-Williams, Family Dollar, Popeyes, AutoZone, Rite Aid, 7-Eleven, CVS, Burger King, Chase, Wendy s, McDonald s, and Arby s TENANT Investment Grade Credit Tenant S&P Rated BBB- Market Cap of $11.84 Billion 5,293 Stores Fortune 500 Company 4 I Matthews Retail Advisors
Executive Summary ADVANCE AUTO PARTS 1380 N Perry St Pontiac, MI 48340 List Price... $897,111 CAP Rate - Current... 6.75% Gross Leasable Area...± 7,000 SF Lot Size... ± 0.67 Acres (28,967 SF) Year Built... 2001 Annualized Operating Data Monthly Rent Annual Rent Rent/SF CAP Rate Current - 12/31/2026 $5,045.83 $60,549.96 $8.65 6.75% Option 1-12/31/2031 $5,424.27 $65,091.24 $9.29 7.25% Option 2-12/31/2036 $5,831.09 $69,973.08 $9.99 7.79% Tenant Summary Tenant Trade Name Advance Auto Parts Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN Roof, Structure & Parking Lot Landlord Responsible HVAC Tenant Responsible Original Lease Term 10 Years Lease Agreement Date 4/21/2000 Lease Commencement Date 7/27/2001 Lease Expiration Date 12/31/2026 Term Remaining on Lease ± 10.3 Years Increases 7.50% at Options Options Two (2), Five (5) Year Options Matthews Retail Advisors 5
PROPERTY OVERVIEW 6 I Advance Auto Parts
Physical Description Property Name Property Address Advance Auto Parts 1380 N Perry St Pontiac, MI 48340 Assessor s Parcel Number 64-14-15-377-032 Zoning BI Site Description Number of Stories One Year Built 2001 Gross Leasable Area (GLA) ± 7,000 SF Lot Size ± 0.67 Acres (28,967 SF) Type of Ownership Fee Simple Parking ± 30 Surface Spaces Parking Ratio 4.28 : 1,000 SF Landscaping Professional Topography Generally Level Construction Foundation Framing Exterior Parking Surface Roof Concrete Slab Steel Brick Asphalt Flat Matthews Retail Advisors 7
Aerial 8 Advance Auto Parts
Regional Map Matthews Retail Advisors 9
Tenant Map 10 Advance Auto Parts
Bird s Eye N Perry St ± 23,000 ADT 11 Advance Auto Parts Matthews Retail Advisors 11
TENANT OVERVIEW 12 Advance Auto Parts
Tenant Advance Auto Parts Company 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 Headquartered Roanoke, Virginia Web Site www.advanceautoparts.com Year Founded 1929 Advance Auto Parts, Inc., together with its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items. It operates in two segments, Advance Auto Parts (AAP), and Autopart International (AI). The APP segment operates stores that primarily offer auto parts comprising alternators, batteries, belts and hoses, chassis parts, clutches, engines and engine parts, ignition, lighting, radiators, starters, spark plugs and wires, transmissions, and water pumps; accessories, including floor mats, mirrors, vent shades, MP3 and cell phone accessories, and seat and steering wheel covers; chemicals consisting of antifreeze, brake and power steering fluids, freon, fuel additives, windshield washer fluids, and car washes and waxes; and oil, transmission fluids, and other automotive petroleum products. This segment also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics, loaner tool programs, and oil and battery recycling services; and sells its products through online. The AI segment operates stores that offer replacement parts for domestic and imported cars, and light trucks to customers in northeast and mid-atlantic regions, as well as to warehouse distributors and jobbers in North America. Advance Auto Parts, Inc. was founded in 1929 and is based in Roanoke, Virginia. Matthews Retail Advisors 13
AREA OVERVIEW Pontiac, Michigan Located in northwestern Metro Detroit, Pontiac is the county seat of Oakland County. Regionally, the city was known for the Arts, Beats and Eats Festival, a widely attended summer festival featuring an art show, musical concert venues, and a sampling of food from numerous regional restaurants. In recent years, there have been efforts focused on revitalizing the city. Oakland County is among the ten highest income counties in the United States and is home to Oakland University, a large public institution that straddles the Auburn Hills and Rochester Hills border. Oakland County has a diverse economy that is less reliant on manufacturing jobs and moreso on engineering and related occupations. Detroit, Michigan Detroit is the most populous city in Michigan and the center of the Detroit metropolitan area. Several major corporations are based in the city, including three Fortune 500 companies. Like Pontiac, the most heavily represented sector is automotive manufacturing with General Motors being one of the most significant companies. The city of Detroit and other private-public partnerships have attempted to catalyze the region s growth by facilitating the building and historical rehabilitation of residential highrises in the downtown, thereby creating a zone that offers many business tax incentives. As a result, many recreational spaces have been built such as the Detroit RiverWalk, Campus Martius Park, Dequindre Cut Greenway, and Green Alleys in Midtown, which is one of the most successful areas within Detroit. In the central portions of Detroit, the population of young professionals, artists, and other transplants is growing and retail is expanding. Former residents and additional new residents are drawn to the city because of this dynamic in Downtown and because of the newly renovated Midtown and New Center areas. 14 Advance Matthews Auto Parts Retail Advisors 14
Demographics Population 1-Mile 3-Mile 5-Mile 2021 Projection 12,607 60,989 156,786 2016 Estimate 12,161 59,568 153,280 2010 Census 11,526 57,499 148,234 2000 Census 11,960 61,961 155,208 Growth 2016-2021 3.66% 2.39% 2.29% Growth 2010-2016 5.51% 3.60% 3.40% Households 1-Mile 3-Mile 5-Mile 2021 Projection 4,987 23,867 62,625 2016 Estimate 4,768 23,096 60,824 2010 Census 4,440 21,959 58,177 2000 Census 4,454 23,078 58,998 Growth 2016-2021 4.59% 3.34% 2.96% Growth 2010-2016 7.38% 5.18% 4.55% Income 1-Mile 3-Mile 5-Mile Income < $15,000 25.02% 24.99% 15.53% Income $15,000 - $24,999 15.37% 16.41% 11.27% Income $25,000 - $34,999 10.45% 12.17% 9.87% Income $35,000 - $49,999 11.27% 12.46% 12.32% Income $50,000 - $74,999 19.03% 15.43% 15.64% Income $75,000 - $99,999 9.03% 8.23% 10.51% Income $100,000 - $124,999 4.85% 4.89% 7.64% Income $125,000 - $149,999 2.03% 2.36% 4.90% Income $150,000 - $199,999 1.97% 1.92% 5.25% Income $200,000 - $249,999 0.57% 0.57% 2.40% Income $250,000 - $499,999 0.32% 0.40% 3.09% Income $500,000+ 0.09% 0.16% 1.59% 2016 Est. Average Household Income $47,179 $46,306 $78,781 2016 Est. Median Household Income $34,197 $32,058 $51,616 Matthews Retail Advisors 15
Jim Schuchert Senior Associate License No. 01969414 O 310.919.5834 M 310.971.3892 jim.schuchert@matthews.com Kyle Matthews Broker of Record License No. 6505399495