AdvAnce Auto PArts - Matthews · fully executed and delivered. ... replacement parts and...
Transcript of AdvAnce Auto PArts - Matthews · fully executed and delivered. ... replacement parts and...
Offering MeMOranduM
AdvAnce Auto PArts 201 n. 7th street, steubenville, oh, 43952
representative Photo
Matthews retail Group
CONFIDENTIALITY & DISCLAIMER STATEMENTThis Of fer ing Memorandum contains se lec t in format ion per ta in ing to the bus iness and af fa i rs of Advance Auto Parts located at 201 north 7th street, steubenville, oh(“Proper ty”). I t has been prepared by Mat thews Retai l Group . This Of fer ing Memorandum may not be al l - inc lus ive or contain a l l o f the in format ion a prospect ive purchaser may desi re. The in format ion contained in th is Of fer ing Memorandum is conf ident ia l and furn ished sole ly for the purpose of a rev iew by a prospect ive purchaser of the Proper ty. I t i s not to be used for any other purpose or made avai lable to any other person wi thout the wr i t ten consent of Sel le r or Mat thews Retai l Group . The mater ia l i s based in par t upon in format ion suppl ied by the Sel ler and in par t upon f inancia l in format ion obtained f rom sources i t deems re l iable. Owner, nor thei r of f icers, employees, or agents makes any representa t ion or warranty, express or impl ied, as to the accuracy or comple teness of th is Of fer ing Memorandum or any of i t s contents and no legal l iabi l i ty i s assumed or shal l be impl ied wi th respect there to. Prospect ive purchasers should make thei r own projec t ions and form thei r own conclus ions wi thout re l iance upon the mater ia l contained herein and conduct thei r own due di l igence.
By acknowledging your receipt of th is Of fer ing Memorandum for the Proper ty, you agree:
1. The Of fer ing Memorandum and i t s contents are conf ident ia l ;
2. You wi l l ho ld i t and t reat i t in the s t r ic tes t o f conf idence; and
3. You wi l l not , di rec t ly or indi rec t ly, disc lose or permi t anyone e lse to disc lose th is Of fer ing Memorandum or i t s contents in any fashion or manner det r imenta l to the in teres t of the Sel ler.
Owner and Mat thews Retai l Group express ly reser ve the r igh t , a t thei r so le discre t ion, to re jec t any and al l express ions of in teres t or of fers to purchase the Proper ty and to terminate discuss ions wi th any person or ent i ty rev iewing th is Of fer ing Memorandum or making an of fer to purchase the Proper ty un less and unt i l a wr i t ten agreement for the purchase and sale of the Proper ty has been fu l ly executed and del ivered.
I f you wish not to pursue negot ia t ions leading to the acquis i t ion of the Proper ty or in the fu tu re you discont inue such negot ia t ions, then you agree to purge al l mater ia ls re la t ing to th is Proper ty inc luding th is Of fer ing Memorandum.
A prospect ive purchaser ’s so le and exc lus ive r igh ts wi th respect to th is prospect ive t ransact ion, the Proper ty, or in format ion provided herein or in connect ion wi th the sale of the Proper ty shal l be l imi ted to those express ly provided in an executed Purchase Agreement and shal l be subjec t to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims agains t Sel le r or Mat thews Retai l Group or any of thei r af f i l ia tes or any of thei r respect ive of f icers, Di rec tors, shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion re la t ing to th is so l ic i ta t ion process or the market ing or sa le of the Proper ty.
This Of fer ing Memorandum shal l not be deemed to represent the s ta te of af fa i rs of the Proper ty or cons t i tu te an indicat ion that there has been no change in the s ta te of af fa i rs of the Proper ty s ince the date th is Of fer ing Memorandum.
EXCLUSIVELY L ISTED BY:
Table of ContentsPrICIng & FInanCIaL anaLYSIS
investments highlights .................................................. 2executive summary ..................................................... 3company overview ..................................................................................4
ProPErTY DESCrIPTIonPhysical description ..................................................... 7Aerial Map................................................................. 8regional Map ............................................................. 9birds eye .................................................................. 10
DEmograPhICScity overview | ....................................................... 13demographics report ................................................ 13
Chad KurzManaging Partner DIRECT +1.310.919.5850 MOBILE +1.310.480.2937 [email protected] License No. 01911198
Matthews retail Group
representative Photo
Pricing & financial analysis
representative Photo
OFFERING MEMORANDUM | Advance Auto Parts P. 2 Matthews retail Group
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS
•15-year nnn lease; tenant responsible for roof, hvAc, and parking lot
• brand new high quality construction, steel framed with concrete block
• new lease, rent commencement July 30, 2015
• located on major thoroughfare at strong signalized corner
• stuebenville, oh is home to two local colleges with ±6,000 students
• solid demographics, ±30,000 people in a 3-mile radius and ±50,000 in a 5-mile radius
• Property is located in a “do-it-yourself” city, fits into Advance Auto Parts ideal location
• Advance Auto Parts is the largest automotive replacement parts and accessories company in the united states
• Advance Auto Parts has investment grade credit, s&P bbb-
Investment highlights
representative Photo
Matthews retail Group P. 3Advance Auto Parts | OFFERING MEMORANDUM
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PrICIng anD FInanCIaL anaLYSIS ProPertY descriPtion deMoGrAPhics
Executive Summary
aDVanCE aUTo ParTS210 n, 7Th STrEET STEUBEnVILLE, oh 43952
List Price .........................................................................$1,878,049CAP Rate - Current .................................................................. 6.15%Gross Leasable Area ........................................................... 6,889 SFLot Size ........................................................ ±.83 Acres (36,155 SF)Year Built ..................................................................................2015
annualized operating DataMonthly rent Annual rent rent/sF cAP rate
current - 7/30/20230 $9,625.00 $115,500 $16.77 6.15%
option 1 - 7/30/2035 $10,106.25 $121,275 $17.60 6.46%
option 2 - 7/30/2040 $10,611.56 $127,339 $18.48 6.78%
option 3 - 7/30/2045 $11,142.14 $133,706 $19.41 7.12%
Tenant Summary
tenant trade name Advance Auto Parts
type of ownership Fee simple
lease Guarantor corporate
lease type nnn
roof, Parking, hvAc tenant responsible
original lease term 15 Years
lease commencement date 11/19/2014
rent commencement date 7/30/2015
lease expiration date 7/30/2030
term remaining on lease 15 Years
increases 5% at options
options 3, 5-Year options
OFFERING MEMORANDUM | Advance Auto Parts P. 4 Matthews retail Group
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS
Company overview
Property name Advance Auto Parts
Gross leasable Area 6,889 sF
Property type net leased Auto Parts
Parent company trade name Advance Auto Parts
ownership Public
credit rating bbb-
rating Agency standard & Poor’s
Market cap $12.81 billion
revenue $9.91 billion
ebitdA $1.26 billion
stock symbol AAP
board nYse
no. of locations 5,261
headquartered roanoke, vA
Web site www.advanceautoparts.com
Year Founded 1932
Advance Auto Parts, inc., through its subsidiaries, operates as a specialty retailer of automotive replacement parts, accessories, batteries, and maintenance items. it operates stores that offer brand name, original equipment manufacturer, and private label automotive products, including alternators, batteries, belts and hoses, brakes and brake pads, chassis parts, climate control parts, clutches, driveshafts, engines and engine parts, ignition parts, lighting, radiators, starters, spark plugs and wires, steering and alignment parts, transmissions, water pumps, and windshield wiper blades; accessories, such as air fresheners, automotive paint, anti-theft devices, emergency road kits, floor mats, ice scrapers, mirrors, seat and steering wheel covers, and vent shades; chemicals comprising antifreeze, brake and power steering fluid, car washes and waxes, freon, fuel additives, and windshield washer fluid; and oils, transmission fluids, and other automotive petroleum products for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. the company 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, as well as loaner tool programs. in addition, it sells products online. the company serves do-it-yourself, do-it-for-me, or commercial customers in the northeastern, Mid-Atlantic, and southeastern regions of the united states. As of January 3, 2015, it operated 5,261 total stores and 111 distribution branches primarily under the Advance Auto Parts, Autopart international, carquest, and Worldpac trade names, as well as served approximately 1,325 independently-owned carquest stores in the united states, canada, Puerto rico, and the u.s. virgin islands. the company was founded in 1929 and is headquartered in roanoke, virginia
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS
Property description
OFFERING MEMORANDUM | Advance Auto PartsP. 6 Matthews retail Group
PricinG And FinAnciAl AnAlYsis ProPErTY DESCrIPTIon deMoGrAPhics
January 2, 2014
Advance Auto Parts, inc. (AAP), a leading provider of automotive aftermarket parts, accessories, batteries, and maintenance items, announced today that it has completed the acquisition of General Parts international, inc. (GPii). GPii is a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the cArQuest and WorldPAc brands.
the transaction creates the largest automotive aftermarket parts provider in north America, with annual sales of over $9.3 billion and more than 70,000 team Members. the strong combined financial profile allowed for an all-cash transaction and supports Advance’s commitment to maintaining its investment grade ratings. the acquisition of General Parts accelerates Advance’s growth strategy and enhances shareholder value through the following strategic benefits:
Creates market Leader – transforms Advance into the #1 automotive aftermarket parts provider in north America with a balanced platform for growth between do-it-yourself (diY) and commercial, the #1 distributor of import automotive parts and the largest automotive aftermarket business-to-business e-commerce platform in north America.
Delivers Scale – Provides Advance complete coast-to-coast coverage with approximately 5,300 company operated stores across north America, creating a company with scale, reach and expanded growth opportunities benefiting shareholders, customers and team members. this presence in new markets allows Advance the ability to expand its geographic footprint in an efficient manner.
accelerates Complementary market opportunities – expands Advance’s product and category offerings in both core and new product lines (i.e. paint and heavy duty), creates new sales channel with independent customers and broadens ability to grow with attractive customer segmen ts such as larger baygarages, import specialists, national accounts and fleet and government programs.
Strengthens Leading Brands and Capabilities –enhances Advance’s ability to serve customers through the transfer of cArQuest’s commercial capabilities and team Member parts knowledge into Advance stores while expanding diY into select company operated cArQuest stores. the combination expands key capabilities in customer service through enhanced daily replenishment and customer loyalty programs to a larger truck fleet and a significantly expanded commercial sales team.
“We are excited about the completion of this transaction and the opportunity it presents for our customers and the over 70,000 team members. this combination positions Advance as the largest automotive aftermarket provider of parts, accessories, batteries, and maintenance items in north America. strategically it provides us with a compelling opportunity to expand our geographical presence, channels of distribution, and commercial capabilities to better serve customers and deliver value to shareholders,” said darren r. Jackson, Advance Auto Parts chief executive officer.
As a result of the closing of this transaction, Advance will add to its operations 38 General Parts distribution centers, 1,248 company operated cArQuest locations across the us and canada and will service approximately 1,400 independently owned cArQuest locations primarily in the us and canada. Advance will also add WorldPAc, a leading importer and distributor of original equipment and quality aftermarket replacement automotive parts to import specialists in north America and Puerto rico operating 105 facilities across the us and canada, to its operations.
Mike norona, chief Financial officer of Advance Auto Parts said, “We are pleased to have closed the transaction and are excited about the financial potential of this compelling combination as we leverage our new size and scale to create value for our shareholders, customers and team Members
*source Yahoo Finance and business Wire
Advance Auto Parts Announces Closing of Acquistion of General Parts International, Inc.
Matthews retail Group P. 7Advance Auto Parts | OFFERING MEMORANDUM
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PricinG And FinAnciAl AnAlYsis ProPErTY DESCrIPTIon deMoGrAPhics
Physical Description
ThE oFFErIngProperty Name ........................................................ Advance Auto Parts
Property Address .........................................................201 N. 7th Street
Steubenville, OH 43952
Assessor’s Parcel Number ................................................07-03706-000
SITE DESCrIPTIonNumber of Stories ...........................................................................One
Year Built ...................................................................................... 2015
Gross Leasable Area (GLA) .......................................................6,889 SF
Type of Ownership ................................................................ Fee Simple
Parking .....................................................................25 Surface Spaces
Parking Ratio .................................................................3.63 : 1,000 SF
Landscaping ........................................................................Professional
Topography ....................................................................Generally Level
ConSTrUCTIonFoundation .......................................................................Concrete Slab
Framing ........................................................................................ Steel
Exterior ...........................................................................Concrete Block
Parking Surface .........................................................................Asphalt
Roof ................................................................................................Flat
OFFERING MEMORANDUM | Advance Auto PartsP. 8 Matthews retail Group
PricinG And FinAnciAl AnAlYsis ProPErTY DESCrIPTIon deMoGrAPhics
Tenant map
Matthews retail Group P. 9Advance Auto Parts | OFFERING MEMORANDUM
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PricinG And FinAnciAl AnAlYsis ProPErTY DESCrIPTIon deMoGrAPhics
regional map
OFFERING MEMORANDUM | Advance Auto PartsP. 10 Matthews retail Group
PricinG And FinAnciAl AnAlYsis ProPErTY DESCrIPTIon deMoGrAPhics
Site Plan
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS
demographics
OFFERING MEMORANDUM | Advance Auto PartsP. 12 Matthews retail Group
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS
Demographics reportPopulation 1-Mile 3-Mile 5-Mile2015 estimate 8,062 28,856 50,6132010 census 8,437 29,436 51,669
households2015 estimate 3,198 11,925 21,4022010 census 3,350 12,182 21,780
income$ 0 - $14,999 37.65% 20.66% 20.66%$ 15,000 - $24,999 16.48% 13.36% 13.36%$ 25,000 - $34,999 8.47% 11.09% 11.09%$ 35,000 - $49,999 13.10% 15.92% 15.92%$ 50,000 - $74,999 11.16% 16.19% 16.19%$ 75,000 - $99,999 4.10% 8.43% 8.43%$100,000 - $124,999 3.19% 5.79% 5.79%$125,000 - $149,999 2.06% 3.33% 3.33%$150,000 - $199,999 1.94% 2.07% 2.07%$200,000 - $249,999 0.88% 0.86% 0.86%$250,000 - $499,999 0.56% 1.38% 1.38%$500,000+ 0.38% 0.93% 0.93%2015 Average household income $40,197 $57,671 $59,617 2015 Median household income $22,488 $39,602 $41,275
PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS
Matthews retail Group | 841 Apollo street, suite 150 | el segundo, cA 90245 | www.MatthewsretailGroup.com
aDVanCE aUTo ParTS201 n. 7th StreetSteubenville, oh 43952oFFErIng mEmoranDUm
Chad KurzManaging Partner DIRECT +1.310.919.5850 MOBILE +1.310.480.2937 [email protected] License No. 01911198