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Advance Auto Parts2422 W Broadway, Louisville, KY 40211

OFFERING MEMORANDUM

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This Marketing Brochure contains select information pertaining to the business and affairs of Advance Auto Parts located at 2422 W Broadway, Louisville, KY 40211 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.

This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

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 the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the 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 the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.

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 performance.

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 the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.

NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONFIDENTIALITY & DISCLAIMER STATEMENT

PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

TABLE OF CONTENTS

PRESENTED BY

Laurence BergmanBroker of Record License No. 47790

Jim SchuchertSenior Associate

License No. 01969414O 310.919.5834M 310.971.3892jim.schuchert@matthews.com

Braden CrockettSenior Associate

License No. 01946071O 310.919.5814M 714.345.6206braden.crockett@matthews.com

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Representative Photo ™PRICING AND FINANCIAL ANALYSIS

Jim Schuchert and Braden Crockett of Matthews Retail Advisors are pleased to exclusively offer for sale to qualified investors a net leased Advance Auto Parts located in Louisville KY. The investment offers the ability to acquire a double-net plus Advance Auto Parts with 4.5 years remaining on the lease. The lease is corporately guaranteed by Advance Auto Parts (Standard & Poor’s rated BBB-) which is the country’s largest automotive replacement parts and accessories chain with more than 5,293 stores.

INVESTMENT HIGHLIGHTS

PROPERTY DETAILS

• 4.5 Years Remaining on NN+ Lease with Four (4), Five (5) Year Options

• Minimized Landlord Responsibilities as Tenant is Responsible for Parking Lot and HVAC

• Replaceable Rent, Tenant Paying Just $9.75 PSF

• High Quality Construction, Steel Framed with Concrete Block

LOCATION

• Property is Located on West Broadway, One of the City’s Most Heavily Trafficked Streets

• Louisville Boasts an Unemployment Rate of Only 4.5%, Nearly 25% Lower Than the National Average

• 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 Walgreens, Dollar General, Kroger, Taco Bell, McDonald’s, Family Dollar, AutoZone, KFC, O’Reilly Auto Parts, Wendy’s, and Chase

TENANT

• Investment Grade Credit Tenant | S&P Rated BBB-

• Market Cap of $11.84 billion

• 5,293 Stores

• Fortune 500 Company

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Investment Overview

EXECUTIVE SUMMARY2422 W Broadway Louisville, KY 40211List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $657,420

Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . .± 5,386 SFCAP Rate - Current. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.00%Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1998Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 0.75 Acres (32,670 SF)

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Rent/SF CAP Rate

Current - 5/31/2021 $4,376.13 $52,513.56 $9.75 8.00%

Option 1 - 5/31/2026 $4,596.05 $55,152.60 $10.24 8.39%

Option 2 - 5/31/2031 $4,824.96 $57,899.52 $10.75 8.80%

Option 3 - 5/31/2036 $5,067.33 $60,807.96 $11.29 9.25%

Option 4 - 5/31/2041 $5,318.68 $63,824.16 $11.85 9.70%

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Financial Overview

TENANT SUMMARYTenant Trade Name Advance Auto Parts

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN+

Parking Lot & HVAC Tenant Responsible

Roof & Structure Landlord Responsible

Original Lease Term 10 Years

Lease Commencement Date 10/1/2010

Rent Commencement Date 5/26/2011

Lease Expiration Date 5/31/2021

Term Remaining on Lease 4.5 Years

Increases 5% at Options

Options Four (4), Five (5) Year Options

Property Name Advance Auto Parts

Property Type Net Leased Auto Parts

Parent Company Trade 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, VA

Web Site www.advance autoparts.com

Year Founded 1932

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.

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Company Overview

™PROPERTY DESCRIPTION

THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . Advance Auto PartsProperty Address . . . . . . . . . . . . . . . . . . . . . 2422 W Broadway Louisville, KY 40211Assessor’s Parcel Number . . . . . . . . . . . . . . . . . .036A01270000Zoning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C-2

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1998

Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . ± 5,386 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . ± 0.75 Acres (32,670 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 50 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . 9.28 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SteelExterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BrickParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flat

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6

Property Overview

PROPERTY DESCRIPTION

W Broadway ±13,000 ADT

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Bird’s Eye

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Tenant Map

PROPERTY DESCRIPTION

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Regional Map

™DEMOGRAPHICS

Population 1-Mile 3-Mile 5-Mile

2021 Projection 16,576 102,474 233,188

2016 Estimate 16,594 101,723 232,046

2010 Census 16,798 101,617 232,448

2000 Census 19,096 106,638 244,670

Households

2021 Projection 6,669 43,193 102,464

2016 Estimate 6,616 42,587 101,173

2010 Census 6,577 41,926 99,776

2000 Census 7,260 43,780 104,702

Income

$0 - $15,000 37.06% 33.98% 25.33%

$15,000 - $24,999 21.58% 18.47% 15.85%

$25,000 - $34,999 12.74% 12.73% 11.91%

$35,000 - $49,999 12.40% 13.13% 14.58%

$50,000 - $74,999 9.88% 11.36% 15.46%

$75,000 - $99,999 3.75% 5.02% 7.78%

$100,000 - $124,999 1.70% 2.51% 4.16%

$125,000 - $149,999 0.60% 1.20% 2.02%

$150,000 - $199,999 0.21% 0.77% 1.39%

$200,000 - $249,999 0.01% 0.28% 0.54%

$250,000 - $499,999 0.03% 0.34% 0.66%

$500,000+ 0.02% 0.20% 0.31%

2016 Est. Average Household Income $28,512 $35,449 $46,027

2016 Est. Median Household Income $20,997 $23,673 $32,400

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Demographics Report

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City Overview

LOUISVILLE, KENTUCKYAs the largest city in the Commonwealth of Kentucky and the 30th-most populous city in the United States, Louisville is sited beside the Falls of the Ohio, the only major obstruction to river traffic between the upper Ohio River and the Gulf of Mexico. The city is known as the home of the Kentucky Derby, Kentucky Fried Chicken, the University of Louisville and its Louisville Cardinals athletic teams, Louisville Slugger baseball bats, and three of Kentucky’s six Fortune 500 companies. Its main airport is also the site of United Parcel Service’s worldwide air hub.

Louisville’s importance to the shipping industry continues today with the presence of the Worldport global air-freight hub for UPS at Louisville International Airport. Louisville’s location at the crossroads of three major interstate highways also contributes to its modern-day strategic importance to the shipping and cargo industry. As of 2003, Louisville ranks as the seventh-largest inland port in the United States.

Additionally, Louisville has emerged as a major center for the health care and medical sciences industries. It has been central to advancements in heart and hand surgery, as well as cancer treatment. Some of the earliest artificial heart transplants were conducted in Louisville. Its thriving downtown medical research campus includes a new $88 million rehabilitation center and a health sciences research and commercialization park, that in partnership with the University of Louisville, has lured nearly 70 top scientists and researchers. Louisville is also home to Humana, one of the nation’s largest health insurance companies.

TOP EMPLOYERS - LOUISVILLE, KY1. United Parcel Service

2. Humana Inc.

3. Norton Healthcare Inc.

4. KentuckyOne Health Inc.

5. Ford Motor Co.

6. GE Appliances Inc.

7. The Kroger Co.

8. Baptist Healthcare System Inc.

9. Catholic Archdiocese of Louisville

10. LG&E and KU Energy LLC

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com™

Advance Auto Parts2422 W Broadway, Louisville, KY 40211

OFFERING MEMORANDUM

Laurence BergmanBroker of Record License No. 47790

Jim SchuchertSenior Associate

License No. 01969414O 310.919.5834M 310.971.3892jim.schuchert@matthews.com

Braden CrockettSenior Associate

License No. 01946071O 310.919.5814M 714.345.6206braden.crockett@matthews.com