Advance Auto Parts NNN

8/3/2019 Advance Auto Parts NNN

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NET LEASED INVESTMENT OFFERI

CONFIDENTIAL OFFERING MEMORANDUM

www.bouldergroup.com

Advance Auto Parts

1535 West Lane RoadMachesney Park, IL 61115 (Rockford MSA)


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NET LEASED INVESTMENT OFFERING


TABLE OF CONTE

TABLE OF CONTENTS

1) Confidentiality & Disclaimer

2) Executive Summary

3) Property Overview

4) Aerials

5) Maps

6) Tenant Profile

7) Demographic Comparison Report

8) Location Overview

9) Contact Information


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CONFIDENTIALITY & DISCLAIM

CONFIDENTIALITY & DISCLAIMER

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended

be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other perso

or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provi

summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in t

subject property. The information contained herein is not a substitute for a thorough due diligence investigation. T

Boulder Group has not made any investigation, and makes no warranty or representation, with respect to the income

expenses for the subject property, the future projected financial performance of the property, the size and square foota

of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, t

compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financcondition or business prospects of any tenant, or any tenants plans or intentions to continue its occupancy of the subje

property. The information contained in this Offering Memorandum has been obtained from sources we believe to

reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor h

The Boulder Group conducted any investigation regarding these matters and makes no warranty or representati

whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must ta

appropriate measures to verify all of the information set forth herein.


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EXECUTIVE SUMMA

EXECUTIVE SUMMARY

The Boulder Group is pleased to exclusively market for sale a single tenant net leased Advance Auto Parts property locate

in the Rockford MSA. Rockford is the third largest city in Illinois and the largest city outside of the Chicago MSA. The 6,124

square foot Advance Auto Parts was built in 2011 and is benefitted by its location in the primary retail trade area of th

Machesney Park Gateway District. The Gateway District is located at the crossing of Illinois State Highways 173 and 251 an

is the villages primary shopping area with national big box stores, specialty retail outlets, and numerous national and loca

restaurants. Machesney Park is located 80 miles from Chicago, 67 miles from Madison and 87 miles from Milwaukee.

Advance Auto Parts is located along West Lane Road, a major retail thoroughfare in the trade area. The recentl

constructed property is located within the Willow Creek Retail Center which includes retailers Aldi, Buffalo Wild Wings

FedEx Kinkos, Pizza Hut and Verizon. Adjacent to the Willow Creek Retail Center are two shopping centers; The Gateway o

Machesney Park and Machesney Crossings which are anchored by national retailers Target, The Home Depot, Lowes

Menards, Kohls, Office Depot and PetSmart. There are two signalized access road that grants access from the Willow

Creek Retail Center to The Gateway of Machesney Park and Machesney Crossings.

Advance Auto Parts original lease term is for 15 years with three 5-year renewal options and the lease expires in Augus

2026. Advance Auto Parts is a publicly traded company on the New York Stock Exchange (AAP), with a marke

capitalization of $4 Billion. Advance Auto Parts is an investment grade company with a Standard & Poors rating of BBB-

INVESTMENT HIGHLIGHTS

Standard & Poors investment grade rating of BBB-

Rare 10% rental escalation in the primary term

Newly constructed property 2011

Long term lease of 15 years

The Gateway District is the fastest growing corridor in

the region

Within 5 minutes of the I-90 & Route 173 Interchange

Located within the newly constructed Willow Creek

Retail Center

Average household incomes in excess of $75,000 within

5 miles of the property

Trade area includes Target, The Home Depot, Lowes,

Menards, Kohls, Office Depot and PetSmart


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PROPERTY OVERV

PROPERTY OVERVIEW

Price:

Cap Rate:

Net Operating Income:

Renewal Options:

Lease Commencement Date:

Lease Expiration Date:

Tenant:

Year Built

Lease Type:

Rentable Square Feet:

Land Size:

$1,520,411

7.25%

$110,232

$121,102 9/1/2021

$128,539 9/1/2026 (Option 1)

$138,179 9/1/2031 (Option 2)

$148,543 9/1/2036 (Option 3)

Three 5-year options

August 8, 2011

August 31, 2026

Advance Auto Parts

2011

NN (Structure Only in Primary Term)

NN (Roof & Structure in Option Periods)

6,124 SF

30,685 SF


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AER

AERIAL

15,600ADT.ALPINERD.

IL251

IL173

15,600ADT.ALPINERD.

IL251

IL173


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SITE P

AERIAL

IL 17322,800 ADT

CONTINENTALDR.

K

IMBER

DR.

IL 17322,800 ADT

CONTINENTALDR.

K

IMBER

DR.


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MA

MAPS


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TENANT PROF

TENANT PROFILE

Website:Number of Locations:Stock Symbol:Standard & Poors Rating:Market Capitalization:Employees:2010 Net Income:

www.advanceautoparts.com3,540AAP : NYSEBBB-$4 Billion51,000$346 Million

Advance Auto Parts (NYSE: AAP) is a leading automotive aftermarket retailer in the United States based off both sales an

store count. Advance Auto Parts sells automotive parts, accessories, batteries and other maintenance items. Currentl

Advance Auto Parts is a Fortune 500 Company and is ranked #387. Advance Auto Parts is headquartered in Roanoke

Virginia and operates more than 3,500 stores across 39 states, Puerto Rico and the Virgin Islands. Advance As of Ju

2011, Auto Parts occupies over 26 million square feet of space on a retail basis.

Advance Auto Part's Autopart International unit operates more than 190 locations and primarily serves commerci

customers, including garages, service stations, and auto dealers. Commercial customers account for about 30% of AAP

revenues while do-it-yourselfers generate the balance.


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DEMOGRAPHIC COMPARISON REPO

DEMOGRAPHIC COMPARISON REPORT

Population

Total Population

Total Households

1-mile

3-mile

87,589

33,259

10-mile

297,378

113,358

Median Household Income

Average Household Income

$65,257

$75,919

$56,338

$66,671

Income 1-mile 3-mile 10-mile

37,987

14,394

$65,236

$70,596


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LOCATION OVERV

LOCATION OVERVIEW

Machesney Park is located in Winnebago County in the state of Illinois. The population at

the 2010 census was 23,499. Machesney Park is located directly north of Rockford, Illinois.

With the addition of The Gateway, Machesney Park is becoming a major retail area for the

surrounding trade area. Machesney Park is within an hours drive of Chicago, Madison and

Milwaukee and at the crossroads of Interstates 90 & 39, Illinois State Highway 173 and US

Highway 20. http://www.machesney-park.il.us/

Rockford is the third largest city in Illinois and is the primary city in the Rockford MSA. At the

time of the 2010 census Rockford had a population of 152,871 and the metropolitan area had

a population of 339,178. The largest employers in the MSA include the Rockford Public School

District, Rockford Health System, Swedish American Hospital, Wal-Mart Stores, OSF Saint

Anthony Medical Center, Hamilton Sundstrand and Chrysler. http://www.ci.rockford.il.us/


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CONTACT INFORMAT

CONTACT INFORMATION

666 Dundee Road Suite 1801

Northbrook, IL 60062

|

Randy Blankstein

President

847.562.0003

[email protected]

Jimmy Goodman

Partner

847.562.8500

[email protected]

Advance Auto Parts NNN

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