Confidential Offering Memorandum ADVANCE AUTO PARTS … › d2 ›...

Freddy’s Frozen CustardLakewood, CO

Confidential Offering MemorandumADVANCE AUTO PARTS3591 MURCHISON RD

FAYETTEVILLE, NC 28311

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID X0070401

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ADVANCE AUTO PARTS

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EXECUTIVE SUMMARY

FINANCIAL SUMMARY

Price $623,000

Down Payment 100% $623,000

Cap Rate 9.0%

Building SF +/- 5,985 SF

Net Cash Flow 9.0% $56,100

Year Built 1990

Lot Size .33 Acres

LEASE SUMMARY

Lease Type Double-Net (NN) Lease

Tenant Advance Auto Parts

Lease Guarantor Corporate

Roof & Structure Landlord Responsible

Lease Commencement Date November 29, 1989

Lease Expiration Date December 31, 2019

Lease Term Remaining 3 Years

Rental Increases 10% Every 5 Years

Renewal Options 1, 5 Year Option Remaining

BASE RENT ($9.37/SF) $56,100

Net Operating Income $56,100

Total Return 9.0% $56,100

ADVANCE AUTO PARTS3591 Murchison RdFayetteville, NC 28311

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ADVANCE AUTO PARTS


ADVANCE AUTO PARTS

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Headquarters Roanoke, VA

Stock Symbol NYSE: AAP

Founded 1932

Locations 1,300+

Employees ~74,000

Website www.advanceautoparts.com

TENANT OVERVIEW

Headquartered in Roanoke, Va., Advance Auto Parts, Inc., the largest automotive after-market parts provider in North America, serves both the professional installer and do-it yourself customers. Advance operates over 5,200 stores, over 100 Worldpac branches and serves approximately 1,300 independently owned Carquest branded stores in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. Advance employs approxi-mately 74,000 Team Members. Advance Auto Parts works hard to create an environment of honesty, integrity, mutual trust and dedication. Since their founding by Arthur Taubman in 1932, these values haven’t changed.

• Inspire and build the self-confidence and success of every Team Member.• Serve our customers better than anyone else – help them succeed.• Grow the business and profitability with integrity.

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Investment Highlights• Corporate Lease with Advance Auto Parts

• Low Rent - Tenant is Only Paying $9.37/SF

• Well Established Location - Over 25 Year Operating History

• More than 156,540 Daytime Employees in a Five Mile Radius

• Excellent Visibility from Murchison Road (17,000 CPD) and Easily Accessible from US Highway 401 (26,000 Cars per Day)

• Located in Fayetteville, NC - Home to Fort Bragg/Pope Field (Generates $4.5 Billion Per Year into Region’s Economy)

• Tenant is Only Paying $9.37/SF in Rent

• Dense Surrounding Populations: ± 50,000 People (3-Mile Radius) & ± 115,000 People (5-Mile Radius)

• Ten Minutes from Downtown Fayetteville

PROPERTY DESCRIPTION

Income 1-Mile 3-Mile 5-Mile2015 Est. Average Household Income $44,428 $56,468 $59,5002015 Est. Median Household Income $31,825 $37,030 $41,6032015 Est. Per Capita Income $19,118 $24,403 $25,392

Population 1-Mile 3-Mile 5-Mile2020 Projection 6,604 48,723 115,0642015 Estimate 6,518 49,283 114,437Growth 2015 - 2020 1.33% -1.14% 0.55%

Households 1-Mile 3-Mile 5-Mile2019 Projections 2,812 20,947 48,9372015 Estimate 2,765 20,930 47,906Growth 2015 - 2020 1.69% 0.08% 2.15%

DEMOGRAPHICS

Fayetteville is a city in Cumberland County, North Carolina, United States. Fayetteville’s tourism slogan is, “Welcome to America’s Hometown” The city in south-central North Carolina takes pride in being the home of the U.S. Army’s Fort Bragg, a major U.S. Army installation northwest of the city. Fayetteville sits two hours north of the Wilmington beach area and about an hour southwest of Raleigh, the state capital.Fayetteville metropolitan area which is the largest in southeastern North Carolina and the fifth-largest in the state. Other suburban areas of metro Fayetteville include Fort Bragg, Spring Lake, Raeford, Pope Air Force Base, Rockfish, Stedman, and Eastover. The current population of the Fayetteville MSA is just over 300,000 ranking it among the fastest growing areas in the state.Fort Bragg is the largest Army installation by population covering about 161,000 acres, stretching into six counties. Fort Bragg is located in Fayetteville, North Carolina and is home of the Airborne and Special Operations.Fort Bragg is the largest US Army base by population, serving a population of 52,280 active duty Soldiers, 12,624 Reserve Components and Temporary Duty students, 8,757 civilian employees, 3,516 Contractors, and 62,962 active duty family members. There are 98,507 Army retirees and family members in the area.Two military installations are the backbone of the county’s economy. Fort Bragg and Pope Field pump about $4.5 billion a year into the region’s economy, making it one of the best retail markets in the country. The area’s largest employers include Fort Bragg, Cumberland County Schools, Goodyear Tire Company, Cap Fear Valley Health System, Cumberland County Government, Purolator, and Fayetteville Technical Community College. Fayetteville boasts a low unemployment rate of 4.5 percent with a large labor pool of trained professionals.Fort Bragg was established in 1918, as an artillery training ground. It is the home of the US Army airborne forces and Special Forces, as well as U.S. Army Forces Command and U.S. Army Reserve Command. A year after the establishment of Fort Bragg, an aviation landing field, Pope Field, was added, and it ranks as one of the oldest installations in the Air Force.

LOCATION OVERVIEW

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5,985 SF

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Williams-Sonoma

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Marcus & Millichap hereby advises all prospective purchasers of Net Leased prop-erty as follows:

By accepting this Marketing Brochure, you agree to treat the information con-tained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investiga-tion regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before complet-ing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for 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 you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

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 success. 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 compa-rable 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.

NET LEASED DISCLAIMER

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CONFIDENTIALITY AGREEMENT

exclusively listedExclusively listed by:

OFFICES NATIONWIDE

www.marcusmillichap.com

Investment Sales:

Raj RaviBroker of RecordCHARLOTTE OFFICELicense: 281290

Jamie MedressSenior VP InvestmentsPHOENIX OFFICETel: (602) [email protected]

Mark RubleFirst VP InvestmentsPHOENIX OFFICETel: (602) [email protected]

Chris LindVice PresidentPHOENIX OFFICETel: (602) [email protected]

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