Net Lease Advance Auto For Sale

www.bouldergroup.com

NET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERINGNET LEASED INVESTMENT OFFERING

Advance Auto PartsAdvance Auto PartsAdvance Auto PartsAdvance Auto Parts 600 Baldwin Street600 Baldwin Street600 Baldwin Street600 Baldwin Street

Jenison, MI 49428 (Grand Rapids MSA)Jenison, MI 49428 (Grand Rapids MSA)Jenison, MI 49428 (Grand Rapids MSA)Jenison, MI 49428 (Grand Rapids MSA)

CONFIDENTIAL OFFERING MEMORANDUM

NET LEASED INVESTMENT OFFERING


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Confidentiality & Disclaimer

Executive Summary

Property Overview

Assumable Financing Overview

Aerials

Site Plan

Maps

Tenant Profile

Demographic Comparison Report

Location Overview

Contact Information

TABLE OF CONTENTS

TABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTSTABLE OF CONTENTS



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 The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to provide summary, unverified 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. The Boulder Group has not made any investigation, and makes no warranty or representation. The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group 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.

CONFIDENTIALITY & DISCLAIMER

CONCONCONCONFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMERFIDENTIALITY & DISCLAIMER



The Boulder Group is pleased to exclusively market for sale a single tenant net leased Advance Auto Parts property located in the Grand Rapids MSA. Grand Rapids is the second largest city in Michigan and the largest city in Western Michigan. Grand Rapids has an unemployment rate of 7.4%, as compared to Detroit’s unemployment rate of 10.8% and the United States’ unemployment rate of 8.3%. Grand Rapids is home to Spectrum Health (the area’s largest employer), Meijer (#19 on America’s largest private companies list) and Johnson Controls (Fortune 500 Company).

The 7,000 square foot Advance Auto Parts was built in 2005 and is benefitted by its location in the primary retail trade area of Jenison as an outparcel to a Meijer. Advance Auto Parts is located along Baldwin Street, a major retail thoroughfare within the trade area. Baldwin Street has traffic volumes in excess of 28,000 vehicles per day and has direct access to the Interstate 196 Interchange (less than one mile away). The property is situated on a hard corner and at the entrance to a Meijer, which creates constant traffic flow at the site. Other nearby retailers include Target, GFS Marketplace, Walgreens, Aldi, Chase, McDonald’s and Fifth Third Bank.

Advance Auto Parts’ original lease term was for 15 years with three 5-year renewal options and the lease expires in December 2020. The base rent increases 10% in 2015 and 5% in each option period. Advance Auto Parts is a publicly traded company on the New York Stock Exchange (AAP), with a market capitalization of $6 Billion. Advance Auto Parts is an investment grade company with a Standard & Poor’s rating of BBB-.

The subject property must be purchased with existing non-recourse financing. The loan matures March 2017 with a remaining balance of $890,276. The equity requirement at the estimated time of purchase is $594,645. The loan balance at maturity equates to a 15.90% cap rate.

• Located within the Grand Rapids MSA (7.4% unemployment)

• Standard & Poor’s investment grade rating of BBB-

• 10% rental escalation in 2015

• Traffic volumes in excess of 28,000 vehicles per day along Baldwin Street

• Less than one mile from I-196 Interchange

• Outparcel to a Meijer

• Positioned on a hard corner

• Nearby retailers include Target, Meijer, Walgreens, Chase, Fifth Third Bank McDonald’s and Aldi

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

EXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARYEXECUTIVE SUMMARY



Price: $1,640,000

Cap Rate: 7.84%

Rent Schedule: NOI Escalation Date

$128,647

$141,512 12/13/2015

$148,588 12/13/2020 (Option 1)

$163,446 12/13/2025 (Option 2)

$179,791 12/13/2030 (Option 3)

Renewal Options: Three 5-year options

Lease Commencement Date: December 13, 2005

Lease Expiration Date: December 12, 2020

Tenant: Advance Auto Parts

Credit Rating: BBB- (Standard and Poor’s)

Year Built 2005

Lease Type: NN (Roof, Structure & Parking Lot)

Rentable Square Feet: 7,000 SF

Land Size: 1.03 acres

PROPERTY OVERVIEW

PROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEWPROPERTY OVERVIEW



Assumable Financing OverviewAssumable Financing OverviewAssumable Financing OverviewAssumable Financing Overview

The purchaser must assume the in place financing detailed below.

Loan Balance (June 2012): $1,046,261

Maturity Date: March 1, 2017

Interest Rate: 5.72%

Term: 10 year

Amortization: 25 year

Loan to Value: 63%

Equity Investment: $594,645

Loan Balance at Maturity: $890,276

Cash on Cash Return: 6.76% (Full Year 1)

Assumption Fee: 1% of Outstanding Balance

Recourse: None

Cash on Cash Return: January 2012 Cash on Cash Return: January 2012 Cash on Cash Return: January 2012 Cash on Cash Return: January 2012 –––– December 201December 201December 201December 2017777

2012201220122012 2013201320132013 2014201420142014 2015201520152015 2016201620162016 2017201720172017

Net Operating IncomeNet Operating IncomeNet Operating IncomeNet Operating Income $ 128,647 $ 128,647 $ 128,647 $ 129,719 $ 141,512 $ 141,512

Mortgage PaymentsMortgage PaymentsMortgage PaymentsMortgage Payments $ (88,449) $ (88,449) $ (88,449) $ (88,449) $ (88,449) $(88,449)

Cash FlowCash FlowCash FlowCash Flow $ 40,198 $ 40,198 $ 40,198 $ 41,271 $ 53,063 $ 53,063

Cash on Cash Return 6.76% 6.76% 6.76% 6.94% 8.92% 8.92%

The above are shown on a full year basis.

ASSUMABLE FINANCING OVERVIEW

ASSUMABLE FINANCING OVERVIEWASSUMABLE FINANCING OVERVIEWASSUMABLE FINANCING OVERVIEWASSUMABLE FINANCING OVERVIEW



AERIALS

AERIALAERIALAERIALAERIALSSSS



SITE PLANSITE PLANSITE PLANSITE PLAN

SITE PLAN



MAPS

MAPSMAPSMAPSMAPS



Website: www.advanceautoparts.com

Number of Locations: 3,645

Stock Symbol: AAP : NYSE

Standard & Poor’s Rating: BBB-

Market Capitalization: $6 Billion

Employees: 55,000

2011 Net Income: $393 Million

Advance Auto Parts (NYSE: AAP) is a leading automotive aftermarket retailer in the United States based off both sales and store count. Advance Auto Parts sells automotive parts, accessories, batteries and other maintenance items. Currently, Advance Auto Parts is a Fortune 500 Company and is ranked #387. Advance Auto Parts is headquartered in Roanoke, Virginia and operates more than 3,600 stores across 39 states, Puerto Rico and the Virgin Islands. Advance As of October 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 commercial customers, including garages, service stations, and auto dealers. Commercial customers account for about 30% of AAP's revenues while do-it-yourselfers generate the balance.

TENANT PROFILE

TENANT PROFILETENANT PROFILETENANT PROFILETENANT PROFILE



PopulationPopulationPopulationPopulation 3333----mi.mi.mi.mi. 5555----mi.mi.mi.mi. 7777----mimimimi

Total Population 46,626 114,924 223,473 Total Households 17,277 42,969 78,886

IncomeIncomeIncomeIncome

Median Household Income $65,642 $62,901 $59,536 Average Household Income $73,430 $70,220 $65,773

DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORTDEMOGRAPHIC COMPARISON REPORT



LOCATION OVERVIEW

LOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEWLOCATION OVERVIEW

Spectrum Health is headquartered in Grand Rapids and is the largest employer in West Michigan with 16,000 staff

and 1,500 physicians. Spectrum Health's Meijer Heart Center, Lemmen-Holton Cancer Pavilion, and Butterworth

Hospital are located on the Grand Rapids Medical Mile which has world-class facilities focusing on the health

sciences.

JenisonJenisonJenisonJenison is an unincorporated community in Ottawa County in Michigan. Jenison is

governed by Georgetown Charter Township. The 2010 population of the Georgetown

Township was approximately 47,000. As of July 2011, Ottawa County had a population of

264,910.

www.georgetown-mi.gov/

Grand RapidsGrand RapidsGrand RapidsGrand Rapids is located in Kent County, Michigan. At the time of the 2010 US Census,

Grand Rapid’s population was 188,040. The Grand Rapids metropolitan area had a

population of 774,160 in 2010. Grand Rapids is the second largest city in Michigan and

the largest city in Western Michigan. Grand Rapids is home to five of the world's leading

office furniture companies and is nicknamed the "Furniture City". The city and surrounding

communities are economically diverse, and contribute heavily to the health care,

information technology, automotive, aviation, and consumer goods manufacturing

industries, among others. The largest employers in Grand Rapids include Spectrum

Health (16,000), Meijer (9,785), Steelcase (5,400) and Johnson Controls (5,000).



666 Dundee Road Suite 1801 Northbrook, IL 60062

Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

CONTACT INFORMATION

CONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATIONCONTACT INFORMATION

Net Lease Advance Auto For Sale

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