SINGLE TENANT...15 | BRAND PROFILE | SRS NATIONAL NET LEASE GROUP . BRAND PROFILE ACTUAL SITE...

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ACTUAL SITE DIAMOND ILLINOIS SINGLE TENANT ___________________ INVESTMENT OPPORTUNITY (NYSE: AAP | S&P: BBB-) (CHICAGO MSA)

Transcript of SINGLE TENANT...15 | BRAND PROFILE | SRS NATIONAL NET LEASE GROUP . BRAND PROFILE ACTUAL SITE...

ACTUAL SITE

DIAMONDILLINOIS

SINGLETENANT

___________________

INVESTMENT OPPORTUNITY

(NYSE: AAP | S&P: BBB-)

(CHICAGO MSA)

EXCLUSIVELY MARKETED BY

ACTUAL SITE

FRANK ROGERS | FIRST VICE PRESIDENTSRS NATIONAL NET LEASE GROUP

101 W Big Beaver Road, 14th Floor | Troy, MI 48084DL: 248.688.0631 | M: 810.348.3324

[email protected] | MI License No. 6501380791

Broker of Record:Ken Galvin, SRS Real Estate Partners | IL License No. 471006635

MICHAEL CARTER | FIRST VICE PRESIDENTSRS NATIONAL NET LEASE GROUP

101 W Big Beaver Road, 14th Floor | Troy, MI 48084DL: 248.688.0630 | M: 586.549.4260

[email protected] | MI License No. 6501180257

TABLE OF CONTENTS

4INVESTMENT SUMMARY

OFFERING SUMMARY | INVESTMENT HIGHLIGHTS

7PROPERTY OVERVIEW

AERIALS | SITE PLAN | LOCATION MAP

12AREA OVERVIEW

DEMOGRAPHICS

14FINANCIALS

RENT ROLL | BRAND PROFILE

ACTUAL SITE

SRS National Net Lease Group is pleased to offer the opportunity to acquire the fee simple interest (land and building ownership) in a NN leased, corporate guaranteed, Advance Auto Parts, investment property located in Diamond, IL (Chicago MSA). The tenant, Advance Auto Parts, currently has 9 years remaining in their initial lease term with 3 (5-year) options to extend. The lease features 5% rental increases at the beginning of each option period, growing NOI and hedging against inflation. The lease is corporate guaranteed and is NN with landlord responsibilities limited to roof, structure, and parking lot. The subject property is strategically located at the signalized, hard corner intersection of E. Division St. and S. Berta Rd., with 14,450 combined vehicles passing each day. The site is complete with a monument sign, providing excellent visibility and street frontage along E. Division St. Advance Auto Parts is an outparcel to an Ace Hardware anchored shopping center, with tenants local eateries, a hair salon, a fitness center, and more, increasing consumer draw to the immediate trade area and promoting crossover shopping to the site. Other nearby national/credit tenants include CVS Pharmacy, Dollar General, Shell, United States Postal Service, and more, further increasing consumer draw to the trade area. The 5-mile trade area is supported by nearly 20,000 residents with a healthy average household income of $76,500.

4 | INVESTMENT SUMMARY | SRS NATIONAL NET LEASE GROUP .

INVESTMENT SUMMARY

ACTUAL SITE

PRICING: $1,663,000

NET OPERATING INCOME: $116,375

CAP RATE: 7.00%

GUARANTY: Corporate

TENANT: Advance Auto Parts (NYSE: AAP | S&P: BBB-)

LEASE TYPE: NN

LANDLORD RESPONSIBILITIES: Roof, Structure, Parking Lot

OFFERING

5 | OFFERING HIGHLIGHTS | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE

OFFERING SUMMARY

RENTABLE AREA: 6,125 SF

LAND AREA: 0.65 Acres

PROPERTY ADDRESS: 1135 E. Division Street, Diamond, IL 60416

YEAR BUILT: 2012

PARCEL NUMBER: 09-02-226-040 (0.36 Acres)09-02-226-041 (0.29 Acres)

OWNERSHIP: Fee Simple (Land and Building)

PROPERTY SPECIFICATIONS

6 | INVESTMENT HIGHLIGHTS | SRS NATIONAL NET LEASE GROUP .

INVESTMENT HIGHLIGHTS

ACTUAL SITE

9 YEARS REMAINING | CORPORATE GUARANTEED LEASE• Tenant has 9 years remaining in their initial lease term• 3 (5-year) options to extend at 5% rental increases• Rental increases grow NOI and hedge against inflation

INVESTMENT GRADE TENANT ADVANCE AUTO PARTS (NYSE: AAP | S&P: BBB-)• Advance Auto Parts, Inc. (NYSE: AAP | S&P: BBB-)• Founded in 1929, AAP operates over 5,000 locations• Ranked #317 on the Fortune 500 list

NN LEASE | FEE SIMPLE OWNERSHIP | LIMITED LANDLORD RESPONSIBILITIES• Tenant pays for CAM, taxes, and insurance• Landlord responsibilities limited to roof, structure, and parking lot• Ideal, low management investment for an out-of-state, passive investor

SIGNALIZED HARD CORNER INTERSECTION | MONUMENT SIGN• Situated at the signalized, hard corner intersection of E. Division St. and S. Berta

Ave., with 14,450 combined vehicles passing by each day• Site is complete with a monument sign, providing excellent visibility and frontage

along E. Division St.

OUTPARCEL ACE HARDWARE ANCHORED CENTER | NEARBY NATIONAL/CREDIT TENANTS

• Outparcel to an Ace Hardware anchored center, with tenants including local eateries, a hair salon, a fitness center, and more

• Other nearby tenants include CVS Pharmacy, Shell, United States Postal Service, and more

• Increases consumer draw to the trade area and promotes crossover shopping

DEMOGRAPHICS IN 5-MILE TRADE AREA | HEALTHY INCOMES• Nearly 20,000 residents and nearly 6,000 employees support the trade area• Healthy $76,000 average household income

7 | PROPERTY OVERVIEW | SRS NATIONAL NET LEASE GROUP .

PARCEL MAP

PROPERTY OVERVIEW

ACTUAL SITE

ACCESS

TRAFFIC COUNTS

IMPROVEMENTS

PARKING

YEAR BUILT

PARCEL

ZONING

E. Division Street / State Highway 113: .............................................. 1 Access PointS. Berth Road: ................................................................................... 1 Access Point

E. Division Street/ State Highway 113: ...................................... 12,100 Cars Per Day

There is approximately 6,125 SF of existing building area.

There are approximately 30 parking spaces on the owned parcel. The parking ratio is approximately 4.90 stalls per 1,000 SF of leasable area.

2012

Parcel Number: 09-02-226-040 (0.36 Acres) Acres: 0.65 Square Feet: 28,314 09-02-226-041 (0.29 Acres)

B1: Retail Business District

09-02-226-041

09-02-226-040

E. Division St. State Highway 113

S. Be

rta R

d.

12,100CARS PER DAY

12,100CARS PER DAY

Coal City Intermediate School

Coal City Elementary School

S. Be

rta R

d.

State Highway 113 E. Division St.

S. BERTA RD.

E. DIVISION ST. - 11,800 VPD

CHICAGO

2018 ESTIMATED POPULATION1 Mile ........................................................... 4,5973 Mile ......................................................... 13,1945 Mile ......................................................... 19,569

2018 AVERAGE HOUSEHOLD INCOME1 Mile ........................................................$75,953 3 Mile ........................................................$77,8765 Mile ........................................................$76,487

2018 ESTIMATED TOTAL EMPLOYEES1 Mile ........................................................... 1,3023 Mile ........................................................... 3,0625 Mile ........................................................... 5,724

DIAMOND

1 Hr 19 Minutes | 67 Miles To Chicago

12 | AREA OVERVIEW | SRS NATIONAL NET LEASE GROUP .

AREA OVERVIEWDiamond, IllinoisDiamond is a village in Grundy and Will Counties, Illinois. The Village of Diamond had a population of 2,695 as of July 1, 2018. Terry Kernc is the current mayor of Diamond. The village was named for its location in the center of the “Black Diamond” coal district. Diamond is part of Coal City, which was incorporated in August of 1881, with a population of 900. The city has grown and developed over the last 180 years, and its community now features various churches and organizations including Athletic Boosters, Coal City Area Baseball and Softball, Boy Scouts Troop #466, Girl Scouts, and more.

The community has numerous parks, including Campbell Memorial Park, Lions Park, North Park, Tippleway Bike Path, and a dog park, providing residents with various leisure opportunities. Coal City holds community events throughout the year including the annual Cruise Night, a city-wide car show centered in Campbell Park, with a winner crowned at the end of the event. Octoberfest is also held each year for the residents of the city.

Grundy County is a county in the U.S. state of Illinois. According to the 2017 census, it has a population of 50,586. Its county seat is Morris. Grundy County is part of the Chicago-Naperville-Elgin, IL-IN-WI Metropolitan Statistical Area.Illinois’s state fossil, the unique and bizarre Tully Monster, was first found in Mazon Creek. Grundy County Speedway is located in Morris. Grundy County is also home to Dresden Generating Station—the first privately financed nuclear power plant built in the United States—and the Morris Operation—the only de facto high-level radioactive waste storage site in the United States.

13 | AREA DEMOGRAPHICS | SRS NATIONAL NET LEASE GROUP .

AREA DEMOGRAPHICSDEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2018 Estimated Population 4,597 13,194 19,5692023 Projected Population 4,657 13,380 19,8802010 Census Population 4,465 13,048 19,336Projected Annual Growth 2018 to 2023 0.26% 0.28% 0.32%Historical Annual Growth 2010 to 2018 0.35% 0.13% 0.15%

2018 Estimated Households 1,770 5,002 7,4972023 Projected Households 1,798 5,086 7,6452010 Census Households 1,715 4,910 7,332Projected Annual Growth 2018 to 2023 0.31% 0.33% 0.39%Historical Annual Growth 2010 to 2018 0.38% 0.23% 0.27%

2018 Estimated White 96.74% 97.48% 97.40%2018 Estimated Black or African American 0.78% 0.57% 0.54%2018 Estimated Asian or Pacific Islander 0.54% 0.50% 0.47%2018 Estimated American Indian or Native Alaskan 0.26% 0.22% 0.21%2018 Estimated Other Races 1.96% 1.54% 1.42%2018 Estimated Hispanic 7.27% 6.40% 5.72%

2018 Estimated Average Household Income $75,953 $77,876 $76,4872018 Estimated Median Household Income $65,380 $68,589 $65,9552018 Estimated Per Capita Income $29,624 $29,435 $29,417

2018 Estimated Total Businesses 163 333 5062018 Estimated Total Employees 1,302 3,062 5,724

RENT ROLL

14 | RENT ROLL | SRS NATIONAL NET LEASE GROUP .

LEASE TERM RENTAL RATES

TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONSAdvance Auto Parts 6,125 Nov. 2012 Nov. 2027 Current - $9,698 $1.58 $116,375 $19.00 NN 3 (5-Year)

(Corporate Guaranty) Opt. 1: $122,194/Yr

Opt. 2: $128,303/Yr

Opt. 3: $134,719/Yr

FINANCIAL INFORMATION PROPERTY SPECIFICATIONS

ACTUAL SITE

Price: ..................................................................................................................................$1,663,000Net Operating Income: ..........................................................................................................$116,375Cap Rate: ....................................................................................................................................7.00%Lease Type:..................................................................................................................................... NN

Year Built: .....................................................................................................................................2012Rentable Area: ........................................................................................................................ 6,125 SFLand Area: ........................................................................................................................... 0.65 AcresAddress: ............................................................................ 1135 E. Division Street, Diamond, IL 60416

For financing options and loan quotes, please contact our SRS Debt & Equity team at [email protected].

15 | BRAND PROFILE | SRS NATIONAL NET LEASE GROUP .

BRAND PROFILE

ACTUAL SITE

ADVANCE AUTO PARTSAdvance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer and do-it-yourself customers through its vast network of nearly 6,400 stores, independently owned Carquest branded locations and Worldpac branches. Advance’s more than 70,000 dedicated and knowledgeable Team Members serve customers throughout the United States, Canada, Puerto Rico, the U.S. Virgin Islands, Mexico, the Bahamas, Turks and Caicos, British Virgin Islands and Pacific Islands. Advance Auto Parts, Inc. was founded in 1929 and is headquartered in Roanoke, Virginia.

Company Type: .............................................................. Public (NYSE:AAP)2017 Employees: ............................................................................. 40,0002017 Revenue: ......................................................................$$9.37 Billion2017 Net Income: ............................................................$$475.51 Million 2017 Assets: ..........................................................................$$8.48Million2017 Equity: ...........................................................................$3.42 MillionCredit Rating: ...............................................................................S&P: BBB-

1000+PROPERTIES CURRENTLY

REPRESENTED

$2.6B*TRANSACTION VALUE

600+CLIENTS REPRESENTED

IN 2016

250+BROKERS,

PROFESSIONALS,AND STAFF

#1LARGEST REAL ESTATE FIRM

EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA

20+OFFICES

*STATISTICS ARE FOR 2017.

SRS GLOBAL STATS

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

ACTUAL SITE