advance auto parts - matthews · 2019. 5. 16. · 53 miles away and o’reilly auto parts is over...

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R E T A I L A D V I S O R SOFFERING MEMORANDUM

ADVANCE AUTO PARTS 909 BROADWAY STREET, BEATTYVILLE, KY 41311

Representative Photo

Matthews Retail Advisors

CO N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

This O ffer ing M emorandum contains se lec t information per ta ining to the business and af fa i rs of Advanced Auto Parts located at 909 Broadway Street, Beattyville, KY 41311 (“Proper t y ”) . I t has been prepared by Matthews Retai l Advisors . This O ffer ing Memorandum may not be a l l - inc lus ive or contain a l l of the information a prospec t ive purchaser may desi re. The information contained in this O ffer ing M emorandum is conf ident ia l and furnished sole ly for the purpose of a review by a prospec t ive purchaser of the Proper t y. I t i s not to be used for any other purpose or made avai lable to any other person without the wr i t ten consent of Sel ler or Matthews Retai l Advisors . The mater ia l i s based in par t upon information suppl ied by the Sel ler and in par t upon f inancia l information obtained f rom sources i t deems re l iable. O wner, nor their of f icers, employees, or agents makes any representat ion or warrant y, express or impl ied, as to the accurac y or completeness of th is O ffer ing Memorandum or any of i ts contents and no legal l iabi l i t y i s assumed or shal l be impl ied with respec t thereto. Prospec t ive purchasers should make their own projec t ions and form their own conclus ions without re l iance upon the mater ia l contained herein and conduc t their own due di l igence.

By ack nowledging your receipt of th is O ffer ing Memorandum for the Proper t y, you agree:

1 . The O ffer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ic test of conf idence; and

3. You wi l l not , d i rec t ly or indirec t ly, d isc lose or permit anyone else to disc lose this O ffer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

O wner and Matthews Retai l Advisors express ly reser ve the r ight , at their sole discret ion, to re jec t any and a l l express ions of interest or of fers to purchase the Proper t y and to terminate discuss ions with any person or ent i t y reviewing this O ffer ing Memorandum or mak ing an of fer to purchase the Proper t y unless and unt i l a wr i t ten agreement for the purchase and sale of the Proper t y has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Proper t y or in the future you discont inue such negot iat ions, then you agree to purge a l l mater ia ls re lat ing to this Proper t y including this O ffer ing Memorandum.

A prospec t ive purchaser ’s sole and exclus ive r ights with respec t to this prospec t ive t ransac t ion, the Proper t y, or information provided herein or in connec t ion with the sa le of the Proper t y shal l be l imited to those express ly provided in an executed Purchase Agreement and shal l be subjec t to the terms thereof. I n no event shal l a prospec t ive purchaser have any other c la ims against Sel ler or Matthews Retai l Advisors or any of their af f i l iates or any of their respec t ive of f icers, Direc tors, shareholders, owners, employees, or agents for any damages, l iabi l i t y, or causes of ac t ion re lat ing to this sol ic i tat ion process or the market ing or sa le of the Proper t y.

This O ffer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Proper t y or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Proper t y s ince the date this O ffer ing Memorandum.

EXCLUSIVELY L ISTED BY:

Table of Contents

PRICING & FINANCIAL ANALYSISInvestments Highlights ...........................................................................2Executive Summary ..................................................................................3Company Overview...................................................................................4

PROPERTY DESCRIPTIONPhysical Description .................................................................................7Bird’s Eye .......................................................................................................8Regional Map ..............................................................................................9Tenant Map ............................................................................................... 10

DEMOGRAPHICSCity Overview | Beattyville, KY ........................................................... 12Demographics Report ........................................................................... 13

Laurence BergmanBroker of Record License No. 47790

Jim SchuchertSenior Associate DIRECT +1.310.919.5834 MOBILE +1.310.971.3892 [email protected] License No. 01969414

Matthews Retail Advisors Representative Photo

Pricing & Financial Analysis

P. 2 Matthews Retail Advisors OFFERING MEMORANDUM | Advance Auto Parts

INVESTMENT OVERVIEW

Investments HighlightsPROPERTY DETAILS

• 11 years remaining on NNN lease with three (3) five (5) year options

• Recent lease extension signaling tenant’s commitment to the location

• Tenant responsible for roof, HVAC, and parking lot

• High quality construction, steel framed with concrete block

LOCATION

• No competition from national competitors as AutoZone is over 53 miles away and O’Reilly Auto Parts is over 47 miles away.

• Located directly off of Highway 11, which is the main thoroughfare for residents traveling in and out of town.

• 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 Rite Aid, Dairy Queen, and Family Dollar

TENANT

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

• Market cap of $12.5 billion

• 5,261 Stores

Jim Schuchert of the Matthews Retail Advisors is pleased to exclusively offer for sale to qualified investors a net leased Advance Auto Parts in Beattyville, KY. The investment offers the ability to acquire a triple-net Advance Auto Parts property with 11 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 5,261 stores.


Matthews Retail Advisors P. 3

PRICING ANALYSIS

Advance Auto Parts | OFFERING MEMORANDUM

EXECUTIVE SUMMARY

ADVANCE AUTO PARTS909 BROADWAY STREET BEATTYVILLE, KY 41311

List Price ......................................................................................................... $1,197,000CAP Rate - Current ...............................................................................................7.00%Gross Leasable Area .........................................................................................7,000 SFLot Size .................................................................................. ±1.35 Acres (58,719 SF)Year Built .................................................................................................................... 2007

Annualized Operating DataMonthly Rent Annual Rent Rent/SF CAP Rate

Current - 4/30/2027 $6,982.50 $83,790.00 $11.97 7.00%

Option 1 - 4/30/2032 $8,348.90 $100,186.80 $14.31 8.40%

Option 2 - 4/30/2037 $8,766.35 $105,196.20 $15.03 8.80%

Option 3 - 4/30/2042 $9,204.66 $110,455.92 $15.78 9.20%

Tenant Summary

Tenant Trade Name Advance Auto Parts, Inc.

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NNN

Roof, HVAC, Parking Lot Tenant Responsible

Original Lease Term 15 Years

Lease Commencement Date 3/16/2007

Rent Commencement Date 4/19/2007

Lease Expiration Date 4/30/2027

Term Remaining on Lease 11 Years

Increases 19.5% at Option 1; 5% at Option 2; 5% at Option 3

Options Three (3) Five (5) Year


COMPANY OVERVIEW

Property Name Advance Auto Parts

Gross Leasable Area 7,000 SF

Property Type Net Leased Auto Parts

Parent Company Trade Name Advance Auto Parts

Ownership Public

Credit Rating BBB-

Rating Agency Standard & Poor’s

Revenue $9.84 Billion

Net Income $493 Million

Stock Symbol AAP

Board NYSE

No. of Locations 5,261

Headquartered Roanoke, VA

Web Site www.advanceautoparts.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.

Property Description

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PROPERTY DESCRIPTION


PHYSICAL DESCRIPTION

THE OFFERING

Property Name .................................................................................Advance Auto Parts

Property Address ..........................................................................909 Broadway Street

Beattyville, KY 41311

Assessor’s Parcel Number .......................................................................039-00-00-059

SITE DESCRIPTION

Number of Stories ..........................................................................................................One

Year Built .......................................................................................................................... 2007

Gross Leasable Area (GLA) .................................................................................. 7,000 SF

Lot Size ........................................................................................... 1.35 Acres (61,574 SF)

Type of Ownership ........................................................................................... Fee Simple

Parking ...................................................................................................36 Surface Spaces

Parking Ratio ................................................................................................5.14 : 1,000 SF

Landscaping .....................................................................................................Professional

Topography ............................................................................................... Generally Level

CONSTRUCTION

Foundation ................................................................................................... Concrete Slab

Framing ............................................................................................................................ Steel

Exterior ............................................................................................................................. Brick

Parking Surface ........................................................................................................Asphalt

Roof ......................................................................................................................................Flat



BIRDS EYE

Inte

rstat

e 11

VPD: 5,00

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909 broadway st, beattyville KY


PROPERTY DESCRIPTION


REGIONAL MAP


TENANT MAP

Demographics

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P. 12 Matthews Retail Advisors

DEMOGRAPHIC ANALYSIS

OFFERING MEMORANDUM | Advance Auto Parts

CITY OVERVIEW | BEATTYVILLE, KY

Nestled in between the valley where the North and South Fork rivers meet is where you will find the mountainous community of Beattyville, Kentucky.

Scenic views and hilly terrain in the national Daniel Boone Forest make Beattyville the perfect mountain destination for hikers, cyclers, campers and outdoors-men. Beattyville is famous for their Red River Gorge and many other climbing spots where rock climbers come from all over the world to climb untouched rock formations and cliffs.

Beattyville is home to the Kentucky River valley as well as over 60 creeks that lead into the river mak-ing the land extremely fertile and productive for farm-ing. A major portion of the community raises livestock as well as grows farms of vegetables and fruits. The hills and valleys are packed with commercial stands of different types of wood creating a robust forestry industry.

A number of festivals are held throughout the year, of them the most famous is the Woolly Worm Festival. The community enjoys coming together to celebrate the local culture, artists and crafters. Artists in the area practice beautiful wood works, textiles, sculpting and weavers.

Famous Natural Arch in the Daniel Boone National Forest

Performance at the Annual Wooly Worm Festival

World Famous Cliffs of Red River Gorge


DEMOGRAPHIC ANALYSIS


DEMOGRAPHICS REPORT

Population 3-Mile 5-Mile 10-Mile2020 Projection 2,860 4,637 10,2052015 Estimate 3,061 4,947 10,7702010 Census 3,633 5,627 11,7302000 Census 3,454 5,536 11,951Growth 2000-2010 5.18% 1.65% -1.86%Growth 2010-2015 -15.75% -12.09% -8.18%Growth 2015-2020 -6.57% -6.27% -5.24%

Households2020 Projection 965 1,723 4,0162015 Estimate 1,052 1,850 4,2372010 Census 1,139 1,968 4,4512000 Census 1,175 2,001 4,548Growth 2000-2010 -3.08% -1.67% -2.13%Growth 2010-2015 -7.62% -5.97% -4.80%Growth 2015-2020 -8.27% -6.87% -5.21%

Income$0 - $15,000 39.30% 35.21% 34.66%$15,000 - $24,999 16.61% 17.28% 18.23%$25,000 - $34,999 11.01% 11.42% 11.76%$35,000 - $49,999 8.68% 9.97% 10.24%$50,000 - $74,999 11.72% 11.95% 11.07%$75,000 - $99,999 5.44% 6.13% 6.82%$100,000 - $124,999 4.22% 4.18% 3.29%$125,000 - $149,999 1.40% 1.71% 1.90%$150,000 - $199,999 1.06% 1.54% 1.50%$200,000 - $249,999 0.36% 0.45% 0.34%$250,000 - $499,999 0.20% 0.16% 0.13%$500,000+ 0.01% 0.01% 0.05%2015 Est. Average Household Income $34,742 $37,379 $37,0272015 Est. Median Household Income $21,444 $23,561 $23,415

Matthews Retail Advisors | 841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.Matthews.com

ADVANCE AUTO PARTS909 Broadway StreetBeattyville, KY 41311OFFERING MEMORANDUM

Laurence BergmanBroker of Record License No. 47790

Jim SchuchertSenior AssociateDIRECT +1.310.919.5834 MOBILE +1.310.971.3892 [email protected] License No. 01969414

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advance auto parts - matthews · 2019. 5. 16. · 53 miles away and o’reilly auto parts is over...

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