exclusive listing nnn autozone, inc. - cassidy turley northern

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

NNN AutoZone, Inc. ORLANDO SUBURB

Price: $2,440,000 — 6.15% Cap Rate

Fortune 500 Investment-Grade Tenant

17-Year NNN Lease Fee Simple Lease (Not a Ground Lease)

Recession-Proof Tenant

High-Growth Bithlo, Florida

Actual Property

In Association with: For more information, please contact:

Robert C. Sanner

Partner/Broker

415-677-0439

[email protected] LIC #00869657

Rick Sanner

Vice President

415-677-0429


Matt Ebert

Associate

415-677-0469


Ron Ruffner

Cassidy Turley

A Florida Licensed Broker LIC #BK313649

Cassidy Turley Northern California www.ctbtnnn.com

EXCLUSIVE LISTING

AutoZone, Inc. Bithlo, Florida

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0812:27

LOCATION 17026 Old Cheney Highway, Bithlo, Florida. About 15 miles east of downtown

Orlando.

LOT SIZE 0.86± acres — 37,435± square feet.

IMPROVEMENTS Completed August 2009, a 6,840 square foot freestanding AUTOZONE retail store.

The building is not the standard AutoZone prototype and has pigmented split face

blocks, metal awnings, and faux windows.

This is NOT a ground lease. The property for sale includes land and building.

LEASE Leased to AUTOZONE, INC., for 20 years from September 1, 2009, until September

2029 at the annual net rent of $150,000 (17 years remaining). The lease is net with

tenant responsible for all taxes, maintenance and insurance including roof and

structure. There are four five-year renewal options at 10% increases each option

period.

NET ANNUAL INCOME

PRICE $2,440,000 — 6.15% Cap Rate

RENT PER SQUARE FOOT $21.93 net per year — $1.83 net per month

YEARS NET ANNUAL RENT

1-20 $150,000

21-25 Option 1 $165,000

26-30 Option 2 $181,500

31-35 Option 3 $199,650

36-40 Option 4 $219,612



ABOUT THE TENANT

AUTOZONE, INC. (NYSE: “AZO”) is the leading retailer and a leading distributor of

automotive replacement parts and accessories in the U.S. with 4,613 retail stores in

the U.S. and 297 in Mexico as of May 5, 2012. Each store carries an extensive line

of maintenance items and accessories for cars, sport utility vehicles, vans and light

trucks. Headquartered in Memphis, the company has been in business since 1979

and has 55,000 employees.

AutoZone serves two markets:

DIY — Do It Yourself: Individual consumers who come to the store to

purchase the merchandise and who, typically, work on their own vehicles.

DIFM — Do It For Me: Auto repair professionals and service shops working

on an individual’s vehicle, who usually order by phone, fax, or e-mail. Many

service shops order daily from the store for same- or next-day delivery.

Strong DIFM sales depend upon a good distribution/inventory system. If the

ordered item is in stock, there is next-day availability to the ultimate

consumer; if not; the objective is to ship from an AutoZone warehouse

overnight, providing second-day delivery. To that end, AutoZone has

developed a system of warehouses, such that any parts order placed by a

given store will be delivered the next morning. To achieve these efficiencies,

there are different sizes of highly computerized warehouses, all within an

overnight drive of every store.

AutoZone, Inc. reported net sales of $2.1 billion for its third quarter (12 weeks) ended

May 5, 2012, an increase of 6.7% from the third quarter of fiscal 2011 (12 weeks).

Domestic same store sales increased 3.9% for the quarter.

Net income for the quarter increased $21.2 million, or 9.3%, over the same period

last year to $248.6 million, while earnings increased 18.6% to $6.28 per share from

$5.29 per share in the year-ago quarter.

AutoZone reported net sales of $5.84 billion for the nine months ended May 5, 2012,

and net income was $607 million.

For the fiscal year ended August 27, 2011, AutoZone reported sales of $8.07 billion

(a 9.6% increase over the prior year) and net income of $849 million (a 15% increase

over the prior year).



ABOUT THE TENANT

(CONTINUED)

Since the low point in 2009, the AZO stock price has more than tripled.

The company is ranked #322 in the 2011 Fortune 500. Standard & Poor’s rates the

company as “BBB”, investment grade.

More information is available at www.autozone.com

AUTO PARTS RETAIL

INDUSTRY PROGNOSIS

The following is taken from a stock-market-oriented internet article on

www.thestreet.com, May 17, 2010. The article is entitled “Auto Parts Retail is

Stepping on the Gas.”

“[The auto parts retail] segment looks poised to prosper in any sort of macroeconom-

ic environment...

During periods of prosperity when folks may be inclined to buy new cars..., a new car

replaces the old car, which is often sold and put back on the road.

[During periods] of economic contraction, [there is] deferment of new car purchases,

which increases the wear and tear on used vehicles.

[When] an individual with a mortgage and a car payment suddenly falls on tough

times... [this individual is] often likely to abandon the home before giving up the

automobile (A)*.

A car has a hundred parts under the hood. As cars have evolved, they’ve included

more components. More components create greater sales opportunity for a parts

store.

[There is] great long-term potential in the auto parts business. The climate for growth

looks assured over the future.”



AUTO PARTS RETAIL

INDUSTRY PROGNOSIS

(CONTINUED)

*(A) Broker Note: The comment about giving up the home before the car is self-

evident from foreclosure activity of the last several years. People can move out of

the home into a different residence. But they really need their cars!

According to industry data, the median age of the average vehicle on the road went

from 6.58 years in the year 1990 to 9.2 years in the year 2007. A January, 2012

article stated the average age is now 10.8 years. Vehicles are staying on the road

longer, and, of course, need parts. The number of vehicles produced annually,

domestically and internationally, has dropped dramatically. Much of the actual

worldwide manufacturing capability has been permanently retired or dismantled.

American consumers have discovered that:

They DON’T NEED new cars so often, and/or

They CAN’T AFFORD to buy new cars so often, and/or

They CAN’T GET LOANS to buy new cars so often.

Thus, the need for parts seems to be ever-growing

SITE INFORMATION The subject site is located along Highway 50 (East Colonial Drive), which goes 40 to

50 miles east-west from the eastern suburbs through the heart of downtown Orlando

to the western suburbs. Highway 50 continues east almost to the Atlantic Ocean —

the “Space Coast” (Cape Canaveral) area.

The subject address is on Old Cheney Road, which is the frontage road for East

Colonial Drive. It is about 15 miles west on Colonial to the heart of downtown

Orlando.

At the subject store East Colonial drive is a four-lane commercial road divided by a

grassy median. From either direction on East Colonial, a motorist could turn onto

Story Partin road and proceed directly into the property (see “Site Plan”). Visibility

from East Colonial is excellent in both directions.

This property is centered around a developed area with numerous retailers and

single-family residential developments

Retailers in the area include: Wal-Mart, Walgreens, Publix, Advance Auto Parts,

Circle K, Fifth Third Bank, McDonald’s, Taco Bell, Whataburger, Burger King and

other local, national and regional retailers.



BITHLO, FLORIDA Bithlo is part of the Orlando metropolitan area, 15 miles east of downtown Orlando.

As of 2012, Bithlo's population is 8,268 people. Since 2000, it has had a population

growth of 103.29 percent.

ORLANDO, FLORIDA Orlando is located in the central region of Florida. According to the 2010 US Census,

the city had a population of 238,300, making Orlando the 79th largest city in the

United States. The Greater Orlando metropolitan area has a population of 2,134,411,

making it the 26th largest metro area in the United States, the sixth largest metro

area in the Southeastern United States, and the third largest metro area in Florida.

Orlando is the fifth largest city in Florida, and the state's largest inland city.

The area is best known for the Walt Disney World Resort (located approximately 21

miles southwest of Downtown Orlando), and for the Universal Orlando Resort (which

consists of two parks, Universal Studios Florida and Islands of Adventure, as well as

other attractions, including City Walk). Orlando is also home to the SeaWorld theme

park, Gatorland, and Wet 'n Wild Water Park. The city is one of the busiest American

cities for conferences and conventions.

Orlando attracts over 51 million tourists a year (3.6 million of them are international

tourists). Its airport, the Orlando International Airport (MCO), is the thirteenth busiest

airport in the United States, and the 29th busiest in the world.

Economy

Orlando is a major industrial and hi-tech center. The metro area has a $13.4 billion

technology industry employing 53,000 people; and is a nationally recognized cluster

of innovation in digital media, agricultural technology, aviation, aerospace, and

software design. More than 150 international companies, representing approximately

20 countries, have facilities in Metro Orlando.

Orlando has the 7th largest research park in the country, Central Florida Research

Park, with over 1,025 acres. It is home to over 120 companies, employs more than

8,500 people, and is the hub of the nation’s military simulation and training programs.

Metro Orlando is home to the simulation procurement commands for the U.S. Army,

Navy, Air Force, Marines and Coast Guard.



ORLANDO, FLORIDA

(CONTINUED)

Lockheed-Martin has a large manufacturing facility for missile systems, aeronautical

craft and related high tech research. Other notable engineering firms have offices or

labs in Metro Orlando: KDF, General Dynamics, Harris, Mitsubishi Power Systems,

Siemens, Veritas/Symantec, multiple USAF facilities, Naval Air Warfare Center

Training Systems Division (NAWCTSD), Delta Connection Academy, Embry-Riddle

Aeronautical University, GE, Air Force Agency for Modeling and Simulation

(AFAMS), U.S. Army Program Executive Office for Simulation, Training, and

Instrumentation (PEO STRI), United States Army Research, Development and

Engineering Command United States Army Simulation and Training Technology

Center (STTC), AT&T, Boeing, CAE Systems Flight & Simulation Training, Hewlett-

Packard, Institute for Simulation and Training, National Center for Simulation,

Northrop Grumman, and Raytheon Systems.

Orlando is close to Patrick Air Force Base, Cape Canaveral Air Force Station, and

Kennedy Space Center. It is also near Port Canaveral, a cruise ship terminal.

Orlando is the home base of Darden Restaurants, the parent company of Red

Lobster and Olive Garden and the largest operator of restaurants in the world by

revenue. In September 2009 it moved to a new headquarters and central distribution

facility.

A vital part of the Orlando area economy is tourism. The Orlando area is home to

Walt Disney World Resort, Universal Orlando Resort, and SeaWorld Orlando. Over

48 million visitors came to the Orlando region in 2004. The convention industry is

also critical to the region's economy. The Orange County Convention Center,

expanded in 2004 to over two million square feet of exhibition space, is the second-

largest convention complex in terms of space in the United States.

The Walt Disney World resort is the area's largest attraction with its many facets such

as the Magic Kingdom, Epcot, Disney's Hollywood Studios, Disney's Animal

Kingdom, Typhoon Lagoon, Blizzard Beach, and Downtown Disney. SeaWorld

Orlando is a large park that features numerous zoological displays and marine

animals alongside an amusement park with roller coasters and water park. Universal

Orlando, like Walt Disney World, is a multi-faceted resort comprising Universal

Studios Florida, CityWalk, and Islands of Adventure. The Wet 'n Wild water park is

another famous attraction. SeaWorld Orlando also comprises more than one park,

including Aquatica and Discovery Cove.



ORLANDO, FLORIDA

(CONTINUED)

University of Central Florida (UCF)

Orlando is home to the University of Central Florida, the second largest university

campus in the United States with 58,698 students (as of 2011).

Airports

The Orlando International Airport (MCO) is Orlando's primary airport and is currently

the second busiest airport in the state of Florida closely behind Miami International

Airport. The airport serves as a secondary hub and corporate headquarters for

AirTran Airways and focus city for Southwest Airlines and JetBlue Airways. The

airport serves as a major international gateway for the mid-Florida region with major

foreign carriers including Lufthansa, British Airways, Air France, Virgin Atlantic, Aer

Lingus, TAM, and Aeromexico.

DEMOGRAPHICS

NOTE The information set forth herein has been received by us from sources we believe to

be reliable, but we have made no independent investigation of the accuracy or

completeness of the information and make no representations with respect thereto.

The above is submitted subject to errors, prior sale or lease, change in status, or

withdrawal without notice.

FLORIDA

3-MILE 5-MILE 7-MILE

Population (2011) 38,662 97,248 179,191

Avg. Household Income $68,490 $71,356 $71,590

% Growth (2000-2011) 116.80% 101.73% 74.10%



GROUND PHOTOS



SITE PLAN



AERIAL



MAP



Updated Summary Report (%)

August 23, 2012

Longitude: -81.12809150

Latitude: 28.56017320

3 mi

Ring

5 mi

Ring

7 mi

Ring

POPULATION

1990 Total Population 9,074 20,789 41,958




% Population Change 1990-2000 96.53% 131.89% 145.31%



HOUSEHOLDS

1990 Total Households 3,465 7,159 14,811




% Households Change 1990-2000 98.41% 131.28% 138.53%



2011 RACE

% 2011 White Population 75.36% 75.44% 75.16%

% 2011 Black Population 9.02% 9.28% 9.85%

% 2011 American Indian/Alaska Native .42% .37% .34%

% 2011 Asian/Hawaiian/Pacific Islander 5.62% 5.56% 5.66%

% 2011 Other Population (Incl 2+ Races) 9.58% 9.35% 8.99%

% 2011 Hispanic Population 27.59% 27.07% 26.52%

% 2011 Non-Hispanic Population 72.41% 72.93% 73.48%



Updated Summary Report (%)

August 23, 2012

Longitude: -81.12809150

Latitude: 28.56017320

3 mi

Ring

5 mi

Ring

7 mi

Ring

INCOME

2011 Per Capita Income $25,158 $23,174 $23,225

2011 Median Household Income $52,911 $57,436 $63,328

2011 Average Household Income $68,490 $71,356 $71,590

% 2011 Household Income < $10,000 5.49% 5.11% 5.95%

% 2011 Household Income $10,000-$14,999 3.75% 3.01% 2.87%














% 2011 Household Income $200,000-$249,999 .43% .30% .87%

% 2011 Household Income $250,000-$499,999 .35% .42% .67%

% 2011 Household Income $500,000+ .11% .09% .09%

2011 Average Household Size 2.8 2.9 2.9

% 2011 Total Owner Occupied Housing Units 69.07% 69.32% 70.19%

% 2011 Total Renter Occupied Housing Units 30.93% 30.68% 29.81%

2011 Total Daytime Population 26,780 72,208 139,052

2011 Total Daytime Work Population 6,439 26,583 50,416

2011 Total Establishments 677 1,564 2,899

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