Advance Auto Parts NNN
Content
NET LEASED INVESTMENT OFFERING
Advance Auto Parts 1535 West Lane Road Machesney Park, IL 61115 (Rockford MSA)
CONFIDENTIAL OFFERING MEMORANDUM
www.bouldergroup.com
TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
TABLE OF CONTENTS
1) 2) 3) 4) 5) 6) 7) 8) 9)
Confidentiality & Disclaimer Executive Summary Property Overview Aerials Maps Tenant Profile Demographic Comparison Report Location Overview Contact Information
www.bouldergroup.com
CONFIDENTIALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
CONFIDENTIALITY & 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 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, 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, PCB's or asbestos, the compliance with 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, 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.
www.bouldergroup.com
EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant net leased Advance Auto Parts property located in the Rockford MSA. Rockford is the third largest city in Illinois and the largest city outside of the Chicago MSA. The 6,124 square foot Advance Auto Parts was built in 2011 and is benefitted by its location in the primary retail trade area of the Machesney Park Gateway District. The Gateway District is located at the crossing of Illinois State Highways 173 and 251 and is the village’s primary shopping area with national big box stores, specialty retail outlets, and numerous national and local restaurants. Machesney Park is located 80 miles from Chicago, 67 miles from Madison and 87 miles from Milwaukee. Advance Auto Parts is located along West Lane Road, a major retail thoroughfare in the trade area. The recently constructed property is located within the Willow Creek Retail Center which includes retailers Aldi, Buffalo Wild Wings, FedEx Kinkos, Pizza Hut and Verizon. Adjacent to the Willow Creek Retail Center are two shopping centers; The Gateway of Machesney Park and Machesney Crossings which are anchored by national retailers Target, The Home Depot, Lowe’s, Menards, Kohl’s, Office Depot and PetSmart. There are two signalized access road that grants access from the Willow Creek Retail Center to The Gateway of Machesney Park and Machesney Crossings. Advance Auto Parts original lease term is for 15 years with three 5-year renewal options and the lease expires in August 2026. Advance Auto Parts is a publicly traded company on the New York Stock Exchange (AAP), with a market capitalization of $4 Billion. Advance Auto Parts is an investment grade company with a Standard & Poor’s rating of BBB-. INVESTMENT HIGHLIGHTS • Standard & Poor’s investment grade rating of BBB• Rare 10% rental escalation in the primary term • Newly constructed property 2011 • Long term lease of 15 years • The Gateway District is the fastest growing corridor in the region • Within 5 minutes of the I-90 & Route 173 Interchange • Located within the newly constructed Willow Creek Retail Center • Average household incomes in excess of $75,000 within 5 miles of the property • Trade area includes Target, The Home Depot, Lowe’s, Menards, Kohl’s, Office Depot and PetSmart
www.bouldergroup.com
PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: Cap Rate: Net Operating Income: $1,520,411 7.25% $110,232 $121,102 – 9/1/2021 $128,539 – 9/1/2026 (Option 1) $138,179 – 9/1/2031 (Option 2) $148,543 – 9/1/2036 (Option 3) Renewal Options: Lease Commencement Date: Lease Expiration Date: Tenant: Year Built Lease Type: Three 5-year options August 8, 2011 August 31, 2026 Advance Auto Parts 2011 NN (Structure Only in Primary Term) NN (Roof & Structure in Option Periods) Rentable Square Feet: Land Size: 6,124 SF 30,685 SF
www.bouldergroup.com
AERIAL
NET LEASED INVESTMENT OFFERING
AERIAL
IL
51 2
IL 17
3
15 ,60
0A
DT .A
LP
IN
ER
D.
www.bouldergroup.com
SITE PLAN
NET LEASED INVESTMENT OFFERING
AERIAL
22,800 ADT CONTINENTAL DR.
IL 173
www.bouldergroup.com
KIMBER DR.
MAPS
NET LEASED INVESTMENT OFFERING
MAPS
www.bouldergroup.com
TENANT PROFILE
NET LEASED INVESTMENT OFFERING
TENANT PROFILE
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 3,500 stores across 39 states, Puerto Rico and the Virgin Islands. Advance As of July 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.
Website: Number of Locations: Stock Symbol: Standard & Poor’s Rating: Market Capitalization: Employees: 2010 Net Income:
www.advanceautoparts.com 3,540 AAP : NYSE BBB$4 Billion 51,000 $346 Million
www.bouldergroup.com
DEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING
DEMOGRAPHIC COMPARISON REPORT
Population Total Population Total Households 1-mile 37,987 14,394 3-mile 87,589 33,259 10-mile 297,378 113,358
Income
1-mile $65,236 $70,596
3-mile $65,257 $75,919
10-mile $56,338 $66,671
Median Household Income Average Household Income
www.bouldergroup.com
LOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW
Machesney Park is located in Winnebago County in the state of Illinois. The population at the 2010 census was 23,499. Machesney Park is located directly north of Rockford, Illinois. With the addition of The Gateway, Machesney Park is becoming a major retail area for the surrounding trade area. Machesney Park is within an hour’s drive of Chicago, Madison and Milwaukee and at the crossroads of Interstates 90 & 39, Illinois State Highway 173 and US Highway 20. http://www.machesney-park.il.us/
Rockford is the third largest city in Illinois and is the primary city in the Rockford MSA. At the time of the 2010 census Rockford had a population of 152,871 and the metropolitan area had a population of 339,178. The largest employers in the MSA include the Rockford Public School District, Rockford Health System, Swedish American Hospital, Wal-Mart Stores, OSF Saint Anthony Medical Center, Hamilton Sundstrand and Chrysler. http://www.ci.rockford.il.us/
www.bouldergroup.com
CONTACT INFORMATION
NET LEASED INVESTMENT OFFERING
CONTACT INFORMATION
666 Dundee Road | Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 [email protected] Jimmy Goodman Partner 847.562.8500 [email protected]
www.bouldergroup.com
Advance Auto Parts 1535 West Lane Road Machesney Park, IL 61115 (Rockford MSA)
CONFIDENTIAL OFFERING MEMORANDUM
www.bouldergroup.com
TABLE OF CONTENTS
NET LEASED INVESTMENT OFFERING
TABLE OF CONTENTS
1) 2) 3) 4) 5) 6) 7) 8) 9)
Confidentiality & Disclaimer Executive Summary Property Overview Aerials Maps Tenant Profile Demographic Comparison Report Location Overview Contact Information
www.bouldergroup.com
CONFIDENTIALITY & DISCLAIMER
NET LEASED INVESTMENT OFFERING
CONFIDENTIALITY & 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 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, 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, PCB's or asbestos, the compliance with 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, 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.
www.bouldergroup.com
EXECUTIVE SUMMARY
NET LEASED INVESTMENT OFFERING
EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant net leased Advance Auto Parts property located in the Rockford MSA. Rockford is the third largest city in Illinois and the largest city outside of the Chicago MSA. The 6,124 square foot Advance Auto Parts was built in 2011 and is benefitted by its location in the primary retail trade area of the Machesney Park Gateway District. The Gateway District is located at the crossing of Illinois State Highways 173 and 251 and is the village’s primary shopping area with national big box stores, specialty retail outlets, and numerous national and local restaurants. Machesney Park is located 80 miles from Chicago, 67 miles from Madison and 87 miles from Milwaukee. Advance Auto Parts is located along West Lane Road, a major retail thoroughfare in the trade area. The recently constructed property is located within the Willow Creek Retail Center which includes retailers Aldi, Buffalo Wild Wings, FedEx Kinkos, Pizza Hut and Verizon. Adjacent to the Willow Creek Retail Center are two shopping centers; The Gateway of Machesney Park and Machesney Crossings which are anchored by national retailers Target, The Home Depot, Lowe’s, Menards, Kohl’s, Office Depot and PetSmart. There are two signalized access road that grants access from the Willow Creek Retail Center to The Gateway of Machesney Park and Machesney Crossings. Advance Auto Parts original lease term is for 15 years with three 5-year renewal options and the lease expires in August 2026. Advance Auto Parts is a publicly traded company on the New York Stock Exchange (AAP), with a market capitalization of $4 Billion. Advance Auto Parts is an investment grade company with a Standard & Poor’s rating of BBB-. INVESTMENT HIGHLIGHTS • Standard & Poor’s investment grade rating of BBB• Rare 10% rental escalation in the primary term • Newly constructed property 2011 • Long term lease of 15 years • The Gateway District is the fastest growing corridor in the region • Within 5 minutes of the I-90 & Route 173 Interchange • Located within the newly constructed Willow Creek Retail Center • Average household incomes in excess of $75,000 within 5 miles of the property • Trade area includes Target, The Home Depot, Lowe’s, Menards, Kohl’s, Office Depot and PetSmart
www.bouldergroup.com
PROPERTY OVERVIEW
NET LEASED INVESTMENT OFFERING
PROPERTY OVERVIEW
Price: Cap Rate: Net Operating Income: $1,520,411 7.25% $110,232 $121,102 – 9/1/2021 $128,539 – 9/1/2026 (Option 1) $138,179 – 9/1/2031 (Option 2) $148,543 – 9/1/2036 (Option 3) Renewal Options: Lease Commencement Date: Lease Expiration Date: Tenant: Year Built Lease Type: Three 5-year options August 8, 2011 August 31, 2026 Advance Auto Parts 2011 NN (Structure Only in Primary Term) NN (Roof & Structure in Option Periods) Rentable Square Feet: Land Size: 6,124 SF 30,685 SF
www.bouldergroup.com
AERIAL
NET LEASED INVESTMENT OFFERING
AERIAL
IL
51 2
IL 17
3
15 ,60
0A
DT .A
LP
IN
ER
D.
www.bouldergroup.com
SITE PLAN
NET LEASED INVESTMENT OFFERING
AERIAL
22,800 ADT CONTINENTAL DR.
IL 173
www.bouldergroup.com
KIMBER DR.
MAPS
NET LEASED INVESTMENT OFFERING
MAPS
www.bouldergroup.com
TENANT PROFILE
NET LEASED INVESTMENT OFFERING
TENANT PROFILE
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 3,500 stores across 39 states, Puerto Rico and the Virgin Islands. Advance As of July 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.
Website: Number of Locations: Stock Symbol: Standard & Poor’s Rating: Market Capitalization: Employees: 2010 Net Income:
www.advanceautoparts.com 3,540 AAP : NYSE BBB$4 Billion 51,000 $346 Million
www.bouldergroup.com
DEMOGRAPHIC COMPARISON REPORT
NET LEASED INVESTMENT OFFERING
DEMOGRAPHIC COMPARISON REPORT
Population Total Population Total Households 1-mile 37,987 14,394 3-mile 87,589 33,259 10-mile 297,378 113,358
Income
1-mile $65,236 $70,596
3-mile $65,257 $75,919
10-mile $56,338 $66,671
Median Household Income Average Household Income
www.bouldergroup.com
LOCATION OVERVIEW
NET LEASED INVESTMENT OFFERING
LOCATION OVERVIEW
Machesney Park is located in Winnebago County in the state of Illinois. The population at the 2010 census was 23,499. Machesney Park is located directly north of Rockford, Illinois. With the addition of The Gateway, Machesney Park is becoming a major retail area for the surrounding trade area. Machesney Park is within an hour’s drive of Chicago, Madison and Milwaukee and at the crossroads of Interstates 90 & 39, Illinois State Highway 173 and US Highway 20. http://www.machesney-park.il.us/
Rockford is the third largest city in Illinois and is the primary city in the Rockford MSA. At the time of the 2010 census Rockford had a population of 152,871 and the metropolitan area had a population of 339,178. The largest employers in the MSA include the Rockford Public School District, Rockford Health System, Swedish American Hospital, Wal-Mart Stores, OSF Saint Anthony Medical Center, Hamilton Sundstrand and Chrysler. http://www.ci.rockford.il.us/
www.bouldergroup.com
CONTACT INFORMATION
NET LEASED INVESTMENT OFFERING
CONTACT INFORMATION
666 Dundee Road | Suite 1801 Northbrook, IL 60062 Randy Blankstein President 847.562.0003 [email protected] Jimmy Goodman Partner 847.562.8500 [email protected]
www.bouldergroup.com
