Advance auto parts net leased

NET LEASED INVESTMENT OFFERING

CONFIDENTIAL OFFERING MEMORANDUM

www.bouldergroup.com

Advance Auto Parts1535 West Lane Road

Machesney Park, IL 61115 (Rockford MSA)



TABLE OF CONTENTS

TABLE OF CONTENTS

1) Confidentiality & Disclaimer

2) Executive Summary

3) Property Overview

4) Aerials

5) Maps

6) Tenant Profile

7) Demographic Comparison Report

8) Location Overview

9) Contact Information



CONFIDENTIALITY & DISCLAIMER

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.



EXECUTIVE SUMMARY

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



PROPERTY OVERVIEW

PROPERTY OVERVIEW

Price:

Cap Rate:

Net Operating Income:

Renewal Options:

Lease Commencement Date:

Lease Expiration Date:

Tenant:

Year Built

Lease Type:

Rentable Square Feet:

Land Size:

$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)

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)

6,124 SF

30,685 SF



AERIAL

AERIAL

15,600 ADT. ALPINE RD.

IL 25

1

IL 173

15,600 ADT. ALPINE RD.

IL 25

1

IL 173



SITE PLAN

AERIAL

IL 17322,800 ADT

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KIM

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IL 17322,800 ADT

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NTA

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MAPS

MAPS



TENANT PROFILE

TENANT PROFILE

Website:Number of Locations:Stock Symbol: Standard & Poor’s Rating:Market Capitalization:Employees:2010 Net Income:

www.advanceautoparts.com3,540AAP : NYSEBBB-$4 Billion51,000$346 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 3,500 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.



DEMOGRAPHIC COMPARISON REPORT

DEMOGRAPHIC COMPARISON REPORT

Population

Total Population

Total Households

1-mile

3-mile

87,589

33,259

10-mile

297,378

113,358

Median Household Income

Average Household Income

$65,257

$75,919

$56,338

$66,671

Income 1-mile 3-mile 10-mile

37,987

14,394

$65,236

$70,596



LOCATION OVERVIEW

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/



CONTACT INFORMATION

CONTACT INFORMATION

666 Dundee Road Suite 1801Northbrook, IL 60062

|

Randy [email protected]

Jimmy [email protected]

Advance auto parts net leased

Real Estate

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