CONFIDENTIAL OFFERING MEMORANDUM Absolute NNN NAPA …€¦ · including Maserati, Kia, Jeep,...

CONFIDENTIAL OFFERING MEMORANDUM

Absolute NNN NAPA Auto Parts | Corporate Lease 1193 Central Avenue // Albany, NY 12205

Representative Photo

Broker of Record: Paul G.W. Fetscher, CCIM, CRX, CLS // Great American Brokerage Inc. // A Licensed NY Broker

EXCLUSIVELY OFFERED BY:

BRAD TEITELBAUM Vice President / Broker 312.275.3116 [email protected]

GRAHAM GOLD Associate / Broker 312.275.3124 [email protected]

BAUM REALTY GROUP, LLC 1030 W. Chicago Avenue, Suite 200 Chicago, IL 60642 www.baumrealty.com

2 // CONFIDENTIAL OFFERING MEMOR ANDUM

1193 CENTR AL AVENUE // ALBANY, NY // Offering Summary

Offering SummaryBaum Realty Group has been exclusively retained by ownership to sell an absolute NNN

NAPA Auto Parts in Albany, NY. The auto parts retailer is situated along Central Avenue,

which has daily traffic of 28,320 cars and is surrounded by numerous auto dealerships and

national retail tenants, providing plenty of traffic drivers and consumers in the area. The

site also benefits from proximity to two higher education institutions and interstate highway

access. The dense consumer base of 142,500 daytime employees support the tenant and

surrounding area retailers.

PRICE: $1,675,850

CAP RATE: 6.50%

NOI*: $108,930

TERM REMAINING: 6 YEARS

RENT ESCALATIONS: 7.50%

Lease Type: Absolute NNN – No Landlord Responsibilities

Space Size: ±7,887 Square Feet

Lot Size: ±1.00 Acre

Parking Field: ±36 Spaces

* NOI based on upcoming rent increase 3/1/2019. Seller to credit rent difference at closing.



1193 CENTR AL AVENUE // ALBANY, NY // inveStment HigHligHtS

Investment HighlightsaBSOlute nnn leaSe

There are approximately 6 years remaining on the abso-

lute NNN lease with four, 5-year options and 7.5% rent

increases. The absolute NNN lease structure requires no

landlord maintenance responsibilities and provides the

buyer with a completely passive investment.

COrPOrate tenant

Genuine Parts Company (NYSE: GPC) is publicly traded

with sales greater than $16.3B and net income of $616M

for the FYE 2017, providing excellent financial security for

an investor. The Automotive Parts Group (which includes

NAPA) accounts for 53% of company sales and is the larg-

est division of GPC. There are more than 6,000 NAPA Auto

Parts stores in the U.S.

iDeal marKet POSitiOning

NAPA Auto Parts benefits from having approximately

15 auto dealerships within 2 miles including Maserati,

Kia, Jeep, Honda, Ford, Chevrolet, Nissan, and Hyundai,

among others.



1193 CENTR AL AVENUE // ALBANY, NY // inveStment HigHligHtS

eStaBliSHeD retail COrriDOr

NAPA Auto Parts is located along Central Avenue (28,320 VPD) featuring top-tier national

retail anchors including Whole Foods Market, Target, Lowe’s, Marshalls, BJ’s Wholesale

Club, The Home Depot, Price Chopper, CVS, McDonald’s, and Taco Bell, among others.

COnvenient interState aCCeSS

The site provides excellent access to I-87 (113,000 VPD) which is located 1.3 miles northwest

and connects to I-90 (127,600 VPD). I-87 and I-90 are the main interstate highways in the area

and provide consumers with easy access to the site and market.

tWO univerSitieS nearBy

The University at Albany and SUNY Polytechnic Institute are both located 2 miles southeast

of the site and have combined enrollment of approximately 20,000 students, adding to the

dense daytime population in the area.

SOliD lOCal DemOgraPHiCS

There are 93,000 residents with an average household income of $79,000 and 142,500 day-

time employees within 3 miles of the site, providing a dense consumer base for the auto

parts retailer.

DelivereD free & Clear Or attraCtive aSSumaBle lOan

A buyer can purchase the property free and clear or can assume the debt, which matures in

2020 and carries an interest rate of 3.39%.

DEMOGRAPHIC SUMMARY

1 Mile 3 Miles 5 Miles

Estimated Population 8,518 92,976 194,541

Estimated Households 3,799 36,671 79,925

Average Household Income $69,268 $78,946 $78,143

Adj. Daytime Population (Age 16+) 17,934 142,519 301,293Representative Photo


1193 CENTR AL AVENUE // ALBANY, NY // aerialS


1193 CENTR AL AVENUE // ALBANY, NY // PrOPert y infOrmatiOn

Property InformationNAPA Auto Parts is situated along Central Ave which has daily

vehicular traffic of 28,320 cars. The auto parts retailer occupies a

building consisting of approximately 7,887 square feet on a 1-acre

lot. The site has a point of access along Central Ave. and includes 36

parking spaces, giving the tenant the ability to accommodate con-

sumers during high traffic hours. Convenient access to I-87 (113,000

VPD) is located 1.3 miles northwest on Central Avenue. Additionally,

I-87 connects to I-90 and provides commuting consumers with easy

access to the retail corridor; I-87 and I-90 are the main interstate

highways in the area.

The tenant is ideally positioned in a heavy auto-related corridor

with approximately 15 car dealerships within two miles of the site,

including Maserati, Kia, Jeep, Honda, Ford, Chevrolet, Nissan, and

Hyundai. The heavy concentration of car dealerships, along with the

dense daytime population, provide a solid consumer base for the

auto parts retailer.

Two higher education institutions, including the University at Albany

and SUNY Polytechnic, contribute approximately 20,000 students

to the daytime demographic and consumer count in the immediate

area. Additionally, the market is supported by an established retailer

presence, including enclosed malls, grocery and big box anchored

shopping centers, junior box stores, and plenty of quick casual and

quick serve restaurants. There are plenty of national brands driving

traffic in the market, including Whole Foods Market, Target, Lowe’s,

Marshalls, BJ’s Wholesale Club, The Home Depot, Price Chopper,

CVS, McDonald’s, and Taco Bell.

PrOPerty aDDreSS: 1193 Central avenue alBany, ny 12205

BuilDing SiZe: ±7,887 SQuare feet

lOt SiZe: ±1.00

tOtal ParKing: ±36 StallS




Central AvenueCentral Avenue 28,320 VPD28,320 VPD

Dott’s Garage

Albany Dance & Fitness

M Pellegrino Importing

Albany Dance & Fitness

M Pellegrino Importing

Dott’s Garage

±7,887 SF±7,887 SF

±36 Parking Spaces±36 Parking Spaces

±1.00 Acres±1.00 Acres

SITE PLAN



Rent Roll & PricingTerm Annual Rent Monthly Rent Rent PSF Rent Increase Yield

3/1/2014 - 2/28/2019 $ 101,330 $ 8,444 $ 12.85 N/A N/A

3/1/2019 - 2/28/2024 $ 108,930 $ 9,077 $ 13.81 N/A 6.50%

3/1/2024 - 8/31/2024 $ 117,099 $ 9,758 $ 14.85 7.50% 6.99%

Opt. 1

9/1/2024 - 2/28/2029 $ 117,099 $ 9,758 $ 14.85 N/A 6.99%

3/1/2029 - 8/31/2029 $ 125,882 $ 10,490 $ 15.96 7.50% 7.51%

Opt. 2

9/1/2029 - 2/28/2034 $ 125,882 $ 10,490 $ 15.96 N/A 7.51%

3/1/2034 - 8/31/2034 $ 135,323 $ 11,277 $ 17.16 7.50% 8.07%

Opt. 3

9/1/2034 - 2/28/2039 $ 135,323 $ 11,277 $ 17.16 N/A 8.07%

3/1/2039 - 8/31/2039 $ 145,472 $ 12,123 $ 18.44 7.50% 8.68%

Opt. 4

9/1/2039 - 2/28/2044 $ 145,472 $ 12,123 $ 18.44 N/A 8.68%

3/1/2044 - 8/31/2044 $ 156,383 $ 13,032 $ 19.83 7.50% 9.33%

Average Yield: 7.83%

Price: $1,675,850

Cap Rate: 6.50%

NOI*: $108,930

Term Remaining: 6 Years

Escalations: 7.50%

Lease Type: Absolute NNN – No Landlord Responsibilities


Lot Size: ±1.00 Acre

Parking Field: ±36 Spaces

* NOI based on upcoming rent increase 3/1/2019. Seller to credit rent difference at closing.



Lease AbstractNAPA AUTO PARTS

Tenant: Genuine Parts Company, a GA corp.


Rent Commencement: 3/1/2014

Lease Expiration: 8/31/2024

Annual Base Rent (as of 3/1/2019): $108,929.73

Renewal Options: Four, 5-year options with 12 months notice.

Rent Increases: 7.50% in the last 6 months of the primary term and each option.

Roof & Structure: Tenant maintains, repairs, and replaces the roof and structure.

Common Area Maintenance: Tenant maintains, repairs, and replaces the common areas.

Taxes: Tenant pays taxes directly.

HVAC: Tenant maintains, repairs, and replaces the HVAC.

Insurance: Tenant maintains insurance and pays directly.

Utilities: Tenant pays utilities directly.

Right of First Refusal: None.


1193 CENTR AL AVENUE // ALBANY, NY // tenant OvervieW

Tenant Overview

NAPA Auto Parts is a leading retailer of automotive replacement

parts, accessory items, and service items with 9,300 locations

throughout North America, Europe, and Australia, including 6,000

stores in the U.S. In North America, NAPA stores sell more than

500,000 different parts for retail and commercial uses including

automotive replacement parts, paint and refinishing supplies, farm

and marine supplies, tools and equipment, heavy duty parts, and

automotive accessories covering mostly all domestic and foreign

vehicle models.

Genuine Parts Company (GPC), based in Atlanta, GA, is the par-

ent company of NAPA Auto Parts and is a global service organiza-

tion engaged in the distribution of automotive replacement parts,

industrial replacement parts, office products, and electrical materi-

als. NAPA Auto Parts operates under the automotive parts group,

which is the largest division under the GPC umbrella and accounts

for 53% of total net sales.

Genuine Parts Company is publically listed on the New York

Stock Exchange under the ticker symbol GPC. For the FYE 2017,

Genuine Parts Company had $16.3 billion in revenue and net

income of $616 million.

tenant: genuine PartS COmPany D/B/a naPa autO PartS

OWnerSHiP: PuBliC – nySe: gPC

tOtal u.S. naPa lOCatiOnS: 6,000+

fye 2017 revenue: $16.30B

fye 2017 net inCOme: $616m

marKet CaPitaliZatiOn (aS Of June 2018): $13.40B

WeBSite: WWW.naPaOnline.COm WWW.genPt.COm


1193 CENTR AL AVENUE // ALBANY, NY // marKet OvervieW

Albany & Capital Region Overview

imageS

1 Albany, New York

2 Empire State Plaza

3 University at Albany, SUNY

1

2

3

Albany is the seat of Albany County, capital of New York state, and home to close to 100,000 people. Albany is

located approximately 150 miles north of New York City and has a history that dates back more than 400 years to 1609

when it was first settled by Henry Hudson. Additionally, Albany is the central city in a region nicknamed the “Capital

Region” as it is centered around the state capital and encompasses 8 counties in all.

ROBUST ECONOMYThe Capital Region has a robust economy dependent on government, health care, education, and technology. The

largest concentration of employees, approximately 25% of the workforce, are employed by the government which

benefits the area immensely as these are relatively “recession proof” professions compared to many other jobs. The

area prides itself on its solid workforce, including the 7th highest concentration of physical, biological, and engineer-

ing research workers in the nation. The area benefits from low unemployment and a growing workforce of 547,000

employees. Additionally, there are close to 4,000 retail trade establishments that bring in more than $721M in sales

tax. Overall, the diverse local economy should continue to benefit the Capital Region well into the future.

EDUCATIONAL RESEARCH AND DEVELOPMENTThe Capital Region is home to a wide variety of local universities ranging from large, state institutions to small, private

colleges. In total, the area supports 20+ nationally ranked 4-year colleges and universities, including the University at

Albany, SUNY Polytechnic, Sienna College, Russell Sage College, Excelsior College, The College of Saint Rose, and

Maria College, among others. The region is home to more than 1.6M square feet of academic R&D facilities, making

it the 35th largest R&D region in the nation. The growth in the R&D field is fueled by the more than 4,000 STEM

graduates every year and the area universities who spend approximately $575 million on R&D annually. Additionally,

the area benefits from having 1 of 6 GE Global Research centers in the world focusing on: manufacturing & materi-

als; aero-thermal mechanical systems; chemistry & chemical engineering; diagnostics and biomedical technologies;

electrical technologies and systems; software science and analytics; and advanced technologies. Finally, the Capital

Region is a world leader in nanotech research led by SUNY Polytechnic, which has more than $24B in high tech invest-

ment from 300 corporate partners.


1193 CENTR AL AVENUE // ALBANY, NY // COnfiDentialit y DiSClOSure

Confidentiality DisclosureBaum Realty Group, LLC (“Baum”) has been retained as the exclusive broker by the Owner of Record (“the Owner”) of 1193 Central Avenue in Albany, IL in connection with the sale of certain

properties (“the Property”) as described in this Offering Memorandum.

This Offering Memorandum has been prepared by Baum for use by a limited number of parties, and does not purport to provide a necessarily accurate summary of the physical or economic

aspects of the Property or any of the documents related thereto, nor does it purport to be all inclusive or to contain all of the information which prospective investors may need or desire fur-

ther, the Offering Memorandum is limited to the matters set forth therein. All budgets or projections have been developed by Baum and Owner, and are based upon assumptions relating to

the general economy, competition, and other factors beyond the control of the Owner and Baum and therefore are subject to variation. Each of Baum and Owner makes no representation as

to the accuracy or completeness of the information contained herein, and nothing contained herein is, or shall be relied on as a promise or representation as to the future performance of the

Property. Although the information contained herein is believed to be correct, Baum and its employees, and Owner, and its trustees, officers, and employees disclaim any and all liability for

representations and warranties, expressed and implied, contained in, or omissions from the Offering Memorandum or any other written or oral communication transmitted or made available

to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the Property Owner as of the date of preparation

of the Offering Memorandum.

Additional information and an opportunity to inspect the Property will be made available upon written request to interested and qualified prospective investors.

Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers regarding the property, and/or terminate discussions with any entity at any time

with or without notice. Owner shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the property unless and until

such offer is approved by Owner and the Board of Trustees of Owner and a written agreement for the purchase of the Property has been fully executed, delivered and approved by Owner and

its legal counsel, and any conditions to Owner’s obligations hereunder have been satisfied or waived.

This Offering Memorandum and the contents, except such information that is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting

this Offering Memorandum, you acknowledge that you have executed, and have agreed to be bound by, the Confidentiality Agreement with Baum and Owner.

CONFIDENTIAL OFFERING MEMORANDUM

Absolute NNN NAPA Auto Parts | Corporate Lease 1193 Central Avenue // Albany, NY 12205


Broker of Record: Paul G.W. Fetscher, CCIM, CRX, CLS // Great American Brokerage Inc. // A Licensed NY Broker

EXCLUSIVELY OFFERED BY:

BRAD TEITELBAUM Vice President / Broker 312.275.3116 [email protected]

GRAHAM GOLD Associate / Broker 312.275.3124 [email protected]

BAUM REALTY GROUP, LLC 1030 W. Chicago Avenue, Suite 200 Chicago, IL 60642 www.baumrealty.com

CONFIDENTIAL OFFERING MEMORANDUM Absolute NNN NAPA …€¦ · including Maserati, Kia, Jeep,...

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