Advance Auto Parts 920 MacArthur Drive, Alexandria, LA 71303

Advance Auto Parts 920 MacArthur Drive, Alexandria, LA 71303

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Advance Auto Parts

920 MacArthur Drive, Alexandria, LA 71303

OFFERING MEMORANDUM



CONFIDENTIALITY & DISCLAIMER STATEMENT This Of f e r ing M e m o r a n du m co n t a i n s s e l e ct i nform ati on pertai ni ng to the busi ness and affai rs of A dv a nce Auto Pa rts located at 920 MacArthur Drive, Alexandria, LA 71303 ( “ P ro p e rt y ” ) . It h as been prepared by Matthews Retai l Advi sors . Thi s O fferin g M emoran d u m may n ot b e all-in clu s ive o r c o nt a in a ll o f t h e i n f o r m a t i o n a p r o s p e c ti ve purc haser m ay desi re. The i nform ati on c ontai ned in t h is Offerin g M emoran d u m is con fid en t ial and f ur nis hed s o l e l y f o r t h e p u r p o s e o f a revi ew by a prospec ti ve purc haser of the Property. It is n ot t o b e u s ed for an y ot h er pu rpos e or ma d e a v a ila b le t o a n y o t h e r p e r s o n w i t h out the wri tten c onsent of Sel l er or Matthews Retai l Ad vis ors . Th e mat erial is b as ed in part u pon inf o r ma t io n supp l i e d by t h e S e l l e r a n d i n part upon fi nanc i al i nform ati on obtai ned from sourc es it d eems reliab le. Own er, n or t h eir officers , emp lo y ee s , o r a g e n t s m a ke s a n y r e p r e sentati on or warranty, express or i m pl i ed, as to the accu racy or complet en es s of t h is Offerin g Me mo r a nd um o r a n y o f i t s co n t e n t s a n d n o l egal l i abi l i ty i s assum ed or shal l be i m pl i ed wi th res pect t h eret o. Pros pect ive pu rch as ers s h ou ld ma ke t heir o w n p r o j e ct i o n s a n d f o r m t h e i r own c onc l usi ons wi thout rel i anc e upon the m ateri al con t ain ed h erein an d con d u ct t h eir own d u e d ilig enc e. B y a c kno w le d gi n g y o u r r e ce i p t o f t h i s O f feri ng Mem orandum for the Property, you agree: 1.

T he Of f e r i n g M e m o r a n du m a n d i t s c ontents are c onfi denti al ;

2. Yo u w ill h o l d i t a n d t r e a t i t i n t h e s t ri c test of c onfi denc e; and 3. Yo u w ill n o t , di r e ct l y o r i n di r e ct l y, di sc l ose or perm i t anyone el se to di sc l ose thi s O fferi ng M emoran d u m or it s con t en t s in an y fas h ion o r ma nn e r de t r i m e n t a l t o t h e i n t e r e st of the Sel l er. Ow ne r a nd Mat t h e w s Re t a i l A dv i s o r s e x pressl y reserve the ri ght, at thei r sol e di sc reti on, to reject an y an d all expres s ion s of in t eres t or o f f er s t o p ur c h a s e t h e P r o p e r t y a n d t o t e rm i nate di sc ussi ons wi th any person or enti ty revi ew in g t h is Offerin g M emoran d u m or makin g an o f f er t o p ur c ha s e t h e P r o p e r t y u n l e s s a n d unti l a wri tten agreem ent for the purc hase and sal e of t h e Propert y h as b een fu lly execu t ed an d d e liv er e d . If y o u w ish no t t o p u r s u e n e g o t i a t i o n s l e a di ng to the ac qui si ti on of the Property or i n the future you d is con t in u e s u ch n egot iat ion s , t h en you ag r ee t o p ur g e a l l m a t e r i a l s r e l a t i n g t o t hi s Property i nc l udi ng thi s O fferi ng Mem orandum . A p r o sp ec t iv e p u r ch a s e r ’s s o l e a n d e xcl u s i ve ri ghts wi th respec t to thi s prospec ti ve transac ti on, t h e Propert y, or in format ion provid ed h erein o r in c o nne c t ion w i t h t h e s a l e o f t h e P r o p erty shal l be l i m i ted to those expressl y provi ded i n an execu t ed Pu rch as e Agreemen t an d s h all b e su b je c t t o t he t e r m s t h e r e o f. In n o e v e n t shal l a prospec ti ve purc haser have any other c l ai m s again s t Seller or M at t h ews Ret ail Ad vis ors or any o f t heir a f fi l i a t e s o r a n y o f t h e i r r e s p ec ti ve offi c ers, Di rec tors, sharehol ders, owners, em pl oyees , or agen t s for an y d amages , liab ilit y, or causes o f a c t ion r e l a t i n g t o t h i s s o l i ci t a t i on proc ess or the m arketi ng or sal e of the Property. This Of f er ing M e m o r a n du m s h a l l n o t be deem ed to represent the state of affai rs of the Propert y or con s t it u t e an in d icat ion t h at t h ere h as b e en no c ha nge i n t h e s t a t e o f a f f a i r s o f t he Property si nc e the date thi s O fferi ng Mem orandum.

TABLE OF CONTENTS

PRICING AND FINANCIAL ANALYSIS Investment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .3 Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

PROPERTY DESCRIPTION Property Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Regional Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

DEMOGRAPHICS Demographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

PRESENTED BY Chad Kurz SVP & National Director License No. 01911198 O 310.919.5850 M 562.480.2937 [email protected]

Maxx Bauman Associate License No. 01996741 O 310.919.5789 M 310.994.0262 [email protected]

Beau Box Commercial Real Estate Beau Box 5500 Bankers Ave. Baton Rouge,LA 70808 (225) 931-3200 License No. 0000072286



Representative Photo

PRICING AND FINANCIAL ANALYSIS



Investment Overview

Chad Kurz and Maxx Bauman of Matthews Retail Advisors are pleased to exclusively offer for sale to qualified investors a net leased Advance Auto Parts located in Alexandria, LA. The investment offers the ability to acquire a triple-net Advance Auto Parts with 4 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 5,293 stores.

INVESTMENT HIGHLIGHTS PROPERTY DETAILS •

4 Years Remaining on NNN Lease with Three (3), Five (5) Year Options



Tenant Responsible for Roof, HVAC, and Parking Lot



High Quality Construction, Steel Framed with Concrete Block

LOCATION •

Located Directly Off of US Hwy 71, Boasting Traffic Counts in Excess of 36,000+



Alexandria Serves as the Crossroads of Louisiana, Being Only 2 Hours from Shreveport/Baton Rouge, and Just Over 3 Hours from New Orleans



Located in a “Do-It-Yourself” City, Fits Into Advance Auto Parts Ideal Locations



Average Household Income in Advance Auto Parts “Sweet-Spot”



Out of 393 U.S. Cities Ranked, Alexandria Ranks as the 77th Best Place in Which to Conduct Business



Nearby Retailers Include Home Depot, Kroger, Walmart, Sam’s Club, Applebee’s, Walgreens, Academy Sports, Best Buy, Buffalo Wild Wings, Family Dollar, Chick-Fil-A, McDonald’s, Taco Bell, Circle K, Hobby Lobby, Target. and Starbucks

TENANT

2



Investment Grade Credit Tenant | S&P Rated BBB-



Market Cap of $11.84 billion



5,293 Stores



Fortune 500 Company

Financial Overview

EXECUTIVE SUMMARY

ANNUALIZED OPERATING DATA

920 MacArthur Drive Alexandria, LA 71303 List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,522,474 Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . . 6,972 SF CAP Rate - Current . . . . . . . . . . . . . . . . . . . . . . . . . . . .8.00% Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 Lot Size . . . . . . . . . . . . . . . . . . . . . . . .± 1.16 Acres (50,835 SF)

Monthly Rent

Annual Rent

Rent/SF

CAP Rate

Current - 7/31/2020

$10,149.83

$121,797.96

$17.47

8.00%

Option 1 - 7/31/2025

$10,657.25

$127,887.00

$18.34

8.40%

Option 2 - 7/31/2030

$11,190.17

$134,282.04

$19.26

8.82%

Option 3 - 7/31/2035

$11,749.67

$140,996.04

$20.22

9.26%

TENANT SUMMARY Tenant Trade Name

Advance Auto Parts, Inc.

Type of Ownership

Fee Simple

Lease Guarantor Lease Type Roof, HVAC, Parking Lot Original Lease Term

Tenant Responsible 15 Years 2/14/2005

Rent Commencement Date

7/31/2005

Lease Expiration Date

7/31/2020

Increases



NNN

Lease Agreement Date

Term Remaining on Lease

Representative Photo

Corporate

Options

4 Years 5% at Options Three (3), Five (5) Year Options

3

Company Overview

Property Name Property Type Parent Company Trade Name Ownership Credit Rating Rating Agency

Advance Auto Parts Net Leased Auto Parts Advance Auto Parts Public BBBStandard & Poor’s

Revenue

$11.84 Billion

Net Income

$493 Million

Stock Symbol

AAP

Board

NYSE

No. of Locations

5,293

No. of Employees Headquartered Web Site Year Founded

4

73,000 Roanoke, VA www.advanceautoparts.com 1932

Founded as Advance Stores Company in 1932, AAP was a general merchandise retailer until the ‘80s. From there the company shifted its focus to automotive parts retailing, targeting DIY customers. Advance Auto Parts (AAP) has taken the lead in the race to become the #1 provider of automotive aftermarket parts in North America. Serving both the do-it-yourself (DIY) and professional installer markets, AAP operates nearly 5,300 stores under the Advance Auto Parts, Autopart International (AI), Carquest, and Worldpac banners in the US and Canada. Its stores carry brand-name replacement parts, batteries, maintenance items, and automotive chemicals for individual car and truck owners. AAP’s Carquest, AI, and Worldpac stores cater to commercial customers, including garages, service stations, and auto dealers. AAP’s annual revenues and profits have been trending higher over the past several years with aggressive store expansion and as consumers continue to hold onto their cars and get them fixed more often.

PROPERTY DESCRIPTION



Property Overview

THE OFFERING Property Name . . . . . . . . . . . . . . . . . . . . . . Advance Auto Parts Property Address . . . . . . . . . . . . . . . . . . . . . . 920 MacArthur Dr Alexandria, LA 71303 Assessor’s Parcel Number . . . . . . . . . . . . . . . 24-031-32064-0002

SITE DESCRIPTION Number of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . One Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2005 Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . 6,972 SF Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ±1.16 Acres (50,835 SF) Type of Ownership . . . . . . . . . . . . . . . . . . . . . . . . . Fee Simple Parking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 35 Surface Spaces Parking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . 5.02 : 1,000 SF Landscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . Professional Topography . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTION Foundation . . . . . . . . . . . . . . . . . . . . . . . . . . . Concrete Slab Framing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Steel Exterior . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Brick Parking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Asphalt Roof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Flat

Representative Photo 6

PROPERTY DESCRIPTION

Bird’s Eye

T D 0A

5 6 1 ay

0 0 , 7 ±3

w h g Hi ™

7

Tenant Map

8

PROPERTY DESCRIPTION

Regional Map



9

DEMOGRAPHICS



Demographics Report Population

1-Mile

3-Mile

5-Mile

2021 Projection

8,444

44,078

65,065

2016 Estimate

8,495

43,921

64,319

2010 Census

8,671

44,469

64,267

2000 Census

8,632

44,626

63,565

Growth 2016-2021

-0.60%

0.36%

1.16%

Growth 2010-2016

-2.03%

-1.23%

0.08%

Growth 2000-2010

0.45%

-0.35%

1.11%

Households

2021 Projection

3,562

17,300

25,381

2016 Estimate

3,564

17,145

24,972

2010 Census

3,599

17,194

24,779

2000 Census

3,642

17,066

24,157

Growth 2016-2021

-0.06%

0.90%

1.64%

Growth 2010-2016

-0.97%

-0.28%

0.78%

Growth 2000-2010

-1.18%

0.75%

2.58%

$0 - $15,000

15.34%

19.22%

20.25%

$15,000 - $24,999

14.79%

14.88%

15.50%

$25,000 - $34,999

12.09%

13.77%

14.02%

$35,000 - $49,999

18.36%

15.60%

15.59%

$50,000 - $74,999

15.11%

14.47%

14.44%

$75,000 - $99,999

8.84%

8.32%

7.67%

5.11%

4.95%

4.71%

$125,000 - $149,999

3.16%

2.96%

2.72%

$150,000 - $199,999

2.84%

2.42%

2.26%

$200,000 - $249,999

1.35%

1.10%

0.95%

$250,000 - $499,999

2.29%

1.73%

1.42%

$500,000+

0.72%

0.57%

0.47%

2016 Est. Average Household Income

$62,077

$56,258

$53,217

2016 Est. Median Household Income

$41,356

$37,047

$35,220

Income

$100,000 - $124,999

11

DEMOGRAPHICS

City Overview ALEXANDRIA, LOUISIANA Alexandria is a city in and the parish seat of Rapides Parish, Louisiana. It lies on the south bank of the Red River in the center of the state. It is the principal city of the Alexandria Metropolitan Statistical Area. As Alexandria is at the cusp of Cajun culture’s extension to the north, the city recognizes Mardi Gras as an official holiday. The annual Mardi Gras Krewes Parade – occurring on the Sunday before Mardi Gras – on Texas Avenue is a major cultural festivity in the area. Boasted as a true family oriented event, parade goers can enjoy over 20 New Orleans style floats, high school and college marching bands, as well as appearances by local celebrities. Downtown Alexandria, including the Alexandria Cultural Arts District, is currently in the process of revitalization. It is home to five museums, three performance venues, and several galleries. In recent years, several bars, cafes, and restaurants have opened. The Alexandria Museum of Art was founded in 1977 and occupies a historic Rapides Bank Building on the banks of the Red River. The building was built in 1898 and is listed on the National Historic Register. The Louisiana History Museum is located downtown on the bottom floor of the former library. A small facility, it showcases the history of all Louisiana, with emphasis on the central portion of the state, Rapides Parish, and Alexandria. Major exhibit areas concern Native Americans, Louisiana geography, politics, health care, farming, and the impact of war. The Kent Plantation House in Alexandria, completed by 1800, was located on a Spanish land grant. It is the oldest standing structure in Central Louisiana, one of only two buildings in the city to survive the burning of 1864 by Union troops fleeing after having been defeated at the Battle of Mansfield in DeSoto Parish. In 2007, Inc. Magazine rated Alexandria as the 77th best place in which to conduct business out of the 393 U.S. cities ranked, a significant increase from its ranking as No. 276 in 2006. The Alexandria workforce consists of about 55,000 residents. Union Tank Car Company has recently located a plant northwest of Alexandria near the airport creating hundreds of jobs. Expansions at the Procter & Gamble plant and the construction of a PlastiPak plant in nearby Pineville have also created a number of new jobs for the area. Sundrop Fuels Inc., a Colorado-based biofuels start-up, plans to construct an over 1,200 acre plant just northwest of Alexandria in Rapides Station area. The facility will serve as the headquarters for the company.



12

Advance Auto Parts

920 MacArthur Drive, Alexandria, LA 71303

OFFERING MEMORANDUM Chad Kurz SVP & National Director License No. 01911198 O 310.919.5850 M 562.480.2937 [email protected]

Maxx Bauman Associate License No. 01996741 O 310.919.5789 M 310.994.0262 [email protected]

Beau Box Commercial Real Estate Beau Box 5500 Bankers Ave. Baton Rouge,LA 70808 (225) 931-3200 License No. 0000072286

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com