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  • 1. NET LEASED INVESTMENT OFFERING Advance Auto Parts 1535 West Lane RoadMachesney Park, IL 61115 (Rockford MSA) CONFIDENTIAL OFFERING MEMORANDUM www.bouldergroup.com
  • 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Aerials5) Maps6) Tenant Profile7) Demographic Comparison Report8) Location Overview9) Contact Information www.bouldergroup.com
  • 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended tobe reviewed only by the party receiving it from The Boulder Group and should not be made available to any other personor entity without the written consent of The Boulder Group. This Offering Memorandum has been prepared to providesummary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in thesubject property. The information contained herein is not a substitute for a thorough due diligence investigation. TheBoulder Group has not made any investigation, and makes no warranty or representation, with respect to the income orexpenses for the subject property, the future projected financial performance of the property, the size and square footageof the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, thecompliance with State and Federal regulations, the physical condition of the improvements thereon, or the financialcondition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subjectproperty. The information contained in this Offering Memorandum has been obtained from sources we believe to bereliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor hasThe Boulder Group conducted any investigation regarding these matters and makes no warranty or representationwhatsoever regarding the accuracy or completeness of the information provided. All potential buyers must takeappropriate measures to verify all of the information set forth herein. www.bouldergroup.com
  • 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a single tenant net leased Advance Auto Parts property locatedin the Rockford MSA. Rockford is the third largest city in Illinois and the largest city outside of the Chicago MSA. The 6,124square foot Advance Auto Parts was built in 2011 and is benefitted by its location in the primary retail trade area of theMachesney Park Gateway District. The Gateway District is located at the crossing of Illinois State Highways 173 and 251 andis the village’s primary shopping area with national big box stores, specialty retail outlets, and numerous national and localrestaurants. 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 recentlyconstructed 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 ofMachesney 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 WillowCreek 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 August2026. Advance Auto Parts is a publicly traded company on the New York Stock Exchange (AAP), with a marketcapitalization 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
  • 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $1,520,411Cap Rate: 7.25%Net Operating Income: $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: Three 5-year optionsLease Commencement Date: August 8, 2011Lease Expiration Date: August 31, 2026Tenant: Advance Auto PartsYear Built 2011Lease Type: NN (Structure Only in Primary Term) NN (Roof & Structure in Option Periods)Rentable Square Feet: 6,124 SFLand Size: 30,685 SF www.bouldergroup.com
  • 6. AERIAL NET LEASED INVESTMENT OFFERING AERIAL 2 51IL IL 17 3 15 ,60 0A DT .A LP IN ER D. www.bouldergroup.com
  • 9. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEAdvance Auto Parts (NYSE: AAP) is a leading automotive aftermarket retailer in the United States based off both sales andstore 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 July2011, Auto Parts occupies over 26 million square feet of space on a retail basis.Advance Auto Parts Autopart International unit operates more than 190 locations and primarily serves commercialcustomers, including garages, service stations, and auto dealers. Commercial customers account for about 30% of AAPsrevenues while do-it-yourselfers generate the balance.Website: www.advanceautoparts.comNumber of Locations: 3,540Stock Symbol: AAP : NYSEStandard & Poor’s Rating: BBB-Market Capitalization: $4 BillionEmployees: 51,0002010 Net Income: $346 Million www.bouldergroup.com
  • 10. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 1-mile 3-mile 10-mileTotal Population 37,987 87,589 297,378Total Households 14,394 33,259 113,358Income 1-mile 3-mile 10-mileMedian Household Income $65,236 $65,257 $56,338Average Household Income $70,596 $75,919 $66,671 www.bouldergroup.com
  • 11. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEWMachesney Park is located in Winnebago County in the state of Illinois. The population atthe 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 thesurrounding trade area. Machesney Park is within an hour’s drive of Chicago, Madison andMilwaukee and at the crossroads of Interstates 90 & 39, Illinois State Highway 173 and USHighway 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 thetime of the 2010 census Rockford had a population of 152,871 and the metropolitan area hada population of 339,178. The largest employers in the MSA include the Rockford Public SchoolDistrict, Rockford Health System, Swedish American Hospital, Wal-Mart Stores, OSF SaintAnthony Medical Center, Hamilton Sundstrand and Chrysler. http://www.ci.rockford.il.us/ www.bouldergroup.com
  • 12. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road | Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003 847.562.8500rblank@bouldergroup.com jimmy@bouldergroup.com www.bouldergroup.com