Single Tenant Advance Auto Parts Property


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Single Tenant Advance Auto Parts Property

  1. 1. NET LEASED INVESTMENT OFFERING Advance Auto PartsSEC Illinois Highway 113 & Berta Road Coal City, IL 60416 (Chicago MSA)
  2. 2. TABLE OF CONTENTS NET LEASED INVESTMENT OFFERING TABLE OF CONTENTS1) Confidentiality & Disclaimer2) Executive Summary3) Property Overview4) Site Plan5) Map6) Tenant Profile7) Demographic Comparison Report8) Location Overview9) Contact Information
  3. 3. CONFIDENTIALITY & DISCLAIMER NET LEASED INVESTMENT OFFERING CONFIDENTIALITY CONFIDENTIALITY & DISCLAIMERThe information contained in the following Offering Memorandum is proprietary and strictly confidential. It isintended to be reviewed only by the party receiving it from The Boulder Group and should not be made available toany other person or entity without the written consent of The Boulder Group. This Offering Memorandum has beenprepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminarylevel of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. The Boulder Group has not made any investigation, and makes no warranty orrepresentation. The information contained in this Offering Memorandum has been obtained from sources webelieve to be reliable; however, The Boulder Group has not verified, and will not verify, any of the informationcontained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes nowarranty or representation whatsoever regarding the accuracy or completeness of the information provided. Allpotential buyers must take appropriate measures to verify all of the information set forth herein.
  4. 4. EXECUTIVE SUMMARY NET LEASED INVESTMENT OFFERING EXECUTIVE SUMMARYThe Boulder Group is pleased to exclusively market for sale a new construction single tenant net leased Advance AutoParts property located in the Chicago MSA. The 6,125 square foot Advance Auto Parts is currently under construction andis expected to open in November 2012. The property is located in the primary retail area along the most heavily traffickedroadway of Coal City, Illinois. Coal City is a Chicago suburb located 60 miles southwest of downtown Chicago and residentsachieve average household incomes of $70,000 within five miles of the property.The property is located along Illinois Highway 113, the primary thoroughfare in the area. Illinois Route 113 has a fullaccess interchange with Interstate 55 one and one-half miles away from the property. Interstate 55 experiences trafficvolumes in excess of 35,000 vehicles per day. The property is positioned adjacent to a strong performing Dollar General(#1 store in 186 store region) and is an outparcel to Berta Crossings, a recently constructed retail center. Other nearbyretailers include Ace Hardware, McDonald’s, Subway, BP Gas Station, Standard Bank and Trust, and Verizon Wireless.Advance Auto Parts primary lease term is for 15 years and is estimated to commence in November 2012. The lease hasthree 5-year renewal options with rental escalations. Advance Auto Parts is a publicly traded company on the New YorkStock Exchange (AAP), with a market capitalization of $5 Billion. Advance Auto Parts is an investment grade company witha Standard & Poor’s rating of BBB-.INVESTMENT HIGHLIGHTS• Located within the Chicago MSA• Investment grade tenant (S&P: BBB-)• Brand new construction• Long term lease with 15 years of primary term• Close proximity to Interstate 55 (35,000 VPD)• Positioned on the most heavily trafficked roadway in the area• Advance Auto Parts is a leader in the auto parts sector
  5. 5. PROPERTY OVERVIEW NET LEASED INVESTMENT OFFERING PROPERTY OVERVIEWPrice: $1,711,397Cap Rate: 6.80%Rent Schedule: NOI Escalation Date $ 116,375 11/15/2012 to 11/14/2027 $ 128,012 11/15/2027 (Option 1) $ 137,629 11/15/2032 (Option 2) $ 147,919 11/15/2037 (Option 3)Renewal Options: Three 5-YearLease Commencement Date: November 15, 2012 (estimated)Lease Expiration Date: November 14, 2027Tenant: Advance Auto PartsCredit Rating: BBB- (Standard & Poor’s)Year Built 2012Lease Type: NNRentable Square Feet: 6,125 SFLand Size: 28,498 SFParking Spaces: 28
  8. 8. TENANT PROFILE NET LEASED INVESTMENT OFFERING TENANT PROFILEAdvance Auto Parts (NYSE: AAP) is a leading automotive aftermarket retailer in the United States based off bothsales and store count. Advance Auto Parts sells automotive parts, accessories, batteries and other maintenanceitems. Currently, Advance Auto Parts is a Fortune 500 Company and is ranked #392. Advance Auto Parts isheadquartered in Roanoke, Virginia and operates more than 3,682 stores across 39 states, Puerto Rico and theVirgin Islands. As of April 2012, Advance Auto Parts occupies over 26 million square feet of space on a retail basis.Advance Auto Parts International unit operates more than 190 locations and primarily serves commercialcustomers, including garages, service stations, and auto dealers. Commercial customers account for about 30% ofAAPs revenues while do-it-yourselfers generate the balance.Website: www.advanceautoparts.comNumber of Locations: 3,682Stock Symbol: AAP : NYSEStandard & Poor’s Rating: BBB-Market Capitalization: $5 BillionEmployees: 55,000
  9. 9. DEMOGRAPHIC COMPARISON REPORT NET LEASED INVESTMENT OFFERING DEMOGRAPHIC COMPARISON REPORTPopulation 5-mi. 10- 10-mi 15- 15-miTotal Population 19,539 54,082 94,508Total Households 7,361 20,470 34,681IncomeMedian Household Income $65,794 $65,328 $70,138Average Household Income $71,800 $70,812 $77,095
  10. 10. LOCATION OVERVIEW NET LEASED INVESTMENT OFFERING LOCATION OVERVIEW Coal City is located in Grundy County, Illinois. At the time of the 2010 U.S. Census, Coal City had a population in 5,587. Grundy County, at the time of the 2010 U.S. Census, had a population of 50,063. Coal City is located just south of Interstate 80 along the I-55 Corridor, making Coal City conveniently located at the doorstep of the 55 western suburbs. Coal City residents to enjoy the shopping of regional shops and malls in Bolingbrook and Oakbrook, the cultural interests of downtown Chicago and the rest and relaxat relaxation of small town living. The largest employers in Grundy County include Excelon, NewBerg/Perni NewBerg/Perni-Stone & Webster, Morris Hospital, Equistar Chemical, Wal Mart and Alcoa. Wal-Mart www.coalcity Chicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. The Chicago metropolitan area is home to the corporate headquarters of 57 Fortune 1000 companies, including Boeing, McDonalds, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and OHare International Airport is the second busiest airport in theThe metro is also a major financial center in North America, and is home to the largest futures exchange in the world in terms of traffic movement.United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index which ranks thecompetitiveness of financial centers based on people, business environment, market access, infrastructure andgeneral
  11. 11. CONTACT INFORMATION NET LEASED INVESTMENT OFFERING CONTACT INFORMATION 666 Dundee Road Suite 1801 Northbrook, IL 60062Randy Blankstein Jimmy GoodmanPresident Partner847.562.0003