OFFERING MEMORANDUM

ADVANCE AUTO PARTSM U R F R E E S B O R O , T N

REPRESENTATIVE PHOTO

ADVANCE AUTO PARTS

3EXECUTIVE OVERVIEW

4TENANT OVERVIEW

5INVESTMENT SUMMARY

7AREA OVERVIEW

510 SE BROAD STREET | MURFREESBORO, TN 27360

EDWARD DESIMONEAssociate

DIR: (310) 919-5696MOB: (732) 832-5414edward.desimone@matthews.comLicense No. 02108760 (CA)

LISTED BY:

BROKER OF RECORDKyle MatthewsLicense No. 263667 (TN)

BRADEN CROCKETTVP & Director

DIR: (214) 692-2040MOB: (714) 345-6206braden.crockett@matthews.comLicense No. 01946071 (CA)

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EXECUTIVE OVERVIEW • Listed for $900,000 at a 7.00% cap rate

• ±4.50 years remaining with 2, 5-year options to extend

• Corporately guaranteed recession & pandemic proof tenant

• Over 24,000 VPD on Broad St | Main retail corridor in town with great retail synergy.

• NNN | Roof completely redone in 2015 | Minimal landlord responsibilities.

• Booming Market | 2010-2020 5-mile population growth over 28.80% | Projected 2020-2025 over 12.25%

INVESTMENT HIGHLIGHTS

REPRESENTATIVE PHOTO

ADDRESS 510 SE Broad Street

CITY Murfreesboro

STATE TN

ZIP 37130

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» COMPANY NAME ADVANCE AUTO PARTS

» PARENT COMPANY ADVANCE AUTO PARTS, INC

» YEAR FOUNDED 1929

» CREDIT RATING BBB-

» HEADQUARTERS ROANOKE, VIRGINIA

» WEBSITE WWW.ADVANCEAUTOPARTS.COM

TENANT OVERVIEWHeadquartered in Roanoke, VA., Advance Auto Parts, Inc., the largest automotive aftermarket parts provider in North America, serves both the professional installer and do-it-yourself customers. Advance Auto Parts operates over 5,185 stores, over 127 Worldpac branches and serves approximately 1,250 independently owned CARQUEST branded stores in the United States, Puerto Rico, the U.S. Virgin Islands and Canada. Employing approximately 74,000 Team Members, the company works hard to create an environment of honesty, integrity, mutual trust and dedication. These values have remained the same since Advance Auto Parts founding in 1929. Advance Auto Parts operates stores that primarily offer auto parts such as alternators, batteries, belts and hoses, chassis parts, clutches, engines and engine parts.

STRATEGYAAP continues to expand its store network in both new and existing markets to grow its commercial and DIY customer base. In a move that created the largest automotive aftermarket parts provider in North America and surpassed rival AutoZone in sales, AAP acquired privately-held General Parts International, a distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands. The company has also been moving into the commercial market in recent years. To better serve commercial customers, AAP has added more parts from key manufacturers to its inventory and expanded its workforce with parts professionals, delivery drivers, and sales representatives.

SALES & MARKETINGAdvance Auto Parts builds it marketing and advertising campaigns around radio, television, direct marketing, mobile and social media, and local in-store marketing. Its “Speed Perks” customer loyalty campaign targets core DIY customers and emphasizes service. The company also employs Spanish-language television, radio, and outdoor ads to reach Latinos.

REPRESENTATIVE PHOTO

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REPRESENTATIVE PHOTO

INVESTMENT SUMMARY

ADDRESS 510 SE Broad Street

CITY Murfreesboro

STATE TN

ZIP 37130

YEAR BUILT 1997

BUILD SF ±7,000 SF

LOT (SF/AC) ±43,037 SF/ 0.99 AC

ANNUALIZED OPERATING DATA

LEASE COMMENCE YEARS CURRENT (EARLY EXTENSION) NOI/YEAR NOI/MONTH

BASE1/1/2020-12/31/2024 Current (Early Extension) $63,000 $5,250

OPTION 11/1/2025-12/31/2029 11-15 $73,710 $6,143

OPTION 21/1/2030-12/31/2034 16-20 $77,210 $6,434

LEASE SUMMARY

TENANT: Advance Auto Parts

GUARANTOR: Advance Stores Company Incorporated (Corporate)

OWNERSHIP: Fee Simple

LEASE TYPE: NNN (Landlord reimbursed for Insurance & Property Taxes)

LEASE COMMENCEMENT: 8/29/96

LEASE TERM EXPIRATION: 12/31/24

TERMINATION OPTION: 12/31/2022 - 3/31/2022

YEARS REMAINING: 4.50

RENT INCREASES: 8.00% of Sales

OPTIONS TO RENEW: Two 5-Year Options

*LL RESPONSIBILITIES:Roof, Structure, Walls, Gutters, Downsprouts,

Foundations, Parking Lot, Sidewalks, 1/2 Of All Major HVAC Costs

Notes New Roof finished in March of 2015

CAP RATE7.00%

LIST PRICE$900,000

REPRESENTATIVE PHOTO

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B R O A D S T± 3 0 , 0 0 0 V P D M E M O R I A L B LV D

± 3 1 , 0 0 0 V P D

N E W S A L E M R D± 2 2 , 0 0 0 V P D

M I D D L E T E N N E S S E E B LV D± 2 2 , 0 0 0 V P D

SURROUNDING TENANTS

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AREA OVERVIEW

DEMOGRAPHICS

1-MILE 3-MILE 5-MILE

POPULATION 9,634 68,455 142,108

HOUSEHOLDS 4,407 26,955 54,577

HH INCOME $57,806 $71,280 $89,020

Murfreesboro is a city in, and the county seat of, Rutherford County,Tennessee. Murfreesboro is located in the Nashville metropolitan area of Middle Tennessee, 34 miles southeast of downtown Nashville. Today it is the largest suburb of Nashville and the sixth-largest city in Tennessee. The city is both the center of population of Tennessee and the geographic center of Tennessee. Since the 1990s, Murfreesboro has been Tennessee’s fastest-growing major city and one of the fastest-growing cities in the country. Murfreesboro is home to Middle Tennessee State University, the second-largest undergraduate university in the state of Tennessee

MURFREESBORO, TN -

Middle Tennessee State University (MTSU or MT) is a public university in Murfreesboro, Tennessee. Founded in 1911 as a normal school, the university consists of eight undergraduate colleges as well as a college of graduate studies, together offering more than 80 majors/degree programs through more than 35 departments. MTSU is most prominently known for its Recording Industry, Aerospace, Music and Concrete Industry Management programs. The university has partnered in research endeavors with the Oak Ridge National Laboratory, the United States Army, and the United States Marine Corps.

MIDDLE TENNESSEE STATE UNIVERSITY -

34 MILES

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NASHVILLE, TNNashville is a genuine geographic bull’s eye, Nashville is perfectly positioned to draw people together. In fact, in 2019, Nashville brought it 16.1 million visitors. This increased from 15.2 million in 2018. Nashville Int’l Airport (BNA) is one of the fastest-growing airports in North America. It serves over 20 million passengers each year coming in and out of Nashville. With more than 33,200 hotel rooms in the city and 47,800 total in the MSA Nashville is accommodating for all travelers. Nashville is the capital and largest city in Tennessee. In the past 5 years, Nashville demand (hotel rooms sold) has grown faster than any other top 30 US city.

A major center for the music industry, especially country music, Nashville is commonly known as “Music City.” It is also home to numerous colleges and universities, including Tennessee State University, Vanderbilt University, Belmont University, Fisk University, Trevecca Nazarene University, and Lipscomb University, and is sometimes referred to as “Athens of the South” due to a large number of educational institutions. Nashville is also a major center for healthcare, publishing, private prison, banking, automotive, and transportation industries.

In recent times Nashville has been described as a “southern boomtown” by numerous publications, with it having the third fastest growing economy in the United States as of 2017. It has been stated by the US Census Bureau that Nashville “adds an average of 100 people a day to its net population increase”. The Nashville region was also stated to be the “Number One” Metro Area for Professional and Business Service Jobs in America, as well as having the “Hottest Housing market in America” as stated by the company Zillow.

Although Nashville is renowned as a music recording center and tourist destination, its largest industry is health care. Nashville is home to more than 300 healthcare companies, including Hospital Corporation of America (HCA), the world’s largest private operator of hospitals. As of 2012, it is estimated that the healthcare industry contributes $30 billion per year and 200,000 jobs to the Nashville-area economy.

NASHVILLE ECONOMY -

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UNIVERSITIES

• Vanderbilt University - 12,686 Student Population• Fisk University – 855 Student Population• Belmont University – 7,350 Student Population• Middle Tennessee State University – 22,511 Student Population

PROFESSIONAL SPORTS TEAMS

• Tennessee Titans - 1,047,496 2019 Attendance• Nashville Predators - 715,276 2019 Attendance

MUSIC CITY CENTER

• Nashville’s downtown convention facility, opened in May 2013. The 2.1 million-square-foot Music City Center features more than 375,000 square feet of exhibit space, 128,000 square feet of meeting space, two ballrooms, a business center, and a 2,500-seat theater.

GAYLORD OPRYLAND RESORT & CONVENTION CENTER

• The largest non-gaming hotel property in the United States with 2,888 rooms and more than 700,000 square feet of meeting space, including 263,772 of contiguous exhibit space.

NASHVILLE’S HONKY TONK HIGHWAY

• Broadway is the busiest street in Nashville. The thriving downtown area is home to over 100 restaurants, bars, and music venues. Lower Broadway, also known as Nashville’s Honky Tonk Highway, is the center of entertainment in Music City. A honky-tonk is an establishment that contains at least one stage and a bar. Lower Broadway is filled with honky-tonks giving it the popular tourist destination name.

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CONFIDENTIALITY AGREEMENT & DISCLAIMERThis Offering Memorandum contains select information pertaining to the business and affairs of Advance Auto Parts Portfolio located at 510 SE Broad Street, Murfreesboro, TN 37130 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner

detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

ADVANCE AUTO PARTS

Advance Auto Parts10

OFFERING MEMORANDUM

ADVANCE AUTO PARTSM U R F R E E S B O R O , T N

LISTED BY:

EDWARD DESIMONEAssociate

DIR: (310) 919-5696MOB: (732) 832-5414

edward.desimone@matthews.comLicense No. 02108760 (CA)

BROKER OF RECORDKyle Matthews

License No. 263667 (TN)

BRADEN CROCKETTVP & Director

DIR: (214) 692-2040MOB: (714) 345-6206

braden.crockett@matthews.comLicense No. 01946071 (CA)