AdvAnce Auto PArts - Matthews · fully executed and delivered. ... replacement parts and...

Offering MeMOranduM

AdvAnce Auto PArts 201 n. 7th street, steubenville, oh, 43952

representative Photo

Matthews retail Group

CONFIDENTIALITY & DISCLAIMER STATEMENTThis Of fer ing Memorandum contains se lec t in format ion per ta in ing to the bus iness and af fa i rs of Advance Auto Parts located at 201 north 7th street, steubenville, oh(“Proper ty”). I t has been prepared by Mat thews Retai l Group . This Of fer ing Memorandum may not be al l - inc lus ive or contain a l l o f the in format ion a prospect ive purchaser may desi re. The in format ion contained in th is Of fer ing Memorandum is conf ident ia l and furn ished sole ly for the purpose of a rev iew by a prospect ive purchaser of the Proper ty. I t i s not to be used for any other purpose or made avai lable to any other person wi thout the wr i t ten consent of Sel le r or Mat thews Retai l Group . The mater ia l i s based in par t upon in format ion suppl ied by the Sel ler and in par t upon f inancia l in format ion obtained f rom sources i t deems re l iable. Owner, nor thei r of f icers, employees, or agents makes any representa t ion or warranty, express or impl ied, as to the accuracy or comple teness of th is Of fer ing Memorandum or any of i t s contents and no legal l iabi l i ty i s assumed or shal l be impl ied wi th respect there to. Prospect ive purchasers should make thei r own projec t ions and form thei r own conclus ions wi thout re l iance upon the mater ia l contained herein and conduct thei r own due di l igence.

By acknowledging your receipt of th is Of fer ing Memorandum for the Proper ty, you agree:

1. The Of fer ing Memorandum and i t s contents are conf ident ia l ;

2. You wi l l ho ld i t and t reat i t in the s t r ic tes t o f conf idence; and

3. You wi l l not , di rec t ly or indi rec t ly, disc lose or permi t anyone e lse to disc lose th is Of fer ing Memorandum or i t s contents in any fashion or manner det r imenta l to the in teres t of the Sel ler.

Owner and Mat thews Retai l Group express ly reser ve the r igh t , a t thei r so le discre t ion, to re jec t any and al l express ions of in teres t or of fers to purchase the Proper ty and to terminate discuss ions wi th any person or ent i ty rev iewing th is Of fer ing Memorandum or making an of fer to purchase the Proper ty un less and unt i l a wr i t ten agreement for the purchase and sale of the Proper ty has been fu l ly executed and del ivered.

I f you wish not to pursue negot ia t ions leading to the acquis i t ion of the Proper ty or in the fu tu re you discont inue such negot ia t ions, then you agree to purge al l mater ia ls re la t ing to th is Proper ty inc luding th is Of fer ing Memorandum.

A prospect ive purchaser ’s so le and exc lus ive r igh ts wi th respect to th is prospect ive t ransact ion, the Proper ty, or in format ion provided herein or in connect ion wi th the sale of the Proper ty shal l be l imi ted to those express ly provided in an executed Purchase Agreement and shal l be subjec t to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims agains t Sel le r or Mat thews Retai l Group or any of thei r af f i l ia tes or any of thei r respect ive of f icers, Di rec tors, shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion re la t ing to th is so l ic i ta t ion process or the market ing or sa le of the Proper ty.

This Of fer ing Memorandum shal l not be deemed to represent the s ta te of af fa i rs of the Proper ty or cons t i tu te an indicat ion that there has been no change in the s ta te of af fa i rs of the Proper ty s ince the date th is Of fer ing Memorandum.

EXCLUSIVELY L ISTED BY:

Table of ContentsPrICIng & FInanCIaL anaLYSIS

investments highlights .................................................. 2executive summary ..................................................... 3company overview ..................................................................................4

ProPErTY DESCrIPTIonPhysical description ..................................................... 7Aerial Map................................................................. 8regional Map ............................................................. 9birds eye .................................................................. 10

DEmograPhICScity overview | ....................................................... 13demographics report ................................................ 13

Chad KurzManaging Partner DIRECT +1.310.919.5850 MOBILE +1.310.480.2937 [email protected] License No. 01911198

Matthews retail Group


Pricing & financial analysis


OFFERING MEMORANDUM | Advance Auto Parts P. 2 Matthews retail Group

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS

•15-year nnn lease; tenant responsible for roof, hvAc, and parking lot

• brand new high quality construction, steel framed with concrete block

• new lease, rent commencement July 30, 2015

• located on major thoroughfare at strong signalized corner

• stuebenville, oh is home to two local colleges with ±6,000 students

• solid demographics, ±30,000 people in a 3-mile radius and ±50,000 in a 5-mile radius

• Property is located in a “do-it-yourself” city, fits into Advance Auto Parts ideal location

• Advance Auto Parts is the largest automotive replacement parts and accessories company in the united states

• Advance Auto Parts has investment grade credit, s&P bbb-

Investment highlights


Matthews retail Group P. 3Advance Auto Parts | OFFERING MEMORANDUM

PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PrICIng anD FInanCIaL anaLYSIS ProPertY descriPtion deMoGrAPhics

Executive Summary

aDVanCE aUTo ParTS210 n, 7Th STrEET STEUBEnVILLE, oh 43952

List Price .........................................................................$1,878,049CAP Rate - Current .................................................................. 6.15%Gross Leasable Area ........................................................... 6,889 SFLot Size ........................................................ ±.83 Acres (36,155 SF)Year Built ..................................................................................2015

annualized operating DataMonthly rent Annual rent rent/sF cAP rate

current - 7/30/20230 $9,625.00 $115,500 $16.77 6.15%

option 1 - 7/30/2035 $10,106.25 $121,275 $17.60 6.46%

option 2 - 7/30/2040 $10,611.56 $127,339 $18.48 6.78%

option 3 - 7/30/2045 $11,142.14 $133,706 $19.41 7.12%

Tenant Summary

tenant trade name Advance Auto Parts

type of ownership Fee simple

lease Guarantor corporate

lease type nnn

roof, Parking, hvAc tenant responsible

original lease term 15 Years

lease commencement date 11/19/2014

rent commencement date 7/30/2015

lease expiration date 7/30/2030

term remaining on lease 15 Years

increases 5% at options

options 3, 5-Year options

OFFERING MEMORANDUM | Advance Auto Parts P. 4 Matthews retail Group


Company overview

Property name Advance Auto Parts

Gross leasable Area 6,889 sF

Property type net leased Auto Parts

Parent company trade name Advance Auto Parts

ownership Public

credit rating bbb-

rating Agency standard & Poor’s

Market cap $12.81 billion

revenue $9.91 billion

ebitdA $1.26 billion

stock symbol AAP

board nYse

no. of locations 5,261

headquartered roanoke, vA

Web site www.advanceautoparts.com

Year Founded 1932

Advance Auto Parts, inc., through its subsidiaries, operates as a specialty retailer of automotive replacement parts, accessories, batteries, and maintenance items. it operates stores that offer brand name, original equipment manufacturer, and private label automotive products, including alternators, batteries, belts and hoses, brakes and brake pads, chassis parts, climate control parts, clutches, driveshafts, engines and engine parts, ignition parts, lighting, radiators, starters, spark plugs and wires, steering and alignment parts, transmissions, water pumps, and windshield wiper blades; accessories, such as air fresheners, automotive paint, anti-theft devices, emergency road kits, floor mats, ice scrapers, mirrors, seat and steering wheel covers, and vent shades; chemicals comprising antifreeze, brake and power steering fluid, car washes and waxes, freon, fuel additives, and windshield washer fluid; and oils, transmission fluids, and other automotive petroleum products for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. the company also provides battery and wiper installation, battery charging, check engine light reading, electrical system testing, video clinics, loaner tool programs, and oil and battery recycling services, as well as loaner tool programs. in addition, it sells products online. the company serves do-it-yourself, do-it-for-me, or commercial customers in the northeastern, Mid-Atlantic, and southeastern regions of the united states. As of January 3, 2015, it operated 5,261 total stores and 111 distribution branches primarily under the Advance Auto Parts, Autopart international, carquest, and Worldpac trade names, as well as served approximately 1,325 independently-owned carquest stores in the united states, canada, Puerto rico, and the u.s. virgin islands. the company was founded in 1929 and is headquartered in roanoke, virginia


Property description

OFFERING MEMORANDUM | Advance Auto PartsP. 6 Matthews retail Group

PricinG And FinAnciAl AnAlYsis ProPErTY DESCrIPTIon deMoGrAPhics

January 2, 2014

Advance Auto Parts, inc. (AAP), a leading provider of automotive aftermarket parts, accessories, batteries, and maintenance items, announced today that it has completed the acquisition of General Parts international, inc. (GPii). GPii is a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the cArQuest and WorldPAc brands.

the transaction creates the largest automotive aftermarket parts provider in north America, with annual sales of over $9.3 billion and more than 70,000 team Members. the strong combined financial profile allowed for an all-cash transaction and supports Advance’s commitment to maintaining its investment grade ratings. the acquisition of General Parts accelerates Advance’s growth strategy and enhances shareholder value through the following strategic benefits:

Creates market Leader – transforms Advance into the #1 automotive aftermarket parts provider in north America with a balanced platform for growth between do-it-yourself (diY) and commercial, the #1 distributor of import automotive parts and the largest automotive aftermarket business-to-business e-commerce platform in north America.

Delivers Scale – Provides Advance complete coast-to-coast coverage with approximately 5,300 company operated stores across north America, creating a company with scale, reach and expanded growth opportunities benefiting shareholders, customers and team members. this presence in new markets allows Advance the ability to expand its geographic footprint in an efficient manner.

accelerates Complementary market opportunities – expands Advance’s product and category offerings in both core and new product lines (i.e. paint and heavy duty), creates new sales channel with independent customers and broadens ability to grow with attractive customer segmen ts such as larger baygarages, import specialists, national accounts and fleet and government programs.

Strengthens Leading Brands and Capabilities –enhances Advance’s ability to serve customers through the transfer of cArQuest’s commercial capabilities and team Member parts knowledge into Advance stores while expanding diY into select company operated cArQuest stores. the combination expands key capabilities in customer service through enhanced daily replenishment and customer loyalty programs to a larger truck fleet and a significantly expanded commercial sales team.

“We are excited about the completion of this transaction and the opportunity it presents for our customers and the over 70,000 team members. this combination positions Advance as the largest automotive aftermarket provider of parts, accessories, batteries, and maintenance items in north America. strategically it provides us with a compelling opportunity to expand our geographical presence, channels of distribution, and commercial capabilities to better serve customers and deliver value to shareholders,” said darren r. Jackson, Advance Auto Parts chief executive officer.

As a result of the closing of this transaction, Advance will add to its operations 38 General Parts distribution centers, 1,248 company operated cArQuest locations across the us and canada and will service approximately 1,400 independently owned cArQuest locations primarily in the us and canada. Advance will also add WorldPAc, a leading importer and distributor of original equipment and quality aftermarket replacement automotive parts to import specialists in north America and Puerto rico operating 105 facilities across the us and canada, to its operations.

Mike norona, chief Financial officer of Advance Auto Parts said, “We are pleased to have closed the transaction and are excited about the financial potential of this compelling combination as we leverage our new size and scale to create value for our shareholders, customers and team Members

*source Yahoo Finance and business Wire

Advance Auto Parts Announces Closing of Acquistion of General Parts International, Inc.


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PricinG And FinAnciAl AnAlYsis ProPErTY DESCrIPTIon deMoGrAPhics

Physical Description

ThE oFFErIngProperty Name ........................................................ Advance Auto Parts

Property Address .........................................................201 N. 7th Street

Steubenville, OH 43952

Assessor’s Parcel Number ................................................07-03706-000

SITE DESCrIPTIonNumber of Stories ...........................................................................One

Year Built ...................................................................................... 2015

Gross Leasable Area (GLA) .......................................................6,889 SF

Type of Ownership ................................................................ Fee Simple

Parking .....................................................................25 Surface Spaces

Parking Ratio .................................................................3.63 : 1,000 SF

Landscaping ........................................................................Professional

Topography ....................................................................Generally Level

ConSTrUCTIonFoundation .......................................................................Concrete Slab

Framing ........................................................................................ Steel

Exterior ...........................................................................Concrete Block

Parking Surface .........................................................................Asphalt

Roof ................................................................................................Flat



Tenant map


PRICING AND FINANCIAL ANALYSIS PROPERTY DESCRIPTION DEMOGRAPHICS PricinG And FinAnciAl AnAlYsis ProPErTY DESCrIPTIon deMoGrAPhics

regional map



Site Plan


demographics



Demographics reportPopulation 1-Mile 3-Mile 5-Mile2015 estimate 8,062 28,856 50,6132010 census 8,437 29,436 51,669

households2015 estimate 3,198 11,925 21,4022010 census 3,350 12,182 21,780

income$ 0 - $14,999 37.65% 20.66% 20.66%$ 15,000 - $24,999 16.48% 13.36% 13.36%$ 25,000 - $34,999 8.47% 11.09% 11.09%$ 35,000 - $49,999 13.10% 15.92% 15.92%$ 50,000 - $74,999 11.16% 16.19% 16.19%$ 75,000 - $99,999 4.10% 8.43% 8.43%$100,000 - $124,999 3.19% 5.79% 5.79%$125,000 - $149,999 2.06% 3.33% 3.33%$150,000 - $199,999 1.94% 2.07% 2.07%$200,000 - $249,999 0.88% 0.86% 0.86%$250,000 - $499,999 0.56% 1.38% 1.38%$500,000+ 0.38% 0.93% 0.93%2015 Average household income $40,197 $57,671 $59,617 2015 Median household income $22,488 $39,602 $41,275


Matthews retail Group | 841 Apollo street, suite 150 | el segundo, cA 90245 | www.MatthewsretailGroup.com

aDVanCE aUTo ParTS201 n. 7th StreetSteubenville, oh 43952oFFErIng mEmoranDUm

Chad KurzManaging Partner DIRECT +1.310.919.5850 MOBILE +1.310.480.2937 [email protected] License No. 01911198

AdvAnce Auto PArts - Matthews · fully executed and delivered. ... replacement parts and...

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