4600 Kirkwood Highway Wilmington, DE 19808 · a 1,200+ unit guaranty by TBC Corporation, providing exceptional stability as a net lease tenant. This offering represents the opportunity

National Tire & BatteryConfidential Offering Memorandum

4600 Kirkwood Highway

Wilmington, DE 19808

Representative Photo

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Investment Summary 03

Tenant Overview 05

Market Overview 07

JLL Contacts 12

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Investment SummaryNational Tire & Battery –Wilmington, DE

National Tire & Battery | Wilmington, DE

© 2018 Jones Lang LaSalle IP, Inc. All rights reserved. 4

Investment Summary

JLL is pleased to offer for sale the fee-simple interest in a National Tire & Battery (the “Property”, or “Asset”) located in Wi lmington, DE.

Situated within one of Wilmington’s primary retail corridors, the Property’s offering presents outstanding signalized hard co rner accessibility, along

with lease conditions including over 12 years of lease term, rental escalations and zero landlord responsibilities. The Asset ’s lease also possesses

a 1,200+ unit guaranty by TBC Corporation, providing exceptional stability as a net lease tenant. This offering represents th e opportunity to

purchase an Asset with intrinsic real estate value, location within a stable mid-Atlantic marketplace, and a strong national service-oriented tenant.

PROPERTY SUMMARYINVESTMENT HIGHLIGHTS

• The Property benefits from a lease corporately guaranteed by TBC

Corporation, which consists of company-operated retail stores under

various brands; NTB, Tire Kingdom, Merchant’s Tire and Auto Centers

and Big O Tire stores. Together, the company operates more than

1,200 locations in 42 states.

• The Asset is positioned on the signalized hard corner of Kirkwood

Highway and Limestone Road, benefiting from exposure to over 89,000

vehicles passing daily. Further, the parcel features ingress / egress on

both Kirkwood Highway and Limestone Road, providing seamless

accessibility to the Property.

• The Asset possesses highly favorable lease fundamentals, featuring a

NNN structure, over 12 years of remaining term, in-place rent

escalations and a corporate guaranty from TBC Corporation (1,200+ unit

operator).

• The Wilmington, DE retail market is experiencing stable, low vacancy

rates and an increasingly affluent demographic profile.

• The tenant’s industry possesses a very positive long-term forecast.

Growth in per capita disposable income and the increased average age

of U.S. vehicles have driven an overall increase in demand for industry

products over the past five years. Over the next five years, industry

revenue is expected to grow at an annualized rate of 2.1% to $67.6 billion

in 2023.

Address4600 Kirkwood Highway

Wilmington, DE 19808

Price $6,130,120

NOI $352,482

Cap Rate 5.75%

Tenant NTW Incorporated

Guarantor TBC Corporation

Guarantor Strength 1,200+ Units

Company Type Private

Lease Type NNN

LL Responsibilities None

Ownership Interest* Fee Simple – Condominium Parcel

Property Type Freestanding Retail & Automotive Service

Site Size* 1.19 Acres +/-

Building Size 10,038 SF +/-

Parking 52 Spaces including 2 handicap +/-

Year Built 1994

Rent Commencement 10/1/2005

Lease Expiration 9/30/2030

Remaining Lease Term** 12.5 Years

Rental Increases CPI Increases (Max 8.0%) Every 5 Years

Renewal Options 3 x 5-Years

Renewal Increases CPI Increases (Max 8.0%) Every 5 Years

Next Rental Increase Date 10/1/2020

ROFO / ROFR Yes / Yes

** As of 4/1/2018

* Asset positioned on a shared parcel with an AutoZone present within the parcel – the offering is structured as a condominium – absolutely zero CAM responsibilities for the Landlord


Tenant OverviewNational Tire & Battery –TBC Corporation



Tenant Overview

TBC Corporation

National Tire and Battery (NTB), is an American brand of auto service centers. NTB specializes in

Fluid Services (Oil Changes, Brake Fluid Exchange, Coolant Exchange, and Transmission Fluid

Exchange), Battery Services, Wiper Blades, Brake Services, Steering & Suspension Services, and

Vehicle Inspections. It was formerly owned by Sears until they sold the brand, which consisted

mostly of stores set apart from its name brand stores, in 2003 to TBC Corporation.

TBC Corporation, Inc. engages in the marketing and distribution of tires in the automotive

replacement market primarily in the United States, Canada, and Mexico. The corporation operates

in retail and wholesale segments. The retail segment consists of both company-operated retail tire

stores and franchised stores. The company-operated retail stores market various tires under

various brands, including NTB, Tire Kingdom, Merchant’s Tire and Auto Centers and Big O Tire

stores. Together, the company operates more than 1,200 locations in 42 states, Alberta & British

Columbia, Canada.

NTB is a member of the TBC Retail Group, a national automotive retail brand network, consisting

of over 1,200 Big O Tires, Midas, NTB, Merchant’s, and Tire Kingdom locations across over 40

states. Additionally, NTB’s reach was broadened in 2005, when TBC Corporation was acquired by

Sumitomo Corporation of America (SCOA), the largest wholly-owned subsidiary of Tokyo-based

Sumitomo, one of the world's leading traders of goods and services.

TBC Corporation still functions as an independent company of SCOA providing the same services

and products it has for many years, but has ended its 22-year stint as a publicly traded company

on the NASDAQ.

Tenant NTW Incorporated

Guarantor TBC Corporation

Guarantor Strength 1,200+ Units

Company Type Private

Founded 1956

Headquarters Palm Beach Gardens, FL

Sector Automotive Retail & Servicing

Company Website http://www.tbccorp.com/about.asp


Market Overview Wilmington, DE



Market Overview

Economy & Growth Considerations

• The freestanding retail market in Wilmington totals just over 9 million squarefeet. Vacancy is at 4.0 percent, and the rate has remained in a fairly tightrange between 3.8 percent and 5.2 percent for the past three years. Tenantdemand for local retail space gained momentum in 2017.

• This total occurred during a period in which no new retail space wasdelivered, meaning move-ins occurred into previously dark retail spaces andtransitively improved supply-demand conditions. However, Wilmington’sleasing market has experienced a slight drawback in early 2018. Single-tenant buildings account for approximately 40 percent of the buildings inWilmington and roughly 30 percent of the total square footage in the city.

Wilmington, DE

Wilmington is the largest city by population in the state of Delaware, with a local population of approximately 72,000 residents. The city is strategically located

along Interstate 95, which runs north-south from Maine to Florida. Wilmington is located between two large, established East Coast cities. Philadelphia (population

of 1.5 million) is located approximately 40 miles northeast of Wilmington, while Baltimore (population 620,000) is located approximately 65 miles southwest of

Wilmington.

The state of Delaware’s attractive tax policies make cities located along the I-95 such as Wilmington attractive bedroom communities. Delaware has some of the

lowest personal income tax rates in the country, while neighboring states have some of the highest rates in the United States. As such, many workers will drive as

much as an hour or more to and from Delaware because of the favorable tax policies.

Demographic Information

1-mile radius 3-mile radius 5-mile radius

2017 Population 12,419 70,753 183,472

Average Household Income $73,970 $84,185 $89,286

Median Household Income $58,811 $65,651 $65,291

Freestanding Retail Market Statistics

Market Submarket

Philadelphia West New Castle

# of Buildings 43,844 195

Total Inventory (SF) 298,136,182 1,504,269

Total Vacancy 3.3% 4.0%

YTD Net Absorption (SF) 308,583 (38,241)



Market Overview

Market Dynamics – Aerial MappingLocated along Kirkwood Highway, the Asset features excellent visibility and exposure to a combined traffic count of 89,000

vehicles daily. The Asset positioned on a shared parcel with an AutoZone present within the parcel – the offering is

structured as a condominium – absolutely zero CAM responsibilities for the Landlord.



Condominium Declaration Plan



Market Overview

Property Photography

Kirkwood Hwy: 43,000 VPD

Limestone Rd: 46,000 VPD









Market Overview

Proximity to Philadelphia & Baltimore

Source: Google Earth

To Philadelphia: 41 Miles

To Baltimore: 66 Miles


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JLL Contacts

ADVISORS

Matthew BerresLos Angeles, CA

JLL Capital Markets

+1 949 885 2933

[email protected]

222 Delaware Avenue Suite 1610

| Wilmington, DE 19801

www.us.jll.com/capitalmarkets

Copyright © Jones Lang LaSalle IP, Inc. 2018This publication is the sole property of Jones Lang LaSalle and must not be copied, reproduced or transmitted in any form or by any means, either in whole or in part, without the prior written consent of Jones Lang LaSalle.

The information contained in this publication has been obtained from sources generally regarded to be reliable. However, no representation is made, or warranty given, in respect of the accuracy of this information.

We would like to be informed of any inaccuracies so that we may correct them. Jones Lang LaSalle does not accept any liability in negligence or otherwise for any loss or damage suffered by any party resulting from reliance

on this publication. Jones Lang LaSalle Americas, Inc., California license # 01223413. Jones Lang LaSalle Americas, Inc. License # 19262.

Contact Information

Adam FriedlanderLos Angeles, CA

JLL Capital Markets

+1 949 296 3648

[email protected]

BROKER OF RECORD

Blaise FletcherWilmington, DE

JLL Market Lead

+1 302 356 2861

[email protected]

mailto:[email protected]

http://www.us.jll.com/capitalmarkets



Documents

4600 Kirkwood Highway Wilmington, DE 19808 · a 1,200+ unit guaranty by TBC Corporation, providing exceptional stability as a net lease tenant. This offering represents the opportunity