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Advance Auto Parts6 0 3 H i g h w a y 7 8 E a s t | J a s p e r, A L
O F F E R I N G M E M O R A N D U M
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EXCLUSIVELY LISTEDBY:
CONTENTS04 ASSET OVERVIEW
AREA OVERVIEW
TENANT REPORT
KYLE MATTHEWSBROKER OF RECORD
LIC # 00109289 (AL)
CHAD KURZSVP & National Director
[email protected] 214.692.2927MOB 562.480.2937LIC # 01911198 (CA)
Capital Markets
[email protected] 310.955.1773MOB 435.659.1404LIC # 01987860 (CA)
ANDREW GROSS
PROPERTY DETAILS
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PROPERTY DETAILS
• High quality construction: Steel-framed with concrete block
• Minimal landlord responsibilities – Providing out-of-state investors with anincredible opportunity for passive income
• Tenant recently extended their lease for an additional 5 Years, provingtheir commitment to this site
• Replaceable rent, tenant paying just $10.46 PSF
• Advance Auto Parts has operated successfully at this location for nearlytwo decades
LOCATION
• Property is located on main retail corridor, Highway 78, which sees over30,000 ADT
• Jasper is home to the State of Alabama’s newest High School: Jasper HighSchool, a $54.8 million brand new development completed in 2017 andjust 2 miles from the subject property
• Growing retail area – Recently constructed Mattress Firm built next door tothe subject property
• The subject property sits in the perfect retail location directly across thestreet from McDonald’s, Walgreens, CVS and nearby retailers includingBurger King, Circle K, Hobby Lobby, TJ Maxx, The Home Depot, AT&T,Chick-fil-A and a Walmart Supercenter
• Located in a “Do-it-Yourself” city, fitting into the Advance Auto Partsprototypical market
• Average Household income in Advance Auto Parts “Sweet-Spot”
TENANT
• Investment Grade Credit Tenant | S&P Rated BBB-
• Market Cap of $11.84 Billion
• 5,293 Stores Nationwide
• Fortune 500 Company
Investment Highlights
ASSET OVERVIEW
A d v a n c e A u t o P a r t s , J a s p e r , A L | 5
Advance Auto Parts603 Highway 78 EastJasper, AL 35501
List Price ..............................................................................................$976,000
CAP Rate - Current ................................................................................... 7.50%
Gross Leasable Area .......................................................................± 7,000 SF
Lot Size ...........................................................................................± 0.91 Acres
Year Built ........................................................................................................1999
Annualized Operating DataMonthly Rent Annual Rent Rent/SF Increases
Current $6,100.00 $73,200.00 $10.46 7.50%
Option 1 $6,854.17 $82,250.04 $11.75 8.43%
Option 2 $7,145.83 $85,729.96 $12.25 8.78%
Tenant Summary
Tenant Trade Name Advance Auto Parts
Type of Ownership Fee Simple
Lease Guarantor Corporate
Lease Type NN
Roof and Structure Landlord Responsible
Original Lease Term 10 Years
Lease Commencement Date 8/16/1999
Rent Commencement Date 2/7/2000
Lease Expiration Date 12/31/2020
Term Remaining on Lease ± 3.35 Years
Increases In Option Periods
Options Two (2), Five (5) Year Options
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TENANT REPORT
Subject Property
Jasper Mall
Highway 78 East
A d v a n c e A u t o P a r t s , J a s p e r , A L | 7
Property Name Advance Auto Parts
Property Type Net-Leased Auto Parts Store
Parent Company Trade Name Advance Auto Parts, Inc.
Ownership Public
No. of Locations ± 5,185
No. of Employees ± 74,000
Headquartered Roanoke, Virginia
Website www.advanceautoparts.com
Year Founded 1929
Credit Rating (S&P) BBB-
TENANT OVERVIEW
Headquartered 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.
GEOGRAPHIC REACHThe auto parts chain has stores in all 50 states, as well as Puerto Rico, the US Virgin Islands, and Canada. Florida is the company’s largest market with more than 500 stores. North Carolina, New York, Ohio, Pennsylvania, and Georgia are also major markets for Advance Auto Parts, each home to more than 250 stores.
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The Offering
Property Name Advance Auto Parts
Property Address 603 Highway 78 East
Jasper, AL 35501
Assessor’s Parcel Number 17-02-09-1-101-001-00110
Zoning OT
Site DescriptionNumber of Stories One
Year Built 1999
Gross Leasable Area (GLA) ± 7,000 SF
Lot Size ± 0.91 Acres (39,204 SF)
Type of Ownership NNN
Parking ± 42 Surface Spaces
Parking Ratio 6.00 : 1,000 SF
Landscaping Professional
Topography Generally Level
Parcel Map
ConstructionFoundation Concrete Slab
Framing Steel
Exterior Brick
Parking Surface Asphalt
Roof Flat
PROPERTY DETAILS
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A d v a n c e A u t o P a r t s , J a s p e r , A L | 9
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Less than a 45-minute drive northwest of Birmingham, Alabama, the city of Jasper is a thriving retail hub and center of growing industrial development. Jasper’s 14,000 residents enjoy a prosperous business climate and one of the top-ranked school systems in the state. Located in northwest Alabama, its proximity to recreation areas such as Lewis Smith Lake, Walker County Lake and the Black Warrior River make Jasper a prime spot for fishing and boating activities.
Jasper is known for hosting Foothills Festival, which is named for Jasper being at the base of the Appalachian Mountains. Drawing people from all over the state and surrounding areas to Jasper’s downtown, Foothills Festival strives to provide a weekend that celebrates community and cultural heritage. Patrons of the event enjoy musical performances, food, shopping and entertainment.
Jasper, Alabama
Property Demographics
POPULATION 3-Mile 5-Mile 10-Mile
2017 Estimate 14,177 20,769 39,112
HOUSEHOLDS 3-Mile 5-Mile 10-Mile
2022 Projection 5,677 8,212 15,170
INCOME 3-Mile 5-Mile 10-Mile
2017 Est. Average Household Income
$57,895 $57,316 $53,766
8.07%2010-2017 POPULATION GROWTH
WITHIN A1-MILE RADIUS
AREA OVERVIEW
Nestled at the foothills of the Appalachian Mountains at the cross-section of two major railroads, Birmingham was once the primary industrial center of the southern United States. At the height of the nation’s manufacturing age, the city’s population grew so fast that it was called the “Magic City” and “The Pittsburgh of the South.” Born of iron and steel, Birmingham preserves remnants of its past in places such as Sloss Furnaces National Historic Landmark.
Birmingham, Alabama
The historically dominant steel industry has transitioned into higher value-add manufacturing enterprises supporting the South’s growing automotive assembly industry. Beyond the manufacturing sector, Birmingham has experienced major economic growth as it has moved decidedly towards more modern-economic enterprises in research, medicine, banking, finance and technology. In recent years, Birmingham has transformed itself into a medical research, banking and service-based economy, making it one of the nation’s most livable cities with a vibrant downtown, a burgeoning loft community, a world-class culinary scene and more green space per capita than any other city in the nation. Serving as
headquarters to Fortune 500 company Regions Financial and five Fortune 1000 companies, Birmingham ranks as one of the most important business hubs in the southeastern United States.
Centrally located in the southeast and easily accessible to major markets in the region, Birmingham is consistently rated as one of America’s best places to work and earn a living. Many young, educated workers and their families have been relocating to Birmingham, looking for alternatives to Atlanta and other flourishing Southern centers.
Economy
Located in Tuscaloosa, the University of Alabama is a public research university that is the flagship of the University of Alabama System. It is the oldest and largest of the public universities in Alabama.
The University’s 1,200-acre campus is home to over 36,000 students, offering a total of 117 areas of study. U.S. News & World Report has consistently ranked the University of Alabama as a top 50 public university in the nation. Alabama has left a vast cultural imprint on the state, region and nation.
Known as the Crimson Tide, the University of Alabama varsity football program ranks as one of the 10 winningest programs in the country. Saturday traditions and gridiron action that football brings distinguishes this university from many others.
The University of Alabama
In addition to being home to the University of Alabama, Tuscaloosa is the regional center of industry, commerce, healthcare and education for the West Alabama region. It is the principal city of the Tuscaloosa Metropolitan Statistical Area, which includes Tuscaloosa, Hale and Pickens counties. Built on a history of progress and growth, Tuscaloosa sits along the Black Warrior River providing numerous restaurants, activities, museums and parks. Visitors and residents can enjoy the city’s refreshing atmosphere, historic features and bustling nightlife.
Tuscaloosa’s economy is bolstered by higher education along with diverse sectors of manufacturing and service. An approximate twenty-five percent of the labor force is employed by the federal, state and local government agencies. Manufacturing companies with a presence in the city are BFGoodrich Tire Manufacturing, GAF Materials Corporation, Hunt Refining Company and most importantly, the Mercedes-Benz U.S. International assembly plant.
Tuscaloosa, Alabama
A d v a n c e A u t o P a r t s , J a s p e r , A L | 1 3
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Exclusively Listed ByCHAD KURZSVP & National [email protected] 214.692.2927MOB 562.480.2937LIC # 01911198 (CA)
ANDREW GROSSCapital Markets
[email protected] 310.955.1773MOB 435.659.1404LIC # 01987860 (CA)
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KYLE MATTHEWSBROKER OF RECORDLIC # 00109289 (AL)
This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Advance Auto Parts located at 603 Highway 78 East, Jasper, AL 35501 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.
By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:
1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;
2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and
3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.
Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.
I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.
A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.
This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.
C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T
