Advance Auto Parts 6556 AARON ARONOV DR, FAIRFIELD, AL

ADVANCE AUTO PARTS
6556 AARON ARONOV DR, FAIRFIELD, AL 35064
OFFERING MEMORANDUM
™
C O N FID EN T I A L I T Y & DI SCL A IMER STATEMEN T
T his Of f er ing M e m o r a n du m co n t a i n s s e l ec t i nform ati on pertai ni ng to the busi ness and affai rs of Advance Auto Parts located at 6556 Aaron Aronov
Dr, Fairfield, AL 35064 ( “ P ro p e rt y ” ) . It h a s b een prepared by Matthews Retai l Advi sors . Thi s O fferin g M emoran d u m may n ot b e all-in clu s ive or
c o nt a in a ll o f t h e i n f o r m a t i o n a p r o s p e cti ve purc haser m ay desi re. The i nform ati on c ontai ned in t h is Offerin g M emoran d u m is con fid en t ial
a nd f ur nis hed s o l e l y f o r t h e p u r p o s e o f a revi ew by a prospec ti ve purc haser of the Property. I t is n ot t o b e u s ed for an y ot h er pu rpos e or
ma d e a v a ila b l e t o a n y o t h e r p e r s o n w i t h out the wri tten c onsent of Sel l er or Matthews Retai l Ad vis ors . Th e mat erial is b as ed in part u pon
inf o r ma t io n su p p l i e d by t h e S e l l e r a n d i n part upon fi nanc i al i nform ati on obtai ned from sourc es it d eems reliab le. Own er, n or t h eir officers ,
emp lo y ee s , o r a g e n t s m a ke s a n y r e p r e sentati on or warranty, express or i m pl i ed, as to the accu racy or complet en es s of t h is Offerin g
Me mo r a nd um o r a n y o f i t s co n t e n t s a n d n o l egal l i abi l i ty i s assum ed or shal l be i m pl i ed wi th res pect t h eret o. Pros pect ive pu rch as ers s h ou ld
ma ke t heir o w n p r o j e ct i o n s a n d f o r m t h e i r own c onc l usi ons wi thout rel i anc e upon the m ateri al con t ain ed h erein an d con d u ct t h eir own d u e
d ilig enc e.
B y a c kno w le dg i n g y o u r r e ce i p t o f t h i s O fferi ng Mem orandum for the Property, you agree:
1. T he Of f e r i n g M e m o r a n du m a n d i t s c ontents are c onfi denti al ;
2. Yo u w il l h o l d i t a n d t r e a t i t i n t h e s tri c test of c onfi denc e; and
3. Yo u w ill n o t , di r e ct l y o r i n di r e ct l y, di sc l ose or perm i t anyone el se to di sc l ose thi s O fferi n g M emoran d u m or it s con t en t s in an y fas h ion
o r ma nn e r de t r i m e n t a l t o t h e i n t e rest of the Sel l er.
Ow ne r a nd Mat t h e w s Re t a i l A dv i s o r s e x pressl y reserve the ri ght, at thei r sol e di sc reti on, to reject an y an d all expres s ion s of in t eres t or
o f f er s t o p ur ch a s e t h e P r o p e r t y a n d t o t erm i nate di sc ussi ons wi th any person or enti ty revi ewin g t h is Offerin g M emoran d u m or makin g an
o f f er t o p ur c h a s e t h e P r o p e r t y u n l e s s a nd unti l a wri tten agreem ent for the purc hase and sal e of t h e Propert y h as b een fu lly execu t ed an d
d e liv er e d .
I f y o u w ish no t t o p u r s u e n e g o t i a t i o n s l e adi ng to the ac qui si ti on of the Property or i n the future you d is con t in u e s u ch n egot iat ion s , t h en you
a g r ee t o p ur g e a l l m a t e r i a l s r e l a t i n g t o t hi s Property i nc l udi ng thi s O fferi ng Mem orandum .
A p r o sp ec t iv e p u r ch a s e r ’s s o l e a n d e xcl usi ve ri ghts wi th respec t to thi s prospec ti ve transac ti on , t h e Propert y, or in format ion provid ed h erein
o r in c o nne c t i o n w i t h t h e s a l e o f t h e P r o perty shal l be l i m i ted to those expressl y provi ded i n an execu t ed Pu rch as e Agreemen t an d s h all b e
s ub je c t t o t he t e r m s t h e r e o f. In n o e v e n t shal l a prospec ti ve purc haser have any other c l ai m s again s t Seller or M at t h ews Ret ail Ad vis ors or
a ny o f t heir a ff i l i a t e s o r a n y o f t h e i r r e s p ec ti ve offi c ers, Di rec tors, sharehol ders, owners, em ployees , or agen t s for an y d amages , liab ilit y, or
c a us es o f a c t i o n r e l a t i n g t o t h i s s o l i ci t a t i on proc ess or the m arketi ng or sal e of the Property.
T his Of f er ing M e m o r a n du m s h a l l n o t be deem ed to represent the state of affai rs of the Prope rt y or con s t it u t e an in d icat ion t h at t h ere h as
b e en no c ha nge i n t h e s t a t e o f a f f a i r s o f the Property si nc e the date thi s O fferi ng Mem orandum.
ADVANCE AUTO PARTS
6556 AARON ARONOV DR FAIRFIELD, AL 35064
TABLE O F CO NT ENTS
04. Executive Summary
06. Property Overview
08. Lease Abstract
12. Tenant Overview
14. Area Overview
15. Demographics
™
Michael Moreno
Associate
El Warner
EVP & National Director
License No. 01982943
O 949.432.4511
M 818.522.4497
[email protected]
License No. 01890271
O 310.579.9690
M 858.752.3078
[email protected]
Kyle Matthews
Broker of Record
License No. 00109289
E XECUTIVE S UMMARY
Investment Overview
Michael Moreno and El Warner of Matthews Retail Advisors are pleased to offer to qualified investors the fee simple interest in a free-standing Advance
Auto property located in Fairfield, AL (Birmingham MSA). The subject property is strategically located in a major retail corridor within Fairfield, with the
tenant successfully operating there since 1995. The subject property is located in an ideal market for Advance Auto, as shown by the tenant’s long-term
history at the location.
The current NN lease offers a potential landlord the ownership in an investment grade tenanted asset with limited landlord responsibilities. Advance Auto
recently exercised their final option on the property with a substantial rental increase. Furthermore, the current rental rate provides a potential investor
with strong market upside.
The lease is corporately guaranteed by Advance Auto Parts, which is the country’s largest automotive replacement parts and accessory chain with more
than 5,293 stores.
Investment Highlights
PROPERTY DETAILS
• 4.3 Years remaining on NN Lease - Minimal Landlord Responsibilities
• High Quality Construction - Steel Framed with Concrete Block
• Tenant exercised last option with rental increase - showing tenant’s
commitment to location
• Below Market Rent - Current rental rate offers potential investor strong
market upside
• Strong Operating History - Advance Auto has operated at location since
1995
• Current Roof is still under warranty
LOCATION
• Well Visited Location - Subject property located in major retail corridor that
includes national tenants such as Wells Fargo, Shell, Pizza Hut, KFC, Papa
John’s, Burger King, Krispy Kreme, Walgreens, Sonic, Dollar Tree,
McDonald’s, Chevron, Family Dollar, Hardee’s, Captain D’s, Burlington Coat
Factory, Hibbett Sports, and Foot Locker - Vehicles per day in excess of
23,000
• Strong Demographics: Over 110,00 people within a 5-mile radius
• Average Household Income falls within Advance Auto Parts “Sweet Spot”
• Located in a “Do-It-Yourself” City, which fits into Advance Auto Parts ideal
market
TENANT
4 I Matthews Retail Advisors
•
•
•
•
Investment Grade Credit Tenant | S&P Rated BBBMarket Cap of $11.84 billion
5.293 Stores
Fortune 500 Company
Executive Summary
ADVANCE AUTO PARTS
6556 Aaron Aronov Dr
Fairfield, AL 35064
List Price...............................................................................................$949,000
Annualized Operating Data
Monthly Rent
Annual Rent
Rent/SF
$6,050
$72,600
$9.35
Current - 2020
Cap Rate
7.65%
CAP Rate - Current����������������������������������������������������������������������������������� 7.65%
Gross Leasable Area�������������������������������������������������������������������������± 7,761 SF
Lot Size .....................................................................± 0.83 Acres (36,216 SF)
Year Built��������������������������������������������������������������������������������������������������������1995
Tenant Summary
Tenant Trade Name
Advance Auto Parts
Type of Ownership
Fee Simple
Lease Guarantor
Lease Type
Roof and Structure
Corporate
NN
Landlord Responsible
Original Lease Term
10 years
Lease Commencement Date
1/1/2016
Rent Commencement Date
1/1/2016
Lease Expiration Date
12/31/2020
Term Remaining on Lease
4.30 years
Increases
None
Options
None
Matthews Retail Advisors | 5
P ROPERTY O VERVIEW
6 I Advance Auto Parts
Physical Description
Property Name
Property Address
Assessor’s Parcel Number
Zoning
Advance Auto Parts
6556 Aaron Aronov Dr
Fairfield, AL 35064
30-00-14-4-001-001.002
B2
Site Description
Number of Stories
Year Built
Gross Leasable Area (GLA)
Lot Size
Type of Ownership
Parking
One
1995
± 7,761 SF
± 0.83 Acres (36,216 SF)
Fee Simple
± 46 Surface Spaces
Parking Ratio
5.93 : 1,000 SF
Landscaping
Professional
Topography
Generally Level
Construction
Foundation
Concrete Slab
Framing
Wood
Exterior
Brick
Parking Surface
Asphalt
Roof
Pitched
Matthews Retail Advisors | 7
Lease Abstract - Advance Auto Parts
Tenant:
Advance Stores Company, Incorporated, a Virginia Corporation
Property Address:
6556 Aaron Aronov Dr. Fairfield, AL
Date of Lease:
May 1, 1995
Rent Commencement:
January 1, 2016
Lease Expiration:
December 31, 2020
Lease Term:
4.3 Years
Current Rent:
$72,600
Rent Increases:
None
Renewal Options:
None
Annual Rent:
Current Term: $72,600
Real Estate Taxes:
Tenant’s Responsibility
Insurance:
Tenant’s Responsibility
Utilities:
Tenant’s Responsibility
Landlord shall maintain and keep in good order and repair the roof, guttering and downspouts, the structural walls and foundations,
the electrical wiring, the water line, and the sanitary sewer serving the premises
Repairs & Maintenance:
Landlord shall maintain and repair the access easement and the parking lot, sidewalks, and all other areas of the building that are not
structurally a part of the building
Tenant shall maintain and repair the heating/air conditioning system; however, if, as and to the extent that there are major breakdowns
in the system then tenant and landlord will share equally the expense of replacing the system with a new system or of repairing the
same, including labor and parts
8 | Advance Auto Parts
Regional Map
Matthews Retail Advisors | 9
Tenant Map
10 | Advance Auto Parts
Bird’s Eye
11 | Advance Auto Parts
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T ENANT O VERVIEW
12 | Advance Auto Parts
Tenant
Advance Auto Parts
Company Name
Advance Auto Parts
Ownership
Credit Rating
Rating Agency
Revenue
Net Income
Stock Symbol
Board
No. of Locations
No. of Employees
Headquartered
Web Site
Year Founded
Public
BBBStandard & Poor’s
$9.74 Billion
$473.40 Million
AAP
NYSE
± 5,300
± 74,000
Roanoke, Virginia
Founded as Advance Stores Company in 1929, AAP was a general
merchandise retailer until the ‘80s. From there the company shifted its
focus to automotive parts retailing, targeting DIY customers. Advance
Auto Parts (AAP) has taken the lead in the race to become the #1
provider of automotive aftermarket parts in North America. Serving both
the do-it-yourself (DIY) and professional installer markets, AAP operates
nearly 5,300 stores under the Advance Auto Parts, Autopart International
(AI), Carquest, and Worldpac banners in the US and Canada. Its stores
carry brand-name replacement parts, batteries, maintenance items, and
automotive chemicals for individual car and truck owners. AAP’s
Carquest, AI, and Worldpac stores cater to commercial customers,
including garages, service stations, and auto dealers.
AAP’s annual revenues and profits have been trending higher over the
past several years with aggressive store expansion and as consumers
continue to hold onto their cars and get them fixed more often.
www.advanceautoparts.com
1929
Matthews Retail Advisors | 13
A REA O VERVIEW
FAIRFIELD, AL
Fairfield is a city in western Jefferson County, AL. It is part of the Birmingham metropolitan area and is located 20 minutes outside of Birmingham. Miles
College is located in Fairfield, a historically black college founded in 1898 and has a student population of about 2,000 students.
BIRMINGHAM METROPOLITAN STATISTICAL AREA
The Birmingham metropolitan statistical area has a population of about 1.14 million residents. Birmingham ranks as one of the most important business
centers in the Southeastern United States and is also one of the largest banking centers in the United States. In addition, the Birmingham area serves as
headquarters to one Fortune 500 company: Regions Financial, along with five other Fortune 1000 companies. Today, 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.
In higher education, Birmingham has been the location of the University of Alabama School of Medicine and the University of Alabama School of Dentistry
since 1947. Since that time it has also obtained a campus of the University of Alabama, University of Alabama at Birmingham one of three main campuses
of the University of Alabama System. The university is one of the state’s largest employers and has a great economic impact on the area. The university has
more than 18,000 students and 18,000 faculty and staff.
Birmingham offers a wealth of entertainment and cultural possibilities, from Arts and Museums, multiple theater experiences to world class recreational
facilities and some great urban parks. Birmingham is the cultural and entertainment capital of Alabama with numerous art galleries in the area including the
Birmingham Museum of Art, the largest art museum in the Southeast. Birmingham is home to numerous cultural festivals showcasing music, films, and
regional heritage. Sidewalk Moving Picture Festival brings filmmakers from all over the world to Birmingham to have their films viewed and judged. This
festival usually is scheduled in late August at eight venues around downtown. Screenings are concentrated at the Alabama Theatre.
14 | AdvanceMatthews
Auto Parts
Retail Advisors | 14
Demographics
Population
1-Mile
3-Mile
5-Mile
2021 Projection
7,515
53,718
110,859
2016 Estimate
7,592
54,816
112,300
2010 Census
7,770
57,316
116,154
2000 Census
8,263
65,504
133,900
Households
1-Mile
3-Mile
5-Mile
2021 Projection
2,969
21,058
43,913
2016 Estimate
2,974
21,337
44,212
2010 Census
2,991
22,011
45,228
2000 Census
3,131
24,261
50,578
Income
1-Mile
3-Mile
5-Mile
Income < $15,000
23.31%
24.49%
24.69%
Income $15,000 - $24,999
16.56%
15.21%
15.03%
Income $25,000 - $34,999
10.04%
13.66%
13.71%
Income $35,000 - $49,999
17.28%
15.63%
14.96%
Income $50,000 - $74,999
12.64%
14.60%
14.10%
Income $75,000 - $99,999
8.02%
7.89%
7.92%
Income $100,000 - $124,999
5.41%
4.73%
4.90%
Income $125,000 - $149,999
2.53%
1.60%
1.99%
Income $150,000 - $199,999
2.49%
1.28%
1.57%
Income $200,000 - $249,999
0.76%
0.39%
0.50%
Income $250,000 - $499,999
0.79%
0.36%
0.45%
Income $500,000+
0.17%
0.16%
0.17%
2016 Est. Average Household Income
$49,355
$44,097
$45,355
2016 Est. Median Household Income
$35,077
$32,542
$32,497
Matthews Retail Advisors | 15
™
Michael Moreno
Associate
El Warner
EVP & National Director
License No. 01982943
O 949.432.4511
M 818.522.4497
[email protected]
License No. 01890271
O 310.579.9690
M 858.752.3078
[email protected]
Kyle Matthews
Broker of Record
License No. 00109289