Single Tenant Investment Offering
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Single TenantAdvance Auto Investment Parts – Jacksonville, Offering FL Advance Auto Parts NNN Lease Jacksonville, FL Advance Auto Parts 1008 Edgewood Ave N Jacksonville, FL 32254 $1,750,000 6.21% Cap 5% increases at each option renewal 3 Five Year Options to Renew Great Visibility Average Household Income Above $64,000 Non-Income State Brent L. Hensley 216 N. Coast Hwy 101 (760) 452.2401 Encinitas, CA 92024 [email protected] www.1031nnnsearch.com Advance Auto Parts – Jacksonville, FL Property and Area Description The subject property consists of a 6,814 square foot commercial retail building on a large 1.45 Acre parcel of land and is strategically located one parcel away from the signalized intersection of Commonwealth Avenue and Edgewood Ave N with combined daily traffic counts in excess of 30,000 vehicles per day and benefits with almost 500,000 people with a five mile radius. Commonwealth Shopping Center (81,467 s.f.) is located at the intersection of Edgewood Avenue and Commonwealth Avenue in close proximity to the I-10 and I-295 interchanges. The original 15-year NNN lease commenced in 20068 as a build-to-suit Discount Auto Parts which was later rebranded in 2008 when Advance Auto Parts purchased the entire Discount Auto Parts’ entire Florida region. Higher than average stores sales compelled Advance Auto to extend the existing NNN lease 10 more years commencing January 1, 2019. The lease will continue to offer three 5-year options for the tenant to renew the lease. At each renewal, there will be a fixed 5% rental increase. There are no Landlord responsibilities in the Lease. Advance Auto Parts pays the additional rent for Florida’s Franchise Landlord Tax. The original high-quality construction featured steel framing and concrete block construction. The location is known to be a strong retail corridor with this Advance Auto Parts store as an out-parcel to a Winn-Dixie anchored shopping center. The property is located in an ideal “do-it-yourself” market. Dollar Tree, Hibbett Sporting Goods, Pizza Hut, Subway, Take 5 Oil Changers, Pita King Drive-Thru within the (former) Save Rite anchored Commonwealth Shopping Center are all flourishing businesses nearby to the Advance Auto Parts store. Jacksonville is the largest city in the State of Florida by population and the largest city by area in the contiguous United States. It is the county seat of Duval County, with which the city government consolidated in 1968. Consolidation gave Jacksonville its great size and place most of its metro population within the city limits; with an estimated population in 2013 of 842,583, it is the most populous city proper in Florida and Southeast, and the 13th most populous in the United States. Jacksonville is the principal city in the Jacksonville metropolitan area. Jacksonville is home to many prominent corporations and organizations, including the headquarters of four Fortune 500 companies: CSX Corp[oration, Fidelity National Financial, Fidelity National Information Services and BI-LO (United States) including its subsidiary Winn-Dixie Stores, Inc. In addition to CSX, the Florida East Coast /Railway as well as Swisher International group and the large short line railroad holding company RailAmerica are also based in Jacksonville. Jacksonville is home to one major league sprouts team, the Jacksonville Jaguars of the National Football League (NFL0. The Jaguars joined the NFL as an expansion team in the 1995 season; they play their home games at EverBank Field. The PGA tour, which organizes three main professional golf tournaments in the U.S. , is headquartered in the suburb of Ponte Vedra Beach, where it holds The Players Championship every year. In 2005, Jacksonville hoisted Super Bowl XXXIX. Jacksonville’s location on the St. Johns River and the Atlantic Ocean proved providential in the growth of the city and its industry. Jacksonville has the largest deep-water port in the South (as well as the second- largest port on the U.S. East coast) and a leading port in the U.S. for automobile imports, as well as the leading transportation and distribution hub in the state. DEMOGRAPHIC SUMMARY (As of 2015) 1 Mile: 4,710 with an average household income of $36,799. 3 Mile: 55,512 with an average household income of $42,812. 5 Mile: 146,199 with an average household income of $52,108. Advance Auto Parts – Jacksonville, FL Tenant Information Advance Auto Parts, Inc. (NYSE: AAP) is the largest retailer of automotive replacement parts in the U.S. and employs approximately 74,000 people. Advance Auto has expanded its presence to more than 5,100 company owned stores, 1,400 of which are independently owned Carquest branded locations, and 126 World Pac Branches spread across 48 states, Puerto Rico, The Virgin Islands, and Canada. Since its founding in 1932 in Roanoke, Virginia Advance Auto has steadily grown organically and through acquisitions, including the addition of Autopart International in 2005 and General Parts Inc. in 2013. Through these acquisitions, Advance Auto has gained deeper access to commercial and wholesale parts suppliers, increasing its margins while also improving customer access to more diverse inventory. Advance Auto Parts has made an appearance on the Forbes Fortune 500 list of companies since2003 and was ranked 292nd in 2017. In 2016, Advanced Auto Parts, Inc. had total revenues of $9.57 billion, net income of $460 million, net worth in excess of $2.9 billion, $135 million cash on hand, and was awarded an investment grade credit rating of BBB- from Standard & Poors. INVESTMENT SUMMARY Financial Information: Price: $1,800,000.00 Cap Rate: 6.21% NOI: $108,600.00 Rent Increases: 5% rent increases every 5 years at Option Renewals Property Information: Building Size: 6,814+/- square feet Lot Size: 1.45+/- acres or 63,162+/- square feet Address: 61008 Edgewood Ave. N., Jacksonville, FL 32254 Year Built: 2006 Zoning: “Commercial” Terms of Sale: All cash or Buyer to obtain own financing. Lease Information: Lease Guarantor: Advance Auto Stores, Incorporated Lease Date: July 6, 2007 Expiration Date: December 31, 2029 Renewal Options: 3 Five year options to renew Remaining Term: 10 years beginning January 1, 2019 Advance Auto Stores is responsible, and consistently pays for all property taxes (including Florida Franchise Tax on behalf of Landlord), insurance and maintenance for the property. Landlord responsible for structure only. Tenant DOES NOT have a first right to purchase the property. The lease also offers 2.5% percentage rent over the natural breakpoint of $4,947,040 (Tenant has never paid out percentage rent on this location). Advance Auto Parts – Jacksonville, FL MAPS Advance Auto Parts – Jacksonville, FL Neighborhood Aerial View Regional Aerial View Advance Auto Parts – Jacksonville, FL Advance Auto Parts Net Leased Investment – Jacksonville, FL Net Leased Real Properties, Inc. has been retained as the exclusive Broker regarding the sale of this property. To receive an Offering Memorandum, please read this Confidentiality Agreement and agree to the terms. The Offering Memorandum has been prepared by Owner and Broker and does not purport to provide a necessarily accurate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective Buyers may need or desire. All projections have been developed by Owner and Broker and designated sources and are based upon assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and therefore are subject to variation. No representation is made by Owner or Broker as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, the Owner and Broker and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, Owner, Broker, and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in or omitted from the Offering Memorandum or any other written or oral communication transmitted or made available to the Buyer. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or the Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum are solely the responsibility of the prospective Buyer. Additional information and an opportunity to inspect the property will be made available upon written request to interest and qualified prospective Buyers. By accepting the Offering Memorandum, Buyer agrees to indemnify, defend, protect and hold Owner and Broker and any affiliate of Owner or Broker harmless from and against any and all claims, damages, demands, liabilities, losses, costs or expenses (including reasonable attorney fees) arising, directly or indirectly from any actions or omissions of Owner or Broker, its employees, officers, directors or agents. By accepting the Offering Memorandum, Buyer understands that Net Leased Real Properties, Inc. does not have ownership interest in the subject property and Buyer shall indemnify and hold Owner and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney fees and court costs which may be incurred with respect to any claims by Buyer in connection with such statement. Buyer shall indemnify and hold Owner and Broker harmless from and against any claims, causes of action or liabilities, including, without limitation, reasonable attorney fees and court costs which may be incurred with respect to any claims for other real estate commissions, broker fees or finder fees in relation to or in connection with the Property to the extent claimed, through or under Owner.