EXCLUSIVE LISTING Autozone New Orleans 20-Year NNN Ground Lease with Increases

Net Lease Investment Services

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EXCLUSIVE LISTING AutoZone New Orleans 20-Year NNN Ground Lease with Increases

• Price: $1,179,000 – 6.15% Cap Rate • Fortune 500 Investment Grade Tenant • One of America’s Most Successful and Profitable Companies

For more information, please contact: Robert C. Sanner, Partner/Broker Richard M. Sanner, Associate 415-677-0439 415-677-0429 [email protected] [email protected] LIC #00869657 LIC # 01792433 www.ctbtnnn.com

The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease. Net Lease Investment Services

AutoZone New Orleans, Louisiana

Location Southwest corner of South Claiborne Avenue and General Taylor, New Orleans, Louisiana

Lot Size Approximately 0.92 acres – 40,000+/- square feet. • Only the land is for sale.

Improvements Under construction, to be completed in June 2011, a 6,782+/- square foot freestanding AUTOZONE retail store. • The improvements are built and owned by the tenant. The improvements are not for sale.

Ground LEASE Ground leased to AUTOZONE, INC. for 20 years from December 16, 2010 until December 31, 2030. The net annual rent of $72,504 increases has increases as shown below. The lease is absolute net, with the tenant responsible for taxes, insurance and all maintenance, including roof and structure. There are four 5-year options to renew with increases as shown below.

THE LEASE IS IN FULL FORCE AND EFFECT. RENT IS BEING PAID.

Annual Income years Annual Rent Return 1-10 $ 72,504 6.15% 11-15 $ 77,580 6.58% 16-20 $ 83,004 7.04% 21-25 (Option 1) $ 91,308 7.74% 26-30 (Option 2) $100,440 8.52% 31-35 (Option 3) $110,484 9.37% 26-30 (Option 2) $121,536 10.31%

Price $1,179,000 – 6.15% Cap Rate

Price per square foot $29 - Land Only

AutoZone New Orleans, Louisiana

About the tenant AUTOZONE, INC. (NYSE: “AZO”) is the leading retailer and a leading distributor of automotive replacement parts and accessories in the U.S. with 4,404 retail stores in the U.S. and 241 in Mexico as of November 20, 2010. Each store carries an extensive line of maintenance items and accessories for cars, sport utility vehicles, vans and light trucks. Headquartered in Memphis, the company has been in business since 1979 and has 55,000 employees.

AutoZone serves two markets:

• DIY — Do It Yourself: Individual consumers who come to the store to purchase the merchandise and who, typically, work on their own vehicles.

• DIFM — Do It for Me: Auto repair professionals and service shops working on an individual’s vehicle, who usually order by phone, fax, or e-mail. Many service shops order daily from the store for same- or next-day delivery.

Strong DIFM sales depend upon a good distribution/inventory system. If the ordered item is in stock, there is next-day availability to the ultimate consumer; if not; the objective is to ship from an AutoZone warehouse overnight, providing second-day delivery. To that end, AutoZone has developed a system of warehouses, such that any parts order placed by a given store will be delivered the next morning. To achieve these efficiencies, there are different sizes of highly computerized warehouses, all within an overnight drive of every store.

AutoZone reported net sales of $1.8 billion for its first quarter (12 weeks) ended November 20, 2010, an increase of 12.7% from the first quarter of fiscal 2010 (12 weeks). Domestic same store sales, or sales for stores open at least one year, increased 9.5% for the quarter.

Net income for the quarter increased $28.8 million, or 20.1%, over the same period last year to $172.1 million, while diluted earnings per share increased 33.7% to $3.77 per share from $2.82 per share in the year-ago quarter.

AutoZone New Orleans, Louisiana

About The Tenant For the fiscal year ended August 28, 2010, AutoZone reported sales of $7.4 billion (CONTINUED) (a 8.0% increase over the prior year) and net income of $738 million (a 12.4% increase over the prior year).

For the fourth quarter ended August 28, 2010, AZO showed these increases from the corresponding quarter of the previous year:

• Net Sales: 9.6% • Same Store Sales: 6.7% • Net Income: 13.9%

AZO has now had 16 straight quarters of double digit growth in earnings per share.

FROM DECEMBER 2007 TO DECEMBER 2009, THE AZO STOCK PRICE WAS UP ABOUT 32% WHILE THE DJIA AND S&P 500 WERE BOTH DOWN ABOUT 21%. FROM JANUARY 1, 2010, TO LATE OCTOBER 2010, THE AZO STOCK PRICE WAS UP 47% WHILE THE S & P WAS UP ABOUT 5%.

The company is ranked #329 in the 2010 Fortune 500. More information is available at www.autozone.com. Standard & Poor’s rates the company as “BBB”, investment grade.

Site Information The property is located on the southwest corner of South Claiborne Avenue and General Taylor in New Orleans. South Claiborne Avenue is a section of US Highway 90, one of the major east-west highways in the South. Traffic count along South Clairborne Avenue is 47,429 (2010).

Within a 5 mile radius of the site are the Louisiana Superdome (home of the New Orleans Saints), the famous French Quarter district, and Tulane University.

Other retail tenants in the immediate area include Walgreens, Wendy’s, Popeye’s Chicken & Biscuits, Save-A-Lot, and McDonald’s.

AutoZone New Orleans, Louisiana

About The Area New Orleans is located in southeastern Louisiana, straddling the Mississippi River. It is a major United States port and the largest city and metropolitan area in the state of Louisiana. The New Orleans metropolitan area had a population of 1,235,650 as of 2009, the 46th largest in the USA.

New Orleans is home to one of the largest and busiest ports in the world, and metropolitan New Orleans is a center of maritime industry. The New Orleans region also accounts for a significant portion of the nation’s oil refining and petrochemical production, and serves as a white collar corporate base for onshore and offshore petroleum and natural gas production. New Orleans is a center for higher learning, with over 50,000 students enrolled in the region’s eleven two- and four-year degree institutions. A top 50 research university, Tulane University, is located in New Orleans’ Uptown neighborhood. Metropolitan New Orleans is a major regional hub for the health care industry and boasts a small, globally-competitive manufacturing sector.

New Orleans is a crucial transportation hub and distribution center for waterborne commerce. The Port of New Orleans is the 5th-largest port in the United States based on volume of cargo handled. The Port of South Louisiana, also based in the New Orleans area, is the world’s busiest in terms of bulk tonnage. Many shipbuilding, shipping, logistics, freight forwarding and commodity brokerage firms call metropolitan New Orleans home or maintain a large local presence. Examples include Intermarine, Bisso Towboat, Northrop Grumman Ship Systems, Trinity Yachts, Expeditors International, Bollinger Shipyards, IMTT, International Coffee Corp, Boasso America, Transoceanic Shipping, Transportation Consultants Inc., Dupuy Storage & Forwarding and Silocaf. The largest coffee-roasting plant in the world, operated by Folgers, is located in New Orleans East.

AutoZone New Orleans, Louisiana about the area New Orleans is located in proximity to the Gulf of Mexico and the many oil rigs that (continued) lie just offshore. Louisiana ranks fifth in oil production and eighth in reserves in the United States. It is also home to two of the four Strategic Petroleum Reserve (SPR) storage facilities: West Hackberry in Cameron Parish and Bayou Choctaw in Iberville Parish. Other infrastructure includes 17 petroleum refineries with a combined crude oil distillation capacity of nearly 2.8 million barrels per day, the second highest in the nation after Texas. Louisiana’s numerous ports include the Louisiana Offshore Oil Port (LOOP), which is capable of receiving ultra large oil tankers. Given the quantity of oil importing, Louisiana is home to many major pipelines supplying the nation: Crude Oil (Exxon, Chevron, BP, Texaco, Shell, Scurloch-Permian, Mid- Valley, Calumet, Conoco, Koch Industries, Unocal, U.S. Dept. of Energy, Locap); Product (TEPPCO Partners, Colonial, Plantation, Explorer, Texaco, Collins); and Liquefied Petroleum Gas (Dixie, TEPPCO, Black Lake, Koch, Chevron, Dynegy, Kinder Morgan Energy Partners, Dow Chemical Company, Bridgeline, FMP, Tejas, Texaco, UTP). Several major energy companies have regional headquarters in the city or its suburbs, including Royal Dutch Shell, Eni and Chevron. Numerous other energy producers and oil field services companies are also headquartered in the city or region, and the sector supports a large professional services base of specialized engineering and design firms, as well as an office for the federal government’s Minerals Management Service.

The city is the home to the Fortune 500 company Entergy, a power generation utility and nuclear powerplant operations specialist. Other companies headquartered or with significant operations in New Orleans include: Pan American Life Insurance, Pool Corp, Rolls-Royce, Newpark Resources, AT&T, TurboSquid, iSeatz, IBM, Navtech, Superior Energy Services, Textron Marine & Land Systems, McDermott International, Pellerin Milnor, Lockheed Martin, Imperial Trading, Laitram, Harrah’s Entertainment, Stewart Enterprises, Edison Chouest Offshore, Zatarain’s, Waldemar S. Nelson & Co., Whitney National Bank, Capital One, Tidewater Marine, Parsons Brinckerhoff, MWH Global, CH2M HILL, Energy Partners Ltd. and The Receivables Exchange.

AutoZone New Orleans, Louisiana about the area Tourism is another staple of the city’s economy. New Orleans’ tourist and (continued) convention industry is $5.5 billion annually and accounts for 40 percent of New Orleans’ tax revenues.

The federal government has a significant presence in the area. NASA’s Michoud Assembly Facility is located in New Orleans East and is operated by Lockheed Martin. It is a large manufacturing facility where the external fuel tanks for the space shuttles are produced. The Michoud facility lies within the enormous New Orleans Regional Business Park, also home to the National Finance Center, operated by the United States Department of Agriculture (USDA), and the Crescent Crown distribution center. Other large governmental installations include the U.S. Navy’s Space and Naval Warfare (SPAWAR) Systems Command, located within the University of New Orleans Research and Technology Park in Gentilly, NAS New Orleans, the future headquarters for the Marine Force Reserves, slated for Federal City in Algiers and the U.S. Fifth Circuit Court of Appeals.

The airport is Louis Armstrong New Orleans International Airport (MSY), which is about 10 miles away, featuring dozens of domestic and international non-stop destinations.

The city is served by rail via Amtrak. The New Orleans Union Passenger Terminal is served by three trains: the Crescent, operating between New Orleans and New York City; the City of New Orleans, operating between New Orleans and Chicago; and the Sunset Limited, operating through New Orleans between Orlando and Los Angeles.

Demographics 2009 ESTIMATE 3-MILE 5-MILE 7-MILE Population 119,154 295,280 487,144 Average Household Income $69,781 $61,094 $62,423

Due to the 2005 devastation caused by Hurricane Katrina, the population of New Orleans dropped between 2000 and 2006. Since then, it has been increasing significantly every year, although not yet back to 2000 levels. But, for example, the forecast population increase from 2009 to 2014 is about 23%.

AutoZone New Orleans, Louisiana

Note The information set forth herein has been received by us from sources we believe to be reliable, but we have made no independent investigation of the accuracy or completeness of the information and make no representations with respect thereto. The above is submitted subject to errors, prior sale or lease, change in status, or withdrawal without notice.

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3998AutoZone S CLAIBORNE AVE & 2998 GENERAL TAYLOR ST NEW ORLEANS LA 70125 New Orleans, Louisiana

Updated Summary Report (%) Coordinates Longitude: -90.099880 December 21, 2010 Latitude: 29.940320

3.0 Mile 5.0 Mile 7.0 Mile Ring Ring Ring 28.27 sq/mi 78.54 sq/mi 153.94 sq/mi

POPULATION 1990 Total Population 198,241 445,531 694,755 2000 Total Population 192,988 435,769 685,763 2009 Total Population 119,154 295,280 487,144 2014 Total Population 146,134 344,287 555,117 % Population Change 1990-2000 -2.65% -2.19% -1.29% % Population Change 2000-2009 -38.26% -32.24% -28.96% % Population Change 2009-2014 22.64% 16.60% 13.95%

HOUSEHOLDS 1990 Total Households 80,997 174,325 268,617 2000 Total Households 80,249 175,260 273,545 2009 Total Households 75,065 161,191 252,083 2014 Total Households 91,085 186,376 284,376 % Households Change 1990-2000 -0.92% 0.54% 1.83% % Households Change 2000-2009 -6.46% -8.03% -7.85% % Households Change 2009-2014 21.34% 15.62% 12.81%

2009 RACE % 2009 White Population 42.46% 44.36% 51.10% % 2009 Black Population 51.76% 49.47% 41.25% % 2009 American Indian/Alaska Native 0.43% 0.43% 0.43% % 2009 Asian/Hawaiian/Pacific Islander 1.67% 1.98% 2.84% % 2009 Other Population (Incl 2+ Races) 3.67% 3.77% 4.38%

% 2009 Hispanic Population 5.30% 5.55% 6.48% % 2009 Non-Hispanic Population 94.70% 94.45% 93.52%

RCS:dkw:0111:06:R-1 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease. Source: Pitney Bowes Business Insight Page 1 © 2010 Pitney Bowes Business Insight™ Copyright© Troy, New York. All rights reserved. http://www.anysiteonline.com Net Lease Investment Services

3998AutoZone S CLAIBORNE AVE & 2998 GENERAL TAYLOR ST NEW ORLEANS LA 70125 New Orleans, Louisiana

Updated Summary Report (%) Coordinates Longitude: -90.099880 December 21, 2010 Latitude: 29.940320

3.0 Mile 5.0 Mile 7.0 Mile Ring Ring Ring 28.27 sq/mi 78.54 sq/mi 153.94 sq/mi

INCOME 2009 Per Capita Income $43,961 $33,351 $32,302 2009 Median Household Income $33,762 $31,801 $36,061 2009 Average Household Income $69,781 $61,094 $62,423

% 2009 Household Income < $10,000 17.14% 15.80% 12.69% % 2009 Household Income $10,000-$14,999 8.64% 9.51% 8.35% % 2009 Household Income $15,000-$19,999 7.19% 7.97% 7.35% % 2009 Household Income $20,000-$24,999 6.37% 7.47% 7.10% % 2009 Household Income $25,000-$29,999 6.31% 6.86% 6.61% % 2009 Household Income $30,000-$34,999 5.77% 6.62% 6.58% % 2009 Household Income $35,000-$39,999 5.17% 5.94% 6.21% % 2009 Household Income $40,000-$44,999 4.87% 5.64% 6.23% % 2009 Household Income $45,000-$49,999 4.56% 5.22% 6.06% % 2009 Household Income $50,000-$59,999 6.90% 7.46% 8.88% % 2009 Household Income $60,000-$74,999 7.14% 6.92% 8.88% % 2009 Household Income $75,000-$99,999 8.37% 6.56% 7.52% % 2009 Household Income $100,000-$124,999 3.82% 2.76% 2.84% % 2009 Household Income $125,000-$149,999 2.70% 1.95% 1.89% % 2009 Household Income $150,000-$199,999 1.92% 1.38% 1.24% % 2009 Household Income $200,000-$249,999 0.88% 0.56% 0.45% % 2009 Household Income $250,000-$499,999 2.05% 1.28% 1.07% % 2009 Household Income $500,000+ 0.20% 0.11% 0.07%

2009 Average Household Size 1.5 1.8 1.9 % 2009 Total Owner Occupied Housing Units 39.56% 48.52% 55.14% % 2009 Total Renter Occupied Housing Units 60.44% 51.48% 44.86%

2009 Total Daytime Population 183,108 370,915 586,561 2009 Total Daytime Work Population 118,023 211,462 336,306 2009 Total Establishments 11,922 21,727 34,189

RCS:dkw:0111:06:R-1 The information contained herein has been given to us by the owner of the property or other sources we deem reliable. We have no reason to doubt its accuracy, but we do not guarantee it. All information should be verified prior to purchase or lease. Source: Pitney Bowes Business Insight Page 2 © 2010 Pitney Bowes Business Insight™ Copyright© Troy, New York. All rights reserved. http://www.anysiteonline.com