Net Lease Investment Services File Photograph 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 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. Net Lease Investment Services 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 pur- chase 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. 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. Net Lease Investment Services 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. 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. Net Lease Investment Services 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. 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. Net Lease Investment Services 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.