ADVANCE AUTO PARTS OUTPARCEL TO WINN DIXIE SHOPPING CENTER $2,480,000 5% CAP VERO BEACH, FL

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1 ADVANCE AUTO PARTS OUTPARCEL TO WINN DIXIE SHOPPING CENTER $2,480,000 5% CAP VERO BEACH, FL * Actual Property While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies.

2 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. Vero Beach, FL OFFERING MEMORANDUM EXCLUSIVELY LISTED BY: LEE & ASSOCIATES - CENTRAL FLORIDA, LLC Florida Brokers Lic# LEE & ASSOCIATES - NORTH SAN DIEGO COUNTY, INC. California Brokers Lic# BARR & BENNETT NET LEASED INVESTMENTS Ryan Barr (760) rbarr@lee-associates.com CA Lic# Ryan Bennett (760) rbennett@lee-associates.com CA Lic# * Actual Property Page 2 of 23

3 INVESTMENT OVERVIEW INVESTMENT GRADE CREDIT TENANT - CORPORATE GUARANTEE Lease is Guaranteed by Advance Auto Parts (S&P: BBB-) - Largest Auto Parts Store in North America * Actual Property Page 3 of 23 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies.

4 No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice. Investment Summary INVESTMENT HIGHLIGHTS Price: $2,480,000 NOI: $123, Cap: 5% Rent/SF: $18.15 PROPERTY OVERVIEW Address: th Street SW, Vero Beach FL Tenant: Advance Auto Parts Guarantor: Discount Auto Parts, LLC (Corporate) Credit: Investment Grade - Standard &Poors Rated BBB- Building Size / Lot Size: 6,831 SF / 1.12 Acres Ownership: Fee Simple Year Built: 2015 Construction: Concrete Block TERMS, RENT SCHEDULE & OPTIONS Rent Commencement: November 27, 2015 Lease Expiration: November 30, 2030 Lease Term: 15 Years (14+ Years Remaining) Renewal Options: (4) 5-Year Options Lease Type: NNN Landlord Responsibilities: Structural Responsibilities Only - Roof*, Building, Foundation Tenant Responsibilities: Roof Maintenance, HVAC, Parking Lot, Taxes, Insurance, Landscaping Rent Increases: 10% Increase Every 5 Years - Option Periods *Actual Property RENT SCHEDULE - PRIMARY TERM Primary Term Start Date End Date NOI/Yr NOI/Mo NOI/SF/Yr NOI/SF/Mo Increase over Previous Term Years /27/ /30/2030 $123, $10, $18.15 $ (4) 5-Year Option Periods Option 1 12/1/ /30/2035 $136, $11, $19.97 $ % Option 2 12/1/ /30/2040 $150, $12, $21.96 $ % Option 3 12/1/ /30/2045 $165, $13, $24.16 $ % Option 4 12/1/ /30/2050 $181, $15, $26.58 $ % * 15-Year Transferable Warranty in Place Page 4 of 23

5 No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice. Investment Highlights INVESTMENT GRADE TENANT - NEW 15 YEAR LEASE - BRAND NEW CONSTRUCTION Investment Grade Credit - The lease has a corporate guarantee from Advance Auto Parts Inc., which has an investment grade credit rating of BBB- by Standard & Poor s. Desirable National Tenant - Advance Auto Parts is the largest automotive aftermarket parts provider in North America, with 5,200 stores in the United States, Puerto Rico, the U.S. Virgin Islands, and Canada. New Long Term Lease - The new 15-year lease features (4) 5-year options to renew with 10% increases in each option, providing an investor with a long-term income stream and a hedge against inflation. New Construction - The subject property is a brand new build-to-suit project featuring the latest prototype building for an Advance Auto Parts store. OUTPARCEL TO WINN-DIXIE ANCHORED SHOPPING CENTER - EXCELLENT VISIBILITY & ACCESS Outparcel to Winn-Dixie Anchored Shopping Center - The subject property ideally sits on the highly visible front pad of a Winn-Dixie Anchored shopping center. Winn-Dixie Stores, Inc. is a subsidiary of Southeastern Grocers, which is the fifth-largest supermarket chain in the United States based on store count. Winn-Dixie has 520 grocery stores, 145 liquor stores, and 393 in-store pharmacies throughout the five southeastern states of Alabama, Florida, Georgia, Louisiana, and Mississippi. Ideal Visibility, Signage & Frontage - The property is ideally situated with frontage along 9 th Street SW/ Oslo Road providing unobstructed visibility directly to the building signage and the shopping center pylon sign. Excellent Access - The property has multiple access points from 27 th Ave SW and direct access off of 9 th Street SW/Oslo Road which also includes left turn access. In addition, there are two separate cross access points to the property from the Winn Dixie shopping center. Retail Synergy within Trade Area - The property benefits from a strong surrounding retail tenant base which includes Family Dollar, Dunkin Donuts, Cumberland Farms, Shell, PNC Bank, CVS, Walgreens, SunTrust Bank, Vittorio s Pizza, and many more. ABUNDANT ADJACENT ROOFTOPS - TARGETED DEMOGRAPHICS - LIMITED COMPETITION IN TRADE AREA Dense Residential Housing Population - The subject property is surrounded by a multitude of residential housing projects (51,855 units as of 2016 within a 5-mile radius) lending well to the tenant s concept and projected long term profitability. Limited Competition - The nearest auto parts store in the trade area is over three miles away assuring the tenant s profitability at this location and minimizing future vacancy risk. Targeted Demographics - Located along a main retail corridor, the trade area has over 81,000 people within a 5-mile radius of the subject property with an average household income in excess of $64,000. Premier Highly Desirable Destination - From luxurious world-class hotels to lovely marinas and comfortable family lodging, Vero Beach has become a major tourist destination, and was named a Top Beach Destination by USA Today in Tourism a Boom to Indian River County: Tourist-tax revenues are up 13.4% year-to-date 2016, and revenues have exceeded the amount budgeted by the county by 18.3%.* Proximity to Orlando, West Palm Beach - The subject property is only 75 miles from downtown West Palm Beach, the Golf Capital of the World, and 105 miles from Orlando, home to Walt Disney World, Universal Orlando, and Sea World Orlando. *Source: TCPalm.com Page 5 of 23

6 No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice. Competition Map 5 MILES 3 MILES 1 MILE SUBJECT PROPERTY Page 6 of 23

7 No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice. Property Photos Front of Advance Auto Parts Entrance to Advance Auto Parts Rear of Advance Auto Parts Store Loading Area at Rear of Building West Side of Building Page 7 of 23

8 No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice. Neighbors in Center Anchored by Winn Dixie Grocery Store Adjacent Shop Spaces to Winn Dixie New Family Dollar Store Across from Advance Auto Parts Page 8 of 23

9 AERIAL OVERVIEW OUTPARCEL TO WINN-DIXIE ANCHORED SHOPPING CENTER Located on Front Pad of Winn-Dixie on 9 th St SW/Oslo Rd (17,000 CPD) - Excellent Visibility & Signage * Actual Property Page 9 of 23 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies.

10 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. OVERHEAD VIEW OF ADVANCE AUTO PARTS 5.60 Acres For Sale Retail/Commercial Future Retail/Restaurant ACCESS #1 9th St SW / Oslo Rd (17,000 cpd) N Page 10 of 23

11 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. LOOKING NORTH FROM BURGER KING To Orlando 105 Miles Indian River Mall Vero Beach Regional Airport Citrus Elementary School VERO BEACH SOUTH th Ave SW Pineapple Cay *Actual Property 5.60 Acres For Sale Retail/Commercial ARCADE Future Retail/Restaurant 9th St SW / Oslo Rd (17,000 cpd) N Page 11 of 23

12 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. LOOKING NORTHEAST FROM ADVANCE AUTO PARTS VERO BEACH SOUTH 1 Pineapple Cay VERO BEACH Riomar Country Club The Preserve of Vero Beach 140 Single Family Homes American Golf Club-Vero Beach 1 Serenoa Community 1 Lexington Place 101 Single Family Homes To West Palm Beach Oslo Middle School 76 Miles Bradford Place 152 Townhomes 27 th Ave SW (12,000 cpd) 27 th Ave SW (12,000 cpd) 4.86 Acres For Sale Commercial ACCESS #3 ARCADE #2 ACCESS 5.60 Acres For Sale Retail/Commercial Future Retail/Restaurant #1 ACCESS 9th St SW / Oslo Rd (17,000 cpd) *Actual Property N Page 12 of 23

13 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. LOOKING EAST FROM ADVANCE AUTO PARTS Serenoa Community 101 Single Family Homes Oslo Middle School 27 th Ave SW Acres For Sale Commercial The Moorings Yacht American Golf & Country Club Club-Vero Beach SOUTH BEACH 1 OSLO Treasure Coast Community Health Grove Isle at Vero Beach 1 FLORIDA RIDGE ThePreserve at Oslo Apartments Bradford Place 152 Townhomes Combined Holiday Village 29,000+ cars per day Mobile Home Park ARCADE ACCESS #3 Osceola Magnet School 20 th Ave SW 20 th Ave SW 1.60 Acres For Sale Commercial 27 th Ave SW (12,000 cpd) 27 th Ave SW (12,000 cpd) ACCESS #2 To West Palm Beach 76 Miles 9th St SW / Oslo Rd (17,000 cpd) Ansley Park 93 Single Family Homes ACCESS #1 Future Retail/Restaurant 5.60 Acres For Sale Retail/Commercial N *Actual Property Page 13 of 23

14 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. LOOKING SOUTHEAST FROM ADVANCE AUTO PARTS 20 th Ave SW FLORIDA RIDGE 27 th Ave SW (12,000 cpd) 1 ThePreserve at Oslo Apartments Combined 29,000+ cars per day Osceola Magnet School Holiday Village Mobile Home Park 1.60 Acres For Sale Commercial WEST PALM BEACH 20 th Ave SW Indian River Golf Club 9th St SW / Oslo Rd (17,000 cpd) Spanish Lakes Golf Club 27 th Ave SW (12,000 cpd) 2.98Acres For Sale Commercial/Residential Ansley Park 93 Single Family Homes LAKEWOOD PARK Falcon Trace 335 Single Family *Actual Property Future Retail/Restaurant 5.60 Acres For Sale Retail/Commercial N Page 14 of 23

15 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. LOOKING SOUTH FROM ADVANCE AUTO PARTS To West Palm Beach LAKEWOOD PARK Falcon Trace 335 Single Family Homes Millstone Landing 300+ Single Family Homes Holiday Village Mobile Home Park 27 th Ave SW 27 th Ave SW (12,000 cpd) 2.98Acres For Sale 1.60 Acres For Sale Commercial/Residential Commercial Ansley Park 93 Single Family Homes 9th St SW / Oslo Rd (17,000 cpd) Grovenor Estates *Actual Property Future Retail/Restaurant 5.60 Acres For Sale Retail/Commercial N Page 15 of 23

16 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. LOOKING SOUTHWEST FROM ADVANCE AUTO PARTS To West Palm Beach Spanish Lakes 5,000 Manufactured Homes 800 Homes Millstone Landing 300+ Single Family Homes Grovenor Estates *Actual Property Ansley Park 93 Single Family Homes 9th St SW / Oslo Rd (17,000 cpd) Future Retail/Restaurant Vero Christian Church 5.60 Acres For Sale Retail/Commercial N Page 16 of 23

17 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. LOOKING WEST FROM ADVANCE AUTO PARTS Citrus Springs Village 500 Home Sites Imagine Schools at South Vero 9.50 Acres For Sale Heavy Commercial 9th St SW / Oslo Rd 18 Acres For Sale Retail Pad Acres For Sale Commercial Vero Christian Church Hidden Palms Tennis & Swim Club Grovenor Estates Ansley Park 93 Single Family Homes 9th St SW / Oslo Rd (17,000 cpd) *Actual Property Future Retail/Restaurant 5.60 Acres For Sale Retail/Commercial N Page 17 of 23

18 TENANT OVERVIEW LIMITED COMPETITION Nearest Auto Parts Store in the Trade Area is Over 3 Miles Away * Actual Property Page 18 of 23 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies.

19 No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice. 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 works hard to create an environment of honesty, integrity, mutual trust and dedication. Since our founding by Arthur Taubman in 1932, these values haven t changed. Inspire and build the self-confidence and success of every Team Member. Serve our customers better than anyone else help them succeed. Grow the business and profitability with integrity. In January 2014, Advance announced the completion of the acquisition of General Parts International, Inc. (GPII), a leading privately held distributor and supplier of original equipment and aftermarket replacement products for commercial markets operating under the CARQUEST and WORLDPAC brands. Advance now operates 5,297 company-operated stores, 105 Worldpac branches, and services approximately 1,400 independently owned Carquest branded stores in 49 states, Puerto Rico, the Virgin Islands and Canada. Advance employs over 74,000 Team Members. Advance Auto Parts, Inc. is sponsoring the Ricky Benton Racing Team in the 2016 NASCAR Camping World Truck Series. The series features 21 tracks and hosts 23 events in the U.S. and Canada. It begins in Daytona for the NextEra Energy Resources 250, with Parker Kligerman driving #92, a Roush Yates- powered Ford 150. HIGHLIGHTS ADVANCE AUTO PARTS Founded: 1932 Revenue: $9.84 Billion (2015) Headquarters: Roanoke, VA Credit Rating: S&P BBB- Locations: 5,300 NYSE Symbol: AAP Employees: 74,000 Website: Page 19 of 23

20 AREA OVERVIEW DENSE RESIDENTIAL HOUSING POPULATION Property Surrounded by Multitude of Residential Housing Projects - Over 51,000 Units within 5 Mile Radius * Actual Property Page 20 of 23 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies.

21 No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice. Area Overview VERO BEACH, FLORIDA Vero Beach is the the county seat of Indian River County, Florida, which lies along the state s Treasure Coast (see more information below) and is Florida s 7 th richest county. An elegant city located along Florida s Atlantic Coast, Vero Beach is a haven for golf, water sports and fishing. Peaceful beaches, museums, nature tours and a range of hotels have garnered Vero Beach a Top Beach Destination by USA Today in The city also offers a fine selection of shops both downtown and in large shopping malls and delectable cuisine for all budgets. Also found in Vero Beach are museums, art galleries and many parks, some of which offer access to an enticing network of rivers and inlets. Florida s Treasure Coast The Treasure Coast is a region of the U.S. state of Florida located on the state s Atlantic coast. Its name refers to the Spanish Treasure Fleet lost in a 1715 hurricane. The name evidently emerged from residents desire to separate themselves from Miami and the Gold Coast region. Source: Sandshack33 Dreamstime.com The Anthony J. Catanese Center for Urban and Environmental Solutions at Florida Atlantic University notes that the Treasure Coast is becoming increasingly continuous with the rest of South Florida, with much of its current and projected development being tied to growth in the urban Miami metropolitan area. Industry Vero Beach is home to general aviation manufacturer Piper Aircraft, which is the largest private employer in Indian River County. As of July 2015, Piper employed approximately 750 people. Aside from Piper, the bulk of commercial activity in Vero Beach centers around tourism, the citrus industry and service activities. Popular Resorts & Beaches The beaches in Vero Beach are part of Florida s Treasure Coast. Vero s three main public beaches are South Beach, Jaycee Park, and Humiston Park, which was named one of the Top 10 Beaches in the U.S. by Family Vacation Critic. Vero Beach has several resorts as well, including Disney s Vero Beach Resort; Costa de Este Beach Resort & Spa, Gloria & Emilio Estefan s luxury resort; Vero Beach Hotel & Spa, a world-class destination voted 2015 Best Florida Hotel by U.S. News & World Report; and The Driftwood Resort, a Vero Beach legend named to the National Registry of Historic Places in Source: Disney.com Page 21 of 23

22 No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice. Demographics 1 Miles 3 Miles 5 Miles INCOME RACE & ETHNICITY HOUSEHOLDS POPULATION BUSINESS 2016 Estimated Population 2,756 42, , Projected Population 3,009 44, , Census Population 2,588 40, , Census Population 2,124 36, ,913 Projected Annual Growth 2016 to % 1.1% 1.0% Historical Annual Growth 2000 to % 1.1% 1.6% 2016 Median Age Estimated Households 1,173 18,616 51, Projected Households 1,307 19,902 55, Census Households 1,094 17,545 48, Census Households ,441 41,421 Projected Annual Growth 2016 to % 1.4% 1.3% Historical Annual Growth 2000 to % 1.3% 1.6% 2016 Estimated White 79.5% 68.4% 63.5% 2016 Estimated Black or African American 7.2% 19.7% 22.7% 2016 Estimated Asian or Pacific Islander 9.0% 5.0% 6.4% 2016 Estimated American Indian or Native Alaskan 0.3% 0.3% 0.2% 2016 Estimated Other Races 4.1% 6.6% 7.1% 2016 Estimated Hispanic 4.1% 7.9% 8.5% 2016 Estimated Average Household Income $141,555 $104,631 $109, Estimated Median Household Income $108,138 $78,966 $83, Estimated Per Capita Income $60,270 $45,978 $44, Estimated Total Businesses 502 4,002 7, Estimated Total Employees 9,584 78, , Estimated Employee Population per Business Estimated Residential Population per Business * Actual Property Page 22 of 23

23 While the foregoing information has been secured from sources we deem to be reliable, no warranty or representation is made as to the accuracy of the information. Buyer to verify the information and bears all risks for any inaccuracies. Ryan Barr Exclusively Listed by: Ryan Bennett Lee & Associates hereby advises all prospective purchasers of Single-Tenant Net-Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a single-tenant property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a single-tenant property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any single-tenant property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Lee & Associates and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this single-tenant property. * Actual Property Page 23 of 23