Advance Auto Parts 1325 W Court St | Pasco, WA - OFFERING MEMORANDUM
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OFFERING MEMORANDUM
Pasco, wa
Advance Auto Parts
1325 W C o u rt S t | Pasco, WA
™
Executive Overview
Investment Highlights
»» Brand New Construction with Long-Term NNN Lease - Advance Auto Parts signed a 15-year NNN lease with the tenant responsible for roof, parking,
and HVAC. The lease includes 5% rent increases every 5 years in the option periods. The property was built in 2017 with steel frame and concrete block
construction.
»» Infill Location with Large Population Growth - Pasco, WA is part of the Tri-Cities that also include Richland and Kennewick. The Tri-Cities has seen an
increase of nearly 15% since 2010 with an expected population growth of more than 6% in the next 5 years. There are over 124,000 people located in a
5-mile radius with an average household income of ±$71,000.
»» Strategic Location in the Western United States - Advance Auto Parts has been making a strategic effort to build operations in the Western United
States since the acquisition of Genuine Parts in 2013. Advance Auto Parts currently operates ±5,200 stores throughout the country and according to
their 10k, 32 in the state of Washington. The Pasco location fits into their long-term strategy of continuing their West Coast operations.
»» Hard Signalized Corner on Major Thoroughfare - The property is located on the hard signalized corner of N 14th Ave and Court Street, one of the busiest
streets in the city. In addition to being located directly across the street from Pasco High School, there are also many other retailers located on the same
street.
»» Corporate Guaranty with Investment Credit - The lease is signed by Advance Stores Company, Inc. which is rated BBB- by Standard and Poor’s. Advance
Auto has a market cap of ±$9B and is one of the largest auto parts retailers in the world.
»» Income Tax-Free State - Other states income tax ranges from 2.9% on the low end to 13.3% on the higher end, but Washington is one of only seven
states lucky enough to benefit from no income tax.
»» Tremendous 4-Year Growth - Within the Tri-Cities, Mid-Columbia has added 15,000 jobs, the average price for homes is up over 40%, average rent is up
about 10%, and apartment vacancy rates remain below 4% despite many new apartment developments.
CONRAD SARREAL CHAD KURZ KEN REINSCHMIDT
SENIOR ASSOCIATE SVP & NATIONAL DIRECTOR BROKER OF RECORD
LIC # 73743 (WA)
DIRECT (310) 919-5760 DIRECT (214) 692-2927
MOBILE (626) 230-1006 MOBILE (562) 480-2937
conrad.sarreal@matthews.com chad.kurz@matthews.com
LIC # 01982875 (CA) LIC # 01911198 (CA) 3 |
Financial Overview
Executive Overview
| 4
Pasco, wa
Annualized Operating Data
Monthly Rent Annual Rent RPSF
Current (Years 1-15) $10,960 $131,520 $19.03
Option 1 $11,508 $138,096 $19.98
Option 2 $12,083 $144,996 $20.96
Option 3 $12,687 $152,244 $22.03
Option 4 $13,322 $159,864 $23.13
Tenant Summary
Tenant Trade Name Advance Auto Parts
Investment Summary Type of Ownership Fee Simple
Lease Guarantor Corporate
»» OFFERING PRICE $2,290,000
Lease Type NNN
»» NOI (YEAR 1) $131,520 Roof, Parking, & HVAC Tenant Responsibility
Term Remaining on Lease ±14.5 Years
»» CAP RATE (YEAR 1) 5.74%
Original Lease Term 15 Years
»» TOTAL BUILDING AREA ± 6,912 SF Lease Commencement Date 11/3/2017
Lease Expiration Date 11/30/2032
»» TOTAL LAND AREA ± 0.51 Acres
Increases 5% in Options
Options Four, 5-Year Options
5 |
PROPERTY OVERVIEW
Property Overview
The Offering Tenant Overview
PROPERTY NAME Advance Auto Parts »» Company Name »» Year Founded »» Headquarters
Property Address 1325 W Court St Advance Auto Parts 1929 Roanoke, VA
Pasco, WA
»» Ownership »» Industry »» No. of Employees
Public Auto Services ±74,000
SITE DESCRIPTION
Number of Stories One 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 operates over 5,185
Year Built 2017
stores, over 127 Worldpac branches and serves approximately 1,250 independently owned CARQUEST branded stores in
GLA ±6,912 SF the United States, Puerto Rico, the U.S. Virgin Islands and Canada. Employing approximately 74,000 Team Members, the
Lot Size 0.51 AC (±22,216 SF) company works hard to create an environment of honesty, integrity, mutual trust, and dedication. These values have
remained the same since Advance Auto Parts founding in 1929. Advance Auto Parts operates stores that primarily offer
Type of Ownership Fee Simple
auto parts such as alternators, batteries, belts and hoses, chassis parts, clutches, engines and engine parts.
Parking Surface Asphalt
BBB- ±5,200
Topography Generally Level
Credit Rating (S&P) Locations
| 6
Pasco, wa
7 |
Location N o rt h | 8
Tenant Map
9 |
Area Overview
Executive Overview
Pasco, WA
Pasco is a city in, and the county seat of, Franklin County, Washington and is one of three
cities that make up the Tri-Cities region. A thriving community with a population of more than
67,000, Pasco has seen tremendous growth and development in the last 15 years. Aesthetic
and recreational charisma surrounded by natural beauty make this desert community rich in
agriculture a popular destination.
Growth
Pasco has experienced rapid residential growth in the 21st century, growing from a 2000
population of 32,066 to a 2017 population estimate of 71,680. This growth has occurred
hand-in-hand with increasing quality of life, recognized by several independent surveys:
Demographics
POPULATION 1 MILE 3 MILE 5 MILE
Rated #1 in the country for its 2022 Projection 21,459 58,821 135,329
“Rising Housing Market” 2017 Estimate 19,655 53,965 124,473
2010 Census 18,777 49,421 111,465
POPULATION GROWTH
Rated as one of the 50 Most Popular Growth 2017-2022 9.18% 9.00% 8.72%
Mid-Size Cities To Relocate Growth 2010-2017
HOUSEHOLDS
4.68% 9.19% 11.67%
2022 Projection 5,972 17,635 43,767
Crime rate has dropped more than 80% since 2017 Estimate 5,372 16,000 40,079
1990 and cited as one of the safest cities in 2010 Census 5,214 14,965 36,973
the state in several different surveys
HOUSEHOLD GROWTH
Growth 2017-2022 11.16% 10.22% 9.20%
Growth 2010-2017 3.04% 6.91% 8.40%
INCOME
Average Household Income $53,801 $65,069 $71,300
Median Household Income $39,463 $50,896 $55,483
| 10Pasco, WA
economy
Due to the agricultural region in which it sits, several large food processing companies have a presence in the city of Pasco. ConAgra Foods, Reser’s Fine Foods, and Twin City
Foods are just some of the companies that have chosen to base a part of their operations here. In recent years, the region has become a large player in Washington State’s
booming wine industry. Gordon Brothers Cellars, Fidelitas Winery, Kamiak Vineyards, and Preston Premium Wines are a few of the local wineries.
Pasco is home to the Tri-Cities Airport, a regional commercial and private airport served by several airlines with direct flights to nine major US cities: Denver, Las Vegas, Los
Angeles, Minneapolis, Phoenix, Portland, Salt Lake City, San Francisco, and Seattle. The local Amtrak station has been located in Pasco since 1971, when the national rail
passenger service was established. Before this, the Northern Pacific operated passenger trains through Pasco.
Additional commercial transportation is also done through extensive barge traffic on the Columbia and Snake rivers. Rail transport is provided by the BNSF Railway. Trucking
uses Interstate 182 and to a lesser extent U.S. Route 395.
Some of the biggest Pasco employers include Hanford nuclear facility, Burlington Northern, Lamb Weston, Boise Cascade, Tyson Foods, Energy Northwest, Fluor Hanford Inc.,
Bechtel National Inc., and Pacific Northwest National Laboratory currently managed by Battelle Memorial Institute. operated passenger trains through Pasco.
11 |Confidentiality Agreement & Disclaimer
This Offering Memorandum contains select information pertaining to the business and affairs of Advance Auto Parts located at 1325 W Court St, Pasco, WA 99301
(“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a
prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective
purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate
Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner,
nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of
its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions
without reliance upon the material contained herein and conduct their own due diligence.
By acknowledging your receipt of this Offering Memorandum for the Property, you agree:
1 . The Offering Memorandum and its contents are confidential;
2. You will hold it and treat it in the strictest of confidence; and
3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or
its contents in any fashion or manner detrimental to the interest of the Seller.
Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the
Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written
agreement for the purchase and sale of the Property has been fully executed and delivered.
If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating
to this Property including this Offering Memorandum.
A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of
the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser
have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners,
employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.
This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs
of the Property since the date this Offering Memorandum.Van Nuys, CA
Advance Auto Parts
1325 W Court St | Pasco, WA 99301
CONRAD SARREAL
SENIOR ASSOCIATE
DIRECT (310) 919-5760
MOBILE (626) 230-1006
conrad.sarreal@matthews.com
LIC # 01982875 (CA)
CHAD KURZ
SVP & NATIONAL DIRECTOR
DIRECT (214) 692-2927
MOBILE (562) 480-2937
chad.kurz@matthews.com
LIC # 01911198 (CA)
KEN REINSCHMIDT
BROKER OF RECORD
LIC # 73743 (WA)
™
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