ADVANCE AUTO PARTS OFFERING MEMORANDUM - 503 S HUDSON AVE STURGEON BAY, WI 54235 - LoopNet
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OFFERING MEMORANDUM ADVANCE AUTO PARTS 503 S H U D S O N AV E • S T U R G E O N B A Y, W I 54235
Affiliated Business Disclosure Property. All references to acreages, square footages, and other measurements
are approximations. This Memorandum describes certain documents, including
CBRE, Inc. operates within a global family of companies with many subsidiaries leases and other materials, in summary form. These summaries may not be
and related entities (each an “Affiliate”) engaging in a broad range of commercial complete nor accurate descriptions of the full agreements referenced. Additional
real estate businesses including, but not limited to, brokerage services, property information and an opportunity to inspect the Property may be made available
and facilities management, valuation, investment fund management and to qualified prospective purchasers. You are advised to independently verify the
development. At times different Affiliates, including CBRE Global Investors, Inc. accuracy and completeness of all summaries and information contained herein,
or Trammell Crow Company, may have or represent clients who have competing to consult with independent legal and financial advisors, and carefully investigate
interests in the same transaction. For example, Affiliates or their clients may the economics of this transaction and Property’s suitability for your needs. ANY
have or express an interest in the property described in this Memorandum (the RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT
“Property”), and may be the successful bidder for the Property. Your receipt YOUR OWN RISK.
of this Memorandum constitutes your acknowledgment of that possibility and
your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to The Owner expressly reserves the right, at its sole discretion, to reject any or all
disclose to you such Affiliates’ interest or involvement in the sale or purchase of expressions of interest or offers to purchase the Property, and/or to terminate
the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the discussions at any time with or without notice to you. All offers, counteroffers, and
best interest of their respective client(s), at arms’ length, not in concert, or in a negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall
manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct have any legal commitment or obligation except as set forth in a fully executed,
their respective businesses in a manner consistent with the law and all fiduciary definitive purchase and sale agreement delivered by the Owner.
duties owed to their respective client(s).
Copyright Notice
Confidentiality Agreement
© 2021 CBRE, Inc. All Rights Reserved.
Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a
confidential Memorandum solely for your limited use and benefit in determining
whether you desire to express further interest in the acquisition of the Property,
(ii) you will hold it in the strictest confidence, (iii) you will not disclose it or its
contents to any third party without the prior written authorization of the owner of
the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this
Memorandum in any manner detrimental to the Owner or CBRE, Inc.
If after reviewing this Memorandum, you have no further interest in purchasing
the Property, kindly return it to CBRE, Inc.
Disclaimer
This Memorandum contains select information pertaining to the Property and
the Owner, and does not purport to be all-inclusive or contain all or part of the
information which prospective investors may require to evaluate a purchase of
the Property. The information contained in this Memorandum has been obtained
from sources believed to be reliable, but has not been verified for accuracy,
completeness, or fitness for any particular purpose. All information is presented
“as is” without representation or warranty of any kind. Such information includes
estimates based on forward-looking assumptions relating to the general
economy, market conditions, competition and other factors which are subject
to uncertainty and may not represent the current or future performance of the
INVESTMENT SUMMARY
ADVANCE AUTO PARTS | STURGEON BAY, WI
PRICE SUMMARY
Strong Store Sales with a Long-Term Tenant and New 10-Year Lease
$833,333
The site itself has been an auto parts store since it was built in 1992. The tenant recently executed a new 10-year lease
6.00% CAP Rate extension, indicating a deep commitment to this particular site and area. Sales at this location are strong (contact broker for
details). Prior to Advance Auto Parts, this store was occupied by Napa Auto Parts and Carquest Auto Parts.
ADDRESS
Corporately Guaranteed Lease
503 S Hudson Ave The lease is guaranteed by the corporate entity Advance Stores Company, Inc. (NYSE “AAP”), the second-largest
Sturgeon Bay, WI 54235 automotive aftermarket retailer in North America and with a credit rating of “BBB” by Standard & Poor’s.
APN
281-3615041902
All Capital Expenditure Items Recently Updated and Well-Maintained
A new steel roof, installed in 2013, comes with a 20-year warranty and additional ease of ownership. Additionally, the
NET OPERATING INCOME parking lot at this site has been receiving a new seal coat every three years to maintain its integrity and visual appeal. The most
$50,000 recent seal coat was applied in 2017. The HVAC system was replaced in 2019, further minimizing significant exposure to capital
expenditures for a new owner.
BUILDING/LOT SIZE
10,500 SF / 1.14 Acres
Below-Market Rent
LEASE TERM Current rent is below-market at $4.76 per square foot, providing a new owner the opportunity to grow future net
10 Years operating income.
TYPE OF OWNERSHIP
Fee Simple
Provides Service and Parts to Local Mechanics and Dealerships
This Advance Auto Parts location provides parts, service, and support to the area’s auto mechanic shops as well as the
three car dealerships located adjacent to the site.
Surrounded by National Retailers on a Major Trade and Travel Corridor
The Property is highly visible and accessible, located at the primary entrance point to the city of Sturgeon Bay. This
location has visibility from Highway 42, the state highway connecting the entire Door County region and the entire eastern edge
of the state. The Property also benefits from close proximity to other retail traffic drivers including Walgreens, Sherwin Williams,
McDonald’s, and Target.
TENANT SUMMARY
ADVANCE AUTO PARTS | STURGEON BAY, WI
TENANT SUMMARY
Ownership Public (NYSE: “AAP’)
Lease Guarantor Corporate
No. of Locations 9,200+ (System-wide)
Sales Volume $9.71B (2019)
Headquartered Raleigh, NC
Years in the Business 87
Website www.advanceautoparts.com
LEASE SUMMARY RENT SCHEDULE
Tenant Advance Auto Parts Lease Term Year Start Year End Annual Rent Per SF
Guarantor Corporate Current 1 10 $50,000.00 $4.76
Lease Type NN Option 11 15 $54,000.00 $5.14
Real Estate Tax Tenant Responsibility. Landlord Reimbursed. Option 16 20 $58,320.00 $5.55
Property Insurance Tenant Responsibility. Landlord Reimbursed.
Utilities Tenant Responsibility. Paid Direct.
Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installer
CAM Tenant Responsibility. Paid Direct.
and do-it-yourself customers. As of July 13, 2019, Advance operated 4,912 stores and 150 Worldpac branches in
Roof & Structure Landlord Responsibility
the United States and Canada, making it the 2nd largest automotive aftermarket retailer.
Original Lease Term 10 Years
Term Remaining 10 Years The company also serves 1,250 independently owned Carquest branded stores across these locations in addition
Lease Commencement Date 12/1/2011 to Mexico, the Bahamas, Turks and Caicos, and British Virgin Islands. Locations offer a broad selection of brand
Lease Expiration Date 9/30/2030 name, OEM and private label automotive replacement parts, accessories, batteries, and maintenance items for both
Options Two 5-Year Options domestic and imported vehicles.
Increases 8% in Options
Right of First Refusal 30 Days Advance Auto Parts has remained on the Fortune 500 list since 2003, ranking number 326 in 2019.
PROPERTY PHOTOS
ADVANCE AUTO PARTS | STURGEON BAY, WI
Elevated Pylon Signage Adds Excellent Visibility Steel Roof, New in 2013, 20-Year Warranty
Superior Sightlines from Highway 42 (Door County Travel Corridor) and Green Bay Road (Feeds Downtown Sturgeon Bay)
AERIAL
ADVANCE AUTO PARTS | STURGEON BAY, WI
TOWN
DOWN N BAY
EO
STURG
DC TOWING -
COLLISION
C L ES
CENTER
HI
VE SAWYER
00
4,8 ELEMENTARY
AD SCHOOL
O
YR
BA
E EN
GR
13,400 VEHICLES
STURGEON BAY
INDUSTRIAL PARK
DOOR COUNTY
JUSTICE CENTER
S O U T H E A S T- FA C I N G A E R I A L
ADVANCE AUTO PARTS | STURGEON BAY, WI
STURGEON BAY
INDUSTRIAL PARK
13,400
VEHIC
LES
GREE
N B AY
ROAD
4,800 VEHI
CLES
N O R T H E A S T- FA C I N G A E R I A L
ADVANCE AUTO PARTS | STURGEON BAY, WI
DOWNTOWN STURGEON BAY
G
RE
EN
BA
YR
OA
D
W E S T- FA C I N G A E R I A L ADVANCE AUTO PARTS | STURGEON BAY, WI
P R O X I M I T Y T O G R E E N B AY
ADVANCE AUTO PARTS | STURGEON BAY, WI
MICHIGAN
UPPER PENINSULA
LAKE MICHIGAN
BAY OF GREEN BAY
ES
IL
M
42
TES
I NU
M
41
GREEN BAYMARKET SUMMARY ADVANCE AUTO PARTS | STURGEON BAY, WI ECONOMIC AND TOURIST CENTER OF DOOR PENINSULA The county seat of Door County, the City of Sturgeon Bay is a regional tourist destination and the center of the Door Peninsula, known collectively as “Door County”. The city enjoys a thriving tourist trade, underpinned by a number of outdoor annual concerts as well as sport fishing on the Bay of Green Bay, hiking, snowmobiling, and more. Sturgeon Bay is home to a number of industries including manufacturing, healthcare, agriculture, and retail. Currently, the largest private employers in the county are Fincantieri Bay Shipbuilding, Door County Medical Center, Hatco Corporation, and several others, all located within city limits. The city enjoys a bucolic location on the Bay of Green Bay, just 40 minutes away from the City of Green Bay. STURGEON BAY CITY DEMOGRAPHICS 9,324 Citizens 2020 City Population Estimate 46.6 Years Old 2020 City Median Age $70,068 2020 City Average Household Income
DEMOGRAPHICS ADVANCE AUTO PARTS | STURGEON BAY, WI
DEMOGRAPHICS
ADVANCE AUTO PARTS | STURGEON BAY, WI
1 MILE 3 MILES 5 MILES
POPULATION
2020 Population - Current Year Estimate 2,175 10,241 12,610
2025 Population - Five Year Projection 2,164 10,238 12,602
2010-2020 Annual Population Growth Rate 0.07% 0.20% 0.19%
GENERATIONS
Generation Z (Born 1999-2016) 18.7% 18.5% 18.0%
Millennials (Born 1981-1998) 22.8% 20.5% 19.4%
Generation X (Born 1965-1980) 18.9% 18.0% 18.3%
Baby Boomers (Born 1946-1964) 28.1% 29.0% 30.5%
HOUSEHOLD INCOME
2020 Average Household Income $66,299 $70,343 $75,978
2025 Average Household Income $72,502 $76,164 $83,026
EDUCATION
High School Diploma 29.1% 29.3% 29.3%
Some College - No Degree 26.0% 23.3% 22.3%
Associate`s Degree 12.2% 10.3% 9.9%
Bachelor`s Degree 17.5% 17.2% 18.0%
Graduate or Professional Degree 6.6% 8.9% 9.8%
DAYTIME POPULATION
Daytime Workers 1,935 6,420 7,115
Daytime Residents 760 4,653 5,855CONSUMER BASE - 1 MILE RADIUS
ADVANCE AUTO PARTS | STURGEON BAY, WI
DOMINANT LIFE SEGMENT DOMINANT LIFEMODE GROUP
44.2% RUSTBELT
TRADITIONS
44.2% GEN X URBAN
• Gen X in middle age; families with fewer kids and a mortgage
• Own older single family homes in urban areas with 1 or 2 vehicles
• Backbone of older industrial cities in states • Invest wisely, well-insured, comfortable banking online or in person
surrounding the Great Lakes • News junkies
• Work force is primarily white collar, with a • Enjoy reading, renting movies, dining out, walking for exercise
concentration of skilled workers in manufacturing, D O M I N A N T U R B A N I Z AT I O N G R O U P
44.2% URBAN PERIPHERY
retail trade, and health care
• Large market of stable, hard-working consumers
with modest incomes
• They value time spent at home • Young families with children; diverse population
• Homeowners living closer to the city
• Budget aware shoppers that favor American- • Leisure and spending focus on the children
made products • Parents of small children that favor family restaurants and fast food
• Most households have 1 or 2 vehicles • Smartphones are popular for social networking, apps, games and music
O T H E R TO P S E G M E N T S
38.2% SALT OF THE
EARTH 17.5% OLD AND NEWCOMERS
• Residents are entrenched in their traditional, rural lifestyles • Singles’ lifestyles on a budget
• Cost-conscious consumers, loyal to brands, with a focus on buying • Neighborhoods in transition, populated by renters who are just
American beginning careers or retiring
• They may be experts with DIY projects, but the latest technology is • Price aware consumers who are coupon clippers but open to impulse
not their forte buys
• Due to rural settings, most households own two vehicles to cover long • Age is not always obvious from their choices
commutes • Vehicles are just a means of transportation
• To support pasttimes, truck ownership is high, may also own an ATVC O N TA C T U S
PATRICK GALLAGHER
Executive Vice President
+1 414 274 1688
p.gallagher@cbre.com
WI BROKER OF RECORD
SEAN DOYLE
First Vice President
+1 612 336 4324
sean.doyle2@cbre.com
MATT HAZELTON
First Vice President
+1 612 336 4328
matt.hazelton@cbre.com
AJ PRINS
First Vice President
+1 612 336 4322
aj.prins@cbre.com
CORY VILLAUME
First Vice President
+1 612 336 4323
cory.villaume@cbre.com
S E E A L L L I S T I N G S A N D L E A R N M O R E A B O U T U S AT
W W W . C B R E . U S / I N V M I N N E A P O L I S R E TA I L
© 2021 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for
accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance
on this information is solely at your own risk. CBRE and the CBRE logo are service marks of CBRE, Inc. All other marks displayed on this
document are the property of their respective owners, and the use of such logos does not imply any affiliation with or endorsement of CBRE.
Photos herein are the property of their respective owners. Use of these images without the express written consent of the owner is prohibited.You can also read
