Offering MemorandumPortfolio Investment Opportunity Available for Sale
Napa Auto PartsA Division of Genuine Parts Company
PRESENTED BY:Ashley W. Smith, CCIM, SIOR Danny S. Chase, SIORPrincipal Principal DIRECT +1 912 662 8011 DIRECT +1 912 662 8012 EMAIL [email protected] EMAIL [email protected]
COLLIERS INTERNATIONAL P. 2NAPA AUTO PARTS | OFFERING MEMORANDUM CONTACT: ASHLEY W. SMITH DIRECT: +1 912 662 8011 • DANNY S. CHASE DIRECT: +1 912 662 8012
Table of Contents> OFFERING SUMMARY
Financial Overview ................................................................................................................... 3
Tenant Overview ....................................................................................................................... 3
Lease Overview ........................................................................................................................ 3
Investment Highlights ............................................................................................................... 3
> ABOUT THE FRANCHISENAPA Auto Parts ..................................................................................................................... 4
> PORTFOLIO OF PROPERTIES3815 Ogeechee Road Savannah, GA ....................................................................................... 5
1564 Dean Forest Road Savannah, GA .................................................................................... 5
315 U.S. Highway 80 Savannah, GA ....................................................................................... 6
3926 Community Road Brunswick, GA.............OFF MARKET ................................................ 6
> PROPERTY MAP .................................................................................................................... 7
> DEMOGRAPHICS ................................................................................................................... 8
> LIMITING CONDITIONSLimiting Conditions & Contact Information ............................................................................. 9
The material contained in this Offering Memorandum is confidential, furnished solely for the purpose of considering the acquisition of Genuine Parts Company & Napa Auto Parts locations and is not to be used for any other purpose or made available to any other person without the express written consent of Colliers International. The material is based in part upon information obtained from the Seller and in part upon information obtained by Colliers International from sources they deem to be reliable. Summaries contained herein of any legal documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Prospective purchasers should make their own investigations, projections, and conclusions. It is expected that prospective investors will conduct their own independent due diligence concerning the Property, including such engineering inspections as they deem necessary to determine the condition of the Property and the existence or absence of any potentially hazardous material used in the construction or maintenance of the building or located at the land site. No representations expressed or implied are made as to the foregoing matters by Colliers International. or assignees. See “Limiting Conditions.” Colliers Investment Services Group (“CISG”) is a specialty practice group sanctioned and coordinated by Colliers International.
COLLIERS INTERNATIONAL P. 3NAPA AUTO PARTS | OFFERING MEMORANDUM CONTACT: ASHLEY W. SMITH DIRECT: +1 912 662 8011 • DANNY S. CHASE DIRECT: +1 912 662 8012
All information is furnished from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease, financing or withdrawal without notice.
OFFERING MEMORANDUM | NAPA AUTO PARTS
Investment HighlightsOffering Summary
PORTFOLIO OF PROPERTIES> Savannah, GA 3815 Ogeechee Road 1564 Dean Forest Road 4315 U.S. Highway 80
> Brunswick, GA 3926 Community Road
FINANCIAL OVERVIEW4 Location Portfolio
Type of Ownership: Fee Simple
Base Annual Rent: $ 161,400
Lease Type: NN
Increases: 5% Per Term
Asking Price REDUCED: $ 2,152,000 $2,017,500
$1,462,500 8% Cap Rate
TENANT OVERVIEWTenant: Genuine Parts Company
2013 Gross Revenue: $14,077,843,000
2013 Net Profit: $3,358,768,000
Headquarters: Atlanta, Georgia
LEASE OVERVIEWLease Commencements: May 1, 2015
Lease Terms: 5 years, 6 months
Options: (2) 5 year options to renew
Tenant Responsibilities: Taxes, insurance & maintenance
Landlord Responsibilities: Roof, structure, parking lot and HVAC replacement
> Strong Tenant & Guaranteed Rental Income - Genuine Parts Company operates over 6,100 NAPA Auto Parts locations nationally with over 80 years of distribution and service experience.
> Below Market Rents - Each of the offered properties rent at an average of $6.30/SF, NN, well below market avearge.
> Below Average Asking Prices - The average cost of each building is $80/SF, which is well below replacement cost.
> Growth Potential - The Savannah MSA is a rapidly growing area with favorable demographics; $54,077 average household income and 84,953+ population, within a seven-mile radius of the Savannah locations.
OFF
MARKET
COLLIERS INTERNATIONAL P. 4NAPA AUTO PARTS | OFFERING MEMORANDUM CONTACT: ASHLEY W. SMITH DIRECT: +1 912 662 8011 • DANNY S. CHASE DIRECT: +1 912 662 8012
All information is furnished from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease, financing or withdrawal without notice.
OFFERING MEMORANDUM | ABOUT THE FRANCHISE
DBA: Napa Auto Parts
Today, 91% of do-it-yourself customers recognize the NAPA
brand name.
NAPA AUTO PARTS Stores are known for:
• Having over 6,100 NAPA AUTO PARTS Stores nationwide
• Its 64 strategically located distribution centers serving all 50 states
• Over 422,000 quality parts and accessories for automotive and industrial applications—the most extensive inventory in the industry
• NAPA AUTO PARTS Classification—a unique inventory control system that helps you find the exact part that you need
http://www.napaonline.com/about.aspx
Tenant Year Founded: 1928 Corportate headquarters: Atlanta, Georgia 2013 Gross Revenue: $14,077,843,000 2013 Net Profit: $3,358,768,000
Founded in 1928, Genuine Parts Company (GPC) is a service organization engaged in the distribution of automotive replacement parts, industrial replacement parts, office products and electrical/electronic materials. Products and services are offered through a network of over 2,000 operations, geographically located across the United States, Canada and Mexico. With over 80 years of distribution expertise, the well-positioned, regionally located distribution centers provide them with the unique ability to adapt their product and service lines to better suit the customers’ needs. GPC’s commitment and reputation for just-in-time service position them as a critical partner in their customers’ success.
GPC began to diversify its product lines over 30 years ago into several end-markets with strong growth opportunities. Although each product is unique, they have leveraged more than 80 years of distribution know-how to manage these businesses the GPC way - continually improving operating and distribution efficiencies.
AUTOMOTIVE The Automotive Parts Group, the largest division of GPC, distributes over 380,000 products through it’s 58 NAPA distribution centers located across the United States. The Automotive Parts Group also consists of NAPA Canada/UAP Inc., Canada’s leading automotive parts distributor, as well as Auto Todo, one of Mexico’s largest automotive aftermarket organizations. Additionally, we operate our heavy vehicle parts distribution business under the name TW Distribution and Traction, and our import parts distribution operations under the name Altrom.
INDUSTRIAL The Industrial Parts Group, which operates under the name Motion Industries, distributes over three million items from 500 operations located throughout the Unites States and Canada. Motion’s rapid-delivery model provides customized product and technical expertise to customers in a just-in-time response, enabling clients to reduce production costs and free working capital. Its People, Products, and Processes are the foundation for growth at Motion Industries.
OFFICE The Office Products group distributes over 50,000 business products from 45 distribution centers across the U.S. and Canada under the name S.P.Richards Company to thousands of office product resellers, including independent dealers, large contract stationers, national office supply superstores, mail order distributors, internet resellers and college bookstores.
ELECTRICAL The Electrical/Electronic Materials Group is one of North America’s leading distributors of process materials, production supplies, industrial MRO and value added fabricated parts. Primary markets are the electrical OEM, apparatus repair and assembly markets. The group distributes over 100,000 items from 36 locations in the U.S., Puerto Rico, Dominican Republic, Mexico and Canada.
http://www.genpt.com/portal/page/portal/GENPT.COM/about
COLLIERS INTERNATIONAL P. 5NAPA AUTO PARTS | OFFERING MEMORANDUM CONTACT: ASHLEY W. SMITH DIRECT: +1 912 662 8011 • DANNY S. CHASE DIRECT: +1 912 662 8012
All information is furnished from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease, financing or withdrawal without notice.
OFFERING MEMORANDUM | PROPERTY INFORMATION
315 U.S. HIGHWAY 80GARDEN CITY, GA 31408
building size 7,000 square feet lot size .514 acres type Free Standing year built 1967, Renovated in 2009 zoning C-2-A (Garden City)commercial frontage ±140’
lease commencement October 2013 annual base rent $45,000lease term 5 yearsoptions (2) 5 year options to renewincreases 5% per termlease type NNtenant responsibilities Taxes, insurance & maintenancelandlord responsibilities Roof, structure, parking lot and HVAC replacement
asking price reduced! $600,000 $562,500
Portfolio of Properties • Information obtained from Chatham County & Glynn County Board of Assesors Property Cards •
* actual location shown * actual location shown
3815 OGEECHEE ROADSAVANNAH, GA 31405
building size 6,400 square feet lot size .56 acres type Free Standing year built 1982, Renovated in 1998 zoning B-C (Chatham County Unincorporated)commercial frontage ±108’
lease commencement October 2013 annual base rent $36,000lease term 5 yearsoptions (2) 5 year options to renewincreases 5% per termlease type NNtenant responsibilities Taxes, insurance & maintenancelandlord responsibilities Roof, structure, parking lot and HVAC replacement
asking price reduced! $480,000 $450,000
COLLIERS INTERNATIONAL P. 6NAPA AUTO PARTS | OFFERING MEMORANDUM CONTACT: ASHLEY W. SMITH DIRECT: +1 912 662 8011 • DANNY S. CHASE DIRECT: +1 912 662 8012
All information is furnished from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease, financing or withdrawal without notice.
OFFERING MEMORANDUM | PROPERTY INFORMATION
Portfolio of Properties • Information obtained from Chatham County Board of Assesors Property Cards •
1564 DEAN FOREST ROADSAVANNAH, GA 31408
building size 4,740 square feet lot size .79 acres type Free Standing year built 1984 zoning P-C-2-A (Garden City, GA)commercial frontage ±150’
lease commencement October 2013 annual base rent $36,000lease term 5 yearsoptions (2) 5 year options to renewincreases 5% per termlease type NNtenant responsibilities Taxes, insurance & maintenancelandlord responsibilities Roof, structure, parking lot and HVAC replacement
asking price reduced! $480,000 $450,000
* actual location shown * actual location shown
3926 COMMUNITY ROADBRUNSWICK, GA 31520
building size 7,560 square feet lot size .81 acres type Free Standing year built 1984, Renovated in 1998 zoning HCcommercial frontage ±310’
lease commencement October 2013 annual base rent $44,400lease term 5 yearsoptions (2) 5 year options to renewincreases 5% per termlease type NNtenant responsibilities Taxes, insurance & maintenancelandlord responsibilities Roof, structure, parking lot and HVAC replacement
asking price reduced! $592,000 $555,000
OFF
MARKET
COLLIERS INTERNATIONAL P. 7NAPA AUTO PARTS | OFFERING MEMORANDUM CONTACT: ASHLEY W. SMITH DIRECT: +1 912 662 8011 • DANNY S. CHASE DIRECT: +1 912 662 8012
All information is furnished from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease, financing or withdrawal without notice.
OFFERING MEMORANDUM | LOCATION MAP
Location Map
BRUNSWICK
SAVANNAH
SAVANNAH
3815 Ogeechee Rd
1564 Dean Forest Rd
315 U.S. Hwy 80
3926 Community RdOFF
MARKET
COLLIERS INTERNATIONAL P. 8NAPA AUTO PARTS | OFFERING MEMORANDUM CONTACT: ASHLEY W. SMITH DIRECT: +1 912 662 8011 • DANNY S. CHASE DIRECT: +1 912 662 8012
All information is furnished from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease, financing or withdrawal without notice.
OFFERING MEMORANDUM | DEMOGRAPHICS
Demographics • US CENSUS BUREAU 2013 •
3815 Ogeechee Road Savannah, GA 31405
Radius 1 Mile 3 Mile 5 Mile
Population: 5,256 42,093 120,071Households: 2,077 14,989 47,262Avg. Household Income: $45,596 $37,981 $44,219
Traffic Counts
Ogeechee Road: 30,956 vehicles per day
1564 Dean Forest Road Savannah, GA 31408
Radius 1 Mile 3 Mile 5 Mile
Population: 879 13,355 59,661Households: 331 4,669 21,322Avg. Household Income: $52,324 $56,320 $56,805
Traffic Counts
Dean Forest Road: 16,357 vehicles per day
315 U.S. Highway 80 Savannah, GA 31408
Radius 1 Mile 3 Mile 5 Mile
Population: 3,232 24,015 79,120Households: 1,174 7,724 29,523Avg. Household Income: $39,233 $37,056 $41,038
Traffic Counts
U.S. Highway 80: 17,873 vehicles per day
3926 Community Road Brunswick, GA 31520
Radius 1 Mile 3 Mile 5 Mile
Population: 3,940 29,751 48,027Households: 1,656 11,784 18,333Avg. Household Income: $43,675 $46,372 $48,427
Traffic Counts
Community Road: 14,241 vehicles per day
OFF
MARKET
COLLIERS INTERNATIONAL P. 9NAPA AUTO PARTS | OFFERING MEMORANDUM CONTACT: ASHLEY W. SMITH DIRECT: +1 912 662 8011 • DANNY S. CHASE DIRECT: +1 912 662 8012
All information is furnished from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other conditions, prior sale, lease, financing or withdrawal without notice.
OFFERING MEMORANDUM | LIMITING CONDITIONS
Limiting Conditions
Contact Information
This Offering Memorandum was prepared by Colliers International and has been reviewed by the Seller. It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information that a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition, and other factors, which therefore are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers.
In this Offering Memorandum, certain documents, including leases and other materials, are described in summary form and do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents.
This Offering Memorandum is subject to prior placement, errors, omissions, changes, or withdrawal without notice and does not constitute a recommendation, endorsement, or advice as to the value of the Property by Colliers International or the Seller. Each prospective purchaser is to rely upon its own investigation, evaluation, and judgment as to the advisability of purchasing the Property described herein.
Seller, Colliers International expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Seller shall have no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller, and any conditions to Seller’s obligations thereunder have been satisfied or waived. Colliers International is not authorized to make any representations or agreements on behalf of the Seller.
This Offering Memorandum is the property of Colliers International and may be used only by parties approved by Colliers International. The Property is privately offered, and by accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it to Colliers International and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without prior written authorization of Colliers International and the Seller.
The terms and conditions set forth above apply to this Offering Memorandum in its entirety.
DANNY S. CHASE, SIOR
PrincipalDIRECT: 912 662 8012 [email protected]
ASHLEY W. SMITH, CCIM, SIOR
PrincipalDIRECT: 912 662 8011 [email protected]
NAPA Auto PartsA Division of Genuine Parts Company
Offering MemorandumPortfolio Investment Opportunity
Colliers International
545 E. York StreetSavannah, GA 31401 | USA MAIN: +1 912 233 7111 FAX: +1 912 236 1200WEBSITE: www.colliers.com/savannah