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Offering Memorandum

Advance Auto Parts1717 Military Road | Benton (Little Rock), AR 72015

Representative Photo

Stan Johnson Company6120 S Yale Ave Suite 300 Tulsa, Oklahoma 74136

www.stanjohnsonco.com

Gill Warner, CCIM Senior Director [email protected] P: +1 918.494.2690

Sharon Jordan Senior Analyst [email protected] P: +1 918.494.2690

Offered Exclusively by

Confidentiality and Restricted Use Agreement

This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC.

This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. An interested party must conduct its own independent investigation and verification of any information the party deems material to consideration of the opportunity, or otherwise appropriate, without reliance upon SJC.

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.

BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief.

In Association With: Albert Muller AR Lic. #PB00075459

Advance Auto Parts | Benton, AR 3

The Offering

Investment HighlightsPurchase Price: $741,175 Cap Rate: 8.50%

Investment Grade Credit The lease is guaranteed by Advance Stores Company, Inc. (S&P: BBB-/ Stable). As of January 2, 2016, Advance Auto Parts reported total revenues of $9.7 billion, a net income of $473 million and a net worth in excess of $2.5 billion.

Short-Term Lease Remaining Advance Auto Parts has operated at this location for almost seventeen (17) years, has extended their original ten (10) year lease term twice and currently has approximately three and one-half (3-1/2) years remaining.

Renewal Options with Increases The lease has two (2), five (5) year renewal options remaining with increases in each option, with the first being an increase of $2.79 per square foot.

Good Demographics The property has a population of over 51,300 and an average household income of $69,108 within a 5-mile radius.

Great Retail Location The property is in heavy retail corridor just off of Interstate 30 with many well-known tenants and a traffic count of over +/- 66,900 VPD on I-30 and +/- 18,800 VPD on Military Road.

Stan Johnson Company is pleased to offer for sale an Advance Auto Parts property in Benton, Arkansas, a suburb of Little Rock.

This lease is double net, leased to Advance Stores Company, and has approximately three and one-half (3-1/2) years remaining on the 5-year extended lease term. The lease has two (2), five (5) year renewal options remaining with increases.

As of January 2, 2016, Advance Auto Parts Inc. reported total revenue of $9.7 billion, net income of $473 million and a net worth in excess of $2.5 billion. Advance Auto Parts Inc. holds a Standard & Poor’s credit rating of BBB-/Stable.

Subject Property


Tenant Profile

Company Advance Auto Parts, Inc.

DBA Advance Auto Parts

Business Type Retail Auto Parts

Entity Type Public

Stock Symbol AAP

Exchange NYSE

Credit Rating BBB-/Stable

Number of Locations 5,292 total

Revenue $9.74 billion

Net Income $473 million

Net Worth $2.5 billion

Fiscal Year January 2, 2016

Source Yahoo! Finance & Hoovers

Founded 1929

Headquarters Roanoke, VA

Website www.advanceautoparts.com

Tenant OverviewAdvance Auto Parts, Inc. (NYSE: AAP) operates as a retailer of automotive parts, accessories, and maintenance items to do-it-yourself and do-it-for-me customers in the automotive aftermarket industry. The company operates in two segments, Advance Auto Parts (AAP) and Autoparts International (AI).

Advance recently acquired Carquest (General Parts International) for $2 billion, making it the largest auto part dealer in the country with a combined 5,292 company-operated stores, 109 Worldpac branches, and 1,350 independently owned Carquest branded stores across 49 states, Puerto Rico, the Virgin Islands, and Canada. The acquisition increased the company’s access to commercial/wholesale part sales and expanded their footprint in the Northeastern United States.

Advance Auto Parts is currently headquartered in Roanoke, Virginia and was founded in 1929. As of January 2, 2016, the company employed approximately 74,000 people. It premiered on the Fortune 500 list of companies in 2003, and has remained on the list ever since.

As of January 2, 2016, Advance Auto Parts, Inc. had total revenue of $9.7 billion, net income of $473 million, net worth of $2.5 billion, and an S&P credit rating of BBB-/Stable.

Representative Photos


Benton, Arkansas

Lease Abstract

Address: 1717 Military Road Benton (Little Rock), AR 72015

Guarantor: Advance Stores Company, Inc.

Store Number: 5776

Store Type: Free Standing

Bldg. Size: 7,000 SF

Year Built: 2000

Land Area: .88 acres

Extended Term: 5 years

Term Remaining: +/- 3.5 years

Original Lease Commencement: October 19, 2000

Extended Term Commencement: January 1, 2016

Lease Expiration: December 31, 2020

Annual Rent: $63,000

Renewal Options: Two (2), Five (5) Year Options

Expenses:

Landlord is responsible for roof, structure, parking and one-half of the cost of repairs/replacement of HVAC if cost exceeds $500. Tenant is responsible for insurance, taxes, utilities, property interior, and repairs and maintenance of HVAC and one-half of any repairs/replacements if cost exceeds $500.

Rent Schedule

Period Annual Amount Price Per SF

1/1/16 – 12/31/20 (Current) $63,000 $9.00/PSF

1/1/21 – 12/31/25 (Option 1) $82,530 $11.79/PSF

1/1/26 – 12/31/30 (Option 2) $86,030 $12.29/PSF

Benton, ArkansasBenton is a city in and the county seat of Saline County, Arkansas, and a suburb of Little Rock. It was established in 1837. In 2014, the population was 33,625, and it is part of the Little Rock–North Little Rock–Conway Metropolitan Statistical Area. The city of Benton, first settled in 1833 and named after Missouri Senator Thomas Hart Benton, was formally chartered in 1836 when Arkansas became a state.

Little Rock is a cultural, economic, government and transportation center within Arkansas and the South. Several cultural institutions are located in Little Rock, such as the Arkansas Arts Center, the Arkansas Repertory Theatre, and the Arkansas Symphony Orchestra, in addition to the hiking, boating, and other outdoor recreational opportunities.

Little Rock's rich history is available through its museums, historic districts or neighborhoods like the Quapaw Quarter, and historic sites such as Little Rock Central High School. Little Rock is home to the headquarters of Dillard's, Windstream Communications, Acxiom, Stephens Inc., University of Arkansas for Medical Sciences,

Heifer International, the Clinton Foundation, and the Rose Law Firm. Other large corporations, such as Dassault Falcon Jet and LM Wind Power have large operations in the city. State government is a large employer, with many offices being located in downtown Little Rock. Two Interstate highways, Interstate 30 and Interstate 40, meet in Little Rock, with the Port of Little Rock serving as a shipping hub.

The city is home to the Arkansas Travelers, the AA professional Minor League Baseball affiliate of the Seattle Mariners in the Texas League. The city is also home to the Little Rock Trojans, the athletic program of the University of Arkansas at Little Rock. The majority of the school's athletic teams are housed in the Jack Stephens Center, which opened in 2005. Little Rock's War Memorial Stadium hosts at least one University of Arkansas Razorback football game each year. The stadium is known for being in the middle of a golf course, and each fall, the city closes the golf course on Razorback football weekends for fans to tailgate. It is estimated that over 80,000 people are present for the tailgating activities on these weekends. War Memorial Stadium also hosts the Arkansas High School football state championships

Saline County Courthouse


N

I-30 (

66,963 VPD)

M

ilitar

y Rd (1

8,83

5 VPD)

SALINE MEMORIAL HOSPITAL

BENTON EVENT CENTER


Demographics 1717 Military Road Benton (Little Rock), AR 72015 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.

Population

2016 Population 6,497 32,690 51,367

2021 Population 6,883 34,965 55,316

2010-2016 Annual Rate 1.12% 1.26% 1.38%

2016-2021 Annual Rate 1.16% 1.35% 1.49%

Households

2016 Total Households 2,653 12,611 19,963

2021 Total Households 2,807 13,441 21,419

2010-2016 Annual Rate 1.03% 1.15% 1.26%

2016-2021 Annual Rate 1.13% 1.28% 1.42%

2016 Average Household Income $62,301 $68,041 $69,108

2016 Median Household Income $50,893 $52,545 $53,203


going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Stan Johnson Company6120 South Yale Avenue | Suite 300Tulsa, Oklahoma 74136 P: 918.494.2690

www.stanjohnsonco.com

Gill Warner, CCIMSenior [email protected]

P: 918.494.2690

Sharon JordanSenior [email protected]

P: 918.494.2690

In Association With:

Albert Muller

AR Lic. #PB00075459

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aRKansas Real estate Commission

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Arkansas Real Estate Commission

612 South Summit StreetLittle Rock, AR 72201-4740Phone: 501.683.8010Fax: 501.683.8020Email: [email protected] site: www.arec.arkansas.gov

Commission Staff

Gary C. IsomExecutive Director

Andrea S. AlfordDeputy Executive Director

Deb RandolphInvestigations Supervisor

Frequently Asked

QUESTIONS...1. As a licensee, am I required to use this Arkansas Real Estate Commission (AREC) Agency Representation pamphlet and / ordisclosure form?• No. The AREC Agency Representation pamphlet and disclosure form is a tool that Real Estate Agents may use to ensure their compliance with Commission Regulations 8.1, 8.2 and 8.3. An agent may certainly use alternative forms and / or procedures to comply with these regulations.

2. Can I distribute the brochure for informational purposes only?• Yes. If you have other methods of disclosing your agency representation but would like to distribute the Agency Representation information displayed on the first two panels, discard the disclosure portion and distribute the Agency Representation information only.

3. What’s the best way to use the disclosure form?• When Option 1 of the disclosure form is applicable, the person that you do not represent should sign as receiving the agency disclosure.• When Option 2 of the disclosure form is applicable, all persons receiving the disclosure should each sign a form.

Reminder: Regulations 8.1 and 8.2 require you to disclose to the other party who you represent in the transaction. These regulations allow you to verbally disclose, and require that you confirm in writing that you verbally disclosed, your agency relationship before the party signs the real estate contract or lease.

Agency Representation

Information

Who Do Real Estate Agents Representin a Real Estate Transaction?Arkansas law requires every Real Estate Agent to

clearly disclose to all parties in a real estate transac-tion which party(ies) he or she is representing. Real Estate Agents typically represent Sellers but can also represent Buyers as well as both Buyers and Sellers.

What Does It Mean to Represent a Seller?A Real Estate Agent who enters into an agreement to sell property for an owner is known as the “List-ing Agent” or “Agent for the Seller.” A Listing or Seller’s Agent represents the Seller in the transac-tion. That means that the Listing or Seller’s Agent’s primary duty is to protect and promote the inter-ests of the Seller. As a Buyer not represented by a Real Estate Agent, you should keep any information that may place you at a disadvantage in negotia-tions confidential and undisclosed to the Seller or the Seller’s Agent since that Seller’s Agent has a duty to pass that information on to the Seller. Con-fidential information may include the Buyer’s real estate needs or motivations, the highest price the Buyer is willing to offer, negotiating strategies or tactics, or financial situation.

What Does It Mean to Represent a Buyer?A Real Estate Agent who enters into an agreement to only represent the Buyer in a real estate trans-action is known as the “Buyer’s Agent.” A Buyer’s Agent represents the Buyer in the transaction. That

means that the Buyer’s Agent may assist the Seller who is not represented in selling the property, or deal with the Seller’s Agent, but the Buyer’s Agent’s primary duty is to protect and promote the inter-ests of the Buyer. As a Seller not represented by a Real Estate Agent, you should keep any information that may place you at a disadvantage in negotia-tions confidential and undisclosed to the Buyer or the Buyer’s Agent since that Buyer’s Agent has a duty to pass that information on to the Buyer. Confidential information may include the Seller’s reason or motivation for selling, the lowest price the Seller will accept, negotiating strategies or tac-tics, or financial situation.

What Does It Mean to Represent Both Seller and Buyer?A Real Estate Agent who enters into an agree-ment to represent the Seller and also enters into an agreement to represent the Buyer in the same transaction is known as a “Dual Agent.” A Dual Agent most frequently occurs when a Real Es-tate Agent, or agents within the same real estate firm, represent both Seller and Buyer in the same transaction. Both Seller and Buyer must have given their written consent to such dual representation prior to or at the time of execution of any Agency Agreement, Listing Agreement or Real Estate Con-tract. Both Seller and Buyer should be aware that a possible conflict of interest may exist in this type of representation. A Dual Agent limits the duties described above in representing the Seller and Buyer by written agreements found in the Agency Agreement, Listing Agreement or Real Estate Con-tract. For instance, when representing both Seller and Buyer the Dual Agent would not disclose to one party confidential information obtained from the other party.

AGENCY REPRESENTATION DISCLOSURE FORM

Real Estate Agent

Real Estate Firm

Real Estate Transaction Address

City, State, Zip Code

The Real Estate Agent named above:(Please initial the appropriate response below.)

1) ________ Does not represent me in this real estate transaction but represents only the

________ Buyer or ________ Seller.

OR

2) ________Represents all parties to this real estate transaction to which I previously consented through a separate written agency agreement.

Name of Party Receiving Agency Disclosure

I acknowledge that I am aware of and understand the disclosure information presented above.

Signature of Party Receiving Agency Disclosure

Date

THIS IS NOT A CONTRACT OR AGENCY AGREEMENT

Agency Representation

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