AutoZone - Olive Branch OM by NetLease


									                     NET LEASED INVESTMENT OFFERING

        AutoZone (Ground Lease)
         7322 Hacks Cross Road
Olive Branch, MS 38654 (Memphis MSA)

                                       TABLE OF CONTENTS


1)    Confidentiality & Disclaimer
2)    Executive Summary
3)    Property Overview
4)    Aerial
5)    Site Plan
6)    Map
7)    Tenant Profile
8)    Demographic Comparison Report
9)    Location Overview
10)   Contact Information

                                                                       CONFIDENTIALITY & DISCLAIMER
                                            NET LEASED INVESTMENT OFFERING

                                   CONFIDENTIALITY & DISCLAIMER

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is
intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to
any other person or entity without the written consent of The Boulder Group. This Offering Memorandum has been
prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary
level of interest in the subject property. The information contained herein is not a substitute for a thorough due
diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or
representation. The information contained in this Offering Memorandum has been obtained from sources we
believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information
contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no
warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All
potential buyers must take appropriate measures to verify all of the information set forth herein.

                                                                                          EXECUTIVE SUMMARY
                                                NET LEASED INVESTMENT OFFERING

                                             EXECUTIVE SUMMARY
The Boulder Group is pleased to exclusively market for sale a single tenant AutoZone ground lease property within the
Memphis MSA. The property is located in Olive Branch, Mississippi, which is located 23 miles southeast of downtown
Memphis. The 7,008 square foot AutoZone property was built in 2004 and is located on a 40,843 square foot parcel of
land. The ground lease features a 10% rental escalation in 2014.

The subject property is located on the hard corner of a signalized intersection along Hacks Cross Road, less than one-half
mile north of Mississippi State Highway 302. Mississippi State Highway 302 is a major thoroughfare in the area, and
experiences traffic volumes in excess of 20,000 vehicles per day. The property is located next to Whispering Woods Hotel
and Conference Center, the newest hotel and event space in northeastern Mississippi, and a recently constructed
Walgreens. The property also benefits from the close proximity to Metro Industrial Park. Metro Industrial Park includes 52
tenants and has the largest concentration of employees in Olive Branch. William-Sonoma has a distribution center located
north of the property and is the third largest employer in DeSoto County.

AutoZone’s original ground lease term was for fifteen years and expires in December 2019. The base rent increases by
10% in 2014 as well as in each of the four 5-year option periods. AutoZone is a publicly traded company on the New York
Stock Exchange (AZO), with a market capitalization of $13 billion. AutoZone is an investment grade rated company with a
Standard and Poor’s rating of BBB.

 •   Located within the Memphis MSA

 •   Zero landlord responsibilities

 •   Located on the hard corner of a signalized intersection

 •   Investment grade tenant (S&P: BBB)

 •   Rental escalations of 10% in primary term and each option

 •   Positioned north of Mississippi Highway 302 (20,000 VPD)

 •   Close proximity to a major industrial park featuring 52

                                                              PROPERTY OVERVIEW
                         NET LEASED INVESTMENT OFFERING

                         PROPERTY OVERVIEW

Price:                        $1,296,000

Cap Rate:                     5.50%

Rent Schedule:                NOI           Escalation Date
                              $ 71,280
                              $ 78,408      12/16/2014
                              $ 86,244      12/16/2019    (Option 1)
                              $ 94,872      12/16/2024    (Option 2)
                              $ 104,364     12/16/2029    (Option 3)
                              $ 114,792     12/16/2034    (Option 4)

Renewal Options:              Four 5-Year

Lease Commencement Date:      December 16, 2004

Lease Expiration Date:        December 15, 2019

Tenant:                       AutoZone

Credit Rating:                BBB (S&P)

Year Built                    2004

Lease Type:                   NNN Ground Lease

Rentable Square Feet:         7,008

Land Size:                    40,843 SF




                                 SITE PLAN


                                                                                         TENANT PROFILE
                                          NET LEASED INVESTMENT OFFERING

                                            TENANT PROFILE

AutoZone is a leading automotive aftermarket retailer in the United States based off both sales and store count.
AutoZone sells automotive parts, accessories, batteries and other maintenance items. AutoZone is a Fortune 500
company and is ranked #320. AutoZone is headquartered in Memphis, Tennessee and operates more than 5,000
stores throughout 49 states, Puerto Rico, Mexico and Brazil. AutoZone sales have increased 6.6% from fiscal year
2011 to $8.6 billion. AutoZone is a publicly traded company on the New York Stock Exchange (AZO) and has a
market cap of $13 billion.

Number of Locations:           5,000 +
Stock Symbol:                  AZO : NYSE
Credit Rating:                 BBB (S&P)
Market Capitalization:         $13 billion
Employees:                     65,000 +

                                           DEMOGRAPHIC COMPARISON REPORT
                           NET LEASED INVESTMENT OFFERING


Population                   3-mi.                5-mi       7-mi

Total Population            29,003             78,391       138,497
Total Households            10,439             27,558        50,571


Median Household Income     $63,978            $66,682      $62,014
Average Household Income    $75,100            $77,953      $77,842

                                                                                        LOCATION OVERVIEW
                                            NET LEASED INVESTMENT OFFERING

                                           LOCATION OVERVIEW

                              Olive Branch is a city in DeSoto County, Mississippi, and is part of the Memphis MSA.
                              Olive Branch is located 22 miles southeast of Downtown Memphis and has a
                              population of 33,484 according to the 2010 U.S. Census. Olive Branch has a large
                              logistic presence as many national corporations have large logistic facilities located in
                              Olive Branch. These companies include Sears, Williams Sonoma, Parker    Parker-Hannifin
                              Chelsea, Snap on Tools, Brinkman Corporation, International Paper, and Heartland
                              Express. In 2011, Businessweek named Olive Branch the f      fastest growing city in the
                              United States.


                             Memphis is located in the southwestern corner of Tennessee and the Memphis
                             metropolitan statistical area includes counties in Tennessee, Mississippi and
                             Arkansas. Memphis is the largest city in Tennessee and according to the 2010 U.S.
                             census Memphis had a population of 646,889. According to the 2010 U.S. census the
                             Memphis metropolitan statistical area had a population of 1,305,946, making it the
                             second largest metropolitan area in Tennessee. Memphis is home to Graceland, the
                             former home of music legend Elvis Presley, attracting 600,000 visitors a year. The
                             University of Memphis is located five miles east of downtown Memphis and has a
                             student population of over 21,000.
The Memphis economy benefits from its central location along the Mississippi river and access to numerous
interstate highways. Memphis International Airport is the second busiest cargo airport in the world and serves as the
primary hub from FedEx Express shipping. Memphis is home to three Fortune 500 companies including FedEx,
International Paper and AutoZone.

                                                    CONTACT INFORMATION

                 CONTACT INFORMATION

                666 Dundee Road Suite 1801
                    Northbrook, IL 60062

Randy Blankstein                 Jimmy Goodman
President                        Partner
847.562.0003                     847.562.8500


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