Leveraged Advance Auto Parts Johnston, Rhode Island I.C.A. R

Leveraged Advance Auto Parts Johnston, Rhode Island Offering Memorandum Advance Auto Parts 72% Leveraged Below Current Market Interest Rate 30 Year Amortization Schedule on Mortgage Densely Populated Suburban Providence Location Highly Trafficked Location with 22,800 Cars per Day 41 Auto Related Business within One Mile I.C.A. Realty is pleased to exclusively offer for sale to qualified investors a great investment opportunity located in Johnston, Rhode Island. The property is leased to Advance Auto Parts under a net lease for a term of fifteen years. Inquiries and Letters of Intent may be submitted to: James Dwoskin I.C.A. Realty Corp. P.O. Box 1228 Sag Harbor, New York 11963 Telephone: (631) 725-4300 Fax: (631) 725-5881 Email: james@icarealty.com Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Investment Highlights Already Leveraged Deal Built-In Rental Increases Just Outside Providence, Rhode Island 41 Auto-Related Businesses within One Mile Located on Major Thoroughfare with 22,800 Vehicles Per Day Across from Walgreens and Burger King Near McDonald’s, Friendly’s, Pizza Hut, Papa Gino’s, Godfather’s Pizza, Other Restaurants, Medical and Dental Groups, Professional Offices Nine Universities/Colleges Within Four Miles Including Brown University, Johnson & Wales, Rhode Island College of Design, Providence College Fifteen Year Primary Lease “Best Managed Company In America” – Forbes Parent Company Guarantees Lease (S&P Rated “BB+”) The brief summary of information presented herein is confidential and presented solely for the limited use of potential purchasers. It has been obtained from sources deemed reliable; however, no representation is made to the accuracy thereof. It is not all-inclusive and is subject to errors or omissions, availability, prior sale, change in price, terms, rentals, or other conditions without notice. Prospective purchasers should make independent determination as to the accuracy of information provided herein and further information will be made available upon request. Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Company Information Advance Auto Parts has turned auto parts retailing into less of a one-company race. Headquartered in Roanoke, Virginia, Advance Auto Parts is the second-largest retailer of automotive aftermarket parts, accessories, batteries, and maintenance items in the United States, based on store count and sales. As of October 6, 2007, the Company operated 3,228 stores in 40 states, Puerto Rico and the Virgin Islands. The Company serves both the do-it-yourself and professional installer markets. Advance Auto Parts employs more than 43,000 and is a Fortune 500 company under the Advance Auto Parts and Discount Auto Parts names in about 40 states, Puerto Rico and the Virgin Islands. The company's stores operate under the Western Auto and Advance Auto Parts names in Puerto Rico and the Virgin Islands. Sales to commercial customers including garages, service stations, and auto dealers account for about 20% of revenues. The company is also a partner in online auto parts seller PartsAmerica.com. In November 2001, Advance Auto Parts acquired Discount Auto Parts, which marked an important milestone. Discount Auto Parts was a regional auto parts chain with stores in Florida and several other southeastern states. This acquisition has strengthened the company’s position as a market leader in Florida, where the company’s presence has grown from 26 stores to close to 500. Upon completion of this merger, Advance Auto Parts became a publicly traded company, listed as a common stock on the New York Stock Exchange under the symbol “AAP”. Standard & Poor’s rates the Company “BB+”. For fiscal year ending December 2007, their annual sales are $4.8 Billion; net income is $238.3 Million; total stock holders equity is $1.02 Billion. Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Analyst Recommendations Credit Suisse Upgrades Advance Auto Parts (AAP) to Outperform June 16, 2008 2:43 PM ET (Complete Article upon Request) Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Complete analyst report available. Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Investment and Property Summary Tenant Advance Stores Company, Inc. (Standard & Poor’s rated BB+) Address 10 Putnam Pike Johnston, Rhode Island Building Size 6,000 SF Plot Size .591 Acre Parking 33 spaces Lease Term 15 Years Year Built 1993 Landlord Responsibilities Structure and roof. 15 year roof warranty placed March 22, 2006. (Carlisle roofEPDM 45 mils mechanically attached). Rent Schedule Years 1-10: $155,250.00 Years 11-15: $170,775.00 Option 1: $179,314.00 Option 2: $188,279.00 Option 3: $197,693.00 Options to Renew Three (5) Five Year Percentage Rent 2.5% of Tenant’s Gross Sales in Excess of Applicable Breakpoint: Years Breakpoint 1-10 $6,210,000.00 11-15 $6,831,000.00 1st option $7,172,548.80 2nd option $7,531,176.00 3rd option $7,907,736.00 Price $2,100,000 Rent Commencement 2/23/2006 Lease Expiration 2/28/2021 Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Existing Mortgage Summary Approximate Remaining $1,513,900.00 (7/2008) Mortgage Balance Original Amount $1,555,000.00 Origination Date 4/4/2006 Interest Rate 6.00% (Below Market Interest Rate) Annual Debt Service $111,800.00 Estimated Cash Flow After Debt Service $43,450.00 Years 1-10: Maturity Date 5/1/2016 Term 10 Years Amortization 30 Years Prepayment Yield Maintenance Assumption Fee 1% Lender Requirement Rent Loss and Terrorism Insurance. (The owner’s incremental cost for this annual premium is approximately $126). Non-Recourse Yes, except for standard carveouts. Approximate Required Equity $586,100 Cash on Cash Return Years 1-10: 7.4% Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Near 41 Auto-Related Businesses! Local Market Information This Advance Auto Parts has a great location within one mile of 41 auto related businesses. The property is across from Walgreens and Burger King. Others in the area include: McDonald’s, Papa Gino’s, Friendly’s Restaurant, Godfather’s Pizza, Pizza Hut, a multitude of other restaurants, law offices, other professional offices, medical and dental groups. The following are also close to this Advance Auto Parts: Rhode Island College (two miles), Providence College (two miles), Community College-Rhode Island (three miles), Bryant University (three miles), Johnson & Wales University (four miles), Roger Williams College (four miles), Rhode Island School of Design-one of the country’s top art colleges (four miles), Brown University-highly regarded member of the Ivy League (four miles), and Pembroke College (four miles). Traffic counts are high on Putnam Pike, at 22,800 cars per day. Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Area Information Located just two miles outside of Providence, the suburb of Johnston provides easy access to the commercial and academic resources of New England's major cities. Johnston has a rich history and small-town atmosphere. It is an ideal location for commuters and businesses alike. Because of its geographic location situated at the major intersection of Route 6 and Route 295, Johnston is enjoying an expansion of its economic development efforts and also bringing new business into the Town including The Home Depot, Burlington Coat Factory and Metro Honda. The corporate headquarters of insurance giant FM Global are located in Johnston, and groundbreaking has recently begun on a $60 million new headquarters complex adjacent to the existing property. Johnston is part of the Providence metropolitan area - a region covering six counties in two states and the 36th largest metropolitan area in the United States. Anchored by the city of Providence, Rhode Island, it has an estimated population of 1,622,520, exceeding that of Rhode Island by about 60%. The area covers all of Rhode Island's five counties, making it the only U.S. metropolitan area that covers an entire state, and extends into southern Massachusetts. In 2006, this area was officially added to the Boston Combined Statistical Area (CSA), the fifth-largest CSA in the country. Providence was one of the first cities to industrialize in the United States. Though manufacturing has declined, the city is still one of the largest centers for jewelry and silverware design and manufacturing. Services, particularly education, health care, and finance, also make up a large portion of the city's economy. Providence also is the site of a sectional center facility, a regional hub for the U.S. Postal Service. Since it is the capital of Rhode Island, Providence's economy additionally consists of government services. Seven of the fourteen institutions of higher learning in Rhode Island have campuses in Providence. Between these schools the number of postsecondary students is approximately 44,000, or 25% the population of Providence. Compounded by Brown University's being the second-largest employer, higher education exerts a considerable presence in the city's politics and economy. The city is home to the Rhode Island Convention Center, which opened in December 1993. Along with a hotel, the convention center is connected to the Providence Place Mall, a major retail center, through a skywalk. The Port of Providence, the second largest deepwater seaport in New England, handles cargo such as cement, chemicals, heavy machinery, petroleum, and scrap metal. Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Store Photo Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Satellite Images Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Location Maps Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Site Plan Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Demographics Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP. Leveraged Advance Auto Parts Johnston, Rhode Island Established 1955 P.O. Box 1228 ♦ Sag Harbor, NY 11963♦ T. (631) 725-4300♦ F. (631) 725-5881♦www.icarealty.com I.C.A. REALTY CORP.