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HURRICANE HARVEY PROOF
ADVANCE AUTO PARTS 4601 GULFWAY DRIVE, PORT ARTHUR, TEXAS
INVESTMENT CONTACTBlake Matheus+1 512 945 [email protected]
Actual Property Photo
OFFERING SUMMARY
$706,500Cap Rate 8.5%
Net Operating Income $60,060
LEASE SUMMARY
Lease Type Double Net
Lease Term 10 Years
Years Remaining 7 Years
Lease Expiration 5/31/2024
Guaranty Corporate
PROPERTY SUMMARY
Address 4601 Gulfway Drive
City, State + Zip Port Arthur, Texas
County Jefferson County
Building Area ±7,000 SF
Price/SF $ 104.29
Land Area ±39,979 SF
Year Built 2000
Parcel No. 049400-000-022500-00000-8
THE OFFERING Cushman & Wakefield’s Texas Retail Advisors are pleased to offer for sale an Advance
Auto Parts at 4601 Gulfway Drive, Port Arthur, Texas (The “Property”), a ±7,000 square
foot single tenant net lease investment opportunity located in Port Arthur, a city ninety-
one miles east of Houston. The property is ideally situated among major national
retailers with visibility and access to over 15,730 vehicles per day. There are over 50,019
people within 3 miles of the Property with average household incomes of $52,180.
The tenant, Advance stores company, incorporated, the major subsidiary of advance
auto parts, inc. (nyse: “aap”), is the second-largest retailer of automotive aftermarket
parts, parts, accessories, batteries, and maintenance items in the u.s. advance
operates 5,171 aap stores, 122 worldpac branches, and served approximately 1,300
independently owned carquest branded stores in the united states, puerto rico, the
virgin islands and canada. Advance employs approximately 73,000 team members.
Advance Auto Parts / Port Arthur, TX
ADVANCE STORES COMPANY, INCORPORATED, the major subsidiary of ADVANCE AUTO PARTS, INC. (NYSE: “AAP”), is the second-largest retailer of automotive aftermarket parts, parts, accessories, batteries, and maintenance items in the U.S. Advance operates 5,171 AAP stores, 122 Worldpac branches, and served approximately 1,300 independently owned Carquest branded stores in the United States, Puerto Rico, the Virgin Islands and Canada. Advance employs approximately 73,000 Team Members. For the fiscal year ended January 2, 2016, Advance Auto Parts, Inc., reported revenues of $9.7 billion, a net earning of $473 million, and total stockholders’ equity of $2.46 billion. For the three months ended March 31, 2016, AAP reported revenues of $2.98 billion, a net earning of $158 million, and total stockholders’ equity of $2.63 billion. Advance Auto Parts is rated “BBB” (investment grade) by Standard & Poor’s.Advance Auto Parts, Inc., through its subsidiaries, operates as a retailer of automotive aftermarket parts, accessories, batteries, and maintenance items to do- it-yourself (DIY) and do-it-for-me customers (DIFM).• DIY — Do It Yourself: Individual consumers who come to the
store to purchase the merchandise and who, typically, work on their own vehicles.
• DIFM — Do It for Me: Auto repair professionals and service shops working on an individual’s vehicle, who usually order by phone, fax, or e-mail. Many service shops order daily from the store for same- or next-day delivery.
Strong DIFM sales depend upon a good distribution/inventory
system. If the ordered item is in stock, there is next-day availability to the ultimate consumer; if not; the objective is to ship from an AAP warehouse overnight, providing second-day delivery. To that end, AAP has developed a system of warehouses, such that any parts order placed by a given store will be delivered the next morning. To achieve these efficiencies, there are different sizes of highly computerized warehouses, all within an overnight drive of every store.
In January 2005 Forbes Magazine published its list of best-managed companies in America, one in each of 26 industries (financial, chemical, etc.). Advance Auto Parts was named the best-managed retail company in the U.S. In December 2004 AAP was added to those stocks constituting the Standard & Poor’s MidCap 400.The actual tenant, Advance Stores Company, Incorporated (“Advance Stores”), is a wholly owned subsidiary of Advance Auto Parts, Inc. (AAP).
Advance Stores contains all or essentially all the operating revenues, operating expenses, operating assets, and operating liabilities of the parent company, AAP. The 2007 annual report to the SEC, the “10-K report,” contains the following statement: “ADVANCE AUTO PARTS, INC., CONDUCTS ALL OF ITS OPERATIONS THROUGH ITS WHOLLY-OWNED SUBSIDIARY, ADVANCE STORES COMPANY.” The parent, AAP, is not on the lease. See attached letter from AAP dated March 31, 2009.Website: http://shop.advanceautoparts.com
Advance Auto Parts / Port Arthur, TX
ADVANCE STORES COMPANY, INC.
±7,000 SQ. FT.
DU
MP
ST
ER
PY
LON
SIG
NGULFWAY DRIVE
SITE PLANDEMOGRAPHICSPOPULATION3 mile 50,019
5 miles 69,228
7 miles 96,943
HOUSEHOLDS (HH)3 mile 18,114
5 miles 26,352
7 miles 37,587
Families3 mile 12,414
5 miles 17,399
7 miles 25,099
Average Household Size3 mile 2.75
5 miles 2.60
7 miles 2.56
MEDIAN HH INCOME3 mile $38,169
5 miles $38,974
7 miles $42,877
AVG HH INCOME3 mile $52,180
5 miles $54,736
7 miles $58,261
Advance Auto Parts / Port Arthur, TX
NW
Advance Auto Parts / Port Arthur, TX
N
GULFWAY DRIVE
15,730CARS PER DAY
JE
FFER
SON D
RIVE
RETAILER MAP
LOCATION MAP
Advance Auto Parts / Port Arthur, TX
The subject property is located along Gulfway Drive at the intersection of Green Avenue in the neighborhood of Griffin Park in Port Arthur, TX. Gulfway Drive is one of the main north-south thoroughfares that spans the town and runs parallel to Sabine Lake, the body of water which empties out into the Gulf of Mexico 20 miles south.
Other tenants nearby the site are: Walgreens, Popeyes, Subway, Happy Donuts, Tequilla Mexicana, Family Dollar, Payless Shoesource, H-E-B, along with many other local eating establishments, grocery stores, beauty salons, churches, schools, etc.
LOCATION MAPLOCATION MAP
N
Port Arthur is a city on the Easter Coast of Texas along the border of Louisiana and the Gulf of Mexico. The population in the city is approximately 54,135 people and is recognized as both a seaport and center of a large network of oil refineries. Port Arthur is situated along Sabine Lake which empties into the Gulf of Mexico, and the Rainbow Bridge across the Neches River connects Port Arthur to Bridge City.
Port Arthur is approximately 22 miles southeast of Beaumont, 90 miles east of Houston, 133 miles west of Lafayette, LA, and 264 miles west of New Orleans, LA.
PORT ARTHUR OVERVIEW
TRANSPORTATION
Highway
Port Arthur is located off of US Hwy 96. Hwy 96 provides direct access to Interstate 10 (I-10) just outside of Beaumont, TX, approximately 20 miles north of Port Arthur. I-10 provides the city with direct access to Houston to the west and Lafayette, Baton Rouge and New Orleans (via I-12) to the east.
Air
The nearest international airport is George Bush Intercontinental Airport (IAH) in Houston, TX approximately 90 miles west of Port Arthur.
The economy in Port Arthur is based on energy production and exportation through the Port of Port Arthur Seaport. The city’s location on the Gulf International Coastway and approximately 90 miles east of Houston makes it ideal for large scale production and trade companies.
Several large projects involving energy infrastructure exist in the area, the two largest being the Golden Pass and Sabine Pass LNG terminals. Golden Pass LNG Terminal is a joint venture formed by affiliates of three of the world’s largest and most experienced oil and gas companies: Qatar Petroleum (70%), ExxonMobil (17.6%) and ConocoPhillips (12.4%). Among the largest terminals in the world, the Golden Pass LNG Terminal is capable of importing approximately 2 billion cubic feet of natural gas per day through its dual berth ship docks. Sabine Pass LNG terminals, owned by Cheniere, is among the leading companies in North America strategically pursuing the development of LNG terminals. The Company is currently developing onshore LNG export terminals and related natural gas pipelines along the U.S. Gulf Coast. Both projects have brought cumulative investments of over $2 billion to the Port Arthur area and employ thousands of local citizens.
Motiva Enterprises’ Port Arthur refinery is now the largest in the United States, with a crude capacity of 600,000 barrels per day. The facility has access to multiple major crude oil and product pipelines, which transport gasoline, diesel, kerosene and jet fuel to the East Coast, Midwest, Central Texas and the Southeast Texas area. The refinery also operates the largest single lube plant in the US, producing lubricant base oils that are sold to Shell Lubricants and a variety of industrial companies. Valero has a large refinery in Port Arthur as well which has undergone several expansions.
Advance Auto Parts / Port Arthur, TX
PORT ARTHUR OVERVIEW CONT.
Advance Auto Parts / Port Arthur, TX / 10
Confidentiality and DisclaimerThe information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving the Materials from Cushman & Wakefield (“Agent”). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property/properties (“Property”) for potential purchase.
The Materials have been prepared to provide unverified summary financial, property, and market information to a prospective purchaser to enable it to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property.
The information contained in the Materials has been obtained by Agent from sources believed to be reliable; however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCB’s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenants’ intentions regarding continued occupancy, payment of rent, etc). A prospective purchaser must independently investigate and verify all of the information set forth in the Materials. A prospective purchaser is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating the Property.
By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.
Advance Auto Parts / Port Arthur, TX / 10SUBJECT PROPERTY
ANDREW BOGARDUS Executive Director
+1 415 677 0421 [email protected]
BLAKE MATHEUS Primary Contact | Associate
+1 512 370 2423 [email protected]
PROJECT EXECUTIVESCONTACT INFORMATION
