Advance Auto Parts | Retail Investment Opportunity

Highlights:

• Constructed in 2021, the ±6,912 SF Advance Auto Parts store features the brand’s latest prototype design and occupies a ±0.74-acre site, minimizing near-term capital expenditure requirements.
• Absolute NNN lease extends through May 31, 2036, providing ±10.75 years of remaining term, corporately guaranteed by Advance Stores Company, Inc. (NYSE:AAP), a Fortune 500 entity.
• Lease includes three (3), five-year renewal options, allowing potential tenancy through 2051 and supporting long-term cash flow visibility.
• Advance Auto Parts operates approximately 4,700+ locations across North America. The lease is guaranteed by Advance Stores Company, Inc., which holds a BB+ credit rating with a stable outlook from S&P Global Ratings, reflecting solid liquidity and operational stability.
• The property generates an annual base NOI of $172,800, with contractual rent escalations that enhance income durability over the hold period.
• Strategic location at the signalized intersection of North Main Street (±27,000 VPD), offering strong visibility within a dense retail corridor anchored by Walmart Supercenter, Aldi, Food Lion, and other national tenants.
• The surrounding 5-mile trade area encompasses ±113,842 residents with an average household income of ±$89,197 and over $1.2 billion in annual consumer expenditures.
• Located in High Point, NC, part of the Piedmont Triad region, a diversified economic hub supported by key sectors including healthcare, advanced manufacturing, and logistics.
• High Point hosts the world’s largest home furnishings trade show, drawing ±70,000 attendees twice annually and driving substantial economic activity.
• Proximate to High Point University (±6,300 students), ranked #1 Regional College in the South by U.S. News & World Report, as well as Guilford Technical Community College (±35,000 students) and other major institutions, fostering a skilled labor pool and underpinning long-term regional growth.

Description:

Matthews is pleased to present the opportunity to acquire a newly constructed Advance Auto Parts located at 1401 N Main Street in High Point, North Carolina. Completed in 2021, the ±6,912-square-foot building features the tenant’s latest prototype design and is situated on a ±0.74-acre parcel, minimizing near-term capital expenditure risk. The asset is secured by a long-term absolute NNN lease with Advance Stores Company, Inc. (NYSE: AAP), a Fortune 500 company, with ±10.75 years of remaining term through May 31, 2036.

The lease is backed by an investment-grade national retailer operating over 4,700+ locations across North America. S&P Global Ratings assigns a BB+ rating with a stable outlook to Advance Stores Company, Inc., reflecting strong liquidity and operational performance. The tenant holds three (3) five-year renewal options, offering potential tenancy through 2051 and ensuring long-term income stability. The property generates an annual base NOI of $172,800, with contractual rent escalations that enhance income growth over time.

Strategically positioned at a signalized intersection with combined traffic counts of ±27,000 VPD, the property benefits from excellent visibility within a dense retail corridor anchored by national brands such as Walmart Supercenter, Aldi, and Food Lion. The surrounding 5-mile trade area is home to ±113,842 residents with average household incomes of $89,197 and over $1.2 billion in annual consumer spending. High Point, part of the thriving Piedmont Triad region, is bolstered by economic drivers such as healthcare, advanced manufacturing, and logistics, and is further anchored by High Point University, Guilford Technical Community College, and the internationally recognized High Point Market.

Documents: