INVESTMENT OFFERING

SAB Capital, on behalf of ownership, is pleased to exclusively offer the fee-simple, single-tenant net-leased Advance Auto Parts located at 2703 Henry Street in Muskegon, Michigan. The property consists of approximately 7,000 square feet of rentable area situated on a 0.68-acre parcel, and is 100% leased to Advance Auto Parts, a nationally recognized and publicly traded automotive aftermarket retailer.

Advance Auto Parts has operated at this location for 27 years, underscoring the strategic importance of the site and the durability of the underlying real estate. The tenant currently operates under a passive net lease with a lease expiration in May 2032, and is supported by two five-year renewal options featuring contractual rent increases of 19% and 8%, respectively. The current in-place rent of $9/SF remains below prevailing market levels, offering investors embedded mark-to-market upside with minimal near-term rollover risk.

The property is prominently positioned within the Muskegon Heights retail corridor, benefiting from strong visibility, access, and traffic exposure of approximately 15,700 vehicles per day, as well as proximity to US-31. The surrounding submarket exhibits tight retail fundamentals, with vacancy rates near 2.6% and steadily increasing market rents, supporting long-term tenant retention and re-leasing prospects.

Constructed in 1999, the building features masonry and concrete block construction, a functional layout, and a strong parking ratio, enhancing long-term usability and alternate-use flexibility. With its freestanding configuration, fee-simple ownership, and C-1 zoning, the asset provides meaningful exit optionality beyond the current tenancy.

This offering represents an opportunity to acquire a durable, income-producing net-leased retail asset backed by a national operator, contractual rent growth, and strong real estate fundamentals. The combination of stable cash flow, below-market rent, and long-term optionality positions the property as an attractive investment for 1031 exchange buyers and private capital seeking yield with downside protection.

• Passive Net Lease | The property is leased to Advance Auto Parts on an NN basis, providing predictable cash flow with limited landlord responsibilities.
• Strong Remaining Lease Term with Built-In Rent Growth | Below market NOI of $63,000 ($9/SF) with approximately 6 years remaining and contractual rent increases of 19% at the first option and 8% at the second option period.
• Long-Term Tenancy | Advance Auto Parts has operated at this location for 27 years, demonstrating long-term commitment and site durability.
• Strong Store-Level Sales Performance | The property generates over $1.6 million in annual sales, equating to an attractive ±4% rent-to-sales ratio.
• Below-Market In-Place Rent | Current rent of $9/SF is materially below market ($10.20+/SF), providing embedded mark-to-market upside.
• Established, High-Visibility Retail Corridor | Positioned along Henry Street with exposure to 15,700+ VPD and immediate access to US-31.
• High-Performing Location | Ranks in the top 72% statewide and top 75% within a 15-mile radius, per Placer.ai metrics.
• Corporate Guaranty | Purpose-built ±7,000 SF freestanding retail building on 0.68 acres with fee-simple ownership and full site control.
• Quality Surrounding Submarket | Muskegon Heights retail vacancy of approximately 2.6% compares favorably to the five-year average of 4.0%, with market rents exceeding $10.20/SF.
• Automotive Demand Tailwinds | High drive-alone commuter patterns and an aging vehicle fleet support sustained demand for auto-parts retail.
• Re-Rentability & Alternate Use Potential | Functional building size, strong parking ratio, and C-1 zoning support a wide range of retail and service users.
• Attractive Absolute Basis | Asking basis of ~$129/SF remains well below replacement cost, providing downside protection and exit flexibility.