HIBBETT SPORTS 1256 W 6TH STREET, CHADRON, NEBRASKA

OFFERING MEMORANDUM MCDONALD’S DOWNTOWN CHADRON

DECORATINGMorford’s CENTER

CHADRON HIGH SCHOOL

3,000 STUDENTS

The information in this package has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2020 Marcus Millichap.

MARCUS & MILLICHAP 2 // Hibbett Sports Executive Summary 1256 W 6th Street, Chadron, NE 69337

FINANCIAL SUMMARY ANNUALIZED OPERATING DATA Price $533,000 Lease Years Annual Rent Cap Rate Cap Rate 9.0% Current - 9/30/2023 $48,000 9.00% Building Size 5,000 SF Options Annual Rent Cap Rate Net Cash Flow 9.0% $48,000 Option 1 $50,000 9.38% Year Built 2013 Option 2 $55,000 10.32% Lot Size 0.64 Acres LEASE SUMMARY Base Rent $48,000 Lease Type Double-Net (NN) Lease Net Operating Income $48,000 Tenant Hibbett Sporting Goods, Inc. Total Return 9.0% $48,000 Guarantor Corporate Roof & Structure Landlord Responsible Lease Commencement Date October 1, 2013 Lease Expiration Date September 30, 2023 Lease Term Remaining 3 Years Rental Increases In Options Renewal Options 2, 5 Year Options

MARCUS & MILLICHAP 3 // Hibbett Sports 9,090 CPD US-385

5,675 CPD GOLD RUSH BYWAY

DECORATINGMorford’s CENTER

MARCUS & MILLICHAP 4 // Hibbett Sports W 6TH ST

5,675 CPD GOLD RUSH BYWAY

DECORATINGMorford’s CENTER

MARCUS & MILLICHAP 5 // Hibbett Sports Property Description DEMOGRAPHICS 1-mile 3-miles 5-miles

Population

2024 Projection 2,936 5,989 6,287 2019 Estimate 2,960 6,043 6,340

Households

2024 Projection 1,319 2,360 2,471 2019 Estimate 1,330 2,379 2,489

Income

2019 Est. Average $55,070 $59,913 $60,301 Household Income

2019 Est. Median $43,289 $44,675 $45,008 Household Income

2019 Est. Per $26,276 $25,138 $25,280 Capita Income INVESTMENT HIGHLIGHTS

» 3 Years Remaining on Corporate-Guaranteed Lease

» Rental Increases in Option Periods

» Only Sporting Goods Retailer in Town

» Average Household Income Exceeds $60K within a 5-Mile Radius

» Postioned in Corridor - , Bomgaars, McDonald’s, Taco John’s, and More

» Down the Road from Chadron Community Hospital & Health Services

» College Town with Over 3,000 Students at Chadron State College

» Nearly 15,000 Cars/Day at the Nearby Intersection of Gold Rush Byway and US-385

MARCUS & MILLICHAP 6 // Hibbett Sports Tenant Overview

Birmingham, NASDAQ: HIBB 1945 1,000+ hibbett.com

Headquarters Stock Symbol Founded Locations Website

Hibbett Sports, Inc. is a sporting goods retailer headquartered in Birmingham, By 1952, Rufus Hibbett’s sons, Ike and George, join the business and rename it Alabama. The company operates over 1,000 retail stores in 32 states, specifically Hibbett & Sons. The company is then renamed to Hibbett Sporting Goods, Inc. in small to mid-sized markets in the Southeast, Southwest, and lower Midwest in 1969. In 1980, the company is purchased by the Anderson family of Florence, regions of the . Retail stores feature men’s, women’s, and children’s Alabama who initiate a more aggressive store growth plan. By 1995, Saunders sporting apparel and accessories for a range of sports including baseball, softball, Karp & Co. purchases Hibbett Sporting Goods, which now has 75 stores. With soccer, football, basketball, volleyball, and running. 96 stores, Hibbett becomes a public company on NASDAQ in 1996. By 2007,

The company was founded in 1945 by Rufus Hibbett, who initially named the Hibbett had nearly quadrupled in size with 688 stores in 23 states. Today, Hibbett company Dixie Supply Company, and started out selling school and team apparel. has over 1,000 stores in 32 states.

MARCUS & MILLICHAP 7 // Hibbett Sports Location Overview 1 Mile to Chadron State College

11 Miles to Nebraska National Forest

102 Miles to Western Nebraska Regional Airport

190 Miles to Cheyenne, Wyoming

Chadron is located at the foot of the Pine Ridge in Northwest Nebraska and is the Historic District, four public schools, modern medical facilities, great housing county seat of Dawes County. Native American tribes were the original inhabitants opportunities, and low taxes. Chadron is also the United States Forest Service of the area. The current town site of Chadron was formally established in 1885 headquarters of the Nebraska and Samuel R. McKelvie National Forests, and the as a town on the Fremont, Elkhorn, and Missouri Valley Railroad. The town grew Buffalo Gap, Fort Pierre, and Oglala National Grasslands. The Museum of the Fur very quickly and today, it is home to approximately 5,851 people. The town has Trade is located near Chadron, at the site of the American Fur Company’s former numerous economic opportunities in recreation and travel, and a broader based Bordeaux Trading Post.

economy than many other western Nebraska towns. Chadron State College is a four-year public college, one of three public colleges What began in 1885 as a few wooden stacks and dirt roads has evolved into a in the Nebraska State College System. Founded in 1911, the college has an 21st-century economic leader in the Nebraska Panhandle. Chadron boasts one enrollment of approximately 3,000 students. Five of its 25 major buildings are of the three state colleges, beautiful city parks, a recently designated Commercial listed in the National Register of Historic Places.

MARCUS & MILLICHAP 8 // Hibbett Sports [ exclusively listed by ]

Jon Ruzicka Broker of Record License #: 20200223

Offices Nationwide www.marcusmillichap.com

NET LEASED DISCLAIMER entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property. property at this time, please return this offering memorandum to Marcus & Millichap.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, This offering memorandum has been prepared to provide summary, unverified financial and physical information Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any about the accuracy or completeness of any information provided. investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in due diligence examination of this Property for Buyer. this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of represent the current or future performance of this property. The value of a net leased property to you depends on factors the information provided. All potential buyers must take appropriate measures to verify all of the information set forth that should be evaluated by you and your tax, financial and legal advisors. herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all DETAILS. real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past SPECIAL COVID-19 NOTICE performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely Buyer’s legal ability to make alternate use of the property. solely on their own projections, analyses, and decision-making.

CONFIDENTIALITY AGREEMENT 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 Marcus & Millichap and it should not be made available to any other person or