MAVERIK GROUND LEASE 784 W WICKENBURG WAY, WICKENBURG (PHOENIX MSA),

OFFERING MEMORANDUM 93

MCDONALD’S WICKENBURG COMMUNITY HOSPITAL

DOWNTOWN WICKENBURG

BURGER 66 KING

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 // Maverik Ground Lease Executive Summary 784 W Wickenburg Way, Wickenburg (Phoenix MSA), AZ 85390

FINANCIAL SUMMARY ANNUALIZED OPERATING DATA Price $2,000,000 Lease Years Annual Rent Cap Rate Cap Rate 5.0% Current - 12/5/2023 $100,000.00 5.00% Building Size 3,885 SF 12/6/2023 - 12/5/2028 $107,000.00 5.35% Net Cash Flow 5.0 % $100,000 12/6/2028 - 12/5/2033 $114,490.00 5.72% Year Built 2019 Options Annual Rent Cap Rate Lot Size .89 Acres Option 1 $122,504.30 6.13% LEASE SUMMARY Option 2 $131,079.60 6.55% Lease Type Absolute Triple-Net (NNN) Ground Lease Option 3 $140,255.17 7.01% Tenant Maverik Option 4 $150,073.04 7.50% Guarantor Corporate Option 5 $160,578.15 8.03% Lease Commencement Date December 6, 2018 Option 6 $171,818.62 8.59% Lease Expiration Date December 5, 2033 Option 7 $183,845.92 9.19% Lease Term Remaining 13 Years Option 8 $196,715.14 9.84% Rental Increases 7% Every 5 Years Option 9 $210,485.20 10.52% Renewal Options 10, 5 Year Options Option 10 $225,219.16 11.26%

Base Rent $100,000

Net Operating Income $100,000

Total Return 5.0% $100,000

MARCUS & MILLICHAP 3 // Maverik Ground Lease BURGER DOWNTOWN KING WICKENBURG

Stagecoach Suites Sizzling Wok

Wickenburg Fire Department

12,600 CPD W WICKENBURG WAY

N MARIPOSA DR

MARCUS & MILLICHAP 4 // Maverik Ground Lease Property Description DEMOGRAPHICS 1-mile 3-miles 5-miles

Population

2024 Projection 3,772 9,344 10,042 2019 Estimate 3,552 8,681 9,313 Growth 2019 – 2024 6.18% 7.63% 7.82%

Households

2024 Projection 1,710 4,212 4,514 2019 Estimate 1,590 3,883 4,155 Growth 2019 – 2024 7.53% 8.45% 8.64%

Income

2019 Est. Average $71,739 $68,013 $67,805 Household Income INVESTMENT HIGHLIGHTS 2019 Est. Median $50,647 $49,652 $49,708 » Absolute Triple-Net (NNN) Ground Lease with Corporate Guaranty Household Income 2019 Est. Per 13+ Years Remaining on Lease Term $32,692 $30,859 $30,668 » Capita Income » 7% Rental Increases Every 5 Years

» 9,313 Residents within a 5-Mile Radius - Population and Households Projected to

Increase Nearly 8%+ in Surrounding Area Over the Next 5 Years

» Prime Location Along Route 66 (West Wickenburg Way) - Visible to 12,600 Cars/Day

» Down the Road from Historic Downtown Wickenburg

» Average Household Income Exceeds $71,000 in Immediate Area

» 10,527 Employees within 5 Miles of Subject Property

» Wickenburg is Centrally Located (Approx. 60 Miles) Between Prescott and Phoenix

MARCUS & MILLICHAP 5 // Maverik Ground Lease Tenant Overview

FJ Management Inc. Afton, 1928 350+ www.maverik.com

Parent Company Headquarters Founded Locations Website

Fueling adventures in more than 350 locations across 11 western states, Maverik his home town. In 1928, 20-year-old Reuel Call opened a two-pump gas station is the largest independent fuel marketer in the Intermountain West. Maverik is in Afton, Wyoming with money he earned from renting roller skates. The business known for their premium BonFire food - made fresh in every Maverik, every day soon grew, and he started providing fuel to surrounding towns and ranches.

- and great values on fuel, drinks, and snacks. Maverik sells exclusive products FJ Management Inc., formerly known as Flying J Inc., is a privately-held American such as fresh-made, gourmet burritos, sandwiches, pizzas, toasted subs, cookies, corporation which operates convenience stores, oil and refining, banking, and and coffee blends from around the world. businesses. Along with and , it is Maverik started when a young man from Wyoming decided to open a business in a joint owner of and Maverik.

MARCUS & MILLICHAP 6 // Maverik Ground Lease MARCUS & MILLICHAP 7 // Maverik Ground Lease Location Overview 1 Mile to Downtown Wickenburg

60 Miles to Prescott, Arizona

66 Miles to Phoenix, Arizona

70 Miles to Phoenix Sky Harbor International Airport

Located 50 minutes northwest of Phoenix on the Hassayampa River, Wickenburg Wickenburg’s historic downtown district honors its past while still keeping up with prides itself as being the most western town in Arizona. Founded in 1863, miners, the times. Visitors can stroll past historic buildings, art galleries, western decor ranchers, and farmers built homes along the fertile plain of the Hassayampa shops, and enjoy delicious food from the town’s many restaurants.

River. Many of these settlers came from Sonora, Mexico, giving this area the The Town of Wickenburg is strongly committed to making the community a distinction of being the northern edge of the Hispanic ranching frontier. destination for business. This is achieved by making it easy for businesses to Today, the western ambiance still thrives. The town has cherished the best locate and thrive in Wickenburg, strengthening partnerships and communication traditions of its colorful early days through annual events such as Gold Rush between the Town and the local business community, and promoting sustainable Days, Fiesta de Septiembre, Bluegrass Festival, and Cowboy Christmas Poets growth of the community while maintaining its high aesthetic value. Wickenburg’s Gathering. Horses and mules can still be seen with riders each day, in the key markets and industries include life and health sciences; the service industry; beautiful foothills surrounding the community. equestrian, rodeo, and roping; and light manufacturing.

MARCUS & MILLICHAP 8 // Maverik Ground Lease [ exclusively listed by ]

Nicholas Christifulli Chris N. Lind Mark J. Ruble Jamie A. Medress Associate Advisor Senior Vice President Executive Managing Director Executive Managing Director 602 687 6694 602 687 6780 602 687 6766 602 687 6778 [email protected] [email protected] [email protected] [email protected]

Offices Nationwide www.marcusmillichap.com

NET LEASED DISCLAIMER herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as property at this time, please return this offering memorandum to Marcus & Millichap. confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property. This offering memorandum has been prepared to provide summary, unverified financial and physical information The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, about the accuracy or completeness of any information provided. the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not due diligence examination of this Property for Buyer. verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not the information provided. All potential buyers must take appropriate measures to verify all of the information set forth represent the current or future performance of this property. The value of a net leased property to you depends on factors herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. that should be evaluated by you and your tax, financial and legal advisors. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation DETAILS. of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must SPECIAL COVID-19 NOTICE request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and solely on their own projections, analyses, and decision-making. Buyer’s legal ability to make alternate use of the property.

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 entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained