THE HUMAN BEAN 4414 COMMONS DRIVE, ST. JOSEPH,

OFFERING MEMORANDUM DOWNTOWN EAST HILLS MALL 5,500 STUDENTS ST. JOSEPH PRODUCTION FACILITY

29

36 MANUFACTURING FACILITY

Walgreens

KANSAS MISSOURI

INDUSTRIAL

229

MCDONALD’S DAIRY QUEEN

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 // The Human Bean Sale-Leaseback Executive Summary

FINANCIAL SUMMARY ANNUALIZED OPERATING DATA Price $1,063,830 Lease Years Annual Rent Cap Rate Cap Rate 6.50% 1 - 5 $69,150.00 6.50% Building SF +/- 600 SF 6 - 10 $76,065.00 7.15% Net Cash Flow 6.50% $69,150 11 - 15 $83,671.50 7.87% Year Built 2016 Options Annual Rent Cap Rate Lot Size .46 Acres Option 1 $92,038.65 8.82% LEASE SUMMARY Option 2 $101,242.52 9.71% Lease Type Absolute Triple-Net (NNN) Lease Option 3 $111,366.77 10.68% Tenant St Joe One Inc. Guarantor Personal Base Rent $69,150

Roof & Structure Tenant Responsible Net Operating Income $69,150 Lease Commencement Date Upon Close of Escrow Total Return 6.50% $69,150 Lease Expiration Date 15 Years After Close of Escrow Lease Term 15 Years Rental Increases 10% Every 5 Years Renewal Options 3, 5 Year Options

MARCUS & MILLICHAP 3 // The Human Bean Sale-Leaseback 29 35,500 CPD INDUSTRIAL INTERSTATE-29

MCDONALD’S PRODUCTION 29 FACILITY

19,585 CPD S BELT HIGHWAY

COMMONS DRIVE

MARCUS & MILLICHAP 4 // The Human Bean Sale-Leaseback Walgreens

INDUSTRIAL INDUSTRIAL

DAIRY QUEEN PRODUCTION FACILITY

19,585 CPD S BELT HIGHWAY

MARCUS & MILLICHAP 5 // The Human Bean Sale-Leaseback Property Description DEMOGRAPHICS 1-mile 3-miles 5-miles

Population

2023 Projection 5,466 39,702 71,993 2018 Estimate 5,402 38,981 71,179 Growth 2018 – 2023 1.18% 1.85% 1.14%

Households

2023 Projection 2,313 15,281 27,923 2018 Estimate 2,273 14,895 27,356 Growth 2018 – 2023 1.78% 2.59% 2.07%

Income

2018 Est. Average $88,397 $74,077 $64,026 Household Income

INVESTMENT HIGHLIGHTS 2018 Est. Median $69,071 $56,238 $49,523 Household Income » Brand New 15-Year Absolute Triple-Net (NNN) Sale-Leaseback 2018 Est. Per $37,257 $29,242 $25,362 » 10% Rental Increases Every 5 Years Capita Income » 71,179 Residents in Growing St. Joseph Trade Area » Visible to 19,585+ Cars/Day Along South Belt Highway » Conveniently Located Immediately Off the I-29 Freeway (35,500+ Cars/Day), Direct Route to Kansas City

» Less Than 10 Minutes from Missouri Western State University (5,500 Students) » Average Household Income Exceeds $88K in Immediate Area » Surrounded by Major National Retailers - Menard’s, McDonald’s, Waffle House, Sonic Drive-In, Walmart Supercenter, and More

» Strong Daytime Population - 87,288 Employees within a 5-Mile Radius

MARCUS & MILLICHAP 6 // The Human Bean Sale-Leaseback Tenant Overview

Private Medford, 95+ thehumanbean.com

Company Type Headquarters Locations Website

With a passion for creating happy people and a love of coffee, The Human Bean to 95 locations in ten states, 82 of those being franchised locations and 13 opened its first drive-thru espresso stand in Ashland, Oregon, in 1998. The being corporate locations. Growth is expected to continue through approved demand for convenient, quality coffee & espresso grew and soon after opening franchisees.

the first location in Ashland, the company expanded to surrounding cities in The Human Bean features a number of House Specialty espresso drinks, Southern Oregon. The Human Bean quickly established a reputation for having including the Snowy Mocha, Mexi Mocha, Salted Caramel, Irish Cream Breve, friendly and experienced baristas and offering the highest quality ingredients. and Caramel Hazelnut. Along with their classic coffee and teas, The Human Bean A commitment to developing the best drive-thru espresso led to the franchising of also offers a selection of Frozen Favorites, including a Granita (frozen espresso), The Human Bean’s brand and system in 2002. The Human Bean has expanded Acai Smoothie, Real Fruit Smoothie, and Frozen Hot Chocolate.

MARCUS & MILLICHAP 7 // The Human Bean Sale-Leaseback Location Overview 3 Miles to Missouri Western State University

5 Miles to Downtown St. Joseph

7 Miles to The Shoppes at North Village

8 Miles to Rosecrans Memorial Airport

St. Joseph is the county seat of Missouri’s Buchanan County, sitting on the border sciences engine in the Midwest.

of Missouri and Kansas along the Missouri River. The city was named after Joseph Located only 35 minutes north of Kansas City International Airport, St. Joseph Robidoux, a French Canadian trapper from St. Louis, who established a trading is situated in the middle of the Midwest’s Higher Education Research Triangle. post in the city in 1826 and named the city for his patron saint. Today, the city is Recently, academic, government, and local business partners have created a home to a dynamic business environment. St. Joseph is home to a population of Midwestern economic engine centered around advancements in agricultural 76,780 people, making it the eighth largest city in the state and the third largest science, building upon the city’s rich agricultural history and calling together the in Northwest Missouri. region’s best minds.

Metropolitan St. Joseph is known for its skilled manufacturing and quality Home to 13 distinctive area museums, 12 annual festivals, and amazing workforce. The area surrounding St. Joseph is also known as the Agricultural architecture listed on the National Register of Historic Places, St. Joseph is rich Research Triangle. In 2014, the city was ranked #4 on the list of America’s in culture. The city also boasts great outdoor recreation through 48 parks, 26 strongest farming and agribusiness region. The city is also the #1 agricultural miles of beautiful Parkway, and outdoor concerts and events.

MARCUS & MILLICHAP 8 // The Human Bean Sale-Leaseback [ exclusively listed by ]

Jamie A. Medress Mark J. Ruble Chris N. Lind Waylan Heers Brad Barham Executive Managing Director Executive Managing Director Senior Vice President Associate Advisor Broker of Record 602 687 6778 602 687 6766 602 687 6780 602 687 6673 License: 2013016939 [email protected] [email protected] [email protected] [email protected]

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