Jiffy Lube 36167 Date Palm Dr, Cathedral City, Ca 92234 Exclusively Listed by MITCHELL GLASSON Wesley Connolly, MBA Associate Senior Associate

™ OFFERING MEMORANDUM

Jiffy Lube 36167 Date Palm Dr, Cathedral City, cA 92234 exclusively listed by MITCHELL GLASSON Wesley connolly, MBA Associate Senior Associate

[email protected] [email protected] DIR (949) 432-4502 DIR (949) 432-4512 MOB (707) 364-5650 MOB (707) 477-7185 LIC # 012016029 (CA) LIC # 01962332 (CA) investment highlights

DEAL HIGHLIGHTS

• Absolute NNN SoCal asset offered at a rare $400/SF

• Unprecedented growth and development - Coachella Valley’s population is expected to increase 99.4% by 2035

• Exceptional lease guaranty with largest national Jiffy Lube franchisee operator (523 Units) – further details below

• Subject property has 4 service bays and 2nd floor administrative office

• Visibility to 20,000 + vehicles per day CATHEDRAL CITY & COACHELLA VALLEY

• Economic Growth & Development - Cathedral City recently voted (March 2018) to pull back regulations and promote infrastructure, development and newfound revenue from the cannabis sector

• Projects include a new downtown casino, national retail, hotels, live playhouse theater and performance arts centre; Date Palm Drive is currently being widened to three (3) car lanes + bike lanes (N & S) to account for increased traffic count attributed to new development.

• 5.43% projected population growth rate 2018 - 2023

• Population: 1-Mile: 10,000 | 3-Mile: 54,859 | 5-Mile: 110,766 TOP-TIER TENANT (LARGEST FRANCHISEE OPERATOR)

• In Q1 2018, leading middle-market private equity investment firm Wynnchurch Capital, LLC completed the acquisition of Heartland Automotive Services in partnership with Mid-Atlantic Lubes, Inc. and was renamed Team Car Care, LLC

• Heartland Automotive Services, Inc. d/b/a Team Car Care, LLC is Jiffy Lube’s largest franchisee with ± 523 Locations across 26 states

• Wynnchurch Co-Managing Partner, John Hatherly, “Heartland is a tremendous addition to our portfolio of service businesses. We feel very fortunate to be partnering with Jiffy Lube International, Inc.” (www.pehub.com) STRONG E-COMMERCE RESISTANCE

• Nationally Recognized Tenant – Jiffy Lube is the premier quick oil change company in the US with +2,200 locations

• Service-based tenants provide landlords with a high degree of protection against a retail market that is shifting toward e-commerce when possible

• Recession Resistant Business Model – strong historical performance even during economic downturn

3 | Jiffy Lube (Cathedral City, CA) ™ financial overview

36167 Date Palm Dr Cathedral City, CA 92234 List Price ��$1,294,507 CAP Rate - Current ��5.65% Gross Leasable Area ��± 3,500 SF Lot Size �� ± 0.73 Acres Year Built/Renovated ��1990/2008

Annualized Operating Data Tenant Summary Monthly Rent Annual Rent Rent/SF Cap Rate February 2018 - Tenant Trade Name Jiffy Lube $6,094.97 $73,139.67 $20.90 5.65% February 2019 Type of Ownership Fee Simple February 2019 - Heartland Automotive Services, Inc. $6,216.87 $74,602.46 $21.31 5.76% Lease Guarantor February 2020 d/b/a Team Car Care, LLC (523 Units) February 2020 - $6,341.21 $76,094.51 $21.74 5.87% Lease Type NNN February 2021 Roof and Structure Tenant Responsible February 2021 - $6,468.03 $77,616.40 $22.18 6.00% February 2022 Original Lease Term 16 Years February 2022 - Rent Commencement Date 2/25/2008 $6,597.39 $79,168.73 $22.62 6.11% February 2023 Lease Expiration Date 2/1/2024 February 2023 - $6,729.34 $80,752.10 $23.07 6.23% Term Remaining on Lease ± 5.8 Years February 2024 Increases 2% Annual Options Three, Five (5) Year Option

4 | Jiffy Lube (Cathedral City, CA) Tenant overview

Company Name Jiffy Lube International, Inc.

Ownership Private

Parent Company Trade Name Royal Dutch Shell PLC (ADR)

No. of Locations ± 2,100

No. of Employees ± 6,538

Headquartered Houston, Texas

Website www.jiffylube.com

Year Founded 1979

A leading provider of oil changes and a subsidiary of Shell Oil Company, Jiffy Lube boasts more than 2,100 outlets led throughout North America that are all independently owned by operators. Besides oil changes, Jiffy Lube facilities provide maintenance services for air conditioning, fuel systems and transmissions. At some of its locations it also performs inspections and emissions testing, repairs windshields and rotates tires. Serving about 22 million customers annually, Jiffy Lube caters to several fleet management firms such as Donlen, Emkay, Voyager and PHH.

Heartland Automotive Services, Inc. is a franchisee company that operates over 530 Jiffy Lube locations in the United States. They are part of the growing quick lube industry, providing Jiffy Lube preventive maintenance services. With Jiffy Lube technicians performing over 60,000 oil changes a day, Heartland is committed to keeping Jiffy Lube as one of the top auto service providers in the nation. Their main mission is to provide safe and routine maintenance services, provide the highest-quality Pennzoil products, while also doing their part in respecting the environment and recycling.

Heartland Automotive Services, Inc. (dba Team Car Care, LLC), a portfolio company of Wynnchurch Capital, LLC (“Wynnchurch”), recently appointed Jeff Balagna as Chief Executive Officer. With more than 35 years of experience, Mr. Balagna is a seasoned executive with broad management expertise. His career spans multiple industries and includes stints at prominent brands including Medtronic, General Electric, Ford, Eli Lilly, Sears, and Carlson Companies.

STRATEGY Jiffy Lube focuses on its four key areas of preventative maintenance service: change, inspect, check/fill, and clean. The company’s extensive technician training program has made Jiffy Lube an Automotive Service Excellence (ASE) Accredited Training Provider. With a focus on reuse, Jiffy Lube makes a point to collect more used oil than any of its competitors in North America. The oil is then refined and used for making concrete, generating electricity, and heating asphalt to pave roads.

GEOGRAPHIC OUTREACH Jiffy Lube has an approximate 2,100 franchised service centers in North America and Canada. Offering Memorandum | 5 Property details

the offering parcel map Property Name Jiffy Lube

36167 Date Palm Dr Date Palm Dr ± 22,000 ADT Property Address Cathedral City, CA 92234 Assessor’s Parcel Number 000-262-528 Site Description Number of Stories One Year Built/Renovated 1990/2008 Gross Leasable Area (GLA) ± 3,500 SF Lot Size ± 0.7.3 Acres (31,798 SF) Type of Ownership Fee Simple Parking ± 12 Surface Spaces Parking Ratio 3.43 : 1,000 SF Landscaping Professional Topography Generally Level

6 | Jiffy Lube (Cathedral City, CA) Surrounding tenants

Cathedral City High School

Tahquitz Creek Golf Resort

Mission Hills Country Club Nellie N. Coffman Middle School

Palm Valley School

Tamarisk Country Club

7 | Jiffy Lube (Cathedral City, CA) Area overview • One of America’s “Most Livable Cities” • Top 10 Places to Retire Demographics • Ranked Top 3 Cities in Coachella Valley POPULATION 1 - MILE 3 - MILE 5 - MILE

2023 Projection 9,993 57,815 118,961

2018 Estimate 9,549 54,859 112,832

2010 Census 8,899 50,131 102,768

Growth 2018-2023 4.65% 5.39% 5.43%

HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE

2023 Projection 4,752 22,736 50,786

2018 Estimate 4,511 21,535 47,983

2010 Census 4,134 19,563 43,225

Growth 2018-2023 5.34% 5.58% 5.84%

INCOME 1 - MILE 3 - MILE 5 - MILE

2018 Est. Average $73,290 $82,919 $86,292 Household Income

Cathedral City, CA

Also known as Cat City, Cathedral City is located between Palm Springs and Rancho Mirage, and is one of nine cities that makes up the Coachella Valley. The city is a welcoming place to relax and enjoy rounds of golf on some of the most exclusive golf courses in the area. It was recently named one of the “top ten best bargain retirement spots” by US News and World Report. The sense of community is strong throughout the city with residents that care about the place they call home. It is the perfect spot for retired residents and families that want the comfort of suburban life, while still having easy access to fun events and activities throughout the area. Palm Springs, CA

Palm Springs is a desert resort city within the Coachella Valley. Known for its stylish hotels, new fashionable restaurants, and an assortment of outdoor activities, Palm Springs is the best place to escape from the big city and experience the natural side of California. Some larger events that are held in the area throughout the year include the Palm Springs International Film Festival, Modernism Week, Coachella, and Stagecoach Music Festival. These events bring people from all over the world for once-in-a-lifetime experiences.

The nightlife has also been expanding throughout Palm Springs. Since the 1920’s, Palm Springs has been Hollywood’s desert playground for celebrities to relax and escape. With trendy restaurants and developing nightclubs, Palm Springs has offered more than ever before. Whether you are looking for a place to get away and enjoy a couple rounds of golf or explore all that nature has to offer, Palm Springs has something for everyone!

9 | Jiffy Lube (Cathedral City, CA) Palm springs Economy Top Employers The city’s main economic sector is tourism. With numerous festivals, conventions, and international events, there is a constant flow of tourists. There is a large amount of hotels, restaurants, and attractions to entertain residents and visitors. Recently, high-end boutiques have moved into downtown and uptown Palm Springs.

Tourists have many different options when it comes to resorts that cater Palms Sprring Demographics to their specific style and needs. Palm Springs is also known for luxurious golf courses that is also a huge attraction to tourists. Another larger boost in the economy is celebrities moving into the area. Throughout 115,588 $75,413 37.9 the 20th century, celebrities would visit to get away from the big city. 2018. Est. Population Median Household Median Age Many establish residency during their retirement years which brings up Income the residential cost. CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Jiffy Lubelocated at 36167 Date Palm Dr, Cathedral City, CA 92234 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

11 | Jiffy Lube (Cathedral City, CA) exclusively listed by

MITCHELL GLASSON Associate

[email protected] DIR (949) 432-4502 MOB (707) 364-5650 LIC # 012016029 (CA)

Wesley connolly, MBA Senior Associate

[email protected] DIR (949) 432-4512 MOB (707) 477-7185 LIC # 01962332 (CA)

™

36167 Date Palm Dr | Cathedral City, CAOffering Memorandum | 12