™ REDDING | CA

ARCO/AMPM 4670 Churn Creek Road | Redding, CA 96002 OFFERING MEMORANDUM Table of Contents TABLE OF CONTENTS

03 EXECUTIVE OVERVIEW 04 FINANCIAL OVERVIEW

05 TENANT OVERVIEW 07 AREA OVERVIEW

LISTED BY

ARON Cline Chad Kurz SENIOR VICE PRESIDENT & SENIOR DIRECTOR SVP & National Director | Lic # 01911198 (CA) DIRECT 949.432.4509 Calvin Short MOBILE 818.632.0233 SVP & Senior Director | Lic # 01927216 (CA) [email protected] Josh Bishop LIC # 01904371 (CA) VP & Director | Lic # 688810 (TX)

| 2 ExecutiveFort Myers Overview | FL

Investment Highlights

»» This brand new construction ARCO AMPM (BP S&P rating: A-) is conveniently located at the signalized intersection of Churn Creek Rd and South Bonnyview Rd off Interstate 5 Freeway in Redding, CA.

»» The combined traffic counts exceed 107,000 cars per day.

»» The lease is guaranteed by BP, a global producer of oil and gas with operation in 70 countries and an investment grade credit rating of “A-” by Standard & Poors. BP has a larger economic footprint in the U.S. than in any other country, and it has invested more than $100 billion in the country since 2005. BP does $204 billion in revenue and employs 14,000 people across the U.S.

»» The lease has 10% rental increases every 5 years including in the options to hedge against inflation and lead to long term appreciation in property value.

»» Freeway gas station location with very attractive traffic counts and out parcel to a new grocery anchored shopping center (Save Mart anchored).

»» 15 year absolute NNN ground lease – no landlord responsibilities. True “coupon clipper”.

Location Highlights

»» The immediate trade area has a significant amount of planned new construction such as River Crossing Marketplace ( anchored shopping center), Churn Creek.

»» Marketplace (Save Mart - anchored shopping center), Redding Rancheria Casino (140,000 SF casino, with 250 room hotel, event center, and retail shops), amongst others.

»» Over 375,000 SF of proposed new retail in this immediate trade area will significantly change the landscape of South Redding while significantly increasing traffic.

3 | FINANCIALFort Myers Overview | FL

Annualized Operating Data

Monthly Rent Annual Rent Increases Cap Rate Year 1-5 $14,583.33 $175,000.00 4.75%

Year 6-10 $16,041.67 $192,500.00 10% 5.23%

Year 11-15 $17,645.83 $211,750.00 10% 5.75%

Option 1 $19,410.42 $232,925.00 10% 6.32%

Option 2 $21,351.50 $256,218.00 10% 6.95%

Option 3 $23,486.67 $281,840.00 10% 7.65%

Option 4 $25,835.33 $310,024.00 10% 8.42%

Tenant Summary Investment Summary

Tenant Trade Name ARCO/AMPM »» LIST PRICE $3,684,000 Lease Guarantor Corporate Lease Type Absolute NNN Ground Lease »» NOI (YEAR 1) $175,000 Roof and Structure Tenant Responsibility »» CAP RATE (YEAR 1) 4.75% Original Lease Term 15 Years Rent Commencement Date 10/1/2018 »» YEAR BUILT 2018 Lease Expiration Date 9/30/2033 Term Remaining on Lease ±14.5 Years »» TOTAL LAND AREA ± 1.16 Acres Increase 10%, Every 5 Years Three, 5-year options Options One, 4-year option

| 4 TENANTFort Overview Myers | FL

»» Company Name »» Year Founded »» Headquarters ARCO/AMPM 1978 Warrenville, IL »» Ownership »» Industry »» Website The Offering Public www.ampm.com PROPERTY NAME ARCO/AMPM The AMPM brand is a chain with branches located all over the U.S and several countries worldwide. Owned by BP America, Inc. Atlantic Richfield Company is rated “A1” by Moody’s and “A-” by Standard & Poor’s. ARCO is owned by Andeavor Property Address 4670 Churn Creek Road (NYSE: “ANDV”), a Fortune 100 and a Fortune Global 500 company. Together, ARCO and ampm sites serve about 24 Redding, CA 96002 million customers per month. In the U.S. the AMPM stores are usually attached to an ARCO or BP-branded gas stations SITE DESCRIPTION with the first location opening in Southern in 1978. ARCO prides itself in providing gas that exceeds EPA standards to help improve an engine’s efficiency, cleanliness, performance, reliability, and even minimizes emissions at an Number of Stories One affordable price. Year Built 2018

GLA ±3,000 SF »» S&P: “ A-” »» Company Name »» Locations »» Revenue Lot Size ±1.16AC (50,530 SF) »» NYSE: “BP” BP 18,300 $204B Type of Ownership Ground Lease Headquartered in London, BP is one of the world’s largest integrated oil and gas companies. Its operations spread across 80 countries around the world. The company provides its services to wholesale and retail customers. For over 150 years, BP has supplied the energy fueling America’s growth. Today, the U.S. operations provide the investment, jobs and products underpinning both American prosperity and its transition to a lower-carbon future. In 2017, BP supported more than 125,000 U.S. jobs and contributed $85 billion to the U.S. economy. BP invests more in the United States than we do in any other country making BP one of America’s top producers and refiners of oil and gas.

5 | Site Plan

O AD E W R NNYVI H B O SOUT

I N T E R S T

A T E 5

C H U R N C R E E K R O A FUTU RE D FAS T FOOD

CHURN CREEK MARKETPLA CE D EVELO PMENT

North

| 6 REDDINGLocation | CA

Downtown Redding ±4 Miles

CHURN CREEK MARKETPLACE DEVELOPMENT (Save Mart Grocery Anchored Shopping Center) ±60,000 VPD

North

7 | REDDINGSiteLOCATION Plan | CA

RIVERVIEW COUNTRY CLUB

RIVER CROSS MARKETPLACE DEVELOPMENT (Costco Anchored Retail Center) SACRAMENTO RIVER

S Bonnyview Rd ±28,792 VPD CHURN CREEK MARKETPLACE DEVELOPMENT North (Save Mart Grocery Anchored Shopping Center)

| 8 REDDINGLocation | CA

REDDING RANCHERIA CASINO • 140,000 SF Casino • 250-Room Hotel • Event Center • Retail Shops

CHURN CREEK MARKETPLACE DEVELOPMENT (Save Mart Grocery Anchored Shopping Center)

North

9 | REDDINGSiteLOCATION Plan | CA

REDDING RANCHERIA CASINO (140,000 SF Casino, 250 room hotel, event center, and retail shops)

INTERSTATE 5 (60,000 ADT)

(330 EMPLOYEES) S B SACRAMENTO ONN YVI EW R RIVER OAD (28, 792 A DT)

CHURN CREEK ROAD (18,328 ADT)

CHURN CREEK ROAD (18,328 ADT)

RIVER CROSSING MARKETPLACE (COSTCO-ANCHORED RETAIL CENTER)

UNDER CONSTRUCTION

North

| 10 REDDING REDDINGLocation | CA DOWNTOWN ANDERSON RANCHERIA CASINO (6.7 MILES) (140,000 SF Casino, 250 room hotel, REDDING event center, and retail shops) MUNICIPAL AIRPORT INDUSTRIAL INTERSTATE 5 (60,000 ADT) AREA

MT. SHASTA MALL (267 beds and 1,566 employees) (100,000+ Annual Visitors) (to be relocated to River Crossing Marketplace)

DOWNTOWN REDDING (4MILES) REDDING (8,598 students and 369 employees) (1,012 students) RANCHERIA CASINO (330 EMPLOYEES) (140,000 SF Casino, 250 room hotel, S BONNY SACRAMENTO event center, and retail shops) VIE W R RIVER OAD (28, 792 AD T) ENTERPRISE HIGH SCHOOL (1,220 STUDENTS)

RIVERVIEW CHURN CREEK ROAD (18,328 ADT) UNDER CONSTRUCTION INTERSTATE 5 (60,000 ADT) COUNTRY CLUB RIVER CROSSING MARKETPLACE (COSTCO-ANCHORED RETAIL CENTER)

CHURN CREEK MARKETPLACE CHURN CREEK (330 EMPLOYEES) (330 EMPLOYEES) (SAVE MART MARKETPLACE ANCHORED RETAIL) (SAVE MART ANCHORED RETAIL) SACRAMENTO INTERSTATE 5 (60,000 ADT) (60,000 5 INTERSTATE SOU RIVER CHURN CREEK ROAD (18,328 ADT) SACRAMENTO TH BON RIVER NY VI CHURN CREEK ROAD (18,328 ADT) EW RO AD (2 8,7 92 RIVER CROSSING MARKETPLACE AD REDDING T) (COSTCO-ANCHORED RETAIL CENTER) RIVER CROSSING MARKETPLACE RANCHERIA CASINO (COSTCO-ANCHORED RETAIL CENTER) (140,000 SF Casino, 250 room hotel, North event center, and retail shops)

UNDER CONSTRUCTION

11 | REDDINGSiteLOCATION Plan | CA

DOWNTOWN ANDERSON (6.7 MILES) REDDING MUNICIPAL AIRPORT INDUSTRIAL AREA

REDDING RANCHERIA CASINO (140,000 SF Casino, 250 room hotel, event center, and retail shops)

UNDER CONSTRUCTION INTERSTATE 5 (60,000 ADT)

CHURN CREEK MARKETPLACE (330 EMPLOYEES) (SAVE MART ANCHORED RETAIL) SACRAMENTO RIVER

RIVER CROSSING MARKETPLACE (COSTCO-ANCHORED RETAIL CENTER)

North

| 12 Area OverviewREDDING | CA

Demographics HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE 2010 Census 2,123 16,373 32,988

POPULATION 1 - MILE 3 - MILE 5 - MILE 2019 Estimate 2,200 16,733 33,947

2010 Census 5,660 43,384 83,443 2024 Projection 2,256 17,084 34,778

2019 Estimate 5,851 44,346 85,644 Growth 2010-2018 3.63% 2.20% 2.91%

2024 Projection 6,001 45,307 87,688 Growth 2018-2023 2.54% 2.10% 2.45%

Growth 2010-2018 3.38% 2.22% 2.64% INCOME 1 - MILE 3 - MILE 5 - MILE

Growth 2018-2023 2.56% 2.17% 2.39% 2019 Est. Average $71,261 $69,518 $71,711 Household Income

13 | REDDING | CA

REDDING, CA SUNDIAL BRIDGE Sitting along the Sacramento River, Redding is the county seat of Shasta County. In addition to being the largest city in the Shasta Cascade region, Redding is the sixth-largest city in the Sacramento Valley

The City of Redding is the center of trade and commerce for the upstate region of northern California. Redding is the largest city north of Sacramento, with a population of 90,000, and is strategically located on Interstate 5, equidistant between Seattle and Los Angeles. Redding has grown as a thriving business community; and, as such, the Redding City Council places significant value on both the companies that are here and the ones that will relocate or expand from other areas. The Sundial Bridge is one of the largest working sundials in the world--and serves as a pedestrian bridge over the Sacramento River in the heart of Redding. The bridge is world-famous and is a California icon.

DISTANCE TO MAJOR CITIES

1 2 3

1 2 3 SACRAMENTO, CA SAN FRANCISCO, CA SAN JOSE, CA ±164 Miles ±230 Miles ±264 Miles

| 14 REDDING | CA

ECONOMY The economy in Redding is largely a service economy, with employment spread across a wide range of service professions that include healthcare, retail, and tourism. The Redding MSA’s strategic location on Interstate 5 makes it a highly efficient distribution point for products headed to all major markets on the West Coast. The region’s natural resources, well-trained labor force, and competitive cost of business have allowed it to develop into a strong area for small to medium sized manufacturing, with the strongest manufacturing sectors including recreational manufacturing, fabrication, CNC machining, coating, and medical manufacturing. The Redding area’s tech sector is seeing rapid growth, both at advanced and entrepreneurial levels. The Redding MSA has been recognized as the fifth fastest growing tech region in California by Progressive Policy Institute, a , D.C. think tank.

15 | REDDING | CA

DEVELOPMENTS The subject property is a 1.5 acre land site offering unparalleled shopping convenience to the four county region, serving 90% of the trade area population within 20 minutes of the shopping center, including 697 new residential homes in three new communities under construction. The marketplace is located in underserved South Redding on the I-5/ Bonnyview Rd interchange (facing I-5) together with a future ±225,000 SF Costco anchored center, and a ±165,000 SF forthcoming Redding Rancheria casino/ commercial complex including a 250 room hotel – collectively creating a new emerging regional retail hub for Redding and the north state.

REDDING RANCHERIA CASINO

The Redding Rancheria has submitted plans to state and federal officials to build a new casino off Interstate 5 about 2 miles south of downtown Redding which is looking to include a 140,000-square-foot casino, 250- room hotel, an event and convention center, a retail center, and parking lots.

RIVER CROSSING MARKETPLACE

River Crossing MarketPlace will be anchored by Costco and sit on 25 acres across from the Blue Shield call center on the northeast corner of South Bonnyview and Bechelli. The Costco store will be about 152,000 square feet and feature a gas station with 24 pumps and the ability to expand to 30 pumps. There will be an additional 62,000 square feet of retail space surrounding the Costco.

| 16 REDDING | CA

SHASTA COUNTY COURTHOUSE

Construction on the $135 million courthouse started in October and is expected to be move-in ready by February of 2021. The new courthouse will sit on about 2 acres on the block between Butte and Yuba street.

DICKER’S BUILDING

The former department store near the north end of the Market Street Promenade was demolished in early May to make room for a $38 million, four-story, mixed-use building that will house apartments, retail and office space. The project will reopen Market, Yuba and Butte streets through the Promenade.

BELL ROOMS

The McConnell Foundation plans to repurpose the historic Bell Rooms property into a bicycle-themed café near the corner of California and Shasta street. In addition to the cafe, the new location will include bikes available to rent, a starting point for bike tours, and bicycle storage.

17 | REDDING | CA

Confidentiality Agreement & Disclaimer

This Offering Memorandum contains select information pertaining to the business and affairs ARCO/AMPMof located at 4670 Churn Creek Road, Redding, CA (“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. LISTED BY

ARON CLINE Chad Kurz Senior Vice President & Senior Director SVP & National Director | Lic # 01911198 (CA) Calvin Short DIRECT 949.432.4509 SVP & Senior Director | Lic # 01927216 (CA) MOBILE 818.632.0233 [email protected] Josh Bishop VP & Director | Lic # 688810 (TX) LIC # 01904371 (CA)

™

19 |