Frito Lay Distribution Center 4302 NW Mattox Road Riverside (Kansas City MSA), Missouri

Price: $5,588,400 Cap Rate: 7.00% Lease Term: 10 Years Rent Increases: 10% every 5 years 2017 Build-to-Suit

For More Information Please Contact: Benjamin Ow | (831) 247-1175 | [email protected]

The information contained herein has been secured from sources we believe reliable, but we make no 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. INVESTMENT SUMMARY

 A new 15,983 square foot distribution building located in Riverside, Mis- souri that is leased to ROLLING FRITO-LAY SALES, LP.

 PRICE: $5,588,400 - CAP RATE: 7.00%

INVESTMENT HIGHLIGHTS

 Brand new construction and 10 year lease

 Leased and Guaranteed by Rolling Frito-Lay Sales, LP, a Delaware limited partnership, a subsidiary of Frito-Lay, Inc. and Pepsico Inc. Frito- Lay, Inc. is wholly owned by PepsiCo Inc. and is the largest snack food maker in the world

 Net lease with minimal Landlord responsibilities (only roof/structure/ exterior walls) and a 20 year weathertight roof warranty, ideal for a pas- sive 1031 exchange Buyer

 10% rent increases every 5 years (primary and option lease terms)

 Build-to-suit distribution facility for Frito Lay in an established and attractive business park

 Strategic Kansas City metro location with easy access to Highway 9, 69, and 169, Interstate 29 and 635. 12 miles south of the Kansas City Inter- national Airport and 9 miles from downtown Kansas City

 Excellent Kansas City MSA demographics: 2,428,362 population as of 2015 (the 27th largest in the US) and a median household income of $60,502 LOCATION 4302 NW Mattox Rd, Riverside, MO 64150

LOT SIZE: Approximately 4.86 acres

IMPROVEMENTS: Completed approximately September 15, 2017, a new 15,983 square foot FRITO LAY office and distribution building. The building is comprised of approximately 6,950 square feet of warehouse space, 7,720 square feet of office, and 1,313 square feet for the route vans. The construction type is split face masonry and metal panel walls and a standing seam metal roof. The warehouse clear height is 15’0” and there are 10 dock high doors. There are 43 car parking spaces and 27 route van parking spaces.

LEASE: Leased to ROLLING FRITO-LAY SALES, LP., for 10 years, commencing September 15, 2017. The starting annual net rent is $391,188.48 and there is an attractive 10% rent increase to $430,307.33 in year 6 and 10% rent increases each 5 year option period. ROLLING FRITO-LAY SALES, LP, a Delaware limited partnership is a subsidiary of FRI- TO-LAY, INC. and PEPSICO INC. The tenant is responsible for reimbursing landlord for all property taxes, property insurance, landlord and tenant’s liability insurance, and for the maintenance, repair, and replacement of all portions of the demised premises (aside from structure, roof, and exterior walls). The landlord is only responsible for maintenance of the structure of the demised premises, including the roof (which features a 20 year weathertight warranty) and exterior walls. There are two 5-year renewal options with 10% rent increases at the start of each option period.

ANNUAL RENT: Investment Years Annual Rent Return______1-5 $391,188.48 7.00% 6-10 $430,307.33 7.70% 11-15 (Option #1) $473,338.06 8.47% 16-20 (Option#2) $520,671.87 9.32%

PRICE: $5,588,400 - 7.00% Cap Rate

For More Information Please Contact: Benjamin Ow | (831) 247-1175 | [email protected] TENANT PROFILE

The tenant is Rolling Frito-Lay Sales, LP, a Delaware limited partnership (“RFL”), and a subsidiary of Frito-Lay, Inc. and PepsiCo Inc. Frito-Lay, Inc. is a wholly owned American subsidiary of PepsiCo Inc. and is the largest snack food maker in the world. Frito-Lay leases and owns over 1,830 prop- erties in the United States. Frito-Lay created RFL to hold a majority of its real estate assets. The lease is not guaranteed by Frito-Lay, Inc. nor Pepsi- Co, Inc.

Frito-Lay, Inc. markets and sells corn chips, potato chips and other snack foods. The primary snack food brands produced under the Frito-Lay name include Fritos corn chips, Cheetos cheese flavored snacks, Doritos and Tostitos tortilla chips, Lay’s and Ruffles potato chips, Rold Gold pretzels and Walkers potato crisps (in the UK and Ireland), each of which generate annual worldwide sales over $1B. Frito Lay’s annual sales are approximately $12B, it employs approximately 50,000, and its headquarters are in Plano, Texas. Through Frito-Lay, PepsiCo is the largest globally distributed snack food company in the world, with sales of its products comprising 40 percent of all "savory snacks" sold in the United States and 30 percent of the non-U.S. market. PepsiCo Inc. is a Fortune 50 company and is traded on the NYSE under the symbol PEP. Building Photos Aerial Map

The property benefits from its strategic Kanas City metro location within a growing business park, 12 miles south of the Kansas City International Airport and less than 9 miles away from downtown Kansas City. The property features easy access to Highway 9, 69, and 169, Interstate 29 and 635, making it an ideal distribution center site for Frito Lay. Map

The property enjoys close proximity to Highway 9, 69, and 169, and Interstate 29 and 635, making it a prime distribution center location to serve the Kanas City metro market’s growing population of over 2,428,362. It is located about halfway between Kansas City International Airport and downtown Kansas City.

Elevations SITE PLAN MARKET INFORMATION

The property is located in the Horizons district and business park of Riverside, Missouri. Ma- jor development is underway in the business park, including Riverside Horizon’s, a 2.6 million square foot office and industrial innovation project that is a landmark economic development benefiting the entire region. Riverside's central location, excellent access to transportation networks, commitment to quality development, pro-business stance and dedication to top notch public infrastructure and services has established it as the premier place for business. Riverside is centrally located within the Kansas City metro area and possesses a high- ly connected transportation network. Both Kansas City International Airport (KCI) and the Kansas City Downtown Airport (Wheeler Airport) are just minutes away. Major thoroughfares including I-635, US Hwy 69 and MO Hwy 9 criss-cross the community while the intersection of Interstates 35 and 70 is only a five minutes drive and access to Interstate 29 is located at Riverside's northern boundary line. Recently constructed and upgraded highway interchang- es on I-635 and Hwy 9, plus a commitment to an exceptional local street network allow quick and easy access to and from Riverside.

Riverside is a city in Platte County, Missouri. Platte County has a population of 98,309 (2105) and boasts a median household income of $68,254 (2015). Kansas City International Airport is located in the county and had over 11 million passengers in 2016. Platte County is part of the Kansas City, MO-KS Metropolitan Statistical Area and contains some of the city’s northwestern suburbs. Riverside is considered part of “The Northland”, the area north of the Missouri River, bordered by the Kansas state line on the west and Missouri Highway 291 on the east. The economy of the Northland is dominated by Kansas City International Air- port, Ford Kansas City Assembly Plant, the Zona Rosa shopping community and three riverboat casinos. The metro area's largest amusement park, Worlds of Fun and Oceans of Fun, is located in the Northland.

MARKET OVERVIEW The Kansas City Metropolitan Area’s population is 2,428,362 (2015) with a median household income of $60,502 (2015). It has a strong and diverse economy that boasts a very low 4.4% unemployment rate. Headquarters, technology-based companies, entrepreneurs, freight-based companies and shared-service centers select the area for its central location, educated workforce and access to a strong support network of public and private programs, civic-minded entrepreneurs and competitive incentives. Kansas City also boasts a low cost of living and award-winning school districts.

Major employers in the region are Cerner, a global healthcare IT company which is headquartered in North Kansas City, and employs nearly 10,000 people in the area, AT&T, BNSF Railway, Asurion, Sprint Corporation, Citigroup, EMBARQ, Farmers Insurance Group, Garmin, Hallmark Cards, Harley-Davidson, Husqvarna, H&R Block, General Mo- tors, Honeywell, Ford Motor Company, MillerCoors, State Street Corporation, The Kansas City Star, and Waddell & Reed, some of which are headquartered in the metropolitan area.

Historically known for its contributions to the musical styles of blues jazz and its Kansas City- style barbecue, Kansas City is a destination town. Sophisticated yet unpretentious, it has more than 200 fountains, second most in the world just behind Rome, earning the nickname, “City of Fountains.” Culturally, the Kansas City metro area hosts numerous performing arts organizations, the nation’s second largest working train station and the world-class art collec- tion in Nelson-Atkins Museum of Art.

Kansas City's urban core is undergoing its greatest revival in the last 50 years. The downtown population quadrupled over the last decade and is expected to grow by 50 percent in the next five years. New downtown housing units, expansive entertainment options, restau- rants, shopping and redevelopment are spurring residential and business attraction.