Circle K Is a Highly Sought After Net Lease C-Store Tenant

FILE PHOTO

Second Largest Chain Store Operator with 15,000+ Locations Worldwide CIRCLEK (S&P:BBB) Spring Lake is Home to Fort Bragg, a Military Instillation with more than 50,000 active duty $1,204,000 | 6.75% CAP Eight of the Top Ten American Defense 1886 N. Bragg Blvd, Spring Lake, NC 28390 Contractors are Located in the Spring Lake/ Fayetteville Area Situated on N Bragg Blvd. Which Boasts 21,000+VPD FILE PHOTO

Circle K is a highly sought after net lease C-store tenant. Investors are attracted to their fully passive NNN leases which are backed by an investment grade corporate guarantee from the parent company Alimentation Couche-Tard Inc.

2 | SECURE NET LEASE INVESTMENTOVERVIEW CIRCLEK | SPRINGLAKE,NORTHCAROLINA

CONTACT FOR DETAILS $1,204,000 | 6.75% CAP ERIC ALDERMAN ASSOCIATE (214) 915-8893 [email protected] $81,245 ±2,600 SF ±1.58 ACRES NOI BUILDING AREA LAND AREA RUSSELL SMITH VICE PRESIDENT 1998 100% NNN (214) 915-8890 YR BUILT OCCUPANCY LEASE TYPE [email protected] BOB MOORHEAD MANAGING PARTNER Absolute NNN Lease with Circle K Corp. Guarantee (Alimentation Couche-Tard)which has a (214) 522-7210 BBB rating from S&P and more than $51 billion in annual revenue. [email protected]

Circle K Ranked in Top 3 on List of Top Franchise Companies by Entrepreneur Magazine’s NC BROKER OF RECORD 2020 Franchise 500. BAKER BELL Bell Commerical, Inc. Home to Fort Bragg and Pope Field which hosts more than 50,000 Military Personnel, [email protected] nearly one tenth of America’s Army.

This information has been secured from sources Site is Located off of N Bragg Blvd., and Hwy 690, which boasts 21,000+ VPD and 3,600+ we believe to be reliable but we make no VPD respectively. representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must Spring Lake is a Northern Suburb of Fayetteville, which has seen an economic boom verify the information and bears all risk for any resulting in a population of more than 200,000 as of 2018. inaccuracies.

Guaranteed Rent Bumps Every 5 Years as well as every option period, providing a stable hedge against inflation. FILE PHOTO

Site is Located along a Major Thoroughfare that leads to Fayetteville as well as Fort Bragg.

SECURE NET LEASE | 3 TENANTOVERVIEW CIRCLEK | SPRINGLAKE,NORTHCAROLINA

CIRCLEK(circlek.com) GUARANTOR OVERVIEW

Circle K has been a successful convenience store operator for over 60 years The parent company of Circle K - Alimentation Couche-Tard Inc. - is the largest independent convenience store Circle K is a highly sought a�er net lease C-store tenant. Investors are a�racted operator (regardless of petroleum to their fully passive NNN leases which are backed by an investment grade integration) in terms of number of corporate guarantee from the parent company Alimenta�on Couche-Tard Inc. company-operated stores in North Circle K stores also feature strong intrinsic real estate as they are almost always America. It has four main store brands: $14B located at highly trafficked intersec�ons. Furthermore, because many Circle K Couche-Tard, Kangaroo Express, Mac's stores feature gasoline, investors can take advantage of accelerated deprecia�on and Circle K. Recently, Couche-Tard REVENUE on building improvements. acquired Topaz, Ireland’s largest convenience and fuel retailer. Couche- As of February 3, 2019, Couche-Tard has 9,933 convenience store across North Tard is making a continuous effort to America opera�ng under one of their various brands. The Couche-Tard network rebrand all of their existing locations also consists of 2,709 stores in Europe and licensing agreements add another under the Circle K banner, except for S&P: BBB 2,100 stores around the globe. the Couche-Tard retail brand locations in the province of Quebec due to The parent company of Circle K - Alimenta�on Couche-Tard Inc. - is the largest CREDIT RATING specifics of that market. independent convenience store operator (regardless of petroleum integra�on) in terms of number of company-operated stores in North America. It has four main store brands: Couche-Tard, Kangaroo Express, Mac's and Circle K. Recently, Couche-Tard acquired Topaz, Ireland’s largest convenience and fuel retailer. 9,900+ Couche-Tard is making a con�nuous effort to rebrand all of their exis�ng TENANT LOCATIONS loca�ons under the Circle K banner, except for the Couche-Tard retail brand loca�ons in the province of Quebec due to specifics of that market.

15,000+ in North America TOTAL LOCATIONS

4 | SECURE NET LEASE INTHENEWS CIRCLEK | SPRINGLAKE,NORTHCAROLINA

CIRCLE K NAVIGATES COVID-19, M&A CIRCLEK'SGLOBALREBRANDINGEFFORT Angel Abcede, March 23, 2020 (CSP Daily News) MARCHESACROSSNORTHAMERICA Melissa Kress, March 31, 2020 (Convenience Store News)

The second-largest c-store chain in America is bracing for the worst regarding Alimentation Couche-Tard Inc. checked Europe off its Circle K global ongoing government mandates surrounding the COVID-19 pandemic. At the rebranding to-do list and is well on its way to doing the same for North same time, the company continues to pursue a major chain in Australia, America. executives report. "We are now in the fourth year of the global rebranding project. Following the Speaking on a March 18 earnings call, Brian Hannasch, president and CEO of completion of our work in Europe, we now have more than 85 percent of our Alimentation Couche-Tard, parent of the Circle K chain, said the company has North American sites displaying the new Circle K brand," President and CEO the tools to face “financial volatility.” He said the Laval, Quebec-based chain has Brian Hannasch reported during the company's third-quarter fiscal year 2020 “good cash liquidity, a very healthy balance sheet and solid contingency plans.” earnings call, held March 17.

Net earnings were $1.8 billion for the first three quarters of fiscal 2020 "As one drives across the network in the U.S. and Europe and parts of compared with $1.5 billion for the comparable period of fiscal 2019, an Canada, we are now proudly showing the unified Circle K brand across increase of 15.3%, said Claude Tessier, chief financial officer of Couche- the majority of our markets," Hannasch explained. Tard.

To date, all of the convenience stores Couche-Tard acquired through its Meanwhile, Hannasch spoke briefly on the company's proposal to buy Caltex, purchase of San Antonio-based CST Brands Inc. are now sporting the new an Australian integrated downstream company. In mid-February, Couche-Tard Circle K brand, and the initiative is "progressing nicely" in Canada, he added. made a “revised nonbinding indicative offer” to the board of Caltex to acquire 100% of Caltex for a price of $35.25 per share in Australian currency. Additionally, Couche-Tard is seeing traction with "meaningful reverse synergies" from its integration of Holiday Stationstores, according to the chief executive. “While it does not guarantee an agreement will be reached or transaction will The company added the Midwest c-store chain to its portfolio when it acquired be concluded, we are now actively engaged in due diligence to work with Holiday Cos. in late 2018. Caltex,” Hannasch said. “Couche-Tard is focused on strategically developing our Asia Pacific presence to drive continued growth in that region in the future.”

CLICK HERE TO READ MORE CLICK HERE TO READ MORE

SECURE NET LEASE | 5 LEASEOVERVIEW FILE PHOTO CIRCLEK | SPRINGLAKE,NORTHCAROLINA

INITIAL LEASE TERM 15 Years

Lease term remaining 3 Years & 9 Months

RENT COMMENCEMENT November 1998

LEASE EXPIRATION October 2013

LEASE TYPE Absolute NNN

RENT INCREASES Every 5 Years

OPTION 1 CPI

OPTION 2: (CURRENT TERM) $81,244.56

OPTION 3: CPI

OPTION 4: CPI

This information 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. Buyer must verify the information and bears all risk for any inaccuracies.

6 | SECURE NET LEASE POPE ARMY AIRFIELD MANCHESTER FORT BRAGG ELEMENTARY SCHOOL (6.1 MILES) (368 STUDENTS)

SPRING LAKESECURE NET LEASE | 7 MIDDLE SCHOOL (441 STUDENTS) SITEOVERVIEW CIRCLEK | SPRINGLAKE,NORTH FILE PHOTO

1998 YR BUILT

±2,600 SF BUILDING AREA

±1.58 ACRES LAND AREA

NEIGHBORING RETAILERS

IHOP Citi Trends O'Reilly Auto Parts Hibbett Sports CVS AutoZone Auto Parts Pizza Hut Taco Bell Aaron's Domino's Pizza Bank of America Little Caesars Pizza Sonic Drive-In Waffle House FILE PHOTO Burger King Jersey Mike's Subs Walgreens PNC Bank Family Dollar Dollar Tree FILE PHOTO

8 | SECURESECURENET LEASENET LEASE | 8 LOCATION OVERVIEW CIRCLEK | SPRINGLAKE,NORTHCAROLINA

DEMOGRAPHICS 1-MILE 3-MILE 5-MILE

POPULATION 1,583 15,815 46,067

HOUSEHOLDS 700 5,778 13,592

AVG. HH INCOME $51,833 $64,022 $63,629

TOTAL HH EXPENDITURE $31.31 M $298.48 M $698.57 M

VIEW MAP

ECONOMICDRIVER’S (# of Employees)

Army & Air Force Exchange Service (1,000) City of Fayetteville (630) Walmart Inc. (480) Mann + hummel Purolator Filters LLC (800) Methodist College Development Corporation (626) L3 Technolgoies, Inc. (459) United States Department of the Army (800) Easter Seals Ucp North Carolina & Virginia, Inc. (590) Walmart Inc. (450) Veterans Health Administration (750) County of Cumberland (522) Paraglide Military Newspaper (439) County of Cumberland (640) United States Department of the Army (500) Cracker Barrel Old Country Store, Inc. (400)

SECURE NET LEASE | 9 LOCATION OVERVIEW CIRCLEK | SPRINGLAKE,NORTHCAROLINA

SPRINGLAKE NORTHCAROLINA

12,005 POPULATION $38,744 MEDIAN HOUSEHOLD INCOME

Spring Lake is a suburb of Fayetteville and part of Cumberland County. Fayetteville large and growing defense industry. Eight of the ten top American defense is best known as the home of Fort Bragg, a major US Army installation. It has contractors are located in the area, including Lockheed Martin, Boeing, Northrop received the All-America City Award from the National Civic League three Times Grumman, General Dynamics and L-3 Communications. Fayetteville is also home to many museums and cultural attractions. Points of interest include the Airborne and Special Operations Museums, the Fayetteville Area Transportation Museum Fort Bragg and Pope Field pump bring $4.5 billion a year to the region's and the Fayetteville Museum of Art. Other historic sites include the Bordeaux economy making Fayetteville one of the best retail markets in the Tower, Cool Spring Tavern and the Ellerslie Plantation. country. and is among the fastest-growing areas in the state. Fort Bragg is the backbone of SPRING LAKE IS FORT BRAGG SPREADS the area's economy. Fort Bragg and Pope Field pump bring $4.5 billion a year to ONE OF THE MOST OVER 163,00 ACRES the region's economy making Fayetteville one of the best retail markets in the DIVERSE DIVERSE CITIES IN 16,300 ACROSS FOUR NORTH SOUTH CAROLINA. CAROLINA COUNTIES. country. About 50,000 military personnel are stationed at Fort Bragg and Pope Field. Spring Lake is a hub for outdoor activities in Cumberland County. Carvers Creek State Park is one of the outdoor gems and home to Long Valley Farm-one a retreat of James Rockefeller. Fayetteville serves as the region's hub for shops, restaurants, lodging, healthcare and entertainment. The Fayetteville area has a

10| SECURE NET LEASE INTHENEWS CIRCLEK | SPRINGLAKE,NORTHCAROLINA

REVITALIZATION IN FAYETTEVILLE DRIVES $699 MILLION FORT BRAGG CONSTRUCTION GROWTHINCUMBERLANDCOUNTY PLANNED OVER 6 YEARS Kathy Blake, August 31, 2018 (Business North Carolina) Drew Brooks, November 16, 2018 (Publication Name)

Starting April 2019, a Houston Astros minor-league franchise will play in a new Fort Bragg officials said there is no end in sight for growth at the nation's $37.8 million, 4,800-seat baseball stadium on Hay Street in Fayetteville, a deal largest military installation. inked in 2016 when team president Reid Ryan, son of Hall of Famer Nolan Ryan, The Department of Defense currently has more than $343 million worth of announced the team’s switch from the California League. projects under construction on post and another $699 million in construction Ryan predicted the new agreement “will be part of a dynamic revitalization of projected for the next six years. downtown Fayetteville.” He was right. "It's continuing to grow every year," said Andrew Spendlove, chief of the master Fayetteville’s first taste of pro baseball since the old Class A Cape Fear Crocs planning division at the Fort Bragg Directorate of Public Works. organization left in 2000 for Lakewood, N.J., has prompted more than $100 million in public and private investment toward downtown development. But Fort Bragg officials said there is no end in sight for growth at the nation's that’s not the only thing Cumberland County has going for it, as public and largest military installation. private-sector leaders work to strengthen the community and economy.

The Fayetteville Area Convention & Visitors Bureau notes that tourism On Thursday, Spendlove presented the latest information on Fort Bragg already has an economic impact of $504 million and is connected to construction projects during a meeting of the Regional Land Use Advisory 4,400 jobs with a payroll exceeding $93 million. Commission in Fayetteville. The commission includes planners and other government officials from Fort Bragg, surrounding counties and municipalities and other organizations with an Officials throughout the city and county, from government, higher education, interest in the changing regional landscape workforce development, health care, tourism and the military, have joined in a team effort to rebrand Fayetteville and the 652 square miles of Cumberland County.

CLICK HERE TO READ MORE CLICK HERE TO READ MORE

SECURE NET LEASE | 11 FAYETTEVILLE MSA CIRCLEK | SPRINGLAKE,NORTHCAROLINA

METRO STATISTICS

TOTAL POPULATION 387,100

GDP $16.90 B

12| SECURESECURENETNETLEASELEASE | 12 WE LOOK FORWARD TO HEARING FROM YOU

DALLASOFFICE 10000 N. Central Expressway Suite #200 Dallas, TX 75231 (214) 522-7200

LOS ANGELES OFFICE 123 Nevada Street El Segundo, CA 90245 (424) 220-6430

securenetlease.com

13| SECURESECURENETNETLEASELEASE | 13