Offering Memorandum

GAS/CONVENIENCE STORE PORTFOLIO GAS/CONVENIENCE STORE PORTFOLIO (MEMPHIS)

OFFERING SUMMARY INVESTMENT OVERVIEW Marcus & Millichap is pleased to present a five-store portfolio of gas/convenience stores in the Greater Memphis area for sale leaseback. Each store will execute a new 20-year absolute net lease upon closing, and the leases will be backed both corporately by Radiant Group along with five-year personal guarantee by a principle of Radiant Group. Each unit of the offering will be offered at a 7 percent capitalization rate. While offers for individual units within the portfolio will be considered, the seller would prefer selling the entire portfolio together. Radiant Group operates over 60 properties (gas stations, convenience stores and restaurants) which generate over $350 million annually in revenue. The principals have a combined 100+ years in business.

INVESTMENT HIGHLIGHTS

. New 20-Year Absolute Net Lease at Closing

. 5 Percent Rent Increases Every Five Years of Lease Term

. No Landlord Responsibilities . Sale Leaseback Secured by Radiant Group

2 GAS/CONVENIENCE STORE BARTLETT, TN

OFFERINGOFFERING SUMMARY SUMMARY EXECUTIVE SUMMARY

OFFERING SUMMARY Price $1,371,000 MAJOR EMPLOYERS Net Operating Income $96,000 Capitalization Rate – Current 7.00% Price / SF $388.94 EMPLOYER # OF EMPLOYEES * Rent / SF $27.23 American Pathology 5,005 Lease Type Absolute Net Accredo Health Incorporated 2,868 Gross Leasable Area 3,525 SF Truckpro Holding Corporation 2,600 Year Built / Renovated 1998 Efs Transportation Svcs Inc 2,000 Lot Size 0.85 acre(s) Methodist Le Bnheur Healthcare 1,320 Interstate Blood Bank Inc 1,250 Brother Industries USA Inc 1,200 FINANCING Institutional Packaging Recycl 1,200 Loan Amount $959,700 Gca Services Group Inc 1,185 Loan Type Financed - New Loan Loan to Value 70.00% Verizon Bus Netwrk Svcs Inc 1,100 Down Payment 30% / $411,300 Walmart 1,052 Interest Rate / Amortization 4.85% / 25 Years Impact Logistics Inc 850 Annual Loan Payment $66,321 Net Cash Flow After Debt Service 7.22% / $29,679 Cash on Cash Return 7.22% DEMOGRAPHICS Total Return 0.00% / $49,900

1-Miles 3-Miles 5-Miles 2017 Estimate Pop 9,290 71,732 172,269 2017 Census Pop 9,023 69,579 166,533 2017 Estimate HH 3,380 27,542 63,706 2017 Census HH 3,289 26,804 61,793 Median HH Income $57,726 $60,103 $62,698 Per Capita Income $25,321 $28,667 $29,604 Average HH Income $69,392 $74,529 $79,023

* # of Employees based on 5 mile radius

3# PROPERTYGAS/CONVENIENCE NAME STORE BARTLETT, TN

PRICINGPRICING ANDANDLOCATIONLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX

6861 US Highway 70, Memphis, TN 38133

. Signalized Corner of Stage and Summer . Intersection Traffic Exceeds 50,000 VPD . Densely Populated Area . 40,000 VPD . $80k per month inside sales . 90k gallons per month sold

The gas/convenience store is located on a signalized hard corner of a high volume intersection in North Memphis. The store is surrounded by shopping, restaurant, banking and movie theaters. Over 40,000 vehicles pass by this location daily.

CLOSE PROXIMITY TO:

4# GAS/CONVENIENCE STORE BARTLETT, TN

AERIAL PHOTO

5 GAS/CONVENIENCE STORE BARTLETT, TN

OFFERINGOFFERING SUMMARY SUMMARY PROPERTY SUMMARY

NOTES Gas/Convenience store offered as part of a five-store portfolio. All stores will feature a new 20-year absolute net lease at closing.

6# Offering Memorandum

GAS/CONVENIENCE STORE MEMPHIS 1243 Lamar Ave • Memphis, TN 38104 GAS/CONVENIENCE STORE MEMPHIS

OFFERINGOFFERING SUMMARY SUMMARY EXECUTIVE SUMMARY

OFFERING SUMMARY Price $1,714,000 MAJOR EMPLOYERS Net Operating Income $120,000 Capitalization Rate – Current 7.00% Price / SF $1,373.40 EMPLOYER # OF EMPLOYEES * Rent / SF $96.15 National Bank of Commerce 5,194 Lease Type Absolute Net Department Cmparative Medicine 4,000 Gross Leasable Area 1,248 SF Memphis Medical School 4,000 Year Built / Renovated 1989 US Post Office 3,426 Lot Size 0.61 acre(s) Methodist Healthcare Memphis H 3,118 St Jude Chld RES Hosp Inc 2,525 Defense Depot Memphis 2,500 FINANCING Memphis Police Dept 2,500 Loan Amount $1,199,800 St Jude Hospital 2,499 Loan Type Financed - New Loan Loan to Value 70.00% Memphis Vamc 2,004 Down Payment 30% / $514,200 Imperial Guard Service 2,000 Interest Rate / Amortization 4.85% / 25 Years Regional Medical Ctr Tenessee 2,000 Annual Loan Payment $82,913 Net Cash Flow After Debt Service 7.21% / $37,087 Cash on Cash Return 7.21% DEMOGRAPHICS Total Return 0.00% / $62,367

1-Miles 3-Miles 5-Miles 2017 Estimate Pop 12,447 107,425 197,953 2017 Census Pop 12,161 104,113 193,449 2017 Estimate HH 6,057 45,890 82,429 2017 Census HH 5,966 44,459 80,634 Median HH Income $24,709 $27,849 $27,664 Per Capita Income $28,066 $22,023 $21,230 Average HH Income $56,291 $49,903 $49,739

* # of Employees based on 5 mile radius

8# PROPERTYGAS/CONVENIENCE NAME STORE MEMPHIS

PRICINGPRICING ANDANDLOCATIONLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX

1243 Lamar Ave, Memphis, TN 38104

. Signalized Corner Lot . Less Than A Block from I-240 Interchange . Connector Road to the TN/AR Bridge . 35,000 VPD . $110k per month inside sales projected after remodel . 90k gallons per month sold projected after remodel

The gas/convenience store is located on a signalized hard corner of a high volume intersection in South Memphis. The store has been newly renovated in preparation for a new tenant. Over 35,000 vehicles pass by this location daily.

CLOSE PROXIMITY TO:

9# GAS/CONVENIENCE STORE MEMPHIS

AERIAL PHOTO

10 GAS/CONVENIENCE STORE MEMPHIS

OFFERINGOFFERING SUMMARY SUMMARY PROPERTY SUMMARY

NOTES Gas/Convenience store offered as part of a five-store portfolio. All stores will feature a new 20-year absolute net lease at closing.

11# Offering Memorandum

MARATHON MEMPHIS GAS/CONVENIENCE 8 S Parkway E • Memphis, TN 38106 MARATHON MEMPHIS GAS/CONVENIENCE

OFFERINGOFFERING SUMMARY SUMMARY EXECUTIVE SUMMARY

OFFERING SUMMARY Price $1,371,000 MAJOR EMPLOYERS Net Operating Income $96,000 Capitalization Rate – Current 7.00% Price / SF $817.53 EMPLOYER # OF EMPLOYEES * Rent / SF $57.25 National Bank of Commerce 5,194 Lease Type Absolute Net Department Cmparative Medicine 4,000 Gross Leasable Area 1,677 SF Memphis Medical School 4,000 Year Built / Renovated 1976 US Post Office 3,319 Lot Size 0.38 acre(s) Methodist Healthcare Memphis H 3,118 St Jude Chld RES Hosp Inc 2,525 Defense Depot Memphis 2,500 FINANCING Memphis Police Dept 2,500 Loan Amount $959,700 St Jude Hospital 2,499 Loan Type Financed - New Loan Loan to Value 70.00% Memphis Vamc 2,004 Down Payment 30% / $411,300 Regional Medical Ctr Tenessee 2,000 Interest Rate / Amortization 4.85% / 25 Years Le Bonheur Childrens Med Ctr 1,800 Annual Loan Payment $66,321 Net Cash Flow After Debt Service 7.22% / $29,679 Cash on Cash Return 7.22% DEMOGRAPHICS Total Return 0.00% / $49,900

1-Miles 3-Miles 5-Miles 2017 Estimate Pop 8,413 50,654 141,273 2017 Census Pop 8,304 48,710 137,410 2017 Estimate HH 3,013 20,679 59,378 2017 Census HH 2,988 19,742 57,716 Median HH Income $19,821 $22,368 $27,758 Per Capita Income $10,815 $17,561 $20,848 Average HH Income $29,689 $41,062 $48,465

* # of Employees based on 5 mile radius

13# PROPERTYMARATHON NAMEMEMPHIS GAS/CONVENIENCE

PRICINGPRICING ANDANDLOCATIONLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX

8 S Parkway E, Memphis, TN 38106

. Big Lunch Business . Only Store in The Market . Less Than a Mile From I-55 Interchange . 20,000 VPD . $90k per month inside sales . 80k gallons sold per month

The gas/convenience store is located on a signalized hard corner of a high volume intersection in Southwest Memphis. The store has been newly renovated in preparation for a new tenant. Over 20,000 vehicles pass by this location daily.

CLOSE PROXIMITY TO:

14# MARATHON MEMPHIS GAS/CONVENIENCE

AERIAL PHOTO

15 MARATHON MEMPHIS GAS/CONVENIENCE

OFFERINGOFFERING SUMMARY SUMMARY PROPERTY SUMMARY

NOTES Gas/Convenience store offered as part of a five-store portfolio. All stores will feature a new 20-year absolute net lease at closing.

16# Offering Memorandum

GAS/CONVENIENCE STORE COVINGTON PIKE 2510 Covington Pike • Memphis, TN 38128 GAS/CONVENIENCE STORE COVINGTON PIKE

OFFERINGOFFERING SUMMARY SUMMARY EXECUTIVE SUMMARY

OFFERING SUMMARY Price $1,714,000 MAJOR EMPLOYERS Net Operating Income $120,000 Capitalization Rate – Current 7.00% Price / SF $1,373.40 EMPLOYER # OF EMPLOYEES * Rent / SF $96.15 American Pathology 5,005 Lease Type Absolute Net Baptist Memorial Hospital 4,010 Gross Leasable Area 1,248 SF Accredo Health Incorporated 2,868 Year Built / Renovated 1988 / 2018 Truckpro Holding Corporation 2,600 Lot Size 0.5 acre(s) Methodist Le Bnheur Healthcare 1,320 Interstate Blood Bank Inc 1,250 Gca Services Group Inc 1,185 FINANCING Verizon Bus Netwrk Svcs Inc 1,100 Loan Amount $1,199,800 Baptist Memorial Health Care 985 Loan Type Financed - New Loan Loan to Value 70.00% Buckeye Technologies Inc 838 Down Payment 30% / $514,200 U-Haul 827 Interest Rate / Amortization 4.85% / 25 Years ISS Facility Services Inc 600 Annual Loan Payment $82,913 Net Cash Flow After Debt Service 7.21% / $37,087 Cash on Cash Return 7.21% DEMOGRAPHICS Total Return 0.00% / $62,367

1-Miles 3-Miles 5-Miles 2017 Estimate Pop 7,396 75,078 199,248 2017 Census Pop 7,307 73,592 195,469 2017 Estimate HH 2,886 28,137 72,987 2017 Census HH 2,866 27,690 71,902 Median HH Income $40,187 $41,260 $46,429 Per Capita Income $19,734 $20,802 $23,929 Average HH Income $50,550 $54,641 $64,498

* # of Employees based on 5 mile radius

18# PROPERTYGAS/CONVENIENCE NAME STORE COVINGTON PIKE

PRICINGPRICING ANDANDLOCATIONLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX

2510 Covington Pike, Memphis, TN 38128

. Newly Renovated Store . Signalized Hard Corner . Shopping Center Outparcel . 50,000 VPD . $120 per month inside sales projected after remodel . 110k gallons per month sold projected after remodel

The gas/convenience store is located on a signalized hard corner of a high volume intersection in Northeast Memphis. The store has been newly renovated in preparation for a new tenant. Over 50,000 vehicles pass by this location daily.

CLOSE PROXIMITY TO:

19# GAS/CONVENIENCE STORE COVINGTON PIKE

AERIAL PHOTO

20 GAS/CONVENIENCE STORE COVINGTON PIKE

OFFERINGOFFERING SUMMARY SUMMARY PROPERTY SUMMARY

NOTES Gas/Convenience store offered as part of a five-store portfolio. All stores will feature a new 20-year absolute net lease at closing.

21# Offering Memorandum

EXXON/SUBWAY TRAVEL CENTER 8271 Highway 72 • Byhalia, MS 38611 EXXON/SUBWAY TRAVEL CENTER

OFFERINGOFFERING SUMMARY SUMMARY EXECUTIVE SUMMARY

OFFERING SUMMARY Price $2,057,000 MAJOR EMPLOYERS Net Operating Income $144,000 Capitalization Rate – Current 7.00% Price / SF $751.83 EMPLOYER # OF EMPLOYEES * Rent / SF $52.63 Aoc LLC 262 Lease Type Absolute Net Bodine Group Holding Company 190 Gross Leasable Area 2,736 SF CCL Label Inc 180 Year Built / Renovated 1988 Rockwool International 158 Lot Size 2.1 acre(s) MCR Safety 146 Watertite Products Inc 140 River City Erectors Tenn LLC 135 FINANCING Alpha Corporation of Tennessee 132 Loan Amount $1,439,900 Bodine Logistics Inc 115 Loan Type Financed - New Loan Loan to Value 70.00% Exel 115 Down Payment 30% / $617,100 United Auto Recovery 115 Interest Rate / Amortization 4.85% / 25 Years American-Marsh Pumps 105 Annual Loan Payment $99,506 Net Cash Flow After Debt Service 7.21% / $44,494 Cash on Cash Return 7.21% DEMOGRAPHICS Total Return 0.00% / $74,833

1-Miles 3-Miles 5-Miles 2017 Estimate Pop 609 2,145 8,422 2017 Census Pop 624 2,158 8,226 2017 Estimate HH 240 793 3,109 2017 Census HH 244 791 3,026 Median HH Income $48,794 $51,943 $56,179 Per Capita Income $26,553 $26,814 $28,698 Average HH Income $67,488 $72,495 $77,728

* # of Employees based on 5 mile radius

23# PROPERTYEXXON/SUBWAY NAME TRAVEL CENTER

PRICINGPRICING ANDANDLOCATIONLOCATION VALUATIONVALUATIONTENANT OVERVIEW OVERVIEWSUMMARY MATRIXMATRIX

8271 Highway 72, Byhalia, MS 38611

. Located on US-72 on the TN/MS Border . Subway Shop Operating in Center . Semi Truck Fueling Station . High Volume Trucking Traffic . 17,000 VPD . $120k per month inside sales . 85k gallons per month sold

The gas/convenience store is located on Highway 72 just across the Mississippi border on a signalized corner lot. This is a high volume trucking route as well as the main corridor from Memphis to Pickwick Lake, Corinth and Huntsville, AL.

CLOSE PROXIMITY TO:

24# EXXON/SUBWAY TRAVEL CENTER

AERIAL PHOTO

25 EXXON/SUBWAY TRAVEL CENTER

OFFERINGOFFERING SUMMARY SUMMARY PROPERTY SUMMARY

NOTES Exxon/Subway Travel Center offered as part of a five-store portfolio. All stores will feature a new 20-year absolute net lease at closing.

26# GAS/CONVENIENCE STORE MEMPHIS

COMPARABLES MAP

GAS/CONVENIENCE STORE MEMPHIS (SUBJECT) Capitol Petroleum Group 1 (Exxon Gas Station- Depreciable) 2 Kum & Go Gas Station (Fee Simple) 3 Circle K 4 Kangaroo Express (Circle K) 5 BP - CrossAmerica Partners

SALES COMPARABLES

27 PROPERTYGAS/CONVENIENCE NAME STORE BARTLETT, TN

SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES

CAPITOL PETROLEUM GROUP (EXXON GAS GAS/CONVENIENCE STORE BARTLETT, STATION-DEPRECIABLE) KUM & GO GAS STATION (FEE SIMPLE) TN 8965 Village Shops Dr, Fairfax Station, VA, 22039 978 W Pleasant Grove Rd, Lowell, AR, 72745 6861 US Highway 70, Memphis, TN, 38133 1 2

rentpropertyname1 rentpropertyname1 rentpropertyname1

SUBJECT PROPERTY Close Of Escrow 1/2/2018 Close Of Escrow 12/29/2017 Asking Price $1,371,000 Days On Market 215 Days On Market 128 Price/SF $388.94 Sales Price $2,925,000 Sales Price $2,750,000 CAP Rate 7.00% CAP Rate 6.55% Price/SF $810.73 GLA 3,525 SF Lot Size 0.36 acre(s) CAP Rate 7.55% Lot Size 0.85 acre(s) Year Built 1991 GLA 3,392 SF Year Built 1998 Lot Size 1.62 acre(s) Year Built 2007

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

28 PROPERTYGAS/CONVENIENCE NAME STORE MEMPHIS

SALESMARKETING COMPARABLES TEAM

SALES COMPARABLES

CIRCLE K KANGAROO EXPRESS (CIRCLE K) BP - CROSSAMERICA PARTNERS 1412 Seminola Blvd, Casselberry, FL, 32707 2195 East Main Street, Duncan, SC, 29334 610 West 4th Street, Covington, KY, 41011

3 4 5

rentpropertyname1 rentpropertyname1 rentpropertyname1

Close Of Escrow 12/8/2017 Close Of Escrow 12/6/2017 Close Of Escrow 2/21/2018 Days On Market 68 Days On Market 92 Days On Market 302 Sales Price $1,388,000 Sales Price $768,000 Sales Price $3,199,047 Price/SF $533.85 Price/SF $213.21 Price/SF $1,315.40 CAP Rate 6.50% CAP Rate 7.25% CAP Rate 6.30% GLA 2,600 SF GLA 3,602 SF GLA 2,432 SF Lot Size 1.38 acre(s) Lot Size 1.04 acre(s) Year Built 1981 Year Built 1986 Year Built 1996

rentpropertyaddress1 rentpropertyaddress1 rentpropertyaddress1

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