Fastenal — Midwest Portfolio Minnesota & Wisconsin Locations

MORRIS, MN

FASTENAL — MIDWEST PORTFOLIO MINNESOTA & WISCONSIN LOCATIONS

Keith A. Sturm, CCIM | 612.376.4488 | [email protected] 50 South 6th Street | Suite 1418 Amanda C. Leathers | 612.436.0045 | [email protected] Minneapolis, MN | 55402 Deborah K. Vannelli | 612.376.4475 | [email protected] www.nnnsales.com **Cooperative Agreement with Look Upland. Where Properties & People Unite! KO-LINKS LLC, a Wisconsin Brokerage** 3 Location Fastenal CONFIDENTIALITY & DISCLAIMER Midwest Portfolio

NET LEASED DISCLAIMER

Upland Real Estate Group, Inc. hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Package has been obtained from sources we believe to be reliable. However, Upland Real Estate Group, Inc. has not and will not verify any of this information, nor has Upland Real Estate Group, Inc. conducted any investigation regarding these matters. Upland Real Estate Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Package is not a substitute for your thorough due diligence investigation of this investment opportunity. Upland Real Estate Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Package are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial, legal and other advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal, financial and other advisors must request and carefully review all legal, financial and other documents related to the property and tenant. While past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

All information, including price change and withdrawal from the market, is subject to change without notice.

By accepting this Marketing Package you agree to release to Upland Real Estate Group, Inc. and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

CONFIDENTIALITY AND DISCLAIMER: The information contained in the following Marketing Package is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Upland Real Estate Group, Inc. and should not be made available to any other person or entity without the written consent of Upland Real Estate Group, Inc. This Marketing Package has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Upland Real Estate Group, Inc. has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property or any other matter related to the subject property. The information contained in this Marketing Package has been obtained from sources we believe to be reliable; however, Upland Real Estate Group, Inc. has not verified, and will not verify, any of the information contained herein, nor has Upland Real Estate Group, Inc. conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

KEITH A. STURM, CCIM | AMANDA C. LEATHERS | DEBORAH K. VANNELLI | 612.332.6600 PAGE 2

3 Location Fastenal HIGHLIGHTS Midwest Portfolio

• Portfolio consists of three Fastenal properties located in Phillips, WI, Morris, MN and Willmar, MN.

• All properties include a low rent per square foot.

• Fastenal operates 3,200+ branches and on-site locations in all 50 U.S. States and in Canada, Mexico, Asia, Africa and Europe.

• As of 2019, Fastenal reported sales of $3.5 Billion.

• Prefers to be purchased as a portfolio.

• All Tenants recently extended leases for additional years.

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. References to square footage or age are approximate. Upland has not reviewed or verified this information. Buyer must verify the information and bears all risk for any inaccuracies. KEITH A. STURM, CCIM | AMANDA C. LEATHERS | DEBORAH K. VANNELLI | 612.332.6600 PAGE 3

3 Location Fastenal PROPERTY OVERVIEW Midwest Portfolio

INVESTMENT SUMMARY Morris, MN PRICE $1,518,350 Phillips, WI AVERAGE 7.50% CAP RATE

NOI $113,875.90

LEASE TYPE Net Lease Willmar, MN

LEASE Varies EXPIRATIONS

RENEWAL Varies OPTIONS

MAY BE PURCHASED AS AN INDIVIDUAL PURCHASE OR PORTFOLIO PACKAGE

LEASE 2020 5-MILE 2020 5-MILE ADDRESS PRICE NOI CAP RATE EXPIRATION POPULATION AVERAGE HH INCOME

Fastenal 723 Iowa Avenue $548,245 $41,118.36 7.50% 10/31/2025 6,417 $69,125 Morris, MN 56267

Fastenal 140 25th Street Southeast $541,850 $40,638.40 7.50% 05/31/2025 23,847 $64,985 Willmar, MN 56201

Fastenal 646 South Lake Avenue $428,255 $32,119.16 7.50% 02/28/2023 2,990 $67,320 Phillips, WI 54555

3 Location Fastenal TENANT PAGE Midwest Portfolio

PROPERTY Fastenal TENANT Fastenal Company REVENUES $3.5 Billion NET WORTH $2.6 Billion

S&P RATING Non-rated

Fastenal operates 3,200+ branches and on-site locations in all 50 U.S. States and in Canada, Mexico, Asia, Africa and Europe. Fastenal makes for a snug fit. The industrial and fastener distributor sells products in more than nine major product lines, including threaded fasteners (such as screws, nuts, and bolts), which represent about 30% of overall sales. Other sales come from fluid-transfer parts for hydraulic and pneumatic power; janitorial, electrical, and welding supplies; material items; metal-cutting tool blades; and safety supplies.

Fastenal is headquartered in Winona, Minnesota. While it sells products in more than 25 countries, the company rings more than 85% of its sales in the US. Canada and Mexico combined are its second-largest market, collectively accounting for more than 10% of sales. Fastenal has about 15 distribution centers, roughly a dozen of which are in the US. It also has two distribution centers in Canada and one in Mexico. Fastenal promotes its products using in-store signage, catalogs, events, email, radio, and online marketing, and direct mailing (including promotional flyers). Sponsorship activities include NASCAR Fastenal Racing through its partnership with Roush Fenway Racing. Most of Fastenal's customers operate in the manufacturing and non-residential construction markets. Other major customers include farmers, truckers, railroads, oil exploration, production, and refinement companies, mining companies, federal, state, and local governmental entities, schools, and select retail trades. The company boasts about 256,000 active customer accounts.

Fastenal PROPERTY OVERVIEW Morris, Minnesota

INVESTMENT SUMMARY LEASE INFORMATION

PRICE $548,245 LEASE TYPE Net Lease

LEASE TERM REMAINING 5 Years CAP 7.50%

RENEWAL OPTIONS None RENT $50,478.36

Less TAXES $7,762.00 LEASE COMMENCEMENT 11/01/2020 Less INSURANCE $1,598.00 LEASE EXPIRATION 10/31/2025 NOI $41,118.36

RENT/SF $6.85 LEASE NOTES: Net Lease. Landlord shall maintain and repair roof, building exterior, heating and air conditioning and plumbing and electrical needs, all common areas including parking areas, driveways, sidewalks and landscaped areas. Tenant shall maintain the HVAC with repairs PRICE/SF $91.37 and service capped at $250 a year.

RENT ADJUSTMENTS: Original 5-Year Lease commencing in 2015. Tenant has extended the Lease through May 31, 2025.

YEARS 1-5: $50,478.36 DEMOGRAPHIC INFORMATION PROPERTY INFORMATION 1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS

723 Iowa Avenue 2020 POPULATION 2,750 5,941 6,417 ADDRESS Morris, MN 56267 2025 POPULATION 2,805 6,012 6,488 BUILDING SIZE 6,000 SQ FT. 2020 MEDIAN HOUSEHOLD INCOME $45,567 $50,515 $52,011 LOT SIZE 3.09 Acres 2020 AVERAGE HOUSEHOLD INCOME $63,771 $66,949 $69,125 COUNTY Stevens YEAR BUILT 2005 All demographic information is obtained from Site To Do Business, which compiles US Census Bureau data and Esri projections for 2020 and 2025.

Fastenal AERIAL Morris, Minnesota

Fastenal AREA INFORMATION Morris, Minnesota

University of Minnesota Morris This Fastenal property is located along Old U.S. Hwy 59 which sees 3,900 vehicles daily. Nearby retailers include: Grand Hotel and Conference Center, Princess House Products, Wash N Go, Super 8 by Wyndham, and many more. The University of Minnesota Morris is less than half a mile from Fastenal. The University of Minnesota Morris is part of the University of Minnesota system with worldwide name recognition, access to state-of-the- art research facility's, and nationally ranked study abroad programs. Enrollment is currently 1,600+ students and offers 34 majors and 35 minors. The college was ranked “Top 10 Public Liberal Arts College” by U.S. News and World Report and “America’s Top Colleges” by Forbes.

Morris, the county seat of Stevens County, is located about 50 miles southeast of the North Dakota-South Dakota border. The city is surrounded by some of the richest agricultural lands in the country, and agribusiness is important to the local economy. Manufacturer Superior Industries employs about 800 people at its two plants in town. Other large economic contributors include milk production, beef feedlots and swim producers, manufacturing, education and healthcare industries. Morris is home to the Horticulture Display Garden which offers a wide array of flowers, plants and vegetables in a beautifully landscaped display. The garden is the perfect place for a picnic or family outing. It offers an educational and inspirational experience for people of all ages. The city encompasses 8 parks with a perfect 5-mile trail along the Pomme de Terre River which is a great opportunity to view sunsets, spot wildlife and smell the wildflowers. Additionally, the city of Morris is home to the Pomme de Terre Golf Club. Throughout the years it has been a vibrant part of the Morris community. This 18-hole golf course features a beautiful new 3,500 square foot clubhouse, with a fully stocked popshop and snack bar.

HORTICULTURE DISPLAY GARDEN POMME DE TERRE GOLF CLUB

Minute Maid Park

POMME DE TERRE RIVER

Fastenal MAPS Morris, Minnesota

Fastenal

723 Iowa Avenue

Morris, MN 56267

Fastenal

723 Iowa Avenue

Morris, MN 56267

Fastenal PROPERTY OVERVIEW Willmar, Minnesota

INVESTMENT SUMMARY LEASE INFORMATION

PRICE $541,850 LEASE TYPE Net Lease

LEASE TERM REMAINING 4.5 Years CAP 7.50%

RENEWAL OPTIONS None RENT $48,359.40

Less TAXES $6,044.00 LEASE COMMENCEMENT 06/01/2020 Less INSURANCE $1,677.00 NOI $40,638.40 LEASE EXPIRATION 05/31/2025

RENT/SF $8.12 LEASE NOTES: Net Lease. Landlord shall maintain and repair roof, building exterior, heating and air conditioning and plumbing and electrical needs, PRICE/SF $91.04 all common areas including parking areas, driveways, sidewalks and landscaped areas. Tenant shall maintain the HVAC with repairs and service capped at $250 a year.

RENT ADJUSTMENTS: Original 5-Year Lease commencing in 2015. Tenant has extended the Lease through May 31, 2025. YEARS 1-5: $48,359.40 DEMOGRAPHIC INFORMATION PROPERTY INFORMATION 1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS 140 25th St SE 2020 POPULATION 2,925 17,907 23,847 ADDRESS Willmar, MN 56201 2025 POPULATION 3,066 18,214 24,235 BUILDING SIZE 5,952 SQ FT. 2020 MEDIAN HOUSEHOLD INCOME $45,143 $45,832 $50,158 LOT SIZE 38,100 SQ FT.

COUNTY Kandiyohi 2020 AVERAGE HOUSEHOLD INCOME $60,783 $60,115 $64,985

YEAR BUILT 2005 All demographic information is obtained from Site To Do Business, which compiles US Census Bureau data and Esri projections for 2020 and 2025.

Fastenal AERIAL Willmar, Minnesota

Fastenal AREA INFORMATION Willmar, Minnesota

This Fastenal property is located Highway 12 which sees 9,500 vehicles per day. Nearby retailers include: Kwik Trip, AmericInn, Enterprise, Dairy Queen, Best Western, Heritage Bank and many more. Kandi Mall recently renamed Uptown Willmar, a 400,000 square-foot shopping center is just 3 miles away from the property. This 40+ store mall is anchored by Kohls, JCPenney, Harbor Freight, Jo- Ann Fabrics, and Dunham’s Sports. Carris Health—Rice Memorial Hospital is located just 2 miles west of this property. Carris Health—Willmar Main Clinic is the hub of its multi-specialty health network with over 180 physicians and

DOWNTOWN WILLMAR, MN advanced practice providers with more than 40 specialty areas. These physicians serve Carris Health—Rice Memorial Hostpial, a 100-bed regional facility and the Carris Health Surgery Center, an outpatient surgery facility located on the campus.

Willmar, Minnesota is located 95 miles west of Minneapolis/ St. Paul and is the county seat for Kandiyohi County. Willmar offers many of the amenities of a larger city, while still providing the benefits of a small town. The economy is diverse and growing with vibrant agricultural, medical and technology sectors. The residential neighborhoods of Willmar offer a diversity of housing with older restored homes, modern construction and newer town homes and apartment buildings. The City has 37 parks, including the Dorothy Olson Aquatic Center and Robbins Island, a 55 acre wooded island between Willmar and Foot Lakes. Robbins Island features hiking and biking trails, a swimming beach and public boat access. The City’s trail network includes a connection to the Glacial Lakes State Trail. The City offers ample opportunity and access to recreation for all ages.

UPTOWN WILLMAR RICE MEMORIAL HOSPIAL ROBBINS ISLAND REGIONAL PARK

Minute Maid Park

Fastenal MAPS Willmar, Minnesota

Fastenal Fastenal

140 25th St SE 140 25th St SE

Willmar, MN 56201 Willmar, MN 56201

Fastenal PROPERTY OVERVIEW Phillips, Wisconsin

INVESTMENT SUMMARY LEASE INFORMATION

PRICE $428,255 LEASE TYPE Net Lease

CAP 7.50% LEASE TERM REMAINING 3 Years

RENT $38,672.16 RENEWAL OPTIONS None Less TAXES $5,668.00 LEASE COMMENCEMENT 03/01/2020 Less INSURANCE $885.00 NOI $32,119.16 LEASE EXPIRATION 02/28/2023 RENT/SF $7.40

LEASE NOTES: PRICE/SF $98.63 Rent: $38,672.16 Taxes: $5,668 RENT ADJUSTMENTS:

YEARS 1-3: $38,672.16 DEMOGRAPHIC INFORMATION PROPERTY INFORMATION 1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS 646 South Lake Avenue ADDRESS 2020 POPULATION 1,047 2,435 3,063 Phillips, WI 54555 2025 POPULATION 1,020 2,374 2,990 BUILDING SIZE 4,342 SQ FT.

LOT SIZE 1.45 Acres 2020 MEDIAN HOUSEHOLD INCOME $41,141 $50,386 $51,459

COUNTY Price 2020 AVERAGE HOUSEHOLD INCOME $53,363 $65,616 $67,320

YEAR BUILT 2005 All demographic information is obtained from Site To Do Business, which compiles US Census Bureau data and Esri projections for 2020 and 2025.

Fastenal AERIAL Phillips, Wisconsin

Fastenal AREA INFORMATION Phillips, Wisconsin

Phillips, WISCONSIN This Fastenal property is located in Phillips, Wisconsin on South Lake Avenue where traffic counts average over 6,700 vehicles per day. There are strong demographics with an average household income over $67,000 within a 5-mile radius. Phillips hold the county seat of Price County. Phillips Wisconsin is known as the unspoiled beauty of the Northwoods. The town of Phillips has something for everyone no matter the age to take part in throughout the year. It is the true destination for a true Northwoods vacation! Located in Price county, the area is home to a variety of natural resources and other opportunities.

The area offers a full range of recreational activities including kayak, canoe and paddle board rentals, golf, indoor community swimming pool, excellent camping facilities, breathtaking snowmobile, cross country skiing and snowshoeing trails, mountain bike and ATV trails, and scenic walking and hiking trails. The Phillips area also provides a wonderful array of accommodations including motel rooms, vacation homes and cabin rentals, lakeside resorts and lodges both in town and lakefront. There are over a million acres of national, state, and county forests surrounding the area for public hunting, fishing and recreations. The Chequamegon-Nicolet National Forest covers more than 1.5 Million acres of Wisconsin’s Northwoods, covering about 858,400 acres in Ashland, Bayfield, Sawyer, Price, Taylor and Vilas counties. Our area holds some of the best public hunting lands in the sate with over 300,000 acres of public forest lands. The Chequamegon-Nicolet National Forest, Flambeau River State Forest and Price County Forest together form a vast wilderness area that supports an excellent population of Northwoods wildlife. Some of the tourist attractions in the area include the Knox Creek Heritage Center is comprised of turn-of-the-century farmstead with many buildings. The first few segments of the Heritage Trail, near Brantwood, are open for hiking and exploring. Or, check out the Old Town Hall Museum, which houses artifacts from the logging days of Price County from 1879 from camp artifacts, railroad memorabilia and a various amount of displays. Make sure to swing by the Fifield Fire Tower, which will be listed on the National Register of Historic Places and is maintained in the a National Forest standing 10 feet high and built in 1932.

Minute Maid Park Know creek heritage center

Fastenal MAPS Phillips, Wisconsin

Fastenal 646 S Lake Avenue Phillips, WI 54555

THE UPLAND ADVANTAGE PROVEN SUCCESS RECORD

Upland Real Estate Group, Inc., which was founded in 1995, is a • Completed in excess of 800 net leased sales transactions totaling over $2.1 billion Minneapolis based commercial real estate, brokerage, and investment • Combined sales experience of over 60 years company, which focuses on passive real investments, 1031 solutions, • Specialized in NNN investment market for more than 20 years real estate portfolio diversification, and wealth preservation. Upland offers "big business service" with the attentiveness you expect from a Upland’s 1031 investment specialists have successfully completed net boutique shop. lease sales transactions with tenants including, but not limited to: 7-Eleven Dollar General O’Reilly Auto Parts Our ability to swiftly match buyers with sellers is one of the many Advance Auto Family Dollar Petco Applebee’s Gander Mountain Sherwin Williams reasons Upland Real Estate Group, Inc. is the nation's primary Arby’s Goodwill Starbucks resource for the purchase or sale of net leased, credit investment BJ’s Wholesale Jack in the Box Taco Bell Bridgestone/Firestone Jiffy Lube Tires Plus properties. Many investors and 1031 tax deferred exchange buyers Buffalo Wild Wings KinderCare Learning Center Tractor Supply have benefited from the experience and expertise of our team of net Burger King Kohl’s Trader Joe’s Camping World McDonald’s Valvoline leased investment sales specialists. CVS Pharmacy National Tire & Battery Walgreens

BENEFITS OF WORKING WITH UPLAND

• Nationally recognized CCIM accredited sales team

• Comprehensive and searchable online database

• Excellent reputations and credibility

• Online Letter of Intent forms

• Access to confidential off-market properties

• Extensive referral network

• Prompt follow-up and attention to detail

www.nnnsales.com L to R: Emily Marsh; Larissa Jackson: Amanda Leathers ; Keith Sturm, ccim; & Deb Vannelli, ccim KEITH A. STURM, CCIM | AMANDA C. LEATHERS | DEBORAH K. VANNELLI | 612.332.6600 PAGE 18