SHERWIN WILLIAMS OFFERING MEMORANDUM 5338 159th St. Oak Forest, IL Click Here for Property Video

™ EXCLUSIVELY LISTED BY Michael Moreno Aron Cline Rahul Chhajed Broker of Record Senior Associate SVP & Senior Director Senior Associate Kyle Matthews [email protected] [email protected] [email protected] LIC # 471.019766 (IL) DIR (949) 432-4511 DIR (949) 432-4509 DIR (949) 432-4513 MOB (818) 522-4497 MOB (818) 632-0233 MOB (818) 434-1106 LIC # 01982943 LIC # 01904371 (CA) LIC # 01986299 (CA) EXECUTIVE OVERVIEW

INVESTMENT HIGHLIGHTS

PROPERTY DETAILS

• Brand New High Quality Construction – Build-To-Suit Sherwin-Williams building opened its doors for business in 2018 • Inflation Protected Lease Structure – Attractive 10% Rental Increases Every Five Years provides investors with a very strong hedge against future inflation • Extremely Passive Investment – Minimal Landlord Responsibilities – Roof & Structure are sole Landlord Responsibilities • Ideal Sherwin-Williams Building – Property is directly in line with tenant’s latest prototypical building • Perfect 1031 Exchange Property – This net leased property provides a future landlord a brand-new investment with 10% rental increases every 5 years, leased to one of the strongest tenants in the entire retail industry LOCATION

• High Density Market – Population within a 5-mile radius of the property exceeds 230,000 • Strong Consumer Demographics – Average resident income within a 1-mile radius is greater than $84,000 • Excellent Street Visibility – The property is strategically located off the intersection of Central Ave and 159th St, which features over 38,000 vehicles in Average Daily Traffic • Highly Visited Location – Sherwin-Williams is located in a retail corridor with a national tenant lineup that features The Home Depot, Menards, Walmart, Target, Lowe’s, Jewel-Osco, McDonald’s, Fresenius Medical Care, Jiffy Lube, Walgreens, Circle K, Dunkin’ Donuts, Starbucks, and CVS amongst many others

TENANT

• Investment Grade Credit Tenant – Sherwin-Williams is a Fortune 200 company with a market cap of $38.52 Billion • High Growth Tenant – Sherwin-Williams is continuing to expand their national and international footprint, especially with the recent acquisition of Valspar Paint • Market Leader – Sherwin-Williams is the global leader in the paints and coating industry

| 3 LIST PRICE

$1,901,091

4 | FINANCIAL OVERVIEW

FINANCIAL OVERVIEW ANNUALIZED OPERATING DATA

Lease Commence Monthly Rent Annual Rent Rent PSF CAP LIST PRICE CAP RATE TERM REMAINING Base Term - 2018-2023 $8,750.00 $105,000 $30.00 5.50% Base Term - 2023-2028 $9,625.00 $115,500 $33.00 6.05% $1,901,091 5.50% ±9.75 Years Option 1 - 2028-2033 $10,587.50 $127,050 $36.30 6.66% Option 2 - 2033-2038 $11,646.25 $139,755 $39.93 7.32%

TENANT SUMMARY

The Sherwin Williams Tenant Trade Name Company Type of Ownership Fee Simple EXECUTIVE SUMMARY Lease Guarantor Corporate Lease Type NN Property Name Sherwin Williams 5338 159th Street Roof & Structure Landlord Responsible Address Oak Forest, IL 60452 Original Lease Term 10 Years Year Built 2018 Rent Commencement Date 2/23/2018 GLA ±3,500 SF Lease Expiration Date 2/29/2028 Lot Size ±0.77 AC Term Remaining ±9.75 Years Increases 10% Every 5 Years Options Two, 5-Year Options

| 5 6 | TENANT OVERVIEW

SHERWIN WILLIAMS Sherwin-Williams is one of the top paint manufacturers in the US and worldwide, along with Akzo-Nobel, PPG Industries, and Henkel. The company’s products include a variety of paints, finishes, coatings, applicators, and varnishes sold under brands such as Dutch Boy, Krylon, Sherwin-Williams, Thompson’s WaterSeal, Ronseal, Sayerlack, and Minwax. Additionally, it sells automotive finishing and refinishing products through wholesale branches worldwide. Other outlets include mass merchandisers, home centers, independent dealers and automotive retailers. PARENT COMPANY STRATEGY TRADE NAME Sherwin-Williams focuses on enhancing its operations and The Sherwin growing market share. As part of its strategy, Sherwin-Williams Williams Company invests more than $100 million per year in research, development, and commercialization of new product technologies. Acquisitions NO. OF LOCATIONS are also key to the company’s strategy for growth, such as that of the pending acquisition of rival Valspar, as well as for the addition ±4,340 of new technologies.

OPERATIONS NO. OF EMPLOYEES Sherwin-Williams has expanded its operating segments from three to four because of growth in sales, geographic reach, and ±40,706 product lines. It added a Latin American Coatings Group to its Paint Stores Group, Global Finishes Group, and Consumer Group HEADQUARTERED segments. Subsidiaries of the company include Comex North America, Inc., Contract Transportation Systems Co, Oy Sherwin- Williams Finland Ab, Sherwin-Williams Bel, Sherwin-Williams Cleveland, Ohio (Belize) Limited, and Sherwin-Williams France Finishes SAS. YEAR FOUNDED GEOGRAPHIC REACH With a customer base in more than 100 countries, Sherwin- 1866 Williams has operations in the Asia/Pacific, Canada, Caribbean, Europe, and the Americas.

| 7 PARCEL MAP

159TH STREET ±38,000 VPD

8 | SURROUNDING AREA

159TH STREET ±38,000 VPD

| 9 AREA OVERVIEW

CHICAGOLAND

Situated on the southwestern shore of Lake Michigan, the City of covers an area of 234 square miles. Chicagoland is an informal name for the metropolitan area associated with the city of Chicago and its suburbs. The region is often considered to include areas beyond its corresponding MSA, as well as portions of the greater CSA.

Chicago has one of the world’s largest and most diversified economies, with more than four million employees and generating an annual gross regional product (GRP) of over $575 billion, which is more than countries like Sweden and Norway. Having been listed as an alpha global city by the Global Cities Index, it is a key player in every sector from risk management, innovation and information technology to manufacturing and health services.

Over $575 billion 2,695,598 Over 40 Million Gross regional product Residents annual visitors (GRP) ECONOMY HIGHER EDUCATION The city is an efficient economic powerhouse, home to more than 400 major Chicago has been a world center of higher education and research with corporate headquarters, including 31 in the Fortune 500. Boeing, United several universities inside its city limits. Most notably, Northwestern University Continental Holdings, Inc., Exelon Corporation, R. R. Donnelley & Sons Company, and the University of Chicago are two top universities that call the city home. and Archer Daniels Midland are just a few of the Fortune 500 companies based in the area. Motorola Solutions, Inc. intends to move their headquarters from Northwestern University is a large, private research university based in Schaumburg, IL to Chicago in the coming future. McDonald’s has become the Evanston with a comprehensive doctoral program. Attracting over $650 latest Fortune 500 company to establish its presence in Chicago as it is preparing million in sponsored research each year, Northwestern has the eighth largest to move its headquarters from Oak Brook, IL to the windy city by early 2018. university endowment in the country.

As a multicultural city that thrives on the harmony and diversity of its neighborhoods, The University of Chicago is one of the world’s leading and most influential Chicago embodies the values of America’s heartland integrity. It is this level institutions of higher learning. Its main campus is located seven miles south of diversification that has resulted in Chicago being rated as having the most of downtown Chicago in the Hyde Park and Woodlawn neighborhoods. balanced economy in the United States. Additionally, its central location allows The University of Chicago has many prominent alumni, including 92 Nobel Chicago to be at the center of global trade, transit and data networks. laureates that have been affiliated with the university as professors, students, faculty or staff. GETTING AROUND

O’HARE INTERNATIONAL CHICAGO TRANSIT AIRPORT AUTHORITY Chicago O’Hare International Airport is The Chicago Transit Authority (CTA) located on the far northwest side of the operates an extensive network of buses city, about 17 miles northwest of the Loop. and the “L” rapid transit system, which It is the primary airport of the Chicago provide service to Chicago and forty metropolitan area. As the fourth-busiest surrounding suburbs. On an average airport in the world by passenger traffic, weekday, CTA offers 1.7 million rides on O’Hare is a major hub for American buses and trains. As one of the city’s Airlines, United Airlines and Air Choice distinguishing features, the “L” has been One. With eight runways, more than any credited with fostering the growth of major international airport, O’Hare has Chicago’s dense city core. direct service to 210 destinations.

MIDWAY INTERNATIONAL METRA AIRPORT Eight miles from the Loop on the Metra is the second-most used passenger southwest side of Chicago, Chicago regional rail network in the country, which Midway International Airport is the operates 241 station on 11 different rail second-largest passenger airport in lines. This commuter railroad services Chicagoland. Southwest Airlines is the passengers through stations throughout dominant carrier at Midway, offering the Chicago metropolitan area. Metra’s around 250 daily departures to sixty Electric Line shares its trackage with nonstop destinations. Passengers enjoy Northern Indiana Commuter easy access to downtown thanks to the Transportation District’s South Shore services provided by the CTA. Line, which provides commuter service between South Bend and Chicago.

12 | POINTS OF INTEREST

NAVY PIER Navy Pier is Chicago’s lakefront treasure on the shoreline of Lake Michigan. The pier encompasses more than fifty acres of parks, gardens, shops, restaurants, family attractions and exhibition facilities. Drawing nearly nine million visitors annually, Navy Pier is one of the most visited attractions in the entire Midwest.

MAGNIFICENT MILE WILLIS TOWER JOHN HANCOCK CENTER Adjacent to downtown and one block east of , the Still commonly referred to as Sears Tower, The John Hancock Center is currently the eighth- is an upscale section of Chicago’s Michigan Avenue, which runs from the the Willis Tower is the second-tallest building tallest building in the country. Equipped with a Chicago River to in the Near North Side. Several of the tallest in the United States. This bustling community restaurant and lounge on the 95th floor, the buildings in the country lie in this district, such as the John Hancock Center and of business, tourism and culture offers Observatory (360 Chicago), and America’s the Trump International Hotel and Tower. Serving as the main thoroughfare breathtaking views of the city from its highest indoor swimming pool, the John between Chicago’s Loop business district and Gold Coast, the Magnificent Skydeck. Visitors can experience the Ledge, Hancock Center appeals to residents and Mile contains a mixture of high-end department stores, restaurants, luxury all-glass balconies that allow visitors to look tourists alike. From the restaurant, diners can retailers, residential and commercial buildings, financial services companies through the glass floor to the street 1,353 take in views of the city. and hotels, primarily catering to tourists and the affluent. feet below.

| 13 OAK FOREST, IL The suburban city of Oak Forest sits approximately 24 miles southeast of Chicago. Oak Forest is very conveniently located with easy access to Interstates 57, 80, and 294.

Oak Forest is surrounded by the Cook County Nature Preserves, which create a beautiful landscape for residents and visitors to enjoy. The Nature Preserves are one of the most popular attractions in the area, spanning approximately 640 acres. Over 20 miles of recreational trails connect the nature preserves.

Another popular attraction is the Chicago Gaelic Park, one of the nation’s largest Irish Cultural Centers. The park sits on 50 acres of land and holds events year-round. The George Dunne National Golf Course in Oak Forest was recognized by Golf Digest as the best public golf course in the region.

With average median household income and estimated median home values well above the state and national averages, Oak Forest has a thriving economy. The largest industries in Oak Forest are healthcare, manufacturing, and education. The unemployment rate in Oak Forest is also well below the national average, and the city has seen promising recent job growth. Future job growth in the area is projected to be 36.89% over the next 10 years.

Known for its family-friendliness and top-notch public schools, Oak Forest is a great place to raise a family. Crime rates in the city are well below the national average, and it is ranked amongst the suburbs with the lowest cost of living in Illinois.

Oak Forest is also a great place for young people, being ranked on the list of Best Suburbs for Millennials in the state in 2018. The city has great nightlife, with plenty of taverns, bars, and fun restaurants throughout the area.

14 | MEDIAN HOUSEHOLD INCOME UNEMPLOYMENT RATE

Oak Forest: $84,346 Oak Forest: 4.5% Illinois Average: $60,960 Illinois Average: 5.1% National Average: $65,443 National Average: 5.2%

REAL ESTATE IN OAK FOREST AREA DEMOGRAPHICS

POPULATION 1-Mile 3-Mile 5-Mile Median home value in Oak 2018 Estimate 10,712 81,893 230,247 Forest is $192,942, well above Illinois and National HOUSEHOLDS 1-Mile 3-Mile 5-Mile averages. 2018 Estimate 4,171 31,242 85,628 INCOME 1-Mile 3-Mile 5-Mile Average Household $87,341 $85,073 $85,661 Income 2018 | 15 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Sherwin Williams located at 5338 159th St Oak Forest, IL 60452 (“Property”). It has been prepared by Matthews Retail Advisors. 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 Retail Advisors. 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 Retail Advisors 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 Retail Advisors 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. SHERWIN WILLIAMS 5338 159th St. Oak Forest, IL OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY

Michael Moreno Aron Cline Rahul Chhajed Broker of Record Senior Associate SVP & Senior Director Senior Associate Kyle Matthews [email protected] [email protected] [email protected] LIC # 471.019766 (IL) DIR (949) 432-4511 DIR (949) 432-4509 DIR (949) 432-4513 ™ MOB (818) 522-4497 MOB (818) 632-0233 MOB (818) 434-1106 LIC # 01982943 LIC # 01904371 (CA) LIC # 01986299 (CA)