O’Reilly Auto Parts - 15 Year Lease 932 N Germantown Pkwy, Cordova, TN 38018 ™ OFFERING MEMORANDUM CONFIDENTIALITY & DISCLAIMER STATEMENT

This Marketing Brochure contains select information pertaining to the business Like all real estate investments, this investment carries significant risks. Buyer and and affairs of O’Reilly Auto Parts located at 932 N Germantown Pkwy, Cordova, TN Buyer’s legal and financial advisors must request and carefully review all legal and 38018 here to referred to as “Property”. Information in this Marketing Brochure is financial documents related to the Property and tenant. While the tenant’s past confidential and provided solely for the purpose of a review by a prospective performance at this or other locations is an important consideration, it is not a purchaser of the Property. It is not to be used for any other purpose and may not guarantee of future performance. be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc. 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 This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also or no record of actual performance, or comparable rents for the area. Returns are known as Matthews Retail Advisors) based in part upon information supplied by not guaranteed; the tenant and any guarantors may fail to pay the lease rent or the Seller and in part upon financial information obtained from sources deemed property taxes, or may fail to comply with other material terms of the lease; cash reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has flow may be interrupted in part or in whole due to market, economic, environmental not and will not verify any of this information, nor has Matthews Retail Group, Inc. or other conditions. Regardless of tenant history and lease guarantees, Buyer is conducted any investigation regarding these matters. Matthews Retail Group, Inc. responsible for conducting his/her own investigation of all matters affecting the makes no guarantee, warranty or representation whatsoever about the accuracy intrinsic value of the Property and the value of any long-term lease, including the or completeness of any information provided. 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 It is the Buyer’s responsibility to independently confirm the accuracy and a potential replacement tenant considering the location of the Property, and Buyer’s completeness of all material information before completing any purchase. This legal ability to make alternate use of the Property. Marketing Brochure is not a substitute for the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly By accepting this Marketing Brochure you agree to release the Seller and Matthews denies any obligation to conduct a due diligence examination of this Property for Retail Group, Inc. of any and all liability and hold the parties harmless from any kind the Buyer. Any projections, opinions, assumptions or estimates used in this of claim, cost, or expense arising out of your investigation and/or purchase of this Marketing Brochure are for example only and do not represent the current or Property. future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, NON-ENDORSEMENT NOTICE financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction Matthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any advisors should conduct a careful, independent investigation of any property to commercial tenant or lessee identified in this Marketing Brochure. The presence of determine to their satisfaction the suitability of the Property for their investment any corporation’s logo or name is not intended to indicate or imply affiliation with, or goals. sponsorship or endorsement by, said corporation of Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ii TABLE OF CONTENTS

PRICING AND FINANCIAL ANALYSIS PRESENTED BY Investment Overview ...... 2 Financial Overview ...... 3 Chad Kurz Lease Abstract 4 SVP & National Director Company Overview 5 License No. 01911198 O 310.919.5850 PROPERTY DESCRIPTION M 562.480.2937 Property Overview ...... 7 [email protected] Bird’s Eye ...... 8 Tenant Map ...... 9 Regional Map ...... 10 Aron Cline DEMOGRAPHICS VP & Sr. Director Demographics Report ...... 17 License No. 01904371 City Overview ...... 18 O 310.919.5816 M 818.632.0233 [email protected]

James “Jim” Holleman Broker of Record License No. 235328

iii ™

PRICING AND FINANCIAL ANALYSIS Investment Overview

INVESTMENT HIGHLIGHTS PROPERTY DETAILS • Brand new 15 year lease with ±14 years remaining on lease term • Great rent increases, 7% every 5 years • High quality construction, all brick building • NN Lease with limited Landlord responsibilities • Rare long-term O’Reilly Auto Parts available

LOCATION • Strong demographics, over 165,000 people in 5-mile radius • Average household income over $90,000 in 5-mile radius • Strong retail synergy, nearby tenants include Walmart, Target, Kroger, Cordova Farmer’s Market, Walgreens, CVS, and numerous other tenants • Located near numerous car dealerships, typically a strong sign tenant will perform well • Monster traffic counts, over 58,000 vehicles per day • Suburb to Memphis, TN; a top 50 MSA

TENANT • O’Reilly Auto Parts has strong investment grade credit, S&P rating of BBB+ • S&P credit rating is stronger than Walgreens • O’Reilly Auto Parts operates ±4,500 locations throughout 43 states • O’Reilly Auto Parts reported ±$7.4B in revenue and a market cap of $23B

2 Financial Overview

EXECUTIVE SUMMARY ANNUALIZED OPERATING DATA 932 N Germantown Pkwy Monthly Rent Annual Rent Increases CAP Rate Cordova, TN 38018 List Price ...... $1,849,486 Current - April 30, 2020 $8,708.00 $104,496.00 5.65% Gross Leasable Area ...... ± 9,106 SF May 1, 2020 - April 30, 2025 $9,320.48 $111,845.76 7% 6.05% CAP Rate - Current ...... 5.65% May 1, 2025 - April 30, 2030 $9,784.31 $117,411.72 7% 6.35% Year Renovated ...... 2014 Option 1 $10,371.37 $124,456.44 7% 6.73% Lot Size ...... ± 0.86 Acres (37,461 SF) Option 2 $10,993.65 $131,923.80 7% 7.13% Option 3 $11,653.27 $139,839.24 7% 7.56% Option 4 $12,352.46 $148,229.52 7% 8.01%

TENANT SUMMARY Tenant Trade Name O’Reilly Auto Parts Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN

Roof and Structure Landlord Responsible Original Lease Term 15 Years Lease Commencement Date August 19, 2014 Rent Commencement Date May 1, 2015 Lease Expiration Date April 30, 2030 Term Remaining on Lease ±14 years Increases 7% Every 5 Years Options Four, 5-year options

3 ™ Lease Abstract

Tenant: O’Reilly Automotive Stores, Inc a Missouri Corporation. Tenant Address: P.O. Box 06116, Chicago, IL 60606 Property Address: 932 N Germantown Parkway, Cordova, TN Date Of Lease: August 19, 2014 Lease Commencement: May 1, 2015 Lease Expiration: April 30, 2030 Lease Term: Fifteen (15) years Current Rent: $104,496 GLA 9,106 SF Rent Increases: 7% rental increases every five (5) years Renewal Options: Four five (5) year options Current – 4/30/2020 $11.47/SF $104,496 per year 5/1/2020 – 4/30/2025 $12.28/SF $111,845.76 per year “5/1/2025 – 4/30/2030 $12.89/SF $117,411.72 per year Option period Annual Rent: One $13.66/SF $124,456.44 per year Two $14.48/SF $131,923.80 per year Three $15.35/SF $139,839.24 per year Four $16.27/SF $148,229.52 per year” Real Estate Taxes: Tenant Shall pay Landlord during the Term as additional Rent its pro rata share. See section 7 pg 3 of the lease. "Tenant agrees at all times during the Term and for such prior or further term as Tenant occupies or is in possession of the Leased Premises at Tenant’s sole cost and expense. See page 6 section 14 of the lease.

Insurance (Tenant): Landlord shall, during entire Lease term, keep in full force and effect, a policy or policies of commercial general liability coverage written on an occurrence form including coverage for completed operations and contractual liability, with minimum limits of $1,000,000 per occurrence." Utilities: Tenant responsible. "Landlord shall at all times throughout the Lease Term, at its expense without reimbursement or contribution by Tenant, keep, maintain, and replace, if necessary, foundations, floors (except floor coverings), slabs, exterior walls, structural systems of the building, load bearing wall, roof fire suppression system/monitoring (if applicable, HVAC equipment, parking lot, sidewalks, and utility systems to the point of Repairs and Maintenance: distribution within the demised premises. See page 3 section 8 of the lease.

Tenant shall at all times throughout the Lease Term, at its sole cost and expense, keep the demised premises in good repair."

4 ™ Company Overview

Tenant O’Reilly Auto Parts Missouri-based O’Reilly Automotive has stores in 43 states, including Alaska and Hawaii. Texas and California are its largest markets, with Company Name O’Reilly Automotive, Inc. more than 600 stores and more than 500 stores, respectively. The fast- Ownership Public growing company sells automotive aftermarket parts (both new and Credit Rating BBB+ remanufactured), maintenance supplies, professional service equipment, tools, and accessories through some 4,500 stores in 40- Rating Agency Standard & Poor’s plus states and online. Many O’Reilly Automotive stores also offer Revenue $7.97 Billion customers a range of services, including oil and battery recycling, battery testing, paint mixing, and tool rental. The company wheels and Net Income $931.22 Million deals with automotive professionals, as well as do-it-yourself customers. Stock Symbol ORLY Founded in 1957 by Charles F. O’Reilly and his son “Chub,” O’Reilly Board NASDAQ Automotive is still family run. No. of Locations ±4,500 O’Reilly Automotive’s revenue has increased since 2003, and performed No. of Employees ±71,943 well during the recession. The company’s growth streak continued in 2014 with sales up 8.5%, to $7.2 billion, and net income rising 16% to Headquartered Springfield, Missouri $778 million. Driving the increase in sales were the addition of 200 net, Web Site www.oreillyauto.com new stores and an increase in same-store sales. Year Founded 1957

5 PROPERTY DESCRIPTION Property Overview

THE OFFERING Property Name ...... O’Reilly Auto Parts Property Address ...... 932 N Germantown Pkwy Cordova, TN 38018 Assessor’s Parcel Number ...... 091-026-00003 Zoning ...... CA

SITE DESCRIPTION Number of Stories One Year Built 1993 Gross Leasable Area (GLA) 9,106 SF Lot Size ± 0.86 Acres (37,461 SF) Type of Ownership ...... Fee Simple Parking ...... ± 38 Surface Spaces Parking Ratio 4.17 : 1,000 SF Landscaping Professional Topography ...... Generally Level

CONSTRUCTION Foundation Concrete Slab Framing ...... Steel Exterior Brick Parking Surface ...... Asphalt Roof Flat

7 PROPERTY DESCRIPTION Bird’s Eye

N Germantown Pky ±58,000 ADT

8 ™ Tenant Map

9 PROPERTY DESCRIPTION Regional Map

10 ™

Demographics Report

Population 1-Mile 3-Mile 5-Mile 2021 Projection 11,381 68,569 171,955 2016 Estimate 11,057 65,621 165,456 2010 Census 10,728 62,164 158,074 2000 Census 9,072 47,781 130,286 Growth 2016-2021 2.93% 4.49% 3.93% Growth 2010-2016 3.07% 5.56% 4.67% Growth 2000-2010 18.25% 30.10% 21.33% Households 2021 Projection 5,017 27,385 65,863 2016 Estimate 4,888 26,422 63,695 2010 Census 4,770 25,548 61,643 2000 Census 3,824 19,602 49,390 Growth 2016-2021 2.66% 3.64% 3.40% Growth 2010-2016 2.48% 3.42% 3.33% Growth 2000-2010 24.72% 30.33% 24.81%

Income $0 - $15,000 4.49% 5.02% 6.03% $15,000 - $24,999 8.42% 8.20% 7.53% $25,000 - $34,999 12.16% 9.80% 9.64% $35,000 - $49,999 16.62% 14.40% 12.79% $50,000 - $74,999 21.51% 21.23% 19.52% $75,000 - $99,999 14.35% 14.93% 13.28% $100,000 - $124,999 10.16% 9.94% 9.88% $125,000 - $149,999 6.21% 6.56% 7.02% $150,000 - $199,999 3.96% 5.67% 6.38% $200,000 - $249,999 1.14% 1.94% 2.82% $250,000 - $499,999 0.82% 1.86% 3.62% $500,000+ 0.17% 0.44% 1.49% 2016 Est. Average Household Income $71,835 $80,294 $91,988 2016 Est. Median Household Income $59,652 $64,810 $67,941

17 DEMOGRAPHICS City Overview

CORDOVA, TN Cordova is a community in Shelby County, , United States. Cordova grew from a quiet country farm hamlet with a population of 150 people in 1912 to one of the fastest growing neighborhoods of Memphis. Retail growth exploded in the late 1990s thanks to the Wolfchase Galleria , which at the time was the largest retail center in Shelby County outside of Memphis city limits. Today the majority of the growth is along Houston Levee Road and Macon Road as well as major retail and commercial centers on Germantown Parkway. There are now over 1,226 businesses with over 19,400 employees working in Cordova.

MEMPHIS METROPOLITAN STATISTICAL AREA The Memphis Metro area is known locally as the Mid-South. The Memphis area enjoys a diverse and robust economy. Well positioned on America’s largest river and located near the population center of the United States; Memphis is known as America’s distribution hub. FedEx is Headquartered in Memphis and uses the Memphis International Airport as its global superhub facility making the airport the busiest cargo airport in the United States. UPS also uses Memphis as a major hub. The area is also home to one of the United States largest intermodal logistics centers. This includes being the third largest trucking corridor, fourth largest inland port, and third largest in class I railroad services. The Mid-South has the largest percentage of people employed in logistics in the U.S. The Mid-South is also home to many fortune 500 and 1000 companies such as FedEx, AutoZone, Regions Bank, ServiceMaster, BUPERS, First Tennessee and International Paper. Furthermore, companies such as Nike, Baskin Robbins, Sharp, and Hewlett Packard operate large distribution centers out of Memphis. Healthcare has begun to play a major role in the Mid-south’s economy accounting for one in nine jobs. There are nineteen hospitals with over 4,100 beds in the Mid-South. The area is also home to St. Jude Children’s Research Hospital which is a nobel prize winning hospital with over 1,200 scientist working there and the University of Tennessee Health Science Center. Tourism is also a major contributor to the Mid-south’s economy with the region being known as the birthplace of Rock and Roll and Blues. Over eight million people visit the Memphis metropolitan area every year for tourist related activities. Over four million people visit every year making it the most visited attraction in Tennessee. The was one of only four zoos in the U.S. to feature a giant panda and is routinely ranked as one of the best zoos in America.

18 ™ O’Reilly Auto Parts 932 N Germantown Pkwy, Cordova, TN 38018 OFFERING MEMORANDUM

Chad Kurz SVP & National Director License No. 01911198 O 310.919.5850 M 562.480.2937 [email protected]

Aron Cline VP & Sr. Director License No. 01904371 O 310.919.5816 M 818.632.0233 [email protected]

James “Jim” Holleman Broker of Record License No. 235328

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