Big 5 Sporting Goods KENNEWICK, WASHINGTON Overview

Big 5 Sporting Goods

812 W VINEYARD DR, KENNEWICK, WA 99336 PAGE 3

Investment Summary

LEASEABLE SF LAND AREA LEASE TYPE 16,416 SF 2.62 Acres NNN

PRICE PER SF YEAR BUILT PARKING $103 1963 122 Spaces; 7.4/1,000 SF

$1,692,000 6.50% PRICE CAP

THE OFFERING provides a unique opportunity to own a property occupied by a successful long-term tenant, Big 5 Sporting Goods. The Tenant is highly-dedicated to the site with a 41-year occupancy and a brand new five year extension. The Property is located within a daily needs corridor, adjacent to both an elementary and high school, providing a strong and convenient connection to the surrounding community. Overview Investment Highlights

The Highlights

POSSIBLE RENTAL UPSIDE PROVIDED BY BELOW-MARKET RENT.

NNN LEASE STRUCTURE LIMITS LANDLORD RESPONSIBILITY.

STRONG, PUBLICLY-TRADED (NASDAQ: BGFV) NATIONAL TENANT.

DENSE IN-FILL LOCATION WITH NEARLY 141,000 RESIDENTS WITHIN A FIVE-MILE RADIUS. PAGE 5

PUBLICLY-TRADED (NASDAQ: BGFV), NATIONAL BRAND

NEW ROOF AND PAINT MINIMIZES FUTURE CAPITAL REQUIREMENTS.

DAILY NEEDS CORRIDOR ADJACENT TO ELEMENTARY AND HIGH SCHOOL.

TRI-CITIES IS NEAR 300,000 RESIDENTS MAKING IT THE 8TH LARGEST MARKET IN THE PACIFIC NORTHWEST.

Investment Highlights Site

TRINITY CLUB GOLF COURSE

AMISTAD 9,245 ELEMENTARY BIG 5 VPD SCHOOL SPORTING 10,677 ENROLLMENT: GOODS VPD KENNEWICK AVE 530 STUDENTS LEGACY 1ST AVE 11,309 HIGH VPD SCHOOL W 4TH AVE FRUITLAND SCHOOL KENNEWICK CIVIC SCHOOL DISTRICT CENTER OFFICE EMPLOYMENT: PARK 2,336 KENNEWICK HIGH SCHOOL ENROLLMENT: PARK 1,635 STUDENTS MIDDLE SCHOOL

TRIOS HEALTH EMPLOYMENT: 1,020 PAGE 7

LOCATED IN A DAILY NEEDS CORRIDOR, ADJACENT TO NUMEROUS SCHOOLS AND AREA EMPLOYERS, WITH A DENSE SURROUNDING RESIDENTIAL BASE

Site Surrounding Retail Business Summary

TOTAL 1-MILE 3-MILES 5-MILES

Businesses 492 2,360 4,077

Employees 8,579 28,785 51,758

Population 15,200 90,893 141,371

KEY 1-MILE 3-MILES 5-MILES

MAJOR RETAIL Goodwill Rite Aid Alberstons Grocery Outlet Ross Dress for Less AutoZone Hobby Lobby Safeway Best Buy Home Depot Shopko Big Lots Lowe’s Target Burlington Michaels Walgreens Costco Office Depot Walmart Supercenter Dollar Tree O’Reilly Auto Parts Famous Footwear Petco Fred Meyer PetSmart REI

COLUMBIA CENTER Foot Locker Old Navy Barnes & Noble GNC Sears Bath & Body Works HomeGoods The Body Shop Coach JCPenney Ulta Beauty DSW LOFT Verizon Macy’s Zumiez PAGE 9

BIG 5 SPORTING GOODS IS 6 MILES LOCATED NEAR THE KENNEWICK WEST SCHOOL DISTRICT OFFICE (EMPLOYMENT: 2,336) AND TRIOS HEALTH (EMPLOYMENT: 1,020).

EDISON ELEMENTARY SCHOOL KAMIAKAN HIGH SCHOOL

HIGHLANDS MIDDLE SCHOOL

HAWTHORNE ELEMENTARY SCHOOL

240

SOUTHGATE ELEMENTARY SCHOOL 395

CANYON VIEW ELEMENTARY SCHOOL

AMISTAD MIDDLE SCHOOL

KENNEWICK SCHOOL BIG 5 DISTRICT SPORTING OFFICE GOODS

PARK FRUITLAND MIDDLE SCHOOL SCHOOL LEGACY KENNEWICK HIGH HIGH SCHOOL SCHOOL Surrounding Retail Site Plan

W KENNEWICK AVE

9,245 VPD

AMISTAD ELEMENTARY SCHOOL

11,309 VPD

W VINEYARD AVE

16,416 2.62 122 SPACES; LEASEABLE SF ACRES 7.4/1,000 SF PAGE 11

Value Creation The Property is comprised of a single 2.62-acre parcel with 49,248 square feet required to be used for parking purposes, per the terms of Big 5’s lease. Possible upside is provided through pad development and parcelization of the roughly 1-acre remaining of undeveloped land not required to be used for parking purposes.

SITE PLAN NOT TO SCALE PYLON SIGN Site Plan Box Rent Comparables

BIG 5 PAYS BELOW-MARKET RENT AT $6.70/SF NNN, providing opportunity for rental upside upon expiration. Comparable boxes in the trade area range from $11.50/SF to $22.80/SF.

3 4 6 7 5

BIG 5 SPORTING GOODS 8 PAGE 13

Rent Comparables

1 DOLLAR TREE 5 DOLLAR TREE EPHRATA GRANDVIEW SIZE: 7,920 SF SIZE: 9,000 SF RENT: $12.63/SF RENT: $11.50/SF YEAR BUILT: 2003 YEAR BUILT: 2015

2 AARON’S 6 RITE AID MOSES LAKE RICHLAND SIZE: 16,961 SF SIZE: 17,370 SF RENT: $13.44/SF RENT: $19.40/SF YEAR BUILT: 2009 YEAR BUILT: 2005

3 GOODWILL 7 RITE AID YAKIMA PASCO SIZE: 16,048 SF SIZE: 17,272 SF RENT: $13.00/SF RENT: $22.80/SF YEAR BUILT: 2015 YEAR BUILT: 2005

4 PETSMART 8 BIG 5 SPORTING GOODS UNION GAP WALLA WALLA SIZE: 19,495 SF SIZE: 10,980 SF RENT: $11.56/SF RENT: $16.24/SF YEAR BUILT: 2000 YEAR BUILT: 2002

Average Rent: $15.07

Box Rent Comparables Income & Expense

Financial Summary

PRICE $1,692,000 CAPITALIZATION RATE 6.50% PRICE PER FOOT $103

CASH FLOW SUMMARY SCHEDULED INCOME PER SF Base Rent for the Period of: 8/1/2020 - 7/31/2021 $6.70 $110,004 Total Effective Gross Income (EGI) $6.70 $110,004

OPERATING EXPENSES PER SF CAMS NNN Property Taxes NNN Insurance NNN Total Operating Expenses NNN -

NET OPERATING INCOME $110,004 Notes: NOI fully capitalizes rent increase effective 2/2021.

NNN LEASE STRUCTURE INSULATES LANDLORD FROM RISING COST OF

5/4/2020 < > OPERATING EXPENSES [www.CapitalPacific.com]

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. Rent Roll

PAGE 15

BIG 5

Lease Term: 5/13/1980 - 1/31/2026

Size (SF): 16,416

RENT SUMMARY

MONTHLY ANNUAL DATE % INCREASE PSF CAP RATE BASE RENT RENT

2/1/2021 $9,167 $110,004 $6.70 6.50%

OPTIONS 1 2/1/2026 $10,084 10% $121,008 $7.37 7.15%

CURRENT $8,334 $100,008 $6.09 5.91%

Lease Notes Comments: NNN lease - Tenant is directly responsible for taxes, insurance, utilities, and interior and exterior maintenance and repair, excluding building structure, foundation, and the roof.

5/4/2020 [ ]

Financial Summary Lease Abstract

Premise & Term TENANT Big 5 Corp. dba Big 5 BUILDING SF 16,416 SF LEASE TYPE NNN RENT COMMENCEMENT May 13, 1980 EXPIRATION January 31, 2026 OPTIONS 1, 5-Yr Option; 180-Day Notice

Rent DATE RANGE MONTHLY ANNUAL SF 2/1/2021 - 1/31/2026 $9,167 $110,004 $6.70

OPTION RENTS DATE RANGE MONTHLY ANNUAL SF #1 2/1/2026 - 1/31/2031 $10,084 $121,008 $7.37 PAGE 17 TAXES Expenses Tenant is responsible for 100% of property taxes directly to billing authority.

INSURANCE Tenant maintains public liability and fire insurance policies.

UTILITIES Tenant is directly responsible for all utilities serving the premises.

TENANT’S OBLIGATIONS Tenant is responsible for all interior and exterior maintenance and repair, HVAC maintenance and replacement, excluding all structural elements and exterior walls, which are the responsibility of the Landlord.

LANDLORD’S OBLIGATIONS Landlord is responsible for all structural elements and exterior walls.

ASSIGNMENT/SUBLETTING Lease Tenant may not assign or sublease without the prior provisions written consent of Landlord, which shall not be unreasonably withheld.

Lease Abstract Location Tri-Cities Area

THE TRI-CITIES AREA is a mid-sized metropolitan area in southeastern Washington, consisting of three neighboring cities: Kennewick, Pasco, and Richland. The cities are located at the confluence of the Yakima, Snake, and Columbia rivers in the semi- arid region of Southeastern Washington. A fourth neighboring city, West Richland, is generally included as part of the Tri-City area and region, as are a handful of unincorporated communities. Each city either borders another or one of the area’s rivers, making the Tri-Cities seem like one uninterrupted mid-sized city. The two counties are officially defined as the Kennewick-Pasco-Richland Metropolitan Statistical Area. PAGE 19

Economic Growth

DESPITE THE ECONOMIC RECESSION OF THE LATE 2000’s, the Tri-Cities area has continued to maintain steady growth and a stable economic climate. Driving the areas economic engine is a highly educated workforce and growing household incomes due to job growth in manufacturing, engineering, technology, and healthcare.

EMPLOYER INDUSTRY # OF EMPLOYEES Battelle/Pacific Northwest National Research & 4,500 Laboratory Development Kadlec Regional Medical Center Health Services 3,532

Lamb Weston Food Processing 3,000 Engineering & Bechtel National 2,943 Construction Kennewick School District Education 2,336 Environmental Washington River Protection Solutions 2,129 Remediation Services Pasco School District Education 2,015

HIGHLY EDUCATED WORKFORCE AND THE HIGHEST AMOUNT OF SCIENTISTS AND ENGINEERS PER CAPITA IN THE NATION. MORE INFO

Location Demographics

KEY 5 MINS 10 MINS 15 MINS

Distance Spokane, Yakima, to Washington Washington

139 MILES 83 MILES 2 HRS 9 MINS 1 HR 20 MINS PAGE 21

Drive Time

POPULATION

5 MINS 10 MINS 15 MINS

2010 23,714 88.170 158,582

2019 25,080 96,820 184,571

2024 26,104 102,808 200,574

2019 HH INCOME

5 MINS 10 MINS 15 MINS

Average $50,102 $67,077 $80,268

Median $36,496 $51,518 $61,217

190,592

BENTON COUNTY POPULATION (ESTIMATED)

Demographics Contact Us

The information in this Executive Summary 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. All rights reserved to Capital Pacific, LLC. Contact the listing team:

SEAN MACK [email protected] PH: 503.675.8378

Our brokers collaborate:

KEVIN ADATTO SEAN TUFTS

MICHAEL HORWITZ SCOTT FRANK

SEAN MACK PETER DUNN

DAVID GELLNER MICHAEL LOWES

LANCE SASSER MAGGIE WOLK

MEET THE ENTIRE TEAM HERE.