Point Blank Range & Gun Shop

POINT BLANK RANGE & GUN SHOP MEMPHIS, TENNESSEE OFFERING MEMORANDUM TABLE OF CONTENTS

HIGH AERIAL 3 FINANCIAL OVERVIEW 4 INVESTMENT HIGHLIGHTS & TENANT OVERVIEW 5 LOW AERIALS 6 PROPERTY PHOTOS 8 SITE PLAN 9 DEMOGRAPHICS & PROXIMITY 10

EXCLUSIVELY LISTED BY

PHIL SAMBAZIS BRANDON HANKS MARK RUBLE WAYLAN HEERS JODY MCKIBBEN

Executive Managing Director First Vice President Investments Senior Managing Director Associate Broker of Record SAN DIEGO SAN DIEGO PHOENIX PHOENIX TENNESSEE Tel: (858) 373-3174 Tel: (858) 373-3224 Tel: (602) 687-6766 Tel: (602) 687-6673 License: TN 307629 [email protected] [email protected] [email protected] [email protected] License: CA 01474991 License: CA 01416786 License: AZ SA550593000 License: AZ SA676121000

2 ELMORE PARK MIDDLE SCHOOL 786 STUDENTS

WALGREENS

MCDONALDS 168,850 CPD 40 PLEASANT VIEW SCHOOL INDUSTRIAL 308 STUDENTS OFFICE PARK WALGREENS SUBJECT INDUSTRIAL PROPERTY

MCDONALDS DEXTER ELEMENTARY WALGREENS 979 STUDENTS

WHITTEN ROAD 21,118 CPD 21,118 ROAD WHITTEN DEXTER MIDDLE 401 STUDENTS

10,227 STUDENTS

EVANGELICAL CHRISTIAN SCHOOL 713 STUDENTS

240 138,398 CPD FINANCIAL OVERVIEW

PRICE $3,600,000 CAP RATE 7.30% GROSS LEASABLE AREA 15,168 SF YEAR BUILT 2017 LOT SIZE 2.77 +/- Acres Lease Summary ADDRESS LEASE TYPE Absolute NNN 1740 Century Center Cove ROOF & STRUCTURE Tenant Responsible Memphis, TN 38134 LEASE TERM 17 Years RENT COMMENCEMENT 11/20/2017 RENT EXPIRATION 11/30/2034 INCREASES 5% Every 5 Years, Including Options PRICE RIGHT OF FIRST REFUSAL Yes, Tenant has 10 Business Days to Respond $3,600,000 Rent Roll

TERM ANNUAL RENT MONTHLY RENT

Year 1-5 $262,940 $21,912 CAP RATE Year 6-10 $276,087 $23,007 7.30% Year 11-15 $289,891 $24,157 Year 16-17 $304,386 $25,365 Option 1 (Year 18 - Year 20) $304,386 $25,365 Option 1 (Year 21- Year 22) $319,605 $26,634 Option 2 (Year 23 - Year 25) $319,605 $26,634 NOI Option 2 (Year 26 - Year 27) $335,585 $27,965 $262,940 Option 3 (Year 28 - Year 30) $335,585 $27,965 Option 3 (Year 31 - Year 32) $352,365 $29,364 Option 4 (Year 33 - Year 35) $352,365 $29,364 Option 4 (Year 36 - Year 37) $369,983 $30,832 4 INVESTMENTHIGHLIGHTS

• 14+ Years Remaining with 5% Increases Every 5 Years

• Absolute NNN Lease with No Landlord Responsibilities • Corporate Guaranty, 28 Locations and Rapidly Expanding TENANT OVERVIEW • Firearms Retailers Classified Nationally as an “Essential Business” OWNERSHIP: PRIVATE • Explosive Sales Growth, 2020 Memphis Store Sales Have Already Increased Over 1.5x TENANT: MEMPHIS OPERATIONS, LLC YTD GUARANTOR: TOPCO AMERICA, LLC

• 67% Year-Over-Year Increase in Tennessee Gun Sales Shoot Point Blank was founded as a result of a bad customer • 300% Year-Over-Year Increase in Background Checks for Firearms Nationwide service at two local firearm stores experienced by the founder, Tom Willingham, on February 18, 2012. • New 2017 High-Quality Brick/Block Construction Realizing the potential of the market, the concept took shape • Serving 194,641 Residents in Growing Trade Area to open an indoor range and retail venue that was customer friendly, organized, well stocked and clean. The first Shoot • Highly Visible to 168,850 Cars/Day Along I-40, Direct Access to Downtown Memphis Point Blank opened November 12, 2012 and was a huge success. Since then additional stores have been opened • Across the Interstate from a New Walmart Supercenter in different cities and all have been received with welcome customer arms. Hundreds of thousands of people have visited • Minutes to Wolfchase Galleria, a 1.15 Million SF Regional Mall with 10 Million Visitors Point Blank stores and used the ranges and classrooms. Their Annually competitive advantage is their people and they remain focused on providing the basics: firearms, ammo, range, and classes. • 2 Miles to Southwest Tennessee Community College - Macon Cove Campus with 10,227 Their goal is to continue promoting responsible firearm Students ownership and usage with everyone who walks through their collective doors. • Just East of the University of Memphis with 23,000 Students HEADQUARTERED IN • Close Proximity to Baptist Memorial Hospital-Memphis with 8,000 Employees, One of 28 CINCINNATI, the Highest Volume Hospitals in the State LOCATIONS OHIO

• Strong Daytime Population, 130,774 Employees within 5 Miles

• 15 Miles to Memphis International Airport 5 WOLFCHASE GALLERIA 10 MILLION VISITORS ANNUALLY

SAINT FRANCIS HOSPITAL DEXTER ELEMENTARY 1,500 EMPLOYEES 979 STUDENTS OFFICE DEXTER MIDDLE 401 STUDENTS INDUSTRIAL PARK

BURGER KING WHITTEN ROAD 21,118 CPD

MCDONALDS SUBJECT PROPERTY

168,850 CPD

INDUSTRIAL

6 WALGREENS BAPTIST MEMORIAL HOSPITAL 80-ACRE CAMPUS WITH 8,000 EMPLOYEES, ONE OF THE HIGHEST VOLUME HOSPITALS IN TENNESSEE 23,000 STUDENTS MCDONALDS DOWNTOWN MEMPHIS 13 MILES CHRISTIAN BROTHERS HIGH 1,166 STUDENTS

MCDONALDS METHODIST LE BONHEUR HEALTHCARE

10,227 STUDENTS INDUSTRIAL

CENTURY CENTER COVE

168,850 CPD SUBJECT PROPERTY 40

7 PROPERTY PHOTOS POINT BLANK RANGE & GUN SHOP

MARCUS & MILLICHAP 8 TRASH

168,850 CPD 40 LOADING AREA

9 DEMOGRAPHICS 1740 CENTURY CENTER COVE MEMPHIS, TN 38134 8.2 MILES UNIVERSITY OF MEMPHIS POPULATION 1-MILE 3-MILES 5-MILES 2010 Population 8,617 67,788 189,956 2018 Population 8,889 69,504 194,641 2023 Population 9,341 72,806 202,064 14 HOUSEHOLDS MILES 2010 Households 3,535 25,531 73,476 DOWNTOWN 2018 Households 3,600 25,963 74,614 MEMPHIS 2023 Households 3,795 27,584 78,436

INCOME 2018 Average $56,389 $68,036 $83,431 Household Income 15 MILES EMPLOYEES MEMPHIS 2018 Number of INTERNATIONAL 8,623 46,547 130,774 Employees In Area AIRPORT

MARCUS & MILLICHAP 10 CONFIDENTIALITY & DISCLAIMER

MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS AS FOLLOWS:

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable. However, Marcus & Millichap, its affiliates or subsidiaries, or any agent (“Marcus & Millichap”) have not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased or retail property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Offering Memorandum is not a substitute for a Buyer’s thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Offering Memorandum are for example only and do not represent the current or future performance of this property. The value of a net leased or retail property to a Buyer depends on factors that should be evaluated by a Buyer and their tax, financial and legal advisor(s). Buyer and their tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased or retail property to determine their satisfaction with the suitability of the property for their needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant(s). While a tenant’s 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(s) 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 the tenant(s) 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 lease, including the likelihood of locating a replacement tenant if a 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.

By accepting this Offering Memorandum, you agree to release Marcus & Millichap Real Estate Investment Services, its affiliates or subsidiaries, or any agent and hold them harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property.

NON-ENDORSEMENT NOTICE Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Offering Memorandum. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective purchasers.

special covid-19 notice All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus & Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. 11 OFFERING MEMORAMDUM POINT BLANK RANGE & GUN SHOP MEMPHIS, TENNESSEE

PHIL SAMBAZIS BRANDON HANKS MARK RUBLE WAYLAN HEERS JODY MCKIBBEN Executive Managing Director First Vice President Investments Executive Managing Director Associate Broker of Record

SAN DIEGO SAN DIEGO PHOENIX PHOENIX TENNESSEE Tel: (858) 373-3174 Tel: (858) 373-3224 Tel: (602) 687-6766 Tel: (602) 687-6673 License: TN 307629 [email protected] [email protected] [email protected] [email protected] License: CA 01474991 License: CA 01416786 License: AZ SA550593000 License: AZ SA676121000