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CIRCLE K, AKRON, OH NNN | Single Tenant | 8.3 Years Remaining

Strong Corporate Guarantee

1842 Newton Street Akron, OH 44305

Open 24 hrs - Convenience Only

New Listings Posted Daily at FranklinSt.com INVESTMENT HIGHLIGHTS

• Corporate Credit Rated Tenant priced under a Million

• Largest Company-Owned Operator in the US • Established Hard Corner in metro Akron suburb • 24 hrs Convenience Store Only between Two Local Bars • 1 more 5 year renewal remaining with 10% Increase • Location operating for 39 years since 1980

INVESTMENT SUMMARY

Franklin Street is pleased to present this Corporate investment property located on a hard corner in Akron, OH. This Convenience Store Only & 24hr Operation Store is well located on a hard corner in the dense residential neighborhood of Goodyear Heights which is in the north east quadrant of town and conveniently positioned immediately between two local bars on the left and the right of the property. It has been an established fixture in the community operating for over 39 years since opening in 1980.

Circle K based in Tempe, AZ is owned and operated by Alimentation Couche-Tard Inc. (Couche-Tard). Couche-Tard based in Laval, outside of is the largest independent convenience store operator in terms of number of company-operated stores in the . It is also one of the largest company-owned convenience store operators in the world with more than 16,000 stores across Canada, the United States, Europe, , Japan, , and . Couche-Tard has a current market cap of over $42.2 billion, revenue of $58.9 billion, gross profit of $8.1 billion and is Standard & Poor’s rated BBB & Moody’s rated Baa2, (Investment Grade) and is Traded on the Toronto Stock Exchange under (TSX:ATD.A) & (TSX:ATD.B)

The lease remaining is a 8.3 year NNN lease with at 10% rent increase upon the 7th and last 5 year renewal option that begins July 1st, 2027through June 30th, 2032. Priced at only $650,000, this could be a great below million-dollar corporate asset with a higher return and potential for future upside!

CIRCLE K, AKRON, OH | AKRON, OH 44305 | OFFERING MEMORANDUM 2 OFFERING HIGHLIGHTS

1842 Newton Street, Akron, OH 44305

PRICE: $650,000 CAP RATE: 6.15%

NET OPERATING INCOME: $39,999.96 LAND AREA: 0.25 ACRES / 10,993 SF BUILDING SIZE: 2,540 SF YEAR BUILT: 1980 PARCEL NUMBERS: 6821616 & 6821617 GUARANTOR: CIRCLE K / COUCHE-TARD LEASE TYPE: NNN LANDLORD RESPONSIBILITIES: NONE OWNERSHIP: FEE SIMPLE OCCUPANCY: 100.0% TENANCY: SINGLE TERM REMAINING: 8.3 YEARS RENT INCREASES: IN OPTIONS 6,527 AADT 210,332+ RENT COMMENCEMENT: 6/26/1981 Travel daily along Newton St. The area has 210,332+ residents within 5 miles RENT EXPIRATION: 6/30/2027 of the property

CIRCLE K, AKRON, OH | AKRON, OH 44305 | OFFERING MEMORANDUM 3 LEASE ABSTRACT

Circle K Stores, Inc. and Couche-Tard acquired Mac’s Convenience Stores, LLC a LLC Mac’s Convenience Stores, LLC, a Delaware LLC successor in interest to Consolidated Foods Corporation “The Milk Company Division”, the signatory on the lease was acquired by Sara Lee Corp, sold to Mart in 1985 and then acquired by Couche-Tard in 1999 who rebranded all their locations to Circle K in 1995.

Circle K Stores, Inc (“Circle K”), is a convenience store and gasoline service station operator based in Tempe, . For 63 years, customers have come to recognize the convenience and quality associated with the Circle K brand. What began in 1951 with the purchase of three Kay’s Food Stores in El Paso, Texas, has become one of the nation’s largest chains of company-operated convenience stores. Circle K is known for fast and friendly service all over the world. Circle K is owned and operated by Alimentation Couche-Tard Inc. (Couche-Tard). Couche-Tard is one of the largest company-owned convenience store operators in the world with more than 16,000 stores across Canada, the United States, Europe, Mexico, Japan, China, and Indonesia. Lease Type NNN Circle K is brand owned and operated by Alimentation Couche-Tard Inc. (Couche-Tard). Couche-Tard based in Laval, Canada outside of Montreal is the largest independent convenience store operator in terms of number of company-operated stores in the United States. It is also one of the largest company-owned convenience store operators Demised Premises in the world with more than 16,000 stores across Canada, the United States, Europe, Mexico, Japan, China, and Indonesia. Couche-Tard has a current market cap of over 2,540 SF $42.2 billion, revenue of $58.9 billion, gross profit of $8.1 billion and is Standard & Poor’s rated BBB & Moody’s rated Baa2, (Investment Grade) and is Traded on the Toronto Stock Exchange under (TSX:ATD.A) & (TSX:ATD.B) Lease Commencement 6/26/1981 Kenneth (Ken) and Carl McGowen incorporated Mac’s Milk Limited in Ontario on April 4, 1962. On July 5, 1963, Silverwood Limited acquired 40% of the shares Term Remaining of Mac’s Milk Limited, and increased its holding to 80% on March 29, 1968, and 100% on January 12, 1972. In 1971, the company purchased 18 convenience stores operating under the “Little Z Convenience Stores” banner from Zehrs Markets. In 1974, it bought thirteen Mini-Mart convenience stores in Vancouver from a subsidiary of 8.3 Years George Weston Limited and seven Starlite Variety Stores operating in Windsor, Ontario. The company was renamed “Mac’s Convenience Stores Limited” on May 7, 1975. Options In 1976, Silverwood Dairies Limited purchased shares of Royal Oak Dairy, including operations of convenience stores under the Bantam and Astro names. In 1994, the One renewal remaining, 5-Year Option company sold most of the Mac’s stores in to Alimentation Couche-Tard Ltd. Mac’s stores in Quebec were renamed “Dépan-Escompte Couche-Tard”. Silcorp, the parent company of Mac’s, acquired 163 Southern Ontario stores, and assets of rival Becker’s in November 1996. On April 14th, 1999, Alimentation Couche-Tard acquired Rent Increases Silcorp including their Mac’s and Becker’s chains and Mac’s dropped its longtime cat logo “MacTavish” and replaced it with Couche-Tard’s owl logo. On September 23rd, 10% on 7/1/2027 2015, Alimentation Couche-Tard announced that as a part of a global re-branding, all Mac’s stores would be converted to Couche-Tard’s Circle K banner.

LEASE TERM LEASE YEARS LEASE DATES RENT SQFT MONTHLY RENT ANNUAL RENT RENT INCREASE Original Lease Term 1 - 15 6/26/81-6/30/96 $7.07 $1,484.00 $17,808.00 First Renewal Term 16 - 20 7/1/96-6/30/01 $7.77 $1,632.00 $19,584.00 10.0% TENANT: CIRCLE K / COUCHE-TARD Second Renewal Term 21 - 23 7/1/01-6/30/04 $8.12 $1,706.00 $20,472.00 4.5% STORE NUMBER: 5418 Third Renewal Term 24 - 28 7/1/04-6/30/09 $8.48 $1,780.00 $21,360.00 4.3% Fourth Renewal Term 29 - 33 7/1/09-6/30/19 $9.19 $1,929.00 $23,148.00 8.4% GUARANTEE: CIRCLE K / COURCHE-TARD Fifth Renewal Term 34 - 38 7/1/19-6/30/23 $15.87 $3,333.33 $39,999.96 72.8% # OF LOCATIONS: 16,000+ STORES Sixth Renewal Term 39 - 43 7/1/23-6/30/27 $17.06 $3,583.33 $42,999.96 7.5% REVENUE: $58.9B + IN REVENUE Seventh Renewal Term 44 - 48 7/1/27-6/30/32 $18.77 $3,941.66 $47,299.92 10.0% DISCLAIMER WEBSITE: WWW.CIRCLEK.COM The statements and figures herein are secured from sources we believe authoritative. References to square footage or age are approximate. This summary is for information only and does not constitute all or any part of an offer or contract. Buyer must verify all information and bears all risk for any inaccuracies. Seller does not warrant any inaccuracies and pricing is subject to change.

CIRCLE K, AKRON, OH | AKRON, OH 44305 | OFFERING MEMORANDUM 4 ADDITIONAL PHOTOS

CIRCLE K, AKRON, OH | AKRON, OH 44305 | OFFERING MEMORANDUM 5 REGIONAL & LOCAL MAP

CIRCLE K, AKRON, OH | AKRON, OH 44305 | OFFERING MEMORANDUM 6 AERIAL VIEW - SURROUNDED BY DENSE NEIGHBORHOOD

CIRCLE K, AKRON, OH | AKRON, OH 44305 | OFFERING MEMORANDUM 7 AERIAL VIEW

CIRCLE K, AKRON, OH | AKRON, OH 44305 | OFFERING MEMORANDUM 8 LOCATION OVERVIEW

AKRON, OH

Akron, founded in 1825 is the county seat of Summit County, Ohio. Once known as the Rubber Capital of the World because of its tire production and headquarters of Goodyear, Akron is now known as a world-renowned center of polymer development and research.

As of 2018, Akron had a population of 198,750 with an average household income of $51,799. The demographic ethnic composition of Akron is 2.7% Hispanic, 59.1% White, 32.4% African American, 0.3% American Indian and Alaska Native.

Located just less than 40 miles south of , Akron is home to the Summa Health System which employs nearly 6,000 employees and Goodyear which employs around 3,000 employees. Akron features serval sports teams including the Akron Rubber Ducks and many other attractions for its residents including the Akron Museum of Art and Akron Zoo. Akron is home of the National Inventor's Hall of Fame and Inventure Place and continues to develop its diverse set of businesses.

CIRCLE K, AKRON, OH | AKRON, OH 44305 | OFFERING MEMORANDUM 9 DEMOGRAPHICS & SURROUNDING LANDMARKS

Demographics 1 mile 3 mile 5 mile 2018 Population 12,693 81,575 193,952 2018-2023 Annual Growth Rate -0.05% 0.08% 0.06% 2018 Average Household $51,552 $50,101 $52,307 Income Highest % Ethnic Groups 1 mile 3 mile 5 mile 2018 White Alone 79.20% 72.20% 70.30% 2018 Black Alone 1.2% 19.9% 21.7% 2018 Asian Alone 3.1% 3.3% 5 1 2018 Hispanic Origin 1.9% 2.2% 2.6% 2 3 5 2 # Major Employers Employees 1 1 Summa Health System 5,956 2 Cleveland Clinic-Akron General 3,840 3 Akron Children’s 3,719 4 4 Goodyear 3,000 4 5 Summit County 2,874

# Traffic Generators 1 Dense Residential 2 Goodyear Heights Metro Park 3 Akron Fulton International Airport 3 4 I-76 5 Reservoir Park

EXCLUSIVELY LISTED BY: JAMES REA STEPHEN TIMMES GREG MATUS JOSEPH M. MUSCA SENIOR DIRECTOR SENIOR ASSOCIATE SENIOR VICE PRESIDENT MUSCA PROPERTIES, LLC Visit us as FranklinSt.com 407.288.7222 407.718.2606 954.671.1821 216.642.9500 x100 [email protected] [email protected] [email protected] [email protected] (Broker of Record)

CIRCLE K, AKRON, OH | AKRON, OH 44305 | OFFERING MEMORANDUM 10 CAPABILITIES FLYER Net Lease Services - Franklin Street

COMBINED TEAM EXPERIENCE OF 20+ YEARS IN NET-LEASE TYPE PROPERTIES A

E

BUYER & SELLER REPRESENTATION OVER A BILLION SALE LEASEBACK ANALYSIS LEASE NEGOTIATION DOLLARS OF NET SECOND OPINION SERVICE LEASE DEALS DONE 1031 EXCHANGES COAST TO COAST SITE INSPECTIONS VALUE OPTIONS FranklinSt.com

MEET THE TEAM

Two Decades of Real Estate and Capital Markets Experience. We firmly believe both are equally important to your wealth creation and preservation! With real estate strength and capital weakness you can find the best investments but never successfully assemble the equity and or debt capital to invest. With capital strength and real estate weakness you can have what is needed to invest but make bad decisions that diminish your capital or even worse make it disappear. It is critical that you partner with those who have a handle on both key components that build and keep sound investments. Showing value for our clients is what we do best.

On the real estate side, we focus on single and multi-tenant net lease investment properties to include retail, industrial and medical office totaling over half a billion JAMES BRONSON REA in sales in 39 of the 50 states nation-wide. We have had the pleasure of representing numerous private retail, family office, REITs and institutional investors aiding them in a full spectrum of income, growth, and or value oriented strategies. Senior Director Retail Investment Sales On the capital market side of real estate, our team is experienced in raising capital for REITs and private placements for one of the largest privately held real estate Cell: 407.288.7222 funds in the nation in lodging, leisure, multi-family, senior housing & healthcare, and other non-core investment asset classes. This understanding of the REIT Office: 407.458.5424 industry makes us uniquely qualified to skillfully assist clients in understanding and negotiating through the impact broader markets have on the properties they [email protected] plan to buy, sell, or re-lease.

We have a concentration in restaurant investment sales spanning nationwide franchisor and or franchisee sites with the following concepts: McDonald’s, Chick- fil-A, Panera Bread, Burger King, , Wendy’s, Chipotle, Starbucks, Jack in the Box, Whataburger, KFC, , Hardee’s, Sonic, Arby’s, Bojangles’, MOD Pizza, Jersey Mike’s, Jimmy John’s, Marco’s Pizza, Domino’s, Hooters, Church’s, Krystal, Zaxby’s, Checkers, Rally’s, Backyard Burgers, Captain D’s, Ruth’s Chris, Chili’s, Applebee’s, TGI Fridays, Perkins, Cracker Barrel, Golden Corral, IHOP, Denny’s, Village Inn, Cici’s Pizza, Roadhouse Grill, Home-town Buffet, Old Country Buffet, Jack’s Hamburgers, Tumbleweeds, and the former the Steak & Ale, & Bennigans.

Additionally, our net lease advisory services to our valued clients include successful purchase and sales with branded tenants like: Dollar General, Dollar Tree, STEPHEN MICHAEL RaceTrac, , 7-Eleven, Tractor Supply, KinderCare, K-Mart, AT&T, T-Mobile, U.S Bank, Aspen Dental, DaVita Dialysis, PetsMart, Mattress Firm and FedEx. We have also represented non-branded healthcare net lease for radiology, chiropractic, orthopedic, oncology, and dental care practices. Some of the real estate TIMMES professional services we are honored to provide our clients with are market pricing analysis, sale lease-back analysis, site inspection, lease negotiation, and second Senior Associate opinion services. Retail Investment Sales Cell: 407.718.2606 Know that we take your trust and the honor to serve your individual investment needs very seriously; and our fiduciary responsibility to put your best interest first Office: 407.458.5423 and foremost is our sole focus. That also means we conduct business with the strictest of confidentiality and without self-promotion that may cause attention from others that is not welcomed. Speaking of confidentiality, referrals are welcomed and treated with the utmost of care. We will never forget to honor the client [email protected] who referred us new business by continuing to always put them first. Thank you in advance for allowing us the opportunity to be a part of your wealth creation and preservation!