OFFERING MEMORANDUM

2727 1ST AVE N, FARGO, ND LISTED BY: 2727 1ST AVE N | FARGO, ND 58102 BLAKE KRABSETH Broker of Record Watne Realtors DIR: (701) 852-1156 3 MOB: (701) 720-1786 EXECUTIVE OVERVIEW [email protected] 408 N Broadway, Minot, ND 58703 4 LIC# 7047 (ND) FINANCIAL OVERVIEW

CORTLAND LIOI 5 Associate TENANT SUMMARY

DIR: (949) 945-6007 MOB: (949) 981-9070 [email protected] 8 License No. 02042182 (CA) AREA OVERVIEW

GARY CHOU EVP & Senior Director

DIR: (310) 919-5827 MOB: (714) 928-8016 [email protected] License No. 01911222 (CA)

2 Goodyear INVESTMENT HIGHLIGHTS

PRIME LOCATION • Major Population/Growth: Fargo, ND has over 185,000 people in a 5-mile radius with population growth of over 7%

• Zero Competition – there is no other national business in Fargo that handles industrial retreading for commercial vehicles

• Strategically located – Fargo is a major transportation hub for the surrounding region. Subject property is located off Interstate 29 and Interstate 94 which are two major routes for commercial trucking throughout the Midwest

• Commercial Trucking Hot Spot – Fargo sits at the Intersection of Interstate 29, Interstate 94, U.S. Highway 81, U.S. Highway 10, and U.S. Highway 52

• Outdoor Storage – Outdoor storage is rare in the area and has been grandfathered into this location making it a ideal spot to send and receive tire shipments

LEASE • Corporate Guarantee – The lease is guaranteed by Wingfoot Commercial Tire Systems, LLC which is owned by Goodyear Tire

• Recent Renewal – Goodyear recently renewed a 5-year lease option giving the tenant over 5 years of true term

• Options/Increase – Tenant has one more 5-year option with increases

TENANT HIGHLIGHTS • Global Brand – Goodyear is one of the world’s largest tire companies

• 100% leased to Wingfoot Commercial Tire Systems, LLC

• Proven Tenant – Goodyear has been operating at this location since 2006 and spent thousands on building out truck pits for commercial vehicles

• Wingfoot Commercial Tire Systems, LLC is a subsidiary Goodyear and concentrates on commercial trucking needs. This includes tire retreads, tire repair, spin balancing, tire rotation, wheel replacement, wheel refurbishing, and alignment for commercial trucking.

Goodyear 3 INVESTMENT SUMMARY $2,487,000 6.50% LIST PRICE CAP RATE

ADDRESS 2727 1st Ave N ANNUALIZED OPERATING DATA

MONTHLY ANNUAL ANNUAL NET CITY Fargo LEASE COMMENCE CAP RATE RENT GROSS RENT RENT STATE ND 1/1/2021 - 12/31/2025 $15,001 $180,013 $161,663 6.50% ZIP 58102 OPTION 1 $17,094 $205,128 $185,128 7.40% YEAR BUILT 1987 1/1/2026 - 12/31/2030 OPTION 2 $18,846 $226,152 $206,152 8.30% BUILD SF ±18,400 SF 1/1/2036 - 12/31/2040

** Cap rate and price point are based on rent starting Jan 1 2021 LOT (SF/AC) ±84,152 SF/ 1.93 AC LEASE SUMMARY

TENANT: Goodyear

GUARANTOR: Corporate

OWNERSHIP: Fee Simple

LEASE TYPE: Modified Gross

LEASE COMMENCEMENT: 12/12/2006

LEASE TERM EXPIRATION: 12/31/2025

YEARS REMAINING: ±5 Years

RENT INCREASES: Increase Every 5 Years

OPTIONS TO RENEW: Two 5-Year Options

4 Goodyear » COMPANY NAME » YEAR FOUNDED » HEADQUARTERS GOODYEAR 1898 AKRON, OH » TYPE » INDUSTRY » WEBSITE SUBSIDIARY MANUFACTURING WWW.GOODYEAR.COM

TENANT OVERVIEW Goodyear is one of the most recognized brand names in the tire industry. Goodyear is one of the world’s leading tire companies with operations in most regions of the world. Goodyear develops, manufactures, markets, and distributes tires for most applications. It also manufactures and markets rubber-related chemicals for various applications.

Goodyear is one of the world’s largest operators of commercial truck service and tire retreading centers. In its ±1,100 tire and auto service center outlets nationwide it offers its products for retail sales and provides automotive repair and other services. Goodyear has marketing operation in almost every country around the world and manufactures its products in 47 facilities in 21 countries.

Goodyear has been recognized by Fortune as the world’s most admired tire maker in 2016, a recognition Goodyear has received for five straight years. Among companies in Fortune’s World’s Most Admired Companies’ Motor Vehicle Parts category Goodyear was also the No. 1 ranked US based company and ranked No. 2 overall. Goodyear finished ahead of its key global tire competitors in overall score and in seven of the nine categories.

$14.7B 60,000+ ±1,100 2019 NET SALES VOLUME EMPLOYEES LOCATIONS

Goodyear 5 SURROUNDING TENANTS

INTERSTATE 21 81 ± 51,300 VPD

6 Goodyear SURROUNDING TENANTS AUTO MALL

Goodyear 7 FARGO, ND - The City of Fargo is located in Cass County, North Dakota, along the Red River of the AREA OVERVIEW North which forms the border between Minnesota and North Dakota. The most populous city in the state, it accounts for nearly 17% of the state population. Fargo, along with its twin city of Moorhead, Minnesota, as well as the adjacent cities of West Fargo, North Dakota and Dilworth, Minnesota, form the core of the Fargo-Moorhead, ND-MN Metropolitan Statistical Area. Fargo is a cultural, retail, health care, educational, and industrial center for eastern North Dakota and northwestern Minnesota. The city is also home to North Dakota State University.

DEMOGRAPHICS

1-MILE 3-MILE 5-MILE

POPULATION 6,983 83,696 184,930 ECONOMY - HOUSEHOLDS 2,988 38,891 79,866 The economy of the Fargo area has historically been dependent on agriculture. That dominance has decreased substantially in recent decades. Today the city of Fargo has

HH INCOME $53,483 $66,503 $84,562 a growing economy based on food processing, manufacturing, technology, retail trade, higher education, and healthcare. In a study published by Forbes, Fargo was ranked the best small city in the nation to start a business or a career.

8 Goodyear NORTH DAKOTA STATE UNIVERSITY

North Dakota State University (NDSU) is distinctive as a student-focused, land-grant, research university. NDSU is ranked 94 among public research universities based on NDSU’s research expenditures reported to the National Science Foundation. In addition, NDSU is listed in the National Science Foundation’s top 100 in several areas, including: agricultural sciences; business management and business; communications; computer sciences; natural resources and conservation science; political science and government; social sciences; sociology, demography, and population studies; and visual and performing arts.

+13,173 2019 NET SALES VOLUME CAMPUS SPORTS NDSU’s sports teams are known as the , or simply The Bison. They are also 93% known as “The Thundering Herd.” The Bison football team was the winningest program in NCAA Football history with thirty-three conference championships and eight national championships (1965, 1968, 1969, ACCEPTANCE RATE 1983, 1985, 1986, 1988, 1990) before moving to Division I Championship Subdivision in 2004. On September 17, 2016, the Bison upset the No. 13 Iowa Hawkeyes, 23–21. It was the Bison’s sixth-straight win against a team in the NCAA Division I Football Bowl Subdivision. The women’s basketball team won five NCAA National Championships during the 1990s – 1991, 1993 through 1996. In January 2006, the NCAA NCAA recognized NDSU’s four consecutive Division II Women’s Basketball Championships (1993–1996) DIVISION 1 as one of the “25 Most Defining Moments in NCAA History.”

Goodyear 9 CONFIDENTIALITY AGREEMENT & DISCLAIMER

This Offering Memorandum contains select information pertaining to the business and affairs ofGoodyear located at 2727 1st Ave N, Fargo, ND 58102 (“Property”). It has been prepared by Matthews Real Estate Investment Services. 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 Real Estate Investment Services. 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. GOODYEAR

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 Real Estate Investment Services 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 Real Estate Investment Services 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.

10 Goodyear OFFERING MEMORANDUM

GOODYEAR

2727 1ST AVE N, FARGO, ND

LISTED BY:

CORTLAND LIOI BLAKE KRABSETH Associate

Broker of Record - Watne Realtors DIR: (949) 945-6007 MOB: (949) 981-9070 DIR: (701) 852-1156 [email protected] MOB: (701) 720-1786 License No. 02042182 (CA) [email protected]

408 N Broadway, Minot, ND 58703 GARY CHOU LIC# 7047 (ND) EVP & Senior Director

DIR: (310) 919-5827 MOB: (714) 928-8016 [email protected] License No. 01911222 (CA)