TENANT SPOTLIGHT: 7-ELEVEN

Median CAP Rate 5.00% Median $ Sale $2,705,882 $ / PSF $792.34 Avg Days on Mkt 144 Building SF 2,500-3,500 SF Lot Size Varies (Gas/Non-Gas) Lease Terms 10-20 Years Escalations 10% Every 5 Years Credit Rating S&P AA- Moody’s Baa 1

Sale Price to Asking Price Ratio: 97.48%

Source: CoStar (Based on 179 Transactions YTD)

INDUSTRY OVERVIEW

Convenience stores (C-Stores) deemed essential retailers during the Coronavirus lockdown have thrived. As of 2020 there is an estimated total of 152,720 C-Stores in the U.S. with a -0.3% decrease over year prior. and netted 111 and 60 new stores respectively1. More than half of c-stores are single-store operators hovering at 62.1% and 121,998 locations sell motor fuels. fuel margins averaged 10 cents per gallon higher in Q1 2020 compared to the full-year 20191. Consumers are expected to shop at convenience stores more frequently as more people become employed. Higher income levels will likely enable consumers to pay higher prices for accessibility. As people return to working in offices, they will also likely increase foot traffic in highly populated areas, further boosting industry demand.2 Competitive c-stores continue to report stronger sales and financials in 2020. As example,Casey’s General reported strong performance as it closed its Q2 2021 with a 5.1% increase of total inside sales to more than $1B. Additionally, this past year the industry saw a number of major acquisitions and sell offs including:

• 7-Eleven acquiring 3,900 Speedway stores in a $21B deal*. This pending acquisition will be largest in U.S c-store industry in terms of size and price tag for a purchase not including a refinery in the deal. • Murphy USA recently acquired QuickChek in a $645M all-cash deal adding 157 and New York stores to the company’s footprint. • H&M Wholesale Sells Assets to ChevronTexaco/Shell, Exiting C-Store Industry • Takes Ownership of Stop-N-Go Chain across Southern Wisconsin and Northern Illinois; adding 36 locations to its roster. Kwik Trip operates more than 750 stores in Wisconsin, Minnesota and Iowa.

TOP 5 BRANDS BY MARKET SHARE³ Texas gained 111 stores; California added 60; and Florida added 8, Shell 12.5% 12,880 Stations while the other states rounding out the top lost 10 stores.1 6.2% 6,364 Stations

Chevron 6.1% 6,499 Stations NUMBER OF OF STORES NUMBER Speedway* 5.9% 3,450 Stations

BP 5.3% 6,560 Stations

1 2 3 Source: NACS/CSP, IBIS, OPIS TX CA FL NY GA NC OH MI PA IL

CHICAGO | LOS ANGELES www.QREAdvisors.com TENANT SPOTLIGHT: 7-ELEVEN

7-ELEVEN OPERATIONAL HIGHLIGHTS

The year 2020 has been one of unpredictability and 7-Eleven continued its focus on adaptation through technology and innovation. While implement- ing changes, this C-Store operator has driven its operations to meet consumer demands and expansion of its U.S. network through acquisitions. Amid the pandemic, 7-Eleven has hired more than 50,000 employees and anticipates to add an additional 20,000 by year end. Property sale transactions has remained flat with units closing escrow within 5 months at an avg of 144 days on the market. 7-Eleven continues meet consumer demand with technological and delivery advancements including the introduction of an innovative in-app wallet, introducing its 2nd Evolution Store in Dallas, Texas and order/delivery partnerships with the three platforms including Uber Eats, Grub Hub & Instacart. 7-Eleven also plans to addelectric vehicle charging stations at 250 U.S. convenience stores by 2027 as part of Seven & i Holdings’ commitment to zero emissions by 2025, switching to 100 percent renewable power.

CAP RATES & YEAR OVER YEAR COMPARISON

Cap rates for 7-Eleven decreased by 9 basis points from 2019 to 5.00% 2020 YTD. This slight compression is after a peak experienced in 2018 at 5.33%. Asking sale prices have increased as inventory has dwindled down to 98 sites currently available across the U.S. market.

Year over year, property transactions have remained relatively on par with 2019. Sale prices increased $5,882 with per square foot prices slightly decreasing by $88.42 to $792.34/SF. Sale price to asking price ratios have remained strong with purchases closing at 97.77% of asking prices, up 1.04% the year prior.

7-ELEVEN MARKET INVENTORY

US Store Count: 8,979

# of Units on Market: 98

Median Ask Price: $4,132,500

Median CAP Asking Rate: 5.0%

Median Asking Price/SF: $1,282

Avg Day on Market: 108

Median Sold CAP Rate 5.40% 5.30% 5.33% 5.20% 5.18% 5.09% 5.10% 5.12% 5.00% 5.00% 4.90% 4.80% 2016 2017 2018 2019 2020

CAP Rate Source: CoStar

CHICAGO | LOS ANGELES www.QREAdvisors.com MEET THE QUANTUM TEAM

Chad Firsel Daniel Waszak Zack Hilgendorf President Executive Vice President Executive Vice President 312.269.0220 312.269.0550 312.533.2348 | 310-620-8761 [email protected] [email protected] [email protected]

Sam Yourman Jaryd Meenach Jason Caplan Executive Vice President Executive Vice President Senior Vice President Broker ID: 01968594 Broker ID:01936557 310.620.8760 310.620.8762 312.533.2347 [email protected] [email protected] [email protected]

Jason Lenhoff David Kurtz Seth Gilford Senior Vice President Senior Analyst Associate 312.683.9920 312.533.2349 312.533.2353 [email protected] [email protected] [email protected]

Kaelin Kwiatkowski Claire Nash Kush Patel Director of Marketing Director of Operations Analyst 312.683.9922 312.533.2351 312.533.2353 [email protected] [email protected] [email protected]

CHICAGO | LOS ANGELES www.QREAdvisors.com