Representative Photo Offering Memorandum SHEETZ GROUND LEASE Follansbee, West Virginia (Steubenville, Ohio MSA) TENANT OVERVIEW Sheetz is a family owned convenience store chain based in Altoona, Pennsylvania. For more than 60 years, the mission at Sheetz has been to meet the needs of customers on the go. Their stores are located in Maryland, North Carolina, Ohio, Pennsylvania, Virginia, and West Virginia. Sheetz started off with their signature “MTO” name, which stands for “Made To Order.” By 1999, Sheetz was selling 10,000 MTO units a day. Sheetz now trains employees to function as baristas for their newest brand of “Sheetz Bros. Coffeez”, which are designed to be higher-grade coffee than typically found in convenience stores. With the introduction of the “Convenience Restaurant” concept, they have expanded their menu. Customers can purchase made-to- order sandwiches and hot dogs, as well as pizza, burritos, breakfast items, salads and chili. French fries, chicken strips, and other fried appetizers are available at all locations. The Espresso Bar, which offers specialty coffees, are also available at all locations. TENANT FINANCIAL OVERVIEW Ownership Private Sales Volume $6.4 Billion (2016) Credit Rating NAIC2 Rank #55 - Forbes Largest Private Companies Number of Locations 540+ Headquarters Altoona, PA OFFERING HIGHLIGHTS > Over 7 Years Remaining on NNN Ground Lease with Sheetz, Inc. > 10% Rental Increase Coming in 2020 Taking Cap Rate to 5.78% | 10% Rent Bumps Every 5 Years > Cheap Ground Rent in Place at $14.40/SF ($72,000 Annually) > Absolute NNN Ground Lease with Zero Landlord Responsibilities . > Excellent Visibility and Access from the Signalized Intersection of Main Street & Veterans Drive with 22,460 Cars Passing by Daily . > Lease Guaranty with Sheetz, Inc. | #56 on Forbes Largest Private Company with Sales of $6.2 Billion . > Large 2.12 Acre Parcel with Drive-Thru Carwash . > Located Directly Across from a McDonald’s and Surrounded by Prominent Retailers Including Riesbeck’s Food Market, Rite Aid, Tractor Supply Company and Family Dollar . TENANT & OFFERING SUMMARY LEASE SUMMARY PRICE Tenant Trade Name Sheetz, Inc. Tenant Corporate Store $1,371,000 Lease Guarantor Corporate Guaranty Lease Type NNN Ground Lease YEAR 1 NOI Roof and Structure Tenant Lease Term 15 Years $72,000 Lease Commencement Date April 19, 2010 Lease Expiration Date March 31, 2025 Remaining Lease Term 7 Years YEAR 1 CAP RATE Renewal Options Four, 5-Year 5.25% Rent Increases 10% in Year 11 & Options PROPERTY SUMMARY RENT SCHEDULE Address 1525 Main Street, Lease Years Annual Rent Monthly Rent CAP Rate Follansbee, WV 26037 Property Type Net Leased Gas Station Current - 3/31/2020 $72,000 $6,000.00 5.25% 4/1/2020 - 3/31/2025 $79,200 $6,600.00 5.78% Gross Leasable Area 5,000 Option 1 (5 Years) $87,120 $7,260.00 6.36% Lot Size 2.12 Acres Option 2 (5 Years) $95,832 $7,986.00 7.00% Parcel Number(s) F14-0002-0005-0000 Option 3 (5 Years) $105,420 $8,785.00 7.69% Parking Spaces 43 +/- Option 4 (5 Years) $115,956 $9,663.00 8.46% Year Built 2010 SHORT RANGE RETAILER AERIAL Representative Photo SHEETZ Marcus & Millichap is pleased to exclusively offer a Sheetz ground leased in Follansbee, WV, part of the Weirton-Steubenville, WV-OH MSA. There are 7.25 years remaining on the initial 15-year triple net ground lease with no landlord responsibilities or expenses. There is a ten percent rental increase in year 11 of the base term and in each of the four, five year option periods. Sheetz has excellent visibility and easy access from the signalized intersection of Main Street & Veterans Drive with combined traffic counts over 22,460 cars per day. Main Street is a main retail corridor with surrounding retailers including McDonald’s, Riesbeck’s Food Market, Rite Aid, Tractor Supply Company, Family Dollar, First National Bank and Burger King. The area boasts great demographics with over 45,000 people within a 5 mile radius. Established in 1952 in Altoona, Pennsylvania, Sheetz, Inc. is one of America’s fastest growing family owned and operated convenience store chains, with more than $6.4 billion in revenue for 2016 and more than 14,500 employees. The company operates over 540 convenience locations throughout Pennsylvania, West Virginia, Maryland, Virginia, Ohio and North Carolina. Sheetz provides an award-winning menu of Made-to- Order subs, sandwiches and salads, which are ordered through unique touch-screen order point terminals. Sheetz currently ranks 56th on the Forbes list of largest private companies and has received awards in both Ohio and Pennsylvania for being named among their Best Places to Work. All Sheetz convenience stores are open 24 hours a day, 365 days a year. INVESTMENT OVERVIEW Actual Site Actual Site REGIONAL MAP SHEETZ West Virginia SHEETZ Ohio LOCAL MAP LONG RANGE RETAILER AERIAL WEIRTON - STEUBENVILLE, WV - OH MSA Steubenville is a city in and the county seat of Jefferson County, Ohio, United States. Located along the Ohio River, it had a population of 18,659 at the 2010 census. The city’s name is derived from Fort Steuben, a 1786 fort that sat within the city’s current limits and was named for German-Prussian military officer Baron Friedrich Wilhelm von Steuben. Steubenville is known as the “City of Murals”, after its more than 25 downtown murals. It is home to Franciscan University of Steubenville and Eastern Gateway Community College. The Franciscan University of Steubenville is a private, four- year university affiliated with the Roman Catholic Church. It was founded in 1946. The second institution is Eastern Gateway Community College. It is a public, two-year college that opened its doors in 1968; its service district includes Columbiana, Mahoning, and Trumbull Counties as well as Jefferson County. Steubenville is a principal city of the Weirton- Steubenville Metropolitan Area, which had a population of 124,454 residents, and by extension part of the Pittsburgh Metropolitan Area. The new Findlay Connector has been built in western Pennsylvania as a toll-access highway between Pittsburgh International Airport at Interstate 376 and U.S. Route 22 in northwestern Washington County. Travel time between the Pittsburgh International Airport and the city of Steubenville is now approximately 25 minutes. Major Area Employers Weirton Steel Corporation Trinity Medical Center Walmart County of Jefferson Kroger Franciscan University Steubenville Air Force Recruiting DEMOGRAPHIC SUMMARY POPULATION 1-Mile 3-Miles 5-Miles HOUSEHOLDS BY INCOME 1-Mile 3-Miles 5-Miles 2019 Projection 2014 Estimate Total Population 2,793 20,215 44,594 $250,000 + 0.4% 0.5% 0.9% 2014 Estimate $150,000 - $200,000 3.0% 1.1% 1.4% Total Population 2,950 20,826 45,471 $125,000 - 149,999 2.4% 1.7% 2.1% 2010 Census $100,000 - 124,999 5.6% 4.1% 5.0% Total Population 3,082 21,455 46,412 $75,000 - $99,999 13.1% 7.6% 8.6% 2000 Census $50,000 - $74,999 18.7% 15.4% 16.1% Total Population 2,813 23,125 49,280 $35,000 - $49,999 14.1% 15.0% 15.7% Daytime Population $25,000 - $34,999 11.4% 12.1% 13.4% 2014 Estimate 967 9,557 23,337 $15,000 - $24,999 15.5% 16.5% 16.0% $0 - $14,999 15.5% 25.8% 20.5% Average Household Income $54,027 $43,012 $49,055 HOUSEHOLDS 1-Mile 3-Miles 5-Miles Median Household Income $40,862 $31,184 $35,112 Per Capita Income $23,473 $18,777 $21,098 2019 Projection Total Households 1,221 8,451 18,750 2014 Estimate Total Households 1,277 8,689 19,031 2010 Census Total Households 1,336 8,987 19,505 2000 Census Total Households 1,193 9,994 20,869 Average Household Size 2014 Estimate 2.30 2.34 2.28 Occupied Units 2019 Estimated Owner Occupied Units 74.01% 63.24% 67.47% 2019 Estimated Renter Occupied Units 25.70% 36.76% 32.53% 2019 Estimated Vacant 11.78% 16.71% 13.77% 2014 Owner Occupied Units 73.30% 62.62% 67.08% 2014 Renter Occupied Units 26.70% 37.38% 32.92% 2014 Vacant 11.31% 16.71% 13.30% SHEETZ Follansbee, West Virginia (Steubenville, Ohio MSA) Presented by: Investment Sales: Dustin Javitch Craig Fuller Erin Patton Scott Wiles Senior Associate Senior Vice President Investments Senior Vice President Investments Senior Vice President Investments Net Leased Properties Group Senior Director, National Retail Group Senior Director, National Retail Group Senior Director, National Retail Group CLEVELAND CLEVELAND COLUMBUS CLEVELAND Tel: (216) 264-2025 Tel: (216) 264-2043 Tel: (614) 360-9035 Tel: (216) 264-2026 Fax: (614) 474-1696 Fax: (614) 474-1696 Fax: (614) 474-1696 Fax: (614) 474-1696 OFFICES NATIONWIDE [email protected] [email protected] [email protected] [email protected] www.marcusmillichap.com License: OH SAL.2012000193 License: OH SAL.2008001551 License: OH SAL.2004010274 License: OH SAL.2005013197.