Financial Portfolio Financial Lease Tenant Market OverviewFinancial Overview OverviewOverview Summary Overview Overview TWO MISSOURI LOCATIONS PORTFOLIO BIG O’ TIRES Overview Portfolio Overview Portfolio Overview Financial TWOTWO UNITUNIT PORTFOLIOPORTFOLIO Summary Lease Lease Marcus & Millichap is pleased to present the Big O Tires portfolio in Columbia, Missouri. The offering includes two retail locations, the Business Loop location has more than six BUSINESS LOOP years remaining on a triple-net (NNN) lease with zero landlord responsibilities. The Peach Tree location has more than six years remaining on a double-net (NN) lease. There is also office and warehouse spaces (Business Loop) included which have more than seven years remaining on their double-net (NN) lease with landlord responsibilities limited to roof and structure. The leases are guaranteed by MFA Petroleum Company, who operates all Overview Missouri and Arkansas locations within the Big O brand. Tenant These Big O Tires locations boast strong unit level economics, the top two of all the MFA operated units. Business Loop does more than $3.4 million in sales, Peach Tree does more than $2.4 million in sales. This offering also includes the franchisee’s headquarters. The surrounding area also features growing demographics with a 10 percent rise in population from 2010 to 2018. There are more than 116,000 residents within five miles. Additional Retailers in the immediate vicinity include: Bob Evans, Steak ‘n Shake, McDonald’s, Overview KFC, Taco Bell, Cracker Barrel, Pizza Hut, White Castle, Hooters, FedEx, and many more. Market 2 PEACH TREE This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2018 Marcus & Millichap. Activity ID# Z0331402 Investment Overview PORTFOLIO OVERVIEW LIO P ATE O NO O R R LI I TF IC P O E F R A T O C R P O P Overview Financial Overview Financial $3,528,337 6.63% $234,000 business loop offering peach tree offering WAREHOUSE/OFFICE SPACE PRICE $1,536,000 PRICE $703,448 PRICE $1,288,889 Summary Lease Lease CAP RATE 6.25% CAP RATE 7.25% CAP RATE 6.75% NOI $96,000 NOI $51,000 NOI $87,000 PRICE PER SQUARE FOOT $116.56 PRICE PER SQUARE FOOT $57.19 PRICE PER SQUARE FOOT $198.29 RENT PER SQUARE FOOT $7.28 RENT PER SQUARE FOOT $4.15 RENT PER SQUARE FOOT $13.38 Overview YEAR BUILT 1982 YEAR BUILT 1982/2015 YEAR BUILT 1992 Tenant APPROXIMATE LOT SIZE 1.79 Acres APPROXIMATE LOT SIZE 1.79 Acres APPROXIMATE LOT SIZE 0.96 Acres OFFICE/WAREHOUSE GROSS LEASEABLE AREA 13,178 7,500 GROSS LEASEABLE AREA 6,500 GROSS LEASEABLE AREA TYPE OF OWNERSHIP Fee Simple WAREHOUSE 4,800 TYPE OF OWNERSHIP Fee Simple GROSS LEASABLE AREA MFA Petroleum LEASE GUARANTOR Overview MFA Petroleum Market Company TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Company MFA Petroleum Triple-Net (NNN) LEASE GUARANTOR LEASE TYPE Company LEASE TYPE Double-Net (NN) ROOF AND STRUCTURE Tenant Responsible LEASE TYPE Double-Net (NN) ROOF AND STRUCTURE Landlord Responsible This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2018 Marcus & Millichap. Activity ID# Z0331402 Overview LEASE SUMMARY Portfolio Overview Financial Summary Summary Lease Lease BUSINESS LOOP PEACH TREE Lease business loop offering peach tree offering WAREHOUSE/OFFICE SPACE LEASE COMMENCEMENT LEASE COMMENCEMENT LEASE COMMENCEMENT 11/1/2015 12/1/2017 12/1/2017 DATE DATE DATE Overview Tenant LEASE EXPIRATION DATE 5/31/2025 LEASE EXPIRATION DATE 11/31/2025 LEASE EXPIRATION DATE 5/31/2025 LEASE TERM 10 Years LEASE TERM 8 Years LEASE TERM 7.5 Years TERM REMAINING 6+ Years TERM REMAINING 7+ Years TERM REMAINING 6+ Years 5 Percent in INCREASES 5 Percent in Options INCREASES INCREASES 5 Percent in Options Options OPTIONS TO RENEW 1, 5-Year OPTIONS TO RENEW 2, 5-Year OPTIONS TO RENEW 2, 5-Year Overview Market FIRST RIGHT OF REFUSAL Yes FIRST RIGHT OF REFUSAL Yes FIRST RIGHT OF REFUSAL Yes 4 This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2018 Marcus & Millichap. Activity ID# Z0331402 Overview Portfolio TENANT OVERVIEW Formed more than 50 years ago by a collective of independent tire dealers committed to Overview Financial providing value to its customers, Big O Tires is now one of the largest retail tire and auto service providers in the United States. Missouri and Arkansas stores, independently owned and operated by MFA Oil Company, offer friendly, expert services: brakes, shocks, struts, tires, wheels, alignments and oil changes. We’re the team you can trust for your auto needs. Every tire they sell is backed by comprehensive warranty and service policies and Big O brand premium tires come with a three-year free replacement warranty for road hazard damage and BUSINESS LOOP material/workmanship defects. Any Big O brand premium tire that can’t be fixed at one of their Summary Lease Lease stores will be replaced at no cost to the owner. In addition, rotations and flat tire repairs are provided free for the life of the tire. TENANT PROFILE TENANT TRADE NAME Big O Tires Overview Overview Tenant OWNERSHIP Private Tenant TENANT Big O Tires MFA Petroleum Company LEASE GUARANTOR (Wholly Owned Subsidiary of MFA Oil) NUMBER OF LOCATIONS 19 Locations HEADQUARTERED Columbia, MO Overview Market WEB SITE https://www.mfaoil.com/retail/bigotires NET WORTH $62 Million (2017) 5 SALES VOLUME $11 Million (2017) PEACH TREE This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of © 2018 Marcus & Millichap. Activity ID# Z0331402 BUSINESS LOOP OFFERING Overview INVESTMENT Portfolio HIGHLIGHTS • • Big O Tires Store and Office/Warehouse in Columbia, MO | Equidistant from St. Louis and Kansas City • Retail Location Has More Than Two Years Overview Remaining on a Triple-Net (NNN) Lease Financial with Zero Landlord Responsibilities • Office and Warehouse Buildings Have More Than Seven Years Remaining on a Double-Net (NN) Lease with Minimal Landlord Responsibilities Summary • Guaranteed by MFA Petroleum Company Lease | Operates All Missouri and Arkansas Locations • Strong Unit Level Economics | More Than $3.4 Million in Store Sales | Rent to Sales Ratio of 2.8 Percent Overview • Office Portion of Offering Acting as Tenant Headquarters for MFA Petroleum Company • Ideally Located Along Business Loop 70 E, 12,000 Vehicles Per Day (VPD) | Nearby Interstate-70: 54,000 Vehicles Per Overview Day (VPD) Market • Growing Demographics | 10 Percent Growth from 2010 to 2018 | More Than 116,00 Residents Within Five Miles PEACHTREE OFFERING Overview INVESTMENT Portfolio HIGHLIGHTS • Big O Tires in Columbia, Missouri | Less Than Three Miles from the University of Missouri | 32,000 Students Enrolled Overview • More Than Seven Years Remaining Financial on a Double-Net (NN) Lease | Minimal Landlord Responsibilities • Guaranteed by MFA Petroleum Company | Operates All Missouri and Arkansas Locations Summary • Tenant Demonstrates Commitment Lease to Location | Extended the Base Term of Lease by Five Years in December 2017 • Strong Unit Level Economics | More Than $2.4 Million in Store Sales | Rent to Sales Ratio of 3.6 Percent Overview Tenant • Nearby South Providence Road | More Than 18,000 Vehicles Per Day (VPD) • Booming Demographics | Population Within Five Miles Rose Overview 10 Percent From 2010 to 2018 | Market Five Mile Population: 139,918 • Average Household Income Within One Mile is More Than $68,000 Overview Portfolio Overview Financial Summary Lease Lease Overview Tenant 1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 2018 Average HH 2000 Population 7,343 38,430 80,449 2000 Households 3,042 13,442 31,710 $64,762 $74,553 $72,407Overview Income Market 2018 Median HH 2010 Population 8,509 45,400 92,930 2010 Households 3,730 16,337 36,692 $44,409 $48,401 $48,887 Income 2018 Per Capita 2018 Population 9,684 50,933 104,465 2018 Households 4,230 18,622 41,519 $28,288 $27,258 $28,778 Income Overview Portfolio ABOUT COLUMBIA The Missouri city of Columbia, located in Boone County, is home to the University of Missouri as well as Columbia College and Stephens College. The city lies in the heart of the state, Overview almost equidistant from Kansas City (127 miles to the west) and St. Louis (124 miles to the Financial east), both of which are connected to the city by Interstate Highway 70. Columbia is also 30 miles north of Jefferson City. As a Midwestern college town, the city has a reputation for progressive politics, persuasive journalism, and public art. The tripartite establishment of Stephens College (1833), the University of Missouri (1839), and Columbia College (1851), which surround the city’s central business district to the east, south, and north, has made Columbia a center of learning.