EXCLUSIVE INVESTMENT SUMMARY 24-HOUR WALMART | ABSOLUTE NNN LEASE | STEUBENVILLE, OHIO OFFERING MEMORANDUM EXCLUSIVE MARKETING ADVISORS MARC MANDEL STEVE SCHRENK Managing Director Director CLICK TO VIEW 484.532.4212 484.532.4213 [email protected] [email protected] PROPERTY VIDEO Investment Advisory Investment Advisory CLAUDIA STEEB MICHAEL PAGNIUCCI Managing Director Director 412.222.2053 484.532.4172 [email protected] [email protected] Investment Advisory / Financing Financing Christine Riniti, OH Lic # BRKP.2007002489, a licensed real estate broker in the state of Ohio along with Holliday Fenoglio Fowler, L.P. (Collectively “HFF”) This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum. Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived. The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF. Investment Summary WALMART ● 100 MALL DRIVE ● STEUBENVILLE, OHIO · · · INVESTMENT SUMMARY Holliday Fenoglio Fowler, L.P. (“HFF”) Net Lease Advisory is pleased to exclusively offer a premier net lease opportunity to acquire a NNN single tenant Walmart (the “Property”) in Steubenville, OH. The Property is situated off Route 43/ Sunset Blvd which boasts over 24,150 VPD and is a main retail corridor in the immediate area. Walmart has been at this location since 2002 and has approximately 8.5 years remaining on their lease. Walmart is traded on the NYSE, Symbol: WMT, and is investment grade with a Moody’s Credit Rating of Aa2. It is the world’s largest public corporation by revenue at $500.3 billion, according to the 2018 Fortune Global 500. They are principally engaged in the operation of mass merchandising and are the world’s number one retailer, with 11,700 stores as of 2017, including discount stores (Walmart), combination discount and grocery stores (Walmart Supercenters and ASDA in the UK), and membership-only warehouse stores (Sam’s Club). Many of the company’s stores are in the US, but Walmart is expanding internationally; it is the number one retailer in Canada and Mexico, and has operations in South America, Asia, and Europe. $10,950,000 ASKING PRICE 7.30% CAP RATE $800,000 NOI 8+ Years REMAINING LEASE TERM 4 WALMART ● STEUBENVILLE, OHIO · · · INVESTMENT HIGHLIGHTS Corporate Walmart with The location benefits from Walmart is an Investment NNN lease structure and a population of over 41,000 Grade Tenant and the largest people within a 5-mile radius rental increases throughout and an average household public corporation by revenue option periods income of $61,000 at $500.3 billion Steubenville, OH is located The Property is situated off on the Ohio/ Pennsylvania Rt 43 / Sunset Blvd a main border and is located thoroughfare in the region approximately 40 miles from which boasts 24,150 VPD the Pittsburgh CBD WALMART ● STEUBENVILLE, OHIO 5 · · · N Public Library of Steubenville J OH N S C O ® TT HI GH W A Y (9,307 VPD) FORT STEUBEN MALL 6 WALMART ● STEUBENVILLE, OHIO TENANT Overview WALMART ● 100 MALL DRIVE ● STEUBENVILLE, OHIO · · · The first Walmart opened in 1962 in Rodger, AK and has since grown into a company with reported 2018 fiscal year revenue of $500.3 billion. Walmart became a publicly traded company in 1970 and has since grown to be the CORPORATE OVERVIEW world’s largest publicly traded company by revenue. Each week nearly 270 million customers and members visit their stores and the company employs over 2.3 million associates worldwide. Headquarters Bentonville, AR Walmart is traded on the NYSE, Symbol: WMT, and is investment grade with a Moody’s Credit Rating of Aa2. It is the world’s largest public corporation by revenue at $500.3 billion, according to the 2018 Fortune Global 500. Ticker WMT (NYSE) They are principally engaged in the operation of mass merchandising and are the world’s number one retailer, with 11,700 stores as of 2017, including discount stores (Walmart), combination discount and grocery stores (Walmart Supercenters and ASDA in the UK), and membership-only warehouse stores (Sam’s Club). Many of the company’s stores are in the US, but Walmart is expanding internationally; it is the number one retailer in Canada and Mexico, and has operations in South America, Asia, and Europe. Walmart US is the largest segment under the Walmart Corporate structure with about 65% of sales and includes store formats operating under multiple Walmart names across the US and Puerto Rico, as well as Walmart.com and Aa2 other e-commerce sites and mobile apps. Walmart sells merchandise in three main categories of grocery, health MOODY’S CREDIT RATING and wellness, and general merchandise, with grocery representing about 55% of sales. www.walmart.com AA S&P CREDIT RATING 4,648+ LOCATIONS IN THE UNITED STATES $283.46 BILLION MARKET CAP AS OF 9/2018 SAMPLE INTERIOR 8 WALMART ● STEUBENVILLE, OHIO · · · SITE PLAN MALL DRIVE SUBJECT PROPERTY AVAILABLE SOLD SEPARATELY NOT OFFERED FORT STEUBEN MALL WALMART ● STEUBENVILLE, OHIO 9 FINANCIALSITE PLAN ANALYSIS WALMART ● 100 MALL DRIVE ● STEUBENVILLE, OHIO · · · LEASE ABSTRACT LEASE DETAIL RENT SCHEDULE 100 Mall Drive Description Dates Annual Rent Rent Increase Address Steubenville, OH Base Term (1-25) 8/14/2002 - 8/13/2027 $800,000 Tenant Wal-Mart Real Estate Business Trust First Option (26-35) 8/14/2027 - 8/13/2037 $840,000 5% Guarantor Wal-Mart Stores, Inc Second Option (36-45) 8/14/2037 - 8/13/2047 $882,000 5% Branded as Walmart Third Option (46-55) 8/14/2047 - 8/13/2057 $926,100 5% Lot Area 16.21 Acres Fourth Option (56-65) 8/14/2057 - 8/13/2067 $972,405 5% Building Size 209,621 SF TENANT RESPONSIBILITY DETAIL Year Built 2002 Lessee is responsible for the full maintenance and repair for Maintenance and Repairs NOI $800,000 the building, including roof and structure Lease Type NNN Ground Lease Lessee pays all utilites directly, including parking lot Utilities illumination Rent Commencement 8/14/2002 Lessee agrees to provide and keep in force GL insurance naming the lessor as an additional insured. As long as lessee’s Lease Expiration 8/13/2027 Insurance net worth shall exceed $100,000,000, it shall have the right to self-insure Remaining Lease Term 8+ Years Taxes* Lessee pays all taxes for the premises Remaining Options Four (4) Ten (10) Year Options Until the expiration or sooner termination of the lease; lessee Improvements has the right to raze the building and reduce it to slab LANDLORD RESPONSIBILITY DETAIL Lessee shall pay their pro rata share of CAM costs. The annual None budget for CAM costs shall be provided to lessee by lessor annually in advance and shall not exceed 110% of the actual CAM CAM costs incurred for the prior calendar year. Lessee also The Walmart parking lot will be resurfaced and restriped in April has the option upon 30 days prior written notice to lessor to elect to perform its own maitenance of the common areas *The premises is currently being subdivided into its own tax parcel.