View Property Video OFFERING MEMORANDUM Tesla Service Plus Location Raleigh, NC This property is listed in conjunction with North Carolina-licensed real estate broker David Edmonds. www.preservewestcapital.com TABLE OF CONTENTS PROPERTY HIGHLIGHTS 1 AERIALS 8 PROPERTY OVERVIEW 2 ABOUT THE AREA 11 TENANT INFORMATION 3 DEMOGRAPHICS 15 SITE PLAN 7 Disclaimer MGM Capital Corp dba Preserve West Capital (“Broker”) has been retained on an exclusive basis to market the property Putnam Daily described herein (“Property”). Broker has been authorized by the Seller of the Property (“Seller”) to prepare and distribute Partner the enclosed information (“Material”) for the purpose of soliciting offers to purchase from interested parties. More detailed financial, title and tenant lease information may be made available upon request following the mutual execution of a letter of 415.445.5107 intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and [email protected] make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, CA RE License #01750064 you will be asked to provide financial references. The eventual purchaser will be chosen based upon an assessment of price, terms, ability to close the transaction and such other matters as the Seller deems appropriate. Vahe Nokhoudian The Material is intended solely for the purpose of soliciting expressions of interest from qualified investors for the acquisition of the Property. The Material is not to be copied and/or used for any other purpose or made available to any other person Associate without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the 415.445.5122 information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller [email protected] and other sources and has not been verified by the Seller or its affiliates. The pro forma is delivered only as an accommodation and neither the Seller, Broker, nor any of their respective affiliates, agents, representatives, employees, parents, subsidiaries, CA RE License #01963342 members, managers, partners, shareholders, directors, or officers, makes any representation or warranty regarding such pro forma. Purchaser must make its own investigation of the Property and any existing or available financing, and must Michael Maffia independently confirm the accuracy of the projections contained in the pro forma. Managing Partner Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, 415.445.5144 to accept any offer. Further, Seller has no obligation to sell the Property unless and until the Seller executes and delivers a signed agreement of purchase and sale on terms acceptable to the Seller, in its sole discretion. By submitting an offer, a [email protected] purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with CA RE License #01340853 respect thereto. Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. www.preservewestcapital.com PROPERTY HIGHLIGHTS • Brand New 11-Year Corporate Net Lease to Tesla, Inc. (NASDAQ: TSLA) • Strategic "Research Triangle" Region Location - Rare 2% Annual Rent Increases - More than Two Million Residents | 7,000+ Companies | 700+ International Companies • Tesla Has Now Been Profitable for Five Straight Quarters - 76+ People Move to Region Daily - Despite Closure of Main Factory for Nearly Half of Q2, Tesla Still Able to Achieve Profitabiltiy • Robust & Affluent Demographics in Surrounding Area • Tesla Reported Net Income of $331 Million in Q3 of 2020 - Total Daytime Population of 1,236,603 within 15 Mile Radius - Total Revenue of $7.61 Billion - Average Household Income of $116,130 within 5 Miles of Site - Market Capitalization of $404 Billion - 65% of Population in 5 Mile Radius has Earned Bachelor’s Degree or Higher – More than 2x National Average • S&P Upgraded Credit Rating to BB in December 2020 • Tesla has Expansion Rights at Tenant's Own Cost and • Consensus Building that Tesla is the EV Leader and will Sustain its Expense at Site, Ensuring Long-Term Tenancy and Reducing Growth and Production Levels Relocation Risk as Operations Expand • Mission-Critical Location for Flagship Tesla Dealership in the • Tenant is Open for Business and Has Certificate of Occupancy Carolinas & Southeast U.S • Excellent Visibility & Access Along Highly Trafficked - “Service Plus” Design is in Line with Tesla’s Long Term Objectives Glenwood Avenue (44,580 AADT) • This Location is One of Only Two Service Centers in the Carolinas - Primary Location Servicing Central and Eastern NC PRESERVE WEST CAPITAL | 1 PROPERTY OVERVIEW Location The property is located at 7101 Glenwood Avenue in Raleigh, North Carolina. PRICE Lot Size Approximately 3.46 acres, or 150,718 square feet. $13,544,000 5.65% CAP Rate Improvements Redevelopment completed in 2020 of an approximately 38,745 square foot building for Tesla. Net Annual Income Parking Years Annual Rent Rent PSF Return There are 184 parking spaces available on site. Year 1 $765,214 $19.75 5.65% Year 2 $780,712 $20.15 5.76% Financing Year 3 $796,210 $20.55 5.88% Year 4 $812,095 $20.96 6.00% This property will be delivered free and clear of permanent financing. Year 5 $828,368 $21.38 6.12% Year 6 $845,028 $21.81 6.24% Lease Year 7 $862,076 $22.25 6.37% Leased to Tesla, Inc. for 11 years from an estimated commencement date of Year 8 $879,512 $22.70 6.49% January 2, 2021 through January 31, 2032 at an initial annual rent of $765,214. Year 9 $896,947 $23.15 6.62% There are three (3) five-year options to renew the lease. Rent is to increase by Year 10 $914,769 $23.61 6.75% 2.00% annually throughout the initial term and option periods. The lease is net with Year 11 $932,980 $24.08 6.89% tenant responsible for taxes, insurance, and maintenance, excluding roof, structural Year 12 (Option 1) $951,577 $24.56 7.03% elements, and capital repairs or replacements to the HVAC system. Year 13 (Option 1) $970,562 $25.05 7.17% In the event tenant’s maintenance obligations would require tenant to incur a Year 14 (Option 1) $989,935 $25.55 7.31% capital expense exceeding $25,000, landlord will perform such work and tenant will Year 15 (Option 1) $1,009,695 $26.06 7.45% reimburse for the cost of the item amortized over its useful life for the remainder of Year 16 (Option 1) $1,029,842 $26.58 7.60% the term. Year 17 (Option 2) $1,050,377 $27.11 7.76% Year 18 (Option 2) $1,071,299 $27.65 7.91% Year 19 (Option 2) $1,092,609 $28.20 8.07% Right of First Refusal Year 20 (Option 2) $1,114,306 $28.76 8.23% Year 21 (Option 2) $1,136,778 $29.34 8.39% Tenant shall have the right of first refusal to purchase the property on the same Year 22 (Option 3) $1,159,638 $29.93 8.56% terms and conditions as any bona fide third party offer received by the landlord Year 23 (Option 3) $1,182,885 $30.53 8.73% by providing written notice to the landlord within fifteen (15) business days of Year 24 (Option 3) $1,206,519 $31.14 8.91% receiving written notice of such an offer. Year 25 (Option 3) $1,230,541 $31.76 9.09% Year 26 (Option 3) $1,255,338 $32.40 9.27% PRESERVE WEST CAPITAL | 2 ABOUT THE TENANT Tesla, Inc. (NASDAQ: TSLA), formerly Tesla Motors, Inc., is an American electric vehicle and clean energy company based in Palo Alto, California. The company specializes in electric vehicle manufacturing, battery energy storage from home to grid scale, and solar panel and solar roof tile manufacturing. Its main vehicle manufacturing facility is at Tesla Factory in Fremont, California, with other major facilities including Giga Nevada, Giga New York, and Giga Shanghai. Tesla gained popularity with its first vehicle, the Tesla Roadster, which was the first fully electric sports car. Since then, the company’s main products include the Model S, Model 3, Model X, and Model Y cars, and the Powerwall, Powerpack, and Additionally, on July 1, 2020, Tesla reached a market capitalization of $206 Megapack batteries. The company’s latest vehicle is the Cybertruck, an all-electric billion, surpassing Toyota to become the world’s most valuable automaker by pickup truck style vehicle. In addition, the company has announced plans to begin market capitalization. limited-scale production of their new Tesla Semi design in 2021. The company was able to overcome challenges brought forth by the COVID After 11 years in the market, Tesla ranked as the world’s best-selling plug-in and pandemic and achieved profitability in its most recent quarter, even with its battery electric passenger car manufacturer in 2019, both as a brand and by main production factory being closed for nearly half the quarter. automotive group, with a market share of 17% of the plug-in segment and 23% of 2020 Third Quarter Financials the battery electric segment. In March 2020, the company surpassed the 1 million mark of electric cars produced, becoming the first auto manufacturer to achieve In the third quarter of 2020, Tesla reported revenue of $7.61 billion (47% such a milestone. QoQ increase), net income of $331 million (218% QoQ increase), and total stockholder equity of $16.03 billion.