1 Gerbes Super Markets & American Freight 2900 Paris Road Columbia, MO 65202 2 GERBES SURPER MARKETS & AMERICAN FREIGHT MARKETED BY: TODD LEWIS MATSON KANE ELAN SIEDER Lic. # 703013 Lic. # 695584 Lic. # 678407 512.957.0597 | DIRECT 512.861.1889 | DIRECT 512.649.5185 | DIRECT [email protected] [email protected] [email protected] MAX FREEDMAN JOHN THOMAS Lic. # 644481 Lic. # 434628 512.766.2711 | DIRECT 214.360.7725 | DIRECT [email protected] [email protected] 305 Camp Craft Rd, Suite 550 Westlake Hills, TX 78746 844.4.SIG.NNN www.SIGnnn.com In Cooperation With Sands Investment Group Missouri, LLC BoR: Kaveh Ebrahimi - Lic. # 2019044754 3 GERBES SURPER MARKETS & AMERICAN FREIGHT TABLE OF CONTENTS 04 06 10 14 16 INVESTMENT OVERVIEW LEASE ABSTRACT PROPERTY OVERVIEW AREA OVERVIEW TENANT OVERVIEW Investment Summary Lease Summaries Location, Aerial City Overview Tenant Profiles Investment Highlights Rent Roll & Expenses & Retail Maps Demographics © 2020 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum’, has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy; however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine its accuracy and completeness. Any and all proJections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these proJections, market assumptions and cash flow analysis are subJect to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction. INVESTMENT 4 SUMMARY We Are Pleased to Offer For Sale the 88,421 SF Grocery Anchored Gerbes Super Markets and American Freight Located at 2900 Paris Road in Columbia, MO. This Opportunity Includes a Two High- Quality Tenants, Gerbes is a Subsidiary of Kroger and American Freight Recently Combined With Sears Outlet Under the Brand American Freight Furniture Mattress Appliance. OFFERING SUMMARY PRICE $6,245,015 CAP 6.50% NOI $405,926 PRICE PER SF $70.63 PROPERTY SUMMARY ADDRESS 2900 Paris Road Columbia, MO 65202 COUNTY Boone BUILDING AREA 88,421 SF LAND AREA 7.59 AC BUILT 1977 ACTUAL PROPERTY IMAGE 5 GERBES SURPER MARKETS & AMERICAN FREIGHT HIGHLIGHTS § Gerbes Super Markets is a Subsidiary of Kroger § Located 1-Mile From Interstate 70 Which Sees Over With Over 4 Years Remaining on the Lease 76,783 VPD § Grocery Store Includes Fuel Station Facilities § Strategically Located on Paris Road, a Strong Retail Corridor For the Area, Which Sees Over 16,907 Vehicles Per Day § American Freight Combined With Sears Outlet to Create American Freight Furniture Mattress Appliance With ~8 Years Remaining on the Lease § Columbia is Missouri's Fourth Most Populous City, and it is Home to Columbia College, Stephens College and the University of Missouri Which Has § American Freight Operates Over 300 Stores in 40 Approximately 30,000 Students States Across the United States and Puerto Rico § The Missouri Tigers Play Football at Faurot Field § Excellent Demographics With the Population Over and Basketball at the Mizzou Arena, Which Are Both 50,708 Residents Making an Average Household Located in Columbia Income of $57,819 Within a 3-Mile Radius § Neighboring Tenants Include: Bass Pro Shops, § Population Jumps to Over 162,937 Residents Within Menards, Home Depot, Orscheln Farm & Home, a 10-Mile Radius From the Property Subway, Burger King, Dollar General and More LEASE SUMMARY6 Dillon Companies, Inc. TENANT (Kroger Subsidiary) PREMISES Premise of Approximately 53,221 SF LEASE COMMENCEMENT January 24, 1996 LEASE EXPIRATION November 24, 2024 LEASE TERM 4+ Years Remaining RENEWAL OPTIONS 3 x 5 Years RENT INCREASES 9.73% on November 25, 2024 LEASE TYPE Double Net (NN) PERMITTED USE Grocery PROPERTY TAXES Tenant’s Responsibility INSURANCE Tenant’s Responsibility COMMON AREA Tenant’s Responsibility ROOF & STRUCTURE Landlord’s Responsibility REPAIRS & MAINTENANCE Tenant’s Responsibility HVAC Tenant’s Responsibility UTILITIES Tenant’s Responsibility RIGHT OF FIRST REFUSAL No ACTUAL PROPERTY IMAGE GUARANTOR Corporate LEASE SUMMARY7 TENANT American Freight, Inc. PREMISES Premise of Approximately 35,200 SF LEASE COMMENCEMENT October 13, 2018 LEASE EXPIRATION October 31, 2028 LEASE TERM ~8 Years Remaining RENEWAL OPTIONS 2 x 5 Years RENT INCREASES Fixed Increases Every 5 Years LEASE TYPE Double Net (NN) PERMITTED USE Retail PROPERTY TAXES Tenant’s Responsibility INSURANCE Tenant’s Responsibility COMMON AREA Tenant’s Responsibility ROOF & STRUCTURE Landlord’s Responsibility REPAIRS & MAINTENANCE Tenant’s Responsibility HVAC Tenant’s Responsibility UTILITIES Tenant’s Responsibility RIGHT OF FIRST REFUSAL No ACTUAL PROPERTY IMAGE GUARANTOR Corporate GERBES SURPER MARKETS & AMERICAN FREIGHT 8 RENT ROLL ACTUAL PROPERTY IMAGES LEASE TERM AMOUNT % OF TENANT NAME SF TOTAL BEGIN END OPTIONS BEGIN PSF ANNUAL Dillon Companies, Inc. 53,221 SF 60.19% 01/24/1996 11/24/2024 3 x 5 Years Current $5.31 $282,732 (Kroger Subsidiary) Option I $5.83 $310,236 Option II $5.83 $310,236 Option III $5.83 $310,236 American Freight, Inc. 35,200 SF 39.81% 10/13/2018 10/31/2028 2 x 5 Years Current $3.50 $123,200 11/01/2023 $3.75 $132,000 Option I $3.79 $133,408 Option II $3.83 $134,186 TOTAL 88,421 SF 100.0% GERBES SURPER MARKETS & AMERICAN FREIGHT 9 INCOME & EXPENSES INCOME Base Rent $405,926 CAM, Tax & Insurance $178,602 EFFECTIVE GROSS INCOME $584,528 OPERATING EXPENSES Taxes ($113,740) Insurance ($12,962) Repairs & Maintenance ($9,800) Utilities ($7,100) Trash Removal & Landscaping ($14,600) Snow Removal & Parking Lot ($18,400) Miscellaneous ($2,000) TOTAL EXPENSES ($178,602) NET OPERATING INCOME $405,926 ACTUAL PROPERTY IMAGE 10 11 Paris Road 12 Jackson Dr Paris Road 13 Paris Road COLUMBIA | BOONE COUNTY | MISSOURI 14 Columbia is a city in the U.S. state of Missouri. It is the county seat of Boone County and home to the University of Missouri. Founded in 1821, it is the principal city of the five- county Columbia metropolitan area. It is Missouri's fourth most-populous and fastest growing city, with an estimated 123,180 residents in 2018. As a Midwestern college town, Columbia 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 Downtown to the east, south, and north, has made the city a center of learning. The city rests upon the forested hills and rolling prairies of Mid-Missouri, near the Missouri River valley, where the Ozark Mountains begin to transform into plains and savanna. Columbia's economy has been historically dominated by education, healthcare, and insurance. Jobs in government are also abundant, both in Columbia and in Jefferson City, Missouri’s capital city, located just a half-hour south. The Columbia Regional Airport and the Missouri River Port of Rocheport connect the region with trade and transportation. With a Gross Metropolitan Product of $9.6 billion in 2018, Columbia's economy makes up 3% of the Gross State Product of Missouri. Insurance corporations headquartered in Columbia include Shelter Insurance and the Columbia Insurance Group. Other organizations include Veterans United Home Loans, MFA Incorporated, the Missouri State High School Activities Association, and MFA Oil. Companies such as Socket, Slackers CDs and Games, Carfax, and MBS Textbook Exchange were all founded in Columbia. The Missouri Theatre Center for the Arts and Jesse Auditorium are Columbia's largest fine arts venues. Ragtag Cinema annually hosts the True/False Film Festival, which brings in over 30,000 people each year for a weekend of art, film, and music. Part of the University of Missouri, the Museum of Art and Archaeology exhibits European paintings and ancient Greek and Roman art. At the center of the university’s main campus, Francis Quadrangle comprises lawns, 6 stone columns, many landmark buildings and Mizzou Botanic Garden flowerbeds. To the east, Stephens Lake Park has trails, picnic shelters, a beach and a boardwalk. COLUMBIA, MO UNIVERSITY OF MISSOURI BOONE COUNTY COURTHOUSE 3 MILES 5 MILES 10 MILES 15 POPULATION 50,708 100,103 162,937 AVERAGE HH $57,819 $61,673 $75,916 INCOME (37,808 VPD) (76,783 VPD) Paris Road (16,907 VPD) 16 GERBES SUPER MARKET TENANT PROFILE Gerbes Super Market is a subsidiary of Kroger. Kroger operates 2,758 grocery retail stores under a variety of banner names. Food stores are the company’s primary business and account for approximately 94% of total company sales. With nearly 2,800 stores in 35 states under two dozen banners and annual sales of more than $121.1 billion, Kroger today ranks as one of the world’s largest retailers. Kroger’s format includes supermarkets, seamless digital shopping options, price- impact warehouse stores, and multi- department stores, which are similar to supercenters, but offer an expanded variety of national brand apparel and general merchandise. Kroger is the only major U.S. supermarket company to operate an economical three- tier distribution system. The company also operates 35 food production or manufacturing facilities producing high quality private- label products that provide value for customers and enhanced margins for Kroger. Kroger operates 1,560 supermarket fuel centers, which are a natural addition to the one- stop- shopping strategy. Kroger’s 2,268 pharmacies, located in the combination food and drug stores, provide high quality services at everyday low prices. From one tiny grocery store in Cincinnati more than a century ago, the company is now the foundation for what today ranks as one of the largest companies in America.