O’REILLY AUTO PARTS - Matthews

O'REILLY AUTO PARTS

921 E 162ND ST. SOUTH HOLLAND (CHICAGO MSA), IL

TM

OFFERING MEMORANDIUM

CONFIDENTIALITY & DISCLAIMER STATEMENT

T his Of f er ing M e m o r a n du m co n t a i n s s e l ec t i nform a ti on perta i ni ng to the busi ness and a ffa i rs of O'Reilly Auto Parts located at 921 E 162nd St., South Holland, IL 60473 ( " Pro p e rt y " ). It h a s be e n prepared by Ma tthew s Reta i l Advi sors . T hi s O fferin g M emoran d u m may n ot b e all-in clu s ive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Retail Advisors . The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2 . Yo u w il l h o l d i t a n d t r e a t i t i n t h e stri c test of c onfi denc e; a nd

3. Yo u w il l n o t , di r e ct l y o r i n di r e ct l y, di sc l ose or perm i t anyone el se to di sc l ose thi s O fferi ng M emoran d u m or it s con t en t s in an y fas h ion or manner detrimental to the interest of the Seller.

Owner and Matthews Retail Advisors expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser's sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Retail Advisors or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

2 | O'Reilly Auto Parts

O'REILLY AUTO PARTS

921 E 162ND ST. SOUTH HOLLAND, IL 60473

TABLE OF CONTENTS

04. Executive Summary 06. Property Overview

11. Tenant Overview 13. Area Overview 17. Demographics

Conrad Sarreal Associate

License No. 01982875 O 310.919.5760 M 626.230.1006 conrad.sarreal@

Chad Kurz SVP & National Director

License No. 01911198 O 310.919.5850 M 562.480.2937 chad.kurz@

Randy Olczyk Broker of Record

License No. 471018001

Matthews Retail Advisors | 3

EXECUTIVE SUMMARY

Investment Highlights

Property

? Ideal 1031 exchange candidate with over 10 years remaining ? If transferred, Tax Incremental Financing agreement in place will

subsidize up to 30% of buyer's potential annual interest payments ? Rent increases by 5.8% in year 10 making average cap rate over the initial term ?6.83% ? Relatively newer construction built less than 5 years ago ? Minimal landlord responsibilities - tenant is responsible for taxes, its share of insurance, utilities, and maintenance of parking lot

Location

? Strong demographics with over ?253,000 residents within a 5-mile radius

? South Holland is located in Cook County, which is the 2nd-most populous county in the United States after Los Angeles County, California.

? Excellent access and visibility from E 162nd St with an average traffic count of ?34,000 vehicles per day

? Great retail synergy from other national retailers that includes Aldi, Jewel-Osco, Walgreens, Dunkin Donuts, Subway, Family Dollar, Sherwin-Williams, and more

? Low competition with nearest AutoZone and Advance Auto Parts 2+ miles away

Tenant

? O' Reilly has a strong investment grade S&P credit rating of BBB+

? More than ?4,400 locations in 43 states ? Reported revenue roughly ?8.0 billion and market capitalization

of ?$26.6 billion ? Best distribution capabilities - O'Reilly's average store stocks

come in at 23,000 SKUs vs. 22,000 for core Advance Auto Parts stores and roughly 22,500 for AutoZone, according to the most recent 10-K filings and annual reports.

Executive Summary

O'REILLY AUTO PARTS

921 E 162nd St. South Holland, IL 60473 List Price .......................................................................................... $1,800,0001 CAP Rate - Current.................................................................................. 6.69%1 Gross Leasable Area ........................................................................ ?7,225 SF Lot Size ....................................................................?0.68 Acres (?29,716 SF) Year Built.........................................................................................................2011

1Price includes the net present value of estimated annual $30,000 reimbursements per the South Holland Tax Increment Financing (TIF) Redevelopment Agreement that extends until 2031 and is transferrable to new owner upon approval from the Village of South Holland. The $30,000 amount is based on historical reimbursements that may increase if the estimated assessed value of the property increases.

TIF Reimbursement will cease once the balance of $536,170 in remaining Eligible Project Costs is fully ammortized or the expiration date of the TIF, whichever comes first. The TIF reimbursement will also cover up to 30% of the buyer's potential annual interest payments if financing is utilized.

Annualized Operating Data

Monthly Rent

Current - 11/27/21

$7,900.00

11/28/21 - 11/27/26

$8,358.20

4,5 Year Options

-

Annual Rent $120,344.00* $125,842.00*

-

Rent/SF $13.12 $13.88

-

CAP Rate 6.69% 6.99% -

*NOI accounts for slippage from management fees and average repairs over past 4 years Note: Estimated $30,000 annual reimbursements included in NOI

Tenant Summary

Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Roof and Structure Original Lease Term Lease Commencement Date Rent Commencement Date Lease Expiration Date Term Remaining on Lease Increases Options

Debt Quote

Loan Term Interest Rate Amortization LTV

O'Reilly Auto Parts Fee Simple Corporate NN

Landlord Responsible 15 years 11/26/11 11/28/11 11/25/26

?10.5 years 5.8% in year 10 and in each option

4,5-year

10 Years 4.25%

25 Years 65%

Matthews Retail Advisors | 5

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