TRACTOR SUPPLY CO. Freddy’s Frozen Custard

[Pages:10]REPRESENTATICE

Offering Memorandum

TRACTOR SUPPLY CO.

685F0 rWHeITdMOdREyLA'sKEFROrADozen Custard

WHLITaMkeOwRoEodLA, CKEO(ANN ARBOR), MI 49189

AERIAL PHOTO

US HWY 23 67,100 CPD

DOWNTOWN

ANN ARBOR

TRACTOR SUPPLY CO.

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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Z0070384

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TRACTOR SUPPLY CO.

Starbucks

US HWY 23 67,100 CPD

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

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performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Z0070384

EXECUTIVE SUMMARY

TRACTOR SUPPLY CO.

6850 Whitmore Lake Road Whitmore Lake (Ann Arbor), MI 49189

FINANCIAL SUMMARY Price Down Payment Total Net Rentable Area Price Per SF Cap Rate Net Cash Flow After Debt Service Year Built Lot Size

LEASE SUMMARY Lease Type Tenant Roof & Structure Rent Commencement Date Lease Expiration Date Lease Term Remaining Rental Increases Renewal Options

TRACTOR SUPPLY CO.

$3,734,000 28% $1,041,563

22,670 SF $165 PSF

9.22% $62,511

2007 5.3 Acres

Double-Net (NN) Lease Tractor Supply Co.

Landlord Responsible May 1, 2008 May 31, 2028 10 Years

10% Increase in Year 16 and in Options 4, 5 Year Options

ANNUALIZED OPERATING DATA LEASE YEARS

Current - 4/30/2023 5/1/2023 - 5/31/2028

ANNUAL RENT $344,304 $378,734

OPTIONS Option 1 Option 2 Option 3 Option 4

ANNUAL RENT $416,608 $458,269 $504,095 $554,505

BASE RENT Net Operating Income

Debt Service Net Cash Flow After Debt Service Year 1 Principle Paydown (10/1/2018) Total Return

LOAN SUMMARY Original Loan Amount Amortization Loan Origination Date Loan Maturity Date Interest Rate Approximate Loan Balance (as of 10/1/2018) Annual Debt Service

CAP RATE 9.22% 10.14%

CAP RATE 11.16% 12.27% 13.50% 14.85%

$344,304 $344,304 $281,793 6.00% $62,511 $95,816 15.20% $158,328

$3,322,500 25 Years 7/1/2009 8/1/2034 7.00%

$2,692,437 $281,793

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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Z0070384

TAEENRAINATL OP HVEORTVOIEW

TRACTOR SUPPLY CO.

Starbucks

Tractor Supply Company (NASDAQ: TSCO) is in its 80th year of operation and, since being founded in 1938, has grown to become the largest rural lifestyle retail store chain in the United States. With more than 28,000 team members, over 1,700 stores in 49 states and an ecommerce website, Tractor Supply is passionate about serving its unique niche, as a one-stop shop for recreational farmers, ranchers and all those who enjoy living the rural lifestyle.

Tractor Supply offers an extensive mix of products necessary to care for home, land, pets and animals with a focus on product localization, exclusive brands and legendary customer service that addresses the needs of the Out Here lifestyle. The Company leverages its physical store assets with digital capabilities to offer customers the convenience of purchasing products they need anytime, anywhere and any way they choose at the every day prices they deserve.

As of June 30, 2018, the Company operated 1,725 Tractor Supply stores. Tractor Supply Company also owns and operates Petsense, a small-box pet specialty supply retailer focused on meeting the needs of pet owners, primarily in small and mid-size communities, and offering a variety of pet products and services.



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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

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performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Z0070384

AP RE ROIPAELRPTHYODTEOSCR IP TION

INVESTMENT HIGHLIGHTS

? Ten Years Remaining on Corporate Lease with Tractor Supply Co. ? Ann Arbor MSA ? 245,861 Residents in Growing Trade Area ? Excellent Visibility ? Adjacent to US Hwy 23 (67,100+ Cars per Day) ? Average Household Income Exceeds $122K in 5-Mile Radius ? 8 Miles North of Ann Arbor and 45 Miles West of Detroit ? 331,140+ Daytime Employees in Trade Area ? Surrounded by Farms ? One Mile from Whitmore Lake High School

DEMOGRAPHICS

Population 2022 Projection 2017 Estimate Growth 2017 - 2022

Households 2022 Projections 2017 Estimate Growth 2017 - 2022

Income 2017 Est. Average Household Income 2017 Est. Median Household Income 2017 Est. Per Capita Income

3-Miles 6,388 6,239 2.39%

5-Miles 26,000 24,645 5.50%

10-Miles 254,986 245,861

3.71%

3-Miles 2,573 2,461 4.55%

5-Miles 10,300 9,625 7.02%

10-Miles 102,896 98,380

4.59%

3-Miles $98,453 $72,037 $38,909

5-Miles $122,837 $86,610 $48,069

10-Miles $103,249 $73,172 $42,008

TRACTOR SUPPLY CO.

LOCATION OVERVIEW

The community of Whitmore Lake is situated within Michigan's Detroit-WarrenAnn Arbor combined statistical area ? the state's largest CSA with over 5.32 million residents.

Whitmore Lake is situated in Washtenaw County, a productive agricultural region and an attractive commercial development zone. The county is home to over 1,200 farms, totalling over 170,150 acres in farm land. Washtenaw County is ranked in the top 10 in Michigan for agricultural categories such as organic farming, direct to consumer sales, sheep, goat, horse, and pony operations, and aquaculture.

Only 8 miles north of Ann Arbor, Whitmore Lake benefits from its close proximity to this bustling, thriving city. Located in southeast Michigan's Lower Peninsula, Ann Arbor lies at the center of a greater collection of communities in Washtenaw County. With so many thriving communities nearby, Ann Arbor has become a cultural melting pot and urban oasis. It is an exciting university town, culinary hotspot, and a tech hub with a walkable downtown that includes world-class arts and culture.

Ann Arbor is home to the University of Michigan, which is the dominant institution of higher learning in the city. This shapes the economy significantly as it employs a majority of the residents for its staff and medical center. The university greatly benefits Ann Arbor and the surrounding area as it positions the city in Michigan's emerging start-up scene. The University of Michigan spins off an increasing number of advances in the life sciences and other fields into entrepreneurial start-ups. According to the Detroit Free Press, Ann Arbor is quickly becoming Michigan's own Silicon Valley.

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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Z0070384

AERIAL PHOTO

TRACTOR SUPPLY CO.

Starbucks

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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

7

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Z0070384

LAOECRAI ALLMPAHPOTO

TRACTOR SUPPLY CO.

MAP

Williams-Sonoma

7.7 MILES

Downtown

Ann Arbor, MI

8.5 MILES

University of

Michigan

33.7 MILES

Detroit Metropolitan

Wayne County Airport

45 MILES

Downtown

Detroit, MI

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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. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future

performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. ? 2013 Marcus & Millichap ACT ID Z0070384

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