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TWO MISSOURI LOCATIONSBIG O’ TIRES PORTFOLIO

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BUSINESS LOOP

PEACH TREE

TWO UN ITPORTFOL IO

Marcus & Millichap is pleased to present the Big O Tires portfolio in Columbia, Missouri. The offering includes two retail locations, the Business Loop location has more than six years remaining on a triple-net (NNN) lease with zero landlord responsibilities. The Peach Tree location has more than six years remaining on a double-net (NN) lease. There is also office and warehouse spaces (Business Loop) included which have more than seven years remaining on their double-net (NN) lease with landlord responsibilities limited to roof and structure. The leases are guaranteed by MFA Petroleum Company, who operates all Missouri and Arkansas locations within the Big O brand.

These Big O Tires locations boast strong unit level economics, the top two of all the MFA operated units. Business Loop does more than $3.4 million in sales, Peach Tree does more than $2.4 million in sales. This offering also includes the franchisee’s headquarters. The surrounding area also features growing demographics with a 10 percent rise in population from 2010 to 2018. There are more than 116,000 residents within five miles.

Additional Retailers in the immediate vicinity include: Bob Evans, Steak ‘n Shake, McDonald’s, KFC, Taco Bell, Cracker Barrel, Pizza Hut, White Castle, Hooters, FedEx, and many more.

TWO UN ITPORTFOL IO

2This 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. Marcus & Millichap is a trademark of © 2018 Marcus & Millichap. Activity ID# Z0331402

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PRICE $1,536,000

CAP RATE 6.25%

NOI $96,000

PRICE PER SQUARE FOOT $116.56

RENT PER SQUARE FOOT $7.28

YEAR BUILT 1982

APPROXIMATE LOT SIZE 1.79 Acres

GROSS LEASEABLE AREA 13,178

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR MFA Petroleum Company

LEASE TYPE Triple-Net (NNN)

ROOF AND STRUCTURE Tenant Responsible

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PORTFOL IO OVERV IEW

$3,528,337

PORT

FOLIO PRICE

$234,000

PORT

FOLIO NOI

6.63%CA

P RATE

PRICE $703,448

CAP RATE 7.25%

NOI $51,000

PRICE PER SQUARE FOOT $57.19

RENT PER SQUARE FOOT $4.15

YEAR BUILT 1982/2015

APPROXIMATE LOT SIZE 1.79 Acres

OFFICE/WAREHOUSE GROSS LEASEABLE AREA 7,500

WAREHOUSE GROSS LEASABLE AREA 4,800

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR MFA Petroleum Company

LEASE TYPE Double-Net (NN)

business loop offering

PRICE $1,288,889

CAP RATE 6.75%

NOI $87,000

PRICE PER SQUARE FOOT $198.29

RENT PER SQUARE FOOT $13.38

YEAR BUILT 1992

APPROXIMATE LOT SIZE 0.96 Acres

GROSS LEASEABLE AREA 6,500

TYPE OF OWNERSHIP Fee Simple

LEASE GUARANTOR MFA Petroleum Company

LEASE TYPE Double-Net (NN)

ROOF AND STRUCTURE Landlord Responsible

peach tree offeringWAREHOUSE/OFFICE SPACE

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. Marcus & Millichap is a trademark of © 2018 Marcus & Millichap. Activity ID# Z0331402

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LEASE COMMENCEMENT DATE 11/1/2015

LEASE EXPIRATION DATE 5/31/2025

LEASE TERM 10 Years

TERM REMAINING 6+ Years

INCREASES 5 Percent in Options

OPTIONS TO RENEW 1, 5-Year

FIRST RIGHT OF REFUSAL Yes

LEASE COMMENCEMENT DATE 12/1/2017

LEASE EXPIRATION DATE 11/31/2025

LEASE TERM 8 Years

TERM REMAINING 7+ Years

INCREASES 5 Percent in Options

OPTIONS TO RENEW 2, 5-Year

FIRST RIGHT OF REFUSAL Yes

business loop offering

LEASE COMMENCEMENT DATE 12/1/2017

LEASE EXPIRATION DATE 5/31/2025

LEASE TERM 7.5 Years

TERM REMAINING 6+ Years

INCREASES 5 Percent in Options

OPTIONS TO RENEW 2, 5-Year

FIRST RIGHT OF REFUSAL Yes

peach tree offeringWAREHOUSE/OFFICE SPACE

BUSINESS LOOP PEACH TREE

4This 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. Marcus & Millichap is a trademark of © 2018 Marcus & Millichap. Activity ID# Z0331402

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T E N A N T OV E RV I E WFormed more than 50 years ago by a collective of independent tire dealers committed to providing value to its customers, Big O Tires is now one of the largest retail tire and auto service providers in the United States.

Missouri and Arkansas stores, independently owned and operated by MFA Oil Company, offer friendly, expert services: brakes, shocks, struts, tires, wheels, alignments and oil changes. We’re the team you can trust for your auto needs.

Every tire they sell is backed by comprehensive warranty and service policies and Big O brand premium tires come with a three-year free replacement warranty for road hazard damage and material/workmanship defects. Any Big O brand premium tire that can’t be fixed at one of their stores will be replaced at no cost to the owner. In addition, rotations and flat tire repairs are provided free for the life of the tire.

T E N A N T P R O F I L ETENANT TRADE NAME Big O Tires

OWNERSHIP Private

TENANT Big O Tires

LEASE GUARANTOR MFA Petroleum Company (Wholly Owned Subsidiary of MFA Oil)

NUMBER OF LOCATIONS 19 Locations

HEADQUARTERED Columbia, MO

WEB SITE https://www.mfaoil.com/retail/bigotires

NET WORTH $62 Million (2017)

SALES VOLUME $11 Million (2017)

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BUSINESS LOOP

PEACH TREE5This 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. Marcus & Millichap is a trademark of © 2018 Marcus & Millichap. Activity ID# Z0331402

B US I N ES S LO O P O F F E R I N G

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• • Big O Tires Store and Office/Warehouse

in Columbia, MO | Equidistant from St.

Louis and Kansas City

• Retail Location Has More Than Two Years

Remaining on a Triple-Net (NNN) Lease

with Zero Landlord Responsibilities

• Office and Warehouse Buildings Have

More Than Seven Years Remaining on

a Double-Net (NN) Lease with Minimal

Landlord Responsibilities

• Guaranteed by MFA Petroleum Company

| Operates All Missouri and Arkansas

Locations

• Strong Unit Level Economics | More

Than $3.4 Million in Store Sales | Rent to

Sales Ratio of 2.8 Percent

• Office Portion of Offering Acting as

Headquarters for MFA Petroleum

Company

• Ideally Located Along Business Loop

70 E, 12,000 Vehicles Per Day (VPD) |

Nearby Interstate-70: 54,000 Vehicles Per

Day (VPD)

• Growing Demographics | 10 Percent

Growth from 2010 to 2018 | More Than

116,00 Residents Within Five Miles

INVESTMENT HIGHLIGHTS

PE AC H T R E E O FF E R I N G

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• Big O Tires in Columbia, Missouri

| Less Than Three Miles from the

University of Missouri | 32,000

Students Enrolled

• More Than Seven Years Remaining

on a Double-Net (NN) Lease |

Minimal Landlord Responsibilities

• Guaranteed by MFA Petroleum

Company | Operates All Missouri

and Arkansas Locations

• Tenant Demonstrates Commitment

to Location | Extended the Base

Term of Lease by Five Years in

December 2017

• Strong Unit Level Economics | More

Than $2.4 Million in Store Sales |

Rent to Sales Ratio of 3.6 Percent

• Nearby South Providence Road |

More Than 18,000 Vehicles Per Day

(VPD)

• Booming Demographics |

Population Within Five Miles Rose

10 Percent From 2010 to 2018 |

Five Mile Population: 139,918

• Average Household Income Within

One Mile is More Than $68,000

INVESTMENT HIGHLIGHTS

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1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile 1-Mile 3-Mile 5-Mile

2000 Population 7,343 38,430 80,449 2000 Households 3,042 13,442 31,710 2018 Average HH Income $64,762 $74,553 $72,407

2010 Population 8,509 45,400 92,930 2010 Households 3,730 16,337 36,692 2018 Median HH Income $44,409 $48,401 $48,887

2018 Population 9,684 50,933 104,465 2018 Households 4,230 18,622 41,519 2018 Per Capita Income $28,288 $27,258 $28,778

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A B O U T C O LU M B I AThe Missouri city of Columbia, located in Boone County, is home to the University of Missouri as well as Columbia College and Stephens College. The city lies in the heart of the state, almost equidistant from Kansas City (127 miles to the west) and St. Louis (124 miles to the east), both of which are connected to the city by Interstate Highway 70. Columbia is also 30 miles north of Jefferson City.

As a Midwestern college town, the city 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 central business district to the east, south, and north, has made Columbia a center of learning. At the center of Downtown is 8th Street, also known as the Avenue of the Columns, which connects Francis Quadrangle and Jesse Hall to the Boone County Courthouse and the City Hall. Originally an agricultural town, the cultivation of the mind is Columbia’s chief economic concern today. Never a major center of manufacturing, the city also depends on healthcare, insurance, and technology businesses. Companies such as Shelter Insurance, Carfax, and Slackers CDs and Games, were founded in the city. Cultural institutions include the State Historical Society of Missouri, the Museum of Art and Archaeology, and the annual True/False Film Festival. The Missouri Tigers, the state’s only major college athletic program, play football at Faurot Field and basketball at Mizzou Arena as members of the rigorous Southeastern Conference.

Columbia’s economy is historically dominated by education, healthcare, and the insurance industry. Jobs in government are also common, either in Columbia or a half-hour south in Jefferson City. Commutes into the city are also common. 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.

11This 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. Marcus & Millichap is a trademark of © 2018 Marcus & Millichap. Activity ID# Z0331402

MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS:

The i n f o rma t i on con t a i ned i n t h i s Ma r ke t i ng B rochu re has been ob t a i ned f r om sou rces we be l i e ve t o be r e l i ab l e. Howeve r, Ma rcus & M i l l i c hap has no t and w i l l no t ve r i f y an y o f t h i s i n f o rma t i on , no r has Ma rcus & M i l l i c hap conduc ted any i n ves t i ga t i on r ega rd i ng t hese ma t t e r s . Ma rcus & M i l l i c hap makes no gua ran t ee, wa r r an t y o r r ep resen t a t i on wha t soeve r abou t t he accu racy o r comp le t eness o f an y i n f o rma t i on p ro v i ded .

As t he Buye r o f a ne t l e a sed p rope r t y, i t i s t he Buye r ’s r e spons i b i l i t y t o i ndependen t l y con f i rm t he accu racy and comp le t eness o f a l l ma te r i a l i n f o rma t i on be fo re comp le t i ng any pu r chase. Th i s Ma rke t i ng B rochu re i s no t a subs t i t u t e f o r you r t ho rough due d i l i gence i n ves t i ga t i on o f t h i s i n ves tmen t oppo r t un i t y. Ma rcus & M i l l i c hap e xp ress l y den i e s any ob l i ga t i on t o conduc t a due d i l i gence e xam ina t i on o f t h i s P rope r t y f o r Buye r.

Any p ro j ec t i ons , op i n i ons , a s sump t i ons o r e s t ima tes used i n t h i s Ma r ke t i ng B rochu re a r e f o r e xamp le on l y and do no t r ep resen t t he cu r r en t o r f u t u r e pe r f o rmance o f t h i s p rope r t y. The va l ue o f a ne t l e a sed p rope r t y t o you depends on f ac to r s t ha t shou l d be e va l ua t ed by you and you r t a x , f i n anc i a l and l ega l adv i so r s .

Buye r and Buye r ’s t a x , f i n anc i a l , l ega l , and cons t r uc t i on adv i so r s shou l d conduc t a ca re f u l , i ndependen t i n ves t i ga t i on o f an y ne t l e a sed p rope r t y t o de t e rm ine t o you r sa t i s f ac t i on w i t h t he su i t ab i l i t y o f t he p rope r t y f o r you r needs .

L i ke a l l r ea l e s t a t e i n ves tmen t s , t h i s i n ves tmen t ca r r i e s s i gn i f i c an t r i s k s . Buye r and Buye r ’s l ega l and f i n anc i a l adv i so r s mus t r eques t and ca re f u l l y r e v i ew a l l l ega l and f i n anc i a l documen t s r e l a t ed t o t he p rope r t y and t enan t . Wh i l e t he t enan t ’s pas t pe r f o rmance a t t h i s o r o t he r l oca t i ons i s an impo r t an t cons i de r a t i on , i t i s no t a gua r an t ee o f f u t u r e success . S im i l a r l y, t he l ease r a t e f o r some p rope r t i e s , i n c l ud i ng new l y -cons t r uc t ed f ac i l i t i e s o r new l y - acqu i r ed l oca t i ons , may be se t based on a t enan t ’s p ro j ec t ed sa l e s w i t h l i t t l e o r no r eco rd o f ac t ua l pe r f o rmance, o r compa rab l e r en t s f o r t he a r ea . Re tu r ns a r e no t gua r an t eed ; t he t enan t and any gua r an to r s may f a i l t o pay t he l ease r en t o r p rope r t y t a xes , o r may f a i l t o comp l y w i t h o t he r ma te r i a l t e rms o f t he l ease ; cash f l ow may be i n t e r r up t ed i n pa r t o r i n who l e due t o ma rke t , econom ic, env i r onmen ta l o r o t he r cond i t i ons . Rega rd l e s s o f t enan t h i s t o r y and l ease gua r an t ees , Buye r i s r e spons i b l e f o r conduc t i ng h i s /he r own i n ves t i ga t i on o f a l l ma t t e r s a f f ec t i ng t he i n t r i n s i c v a l ue o f t he p rope r t y and t he va l ue o f an y l ong- t e rm l ease, i n c l ud i ng t he l i k e l i hood o f l oca t i ng a r ep l acemen t t enan t i f t he cu r r en t t enan t shou l d de f au l t o r abandon t he p rope r t y, and t he l ease t e rms t ha t Buye r may be ab l e t o nego t i a t e w i t h a po ten t i a l r ep l acemen t t enan t cons i de r i ng t he l oca t i on o f t he p rope r t y, and Buye r ’s l ega l ab i l i t y t o make a l t e r na t e use o f t he p rope r t y.

By accep t i ng t h i s Ma r ke t i ng B rochu re you ag ree t o r e l ease Ma rcus & M i l l i c hap Rea l E s t a t e I n ves tmen t Se r v i ces and ho l d i t ha rm less f r om any k i nd o f c l a im , cos t , e xpense, o r l i ab i l i t y a r i s i ng ou t o f you r i n ves t i ga t i on and /o r pu r chase o f t h i s ne t l e a sed p rope r t y.

BROKER OF RECORD: BRADLEY BARHAM | ST LOUIS, MO | LICENSE: 2005038930

TWO MISSOURI LOCATIONSBIG O’ TIRES PORTFOLIO