Hele (Tesoro) Ground Lease Honolulu, HI

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1 ACTUAL SITE OFFERING MEMORANDUM Hele (Tesoro) Ground Lease Honolulu, HI Listed in conjunction with Hawaii-licensed real estate broker Sofos Realty Corporation (600 Kapiolani Blvd, Suite 200, Honolulu, HI 96813).

2 TABLE OF CONTENTS PROPERTY HIGHLIGHTS 1 PROPERTY INFORMATION 2 TENANT INFORMATION 3 SITE PLAN 4 AERIALS 5 ABOUT THE AREA 8 DEMOGRAPHICS 10 Disclaimer Michael Maffia ( Broker ) has been retained on an exclusive basis to market the property described herein ( Property ). Broker has been authorized by the Seller of the Property ( Seller ) to prepare and distribute 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 intent or contract to purchase between the Seller and a prospective purchaser. You are invited to review this opportunity and make an offer to purchase based upon your analysis. If your offer results in the Seller choosing to open negotiations with you, 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. 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 without the express written consent of Broker or Seller. The Material does not purport to be all-inclusive or to contain all of the information that a prospective buyer may require. The information contained in the Material has been obtained from the Seller 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, 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 independently confirm the accuracy of the projections contained in the pro forma. Seller reserves the right, for any reason, to withdraw the Property from the market. Seller has no obligation, express or implied, 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 purchaser will be deemed to have acknowledged the foregoing and agreed to release Seller and Broker from any liability with respect thereto. Property walk-throughs are to be conducted by appointment only. Contact Broker for additional information. Michael Maffia Partner mike@preservewc.com CA RE License # Putnam Daily Partner - Brokerage Division putnam@preservewc.com CA RE License # Will Crowley Director wcrowley@midpacificadvisors.com HI RE License #RS

3 S King St (60,588 AADT) PROPERTY HIGHLIGHTS KAKA AKO (Commercial & Retail District) HONOLULU HARBOR NEAL S. BLAISDELL CENTER DOWNTOWN HONOLULU Kalakaua Ave Punahou St Recently Extended 10-Year Ground Lease to HIE Retail, LLC -- Wholly Owned Subsidiary of Par Pacific Holdings (NYSE:PARR) -- 10% Scheduled Rental Increase in Year 6 -- Established Fuel Site - 30-Year Occupancy Rare 15% Rent Increases in Options Infill Downtown Honolulu Location Less than 1 Mile from Waikiki Honolulu s Main Tourist District Excellent Visibility and Access Along Highly Trafficked Corridor -- Location Along King Street Arterial Connecting Waikiki and Downtown Honolulu Neighbors Ala Moana Center Largest Open-Air Shopping Center in the World -- Anchor Tenants Include Target, Bloomingdales, Nordstrom, Macy s, Neiman Marcus, Sak s Fifth Avenue Strong Demographics within 5-Mile Radius Average Household Income Exceeds $85, Average Home Value is $676,685 2 Miles from Flagship Campus of University of Hawaii System, University of Hawaii at Manoa PRESERVE WEST CAPITAL 1

4 PROPERTY INFORMATION PRICE $3,333, % Return Location The property is located at 1549 South King Street in Honolulu, Hawaii. Lot Size Approximately 0.11 acres, or 4,872 square feet. Improvements Construction has been completed of a Hele branded gas station (Tesoro) with 10 pumps for HIE Retail, LLC. The improvements are built and owned by the tenant. Upon expiration or termination of the lease, title to all such improvements shall become vested in landlord. The improvements are not for sale. Ground Lease Leased for 30 years from October 30, 1986 through October 31, 2016 to HIE Retail, LLC. Tenant recently extended the lease for an additional 10 years at an initial annual rent of $150,000, with two five-year (5) options to extend. Annual rent increases 10% in year 6 and by 15% at the start of each option period. The lease is net with tenant responsible for all taxes, insurance, and maintenance, including environmental insurance. Net Annual Income Years Annual Rent Return Original Lease $128,173 N/A 1-5 $150, % 6-10 $165, % (Option 1) $189, % (Option 2) $218, % Financing This property will be delivered free and clear of permanent financing. The lease is guaranteed by HIE Retail, LLC. PRESERVE WEST CAPITAL 2

5 ABOUT THE TENANT HIE Retail, LLC is a Hawaii based owner and operator of Hele, Tesoro, and 76-branded gas stations selling fuel and merchandise on the islands of Oahu, Maui, and Hawaii. In 2016, twenty-five Tesoro-branded and twelve 76-branded gas stations were rebranded as Hele stations. Hele means to go in Hawaiian. Par Pacific Holdings operates more than 125 retail gas stations in Hawaii. HIE Retail, LLC is a wholly owned indirect subsidiary of Par Pacific Holdings (NYSE: PARR), formerly Par Petroleum Corporation. Par Pacific Holdings manages and maintains interests in energy and infrastructure businesses. In 2013, Par Pacific Holdings acquired Tesoro s refining, distribution, and retail operations in the State of Hawaii for $539 million. In addition, Par Pacific owns an equity investment in Laramie Energy, LLC, a joint venture to produce natural gas in Garfield, Mesa, and Rio Blanco counties in Colorado, as well as in Piceance Energy, LLC, which owns and operates natural gas reserves located in the Piceance Basin of Colorado. Other major assets include a refinery with the capacity to process up to 94,000 barrels of crude oil per day, with 27 miles of distribution pipeline. Par Pacific also transports, markets, and distributes crude oil from the Western United States and Canada to refining hubs in the Midwest, Gulf Coast, East Coast, and Hawaii. In 2016, Par Pacific Holdings reported total revenue of $1.86 billion and total stockholder equity of $368 million. As of May 2017, the company had a market capitalization of $767 million. PRESERVE WEST CAPITAL 3

6 SITE PLAN SOUTH KING STREET KALAKAUA AVE SIGN PUNAHOU STREET

7 AERIAL WEST VIEW NEAL S. BLAISDELL CENTER DOWNTOWN HONOLULU S King St (60,588 AADT) Kalakaua Ave Punahou St WASHINGTON MIDDLE SCHOOL

8 AERIAL SOUTHEAST VIEW WAIKIKI HAWAII CONVENTION CENTER WASHINGTON MIDDLE SCHOOL Punahou St Kalakaua Ave S King St (60,588 AADT)

9 AERIAL NORTHWEST VIEW DOWNTOWN HONOLULU Kalakaua Ave S King St (60,588 AADT) Punahou St WASHINGTON MIDDLE SCHOOL

10 ABOUT THE AREA General Overview Honolulu (population 402,500) is the capital of the State of Hawaii and the county seat of the City and County of Honolulu on the island of Oahu. The city is a major portal to the United States and a main gateway to Hawaii, creating a hub not only for tourism but also for international business, finance, military defense, and more. Tourism contributes more than $10 billion annually to the local economy in Honolulu. Other key sectors in the city s economy include military defense, manufacturing, and research and development. The Daniel K Inouye International Airport, located less than five miles northwest of Honolulu s central business district, is a primary air transportation hub for the state of Hawaii and one of the busiest airports in the United States, serving nearly 20 million passengers in Honolulu s airport is also a key commercial cargo hub, ranked 14th in North America for metric tonnage of cargo annually. SITE Honolulu is served by several major freeways, including Interstate H-1, the busiest interstate highway in Hawaii, an east-west arterial spanning Honolulu county, interstate H-201, a loop connecting Route 99 in Aiea to Interstate H-1 in Honolulu. Honolulu is home to several colleges and universities, including the University of Hawaii at Manoa, the main campus of the University of Hawaii system, Chaminade University, Hawaii Pacific University, Honolulu Community College, and Kapiolani Community College, with a combined student enrollment of more than 62,000. Due to its strategic Pacific location, Hawaii is home to numerous military facilities and bases, including Hickman Air Force Base and Pearl Harbor, both located just outside the Honolulu census area.

11 ABOUT THE AREA SITE Site Information The subject property is strategically situated in a strong retail location on South King Street (60,588 AADT) in Honolulu s McCully Moiliili neighborhood.. The property benefits from strong visibility and access at a hard corner l along King Street, a connecting arterial between downtown Honolulu and Waikiki. Traffic passing the site flows towards Waikiki and away from downtown. Additionally, the site is less than 1 mile from Honolulu s major freeway, H-1 (183,631 AADT). The site benefits from strong demographics with more than 284,000 residents within a five mile radius. Average household income exceeds $85,000, and the average home value is $676,685. In addition, the property is located less than two miles from the University of Hawaii at Manoa, the flagship campus of the University of Hawaii system, with enrollment exceeding 18,000 students. The property additionally neighbors Washington Middle School, Maryknoll School, Punahoa School, Case Middle School, and President William McKinley High School. The property also neighbors the Kapiolani Medical Center for Women and Children and Shriner s Hospitals for Children. The property is also neighbored by the Ala Moana district, home to the Ala Moana Center, the largest open-air shopping mall in the world with more than 5 anchors and 300 tenants, as well as the largest shopping mall in Hawaii and seventh largest shopping mall in the U.S., with total gross leasable area of more than 2.1 million square feet. Ala Moana is consistently ranked as one of the top ten most successful malls in the U.S.. Anchor tenants include Nordstrom, Macy s, Bloomingdales, Neiman Marcus, Sak s Fifth Avenue, and Target. The Hawaii Convention center, located immediately adjacent to the Ala Moana center, spans more than 1.1 million square feet with more than 330,000 square feet of exhibition and meeting space. Hawaii hosts more than 450,000 meetings, conferences, and incentive visitors a year. Notable meetings held at the conference center include the 2011 Asia-Pacific Economic Cooperation Leaders Meeting (APEC) and the 2010 and 2015 meetings of the International Chemical Congress of Pacific Basin Societies (Pacifichem), among others. In addition, the subject property is located just one mile from Honolulu s primary tourist district of Waikiki, home to a large number of hotels, beaches, and tourist attractions.

12 DEMOGRAPHICS 1549 S King St Honolulu, HI Major Employers in Honolulu 2016 POPULATION 315,804 MEDIAN HOME VALUE $640,435 AVG. HOUSEHOLD INCOME $85,830 Altres Kapoplani Medical Center Queen s Medical Center Population Summary 1 Mile 3 Miles 5 Miles 2010 Total Population 75, , , Total Population 80, , , Total Population 84, , , Annual Rate 0.95% 0.84% 0.80% 2016 Total Daytime Population 106, , ,926 Average Household Income 2016 $69,901 $79,155 $85, $73,704 $84,749 $92,297 Hawaii Health Systems Corp Hawaii State Police Department Tripler Army Medical Center Bank of Hawaii Saint Francis Healthcare System Aloha Air Cargo Hawaiian Electric Co, Inc. Median Home Value 2016 $463,903 $587,833 $640, $526,908 $646,256 $688,606 PRESERVE WEST CAPITAL 10

13 BUILDING CAPITAL WITH CONFIDENCE Michael Maffia Partner CA RE License # Putnam Daily Partner - Brokerage Division putnam@preservewc.com CA RE License # Will Crowley Director wcrowley@midpacificadvisors.com HI RE License #RS-72340