OFFERING MEMORANDUM. Representative Photo. O Reilly Auto Parts. 100 W Main Street Fabens, TX. Tenant Name, City, State 1

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1 Representative Photo OFFERING MEMORANDUM O Reilly Auto Parts 100 W Main Street Fabens, TX Tenant Name, City, State 1

2 Representative Photo 2 Matthews Retail Advisors 2 Offering Memorandum

3 contents EXECUTIVE SUMMARY financial OVERVIEW tenant overview area OVERVIEW exclusively listed by conrad sarreal Associate DIR (310) MOB (626) LIC # (CA) chad kurz SVP & National Director Chad.Kurz@matthews.com DIR (214) MOB (562) LIC # (CA) Josh Bishop VP & Director Josh.Bishop@matthews.com DIR (214) MOB (315) LIC # (TX) KYLE MATTHEWS BROKER OF RECORD Lic. # Tenant Name, City, Representative State 3 Photo

4 executive summary investment highlights PROPERTY HIGHLIGHTS Ideal 1031 Candidate - Nearly 19 years remaining on the lease Rare 20-year Corporate Lease - O Reilly Auto Parts is one of the few investment grade credit tenants with 20-year corporate leases Rent Increases - Attractive rent increases of 6% in years 11 and 16 help hedge against inflation Brand New Construction - Property benefits from corporate s most recent prototype LOCATION HIGHLIGHTS Income Tax-free State - Texas is one of the few states with no state income tax Blue Collar Town - Demographics support O Reilly Auto Parts do-it-yourself segment Pit-Stop Destination - Interstate 10 runs through Fabens connecting El Paso to San Antonio TENANT HIGHLIGHTS Most Stable Outlook O Reilly Automotive Stores, Inc. (NYSE:ORLY) has the highest investment credit rating of all auto parts retailers (S&P BBB+) Expansion Mode - ±190 new stores are planned for 2017 in addition to current ±4,712 stores in 45 states Billion Dollar Revenue - Reported Revenue for 2016 was ±$8.6 Billion 4 Offering Memorandum

5 Tenant Name, City, Representative State 5Photo

6 Representative Photo financial overview 6 Offering Memorandum

7 O REilly Auto PArts 100 W Main Street Fabens, TX List Price...$1,941,383 CAP Rate - Current % Gross Leasable Area...± 7,225 SF Lot Size...± 0.55 Acres Year Built Annualized Operating Data Monthly Rent Rent PSF Annual Rent Current $8, $14.38 $103,864 Years $9, $15.24 $110,096 Years $9, $16.15 $116,702 Option 1 $10, $17.12 $123,704 Option 2 $10, $18.15 $131,126 Option 3 $11, $19.24 $138,993 Option 4 $12, $20.39 $147,333 Tenant Summary Tenant Trade Name O Reilly Auto Parts Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NN Roof, Structure & Parking Lot Landlord Responsible Original Lease Term 20 Years Rent Commencement Date 9/3/2016 Lease Expiration Date 9/30/2036 Term Remaining on Lease ±19 Years Increases 6.00% in Years 11, 16, and Options Options 4, 5-Year Options O Reilly Auto Parts, Fabens, TX 7

8 Representative Photo tenant overview 8 Offering Memorandum

9 Property Name Ownership Revenue Net Income O Reilly Auto Parts Public ±$1.04B $931.22M No. of Locations ± 4,712 No. of Employees ± 71,943 Headquartered Springfield, MO Website Year Founded 1957 TENANT OVERVIEW The fast-growing company sells automotive after-market parts (both new and re-manufactured), maintenance supplies, professional service equipment, tools, and accessories through some ±4,712 stores across some 45 US states and online. Many O Reilly stores also offer customers a range of services, including oil and battery recycling, battery testing, paint mixing, and tool rental. The family founded and operated company wheels and deals with automotive professionals, as well as do-it-yourself customers. STRATEGY O Reilly is a company dedicated to providing their customers with amazing service. Their customer service culture is their greatest competitive advantage and the driving force behind their marketing strategy. Their constant priority is to identify, hire, and develop exceptional team members, while teaching them the culture values of hard-work, enthusiasm, professionalism, teamwork, respect, and honesty. O Reilly Auto Parts, Fabens, TX 9

10 parcel map the offering Property Name Property Address Site Description Number of Stories Tenant Name 100 W Main St Fabens, TX One Year Built 2017 Gross Leasable Area (GLA) Lot Size Type of Ownership Landscaping Topography Parking Parking Ratio Construction Parking Lot ± 7,225 SF ± 0.55 Acres Fee Simple Professional Generally Level ± 36 Surface Spaces 4.98 : 1,000 SF Metal Concrete Oceanside Blvd ± 31,792 College Blvd ± 40, Offering Memorandum

11 surrounding tenants Tenant Name, City, State 11

12 area overview Fabens, TX Fabens, TX is a town located in El Paso County and is part of the El Paso Metropolitan Statistical Area. The town is just 2 miles north of the U.S./Mexico border and has traditionally been an agricultural community that is abundant in Mexican heritage. The cost of living in Fabens is 25.60% lower than the national average and the average household income in 2017 within a 1-mile radius is $34,940. Being located along Highway 10 the town is a common pit stop for travelers. El Paso County is the sixth-most populous county in Texas. The town is in the Mountain time zone, about 30 miles southeast of El Paso. The town s claim to fame is the film The Getaway, that was shot in the streets of Fabens, TX. demographics POPULATION 3 Mile 5 Mile 7 Mile 2022 Projection 9,297 10,874 41, Estimate 8,870 10,377 38, Census 8,602 10,062 35, Census 8,636 11,441 34,698 Growth % 4.79% 7.12% HOUSEHOLDS 3 Mile 5 Mile 7 Mile 2022 Projection 2,750 3,170 11, Estimate 2,596 2,993 10,516 Growth % 5.91% 8.21% INCOME 3 Mile 5 Mile 7 Mile 2017 Est. Average Household Income $35,971 $36,467 $37, Offering Memorandum

13 El Paso, TX El Paso is situated in the far western corner of the US state of Texas. El Paso stands on the Rio Grande river across the Mexico-United States Border from Ciudad Juarez, the largest city in the Mexican state of Chihuahua. The two cities along with Las Cruces in the neighboring state of New Mexico, form a combined international metropolitan area sometimes referred to as the Paso del Norte region. The region of over 2.7 million people constitutes the largest bilingual and binational work force in the Western Hemisphere. The city is the headquarters of one Fortune 500 and three publicly traded companies, as well as home to the Medical Center of the Americas., the only medical research and care provider complex in West Texas and Southern New Mexico, and the University of Texas at El Paso, the city s primary university. The city hosts the annual Sun Bowl college football post-season game, the second oldest bowl game in the country. El Paso has a strong federal and military presence. William Beaumont Army Medical Center, Biggs Army Airfield, and Fort Bliss call the city home. Fort Bliss is one of the largest military complexes of the United States Army and the largest training area in the United States. Also headquartered in El Paso are the DEA domestic field division 7, El Paso Intelligence Center, Joint Task Force North, U.S. Border Patrol El Paso Sector, and U.S. Border Patrol Special Operations Group (SOG). There is plenty to see and do in the City of El Paso. Experience walking tours of Downtown to get a taste of history that spans 400 years, shopping, outdoor concerts at the Chamizal National Memorial, museums of every kind, the Zoo, and nature hikes through four Texas State Parks. El Paso has been ranked the safest large city in the U.S. for four consecutive years and ranked in the top three since O Reilly Auto Parts, Fabens, TX 13

14 Economy El Paso has a diversified economy focused primarily within international trade, military, government civil service, oil and gas, health care, tourism and service sectors. The El Paso metro area had a GDP of $29 billion in Over the past 15 years the city has become a significant location for American-based call centers. El Paso has added a significant manufacturing sector with items and goods produced that include petroleum, metals, medical devices, plastics, machinery, defense-related goods and automotive parts. The city is the second busiest international crossing point in the U.S behind San Diego. Tourism is another major industry in El Paso, bringing in $1.5 billion-a-year and over 2.3 million visitors annually due to the city s sunny weather, natural beauty, rich cultural history and many outdoor attractions. Education El Paso is home to the University of Texas at El Paso, the largest public university in the region. UTEP was recently ranked as the 7th best university in Washington Monthly s 2013 National University Rankings, just behind Stanford and ahead of Harvard. Also, the university s School of Engineering is the nation s top producer of Hispanic engineers with M.S. and Ph.D. degrees. El Paso is also home to Texas Tech University Health Sciences Center at El Paso, Paul L. Foster School of Medicine, Texas Tech College of Architecture at El Paso, Brightwood College, Park University, Webster University and the University of Phoenix. Also due to its proximity, many El Paso students attend New Mexico State University where the school offers in-state tuition to El Paso County residents. 14 Offering Memorandum

15 Tourism and Cultural Amenities There are many museums to visit, including the El Paso Museum of History, and the El Paso Holocaust Museum and Study Center. El Paso is a host for art and culture as well, there are a number of theaters to visit. There is the Abraham Chavez Theatre that welcomes patrons with a three-story-high glass-windowed entry and unique sombrero-shaped architecture, making it a distinct feature on El Paso s southwestern landscape. The Plaza Theatre is a historic building and stands as one of the city s most well-known landmarks. It shows various Broadway productions, musical concerts, and individual performers. While the art and culture draws some, the rock climbers who descend on El Paso have only one thing in mind: scaling the massive boulders of Hueco Tanks State Park. Those who prefer the ground can wander through the park s interpretive center and see ancient Indian pictographs. O Reilly Auto Parts, Fabens, TX 15

16 Information About Brokerage Services Texas law requires all real estate license holders to give the following informaɵon about brokerage services to prospecɵve buyers, tenants, sellers and landlords TYPES OF REAL ESTATE LICENSE HOLDERS:. A BROKER is responsible for all brokerage acɵviɵes, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material informaɵon about the property or transacɵon received by the broker; Answer the client s quesɵons and present any offer to or counter-offer from the client; and Treat all parɵes to a real estate transacɵon honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a wriʃen lisɵng to sell or property management agreement. An owner's agent must perform the broker s minimum duɵes above and must inform the owner of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a wriʃen representaɵon agreement. A buyer's agent must perform the broker s minimum duɵes above and must inform the buyer of any material informaɵon about the property or transacɵon known by the agent, including informaɵon disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parɵes the broker must first obtain the wriʃen agreement of each party to the transacɵon. The wriʃen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaɵons as an intermediary. A broker who acts as an intermediary: Must treat all parɵes to the transacɵon imparɵally and fairly; May, with the parɵes' wriʃen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucɵons of each party to the transacɵon. Must not, unless specifically authorized in wriɵng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriʃen asking price; ᴑ ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and any confidenɵal informaɵon or any other informaɵon that a party specifically instructs the broker in wriɵng not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacɵon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first.

17 agreement of each party to the transacɵon. The wriʃen agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligaɵons as an intermediary. A broker who acts as an intermediary: Must treat all parɵes to the transacɵon imparɵally and fairly; May, with the parɵes' wriʃen consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instrucɵons of each party to the transacɵon. Must not, unless specifically authorized in wriɵng to do so by the party, disclose: ᴑ that the owner will accept a price less than the wriʃen asking price; ᴑ ᴑ that the buyer/tenant will pay a price greater than the price submiʃed in a wriʃen offer; and any confidenɵal informaɵon or any other informaɵon that a party specifically instructs the broker in wriɵng not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transacɵon without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duɵes and responsibiliɵes to you, and your obligaɵons under the representaɵon agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This noɵce is being provided for informaɵon purposes. It does not create an obligaɵon for you to use the broker s services. Please acknowledge receipt of this noɵce below and retain a copy for your records. Kyle Matthews/Matthews Retail Group Inc kyle.matthews@matthews.com (310) Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Phone Kyle Matthews kyle.matthews@matthews.com (310) Designated Broker of Firm License No. Phone Licensed Supervisor of Sales Agent/ Associate License No. Phone Sales Agent/Associate s Name License No. Phone Regulated by the Texas Real Estate Commission Buyer/Tenant/Seller/Landlord Initials Date InformaƟon available at IABS 1-0

18 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of O Reilly Auto Parts located at 100 W Main Street Fabens, TX It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive 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 Real Estate Investment Services. 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. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services 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 Real Estate Investment Services 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.

19 exclusively listed by conrad sarreal Associate DIR (310) MOB (626) LIC # (CA) chad kurz SVP & National Director Chad.Kurz@matthews.com DIR (214) MOB (562) LIC # (CA) Josh Bishop VP & Director Josh.Bishop@matthews.com DIR (214) MOB (315) LIC # (TX) KYLE MATTHEWS BROKER OF RECORD Lic. # O REilly Auto Parts 100 W Main Street Fabens, TX Tenant Name, City, State 19