O'REILLY AUTO PARTS 1464 E Sprague Ave Spokane Valley, WA

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1 Offering Memorandum O'REILLY AUTO PARTS 1464 E Sprague Ave Spokane Valley, WA Representative Photo Joel Deis Marcus & Millichap 601 Union Street, Suite 2710 Seattle, WA Tel: Fax: License: Rich Cannon CANNON COMMERCIAL Direct: Cell: Pike St, Seattle WA 98101

2 NON- ENDORSEMENT AND DISCLAIMER NOTICE Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. Â 2017 Marcus & Millichap. All rights reserved. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. 10 YEAR O'REILLY SPOKANE VALLEY, WA Spokane Valley, WA ACT ID Y

3 NET LEASED DISCLAIMER Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

4 10 YEAR O'REILLY SPOKANE VALLEY, WA OFFERING SUMMARY EXECUTIVE SUMMARY OFFERING SUMMARY Price $1,320,000 Net Operating Income $72,600 Capitalization Rate Current 5.50% Price / SF $ Rent / SF $8.94 Lease Type NNN Year Built / Renovated 1987 / 1996 Lot Size 0.82 acre(s) Building Size 8,125 MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES * Skyline Inland Northwest 1,500 Honeywell 1,273 Outfront Media 1,211 BPOE Central Valley School District 644 Valley Hospital and Med Ctr 600 FINANCING Down Payment All Cash Net Cash Flow 5.50% / $72,600 Cash on Cash Return 5.50% Travis Pattern & Foundry Inc 500 Millard Group Inc 454 Trentwood Rolling Mill 450 Walmart 450 Central Valley School Dst Spokane Valley Fire Department 370 DEMOGRAPHICS 1-Miles 3-Miles 5-Miles 2016 Estimate Pop 11,158 68, , Census Pop 10,692 65, , Estimate HH 4,627 27,239 41, Census HH 4,421 26,060 40,278 Median HH Income $48,764 $50,157 $51,684 Per Capita Income $25,279 $24,780 $25,951 Average HH Income $60,257 $61,852 $64,692 * # of Employees based on 5 mile radius 4 #

5 10 YEAR O'REILLY SPOKANE VALLEY, WA INVESTMENT OVERVIEW OFFERING SUMMARY Marcus and Millichap and Cannon Commercial are pleased to present O'Reilly Auto Parts in Spokane Valley, WA. The building is 8,125 square feet and was constructed in 1987 and renovated in O'Reilly Auto Parts recently extended their lease out to 2027, showing their continued commitment to the site. There are three five-year renewal options. With a population of 94,160 (WA State Office of Financial Management, April 2016), Spokane Valley is the 9th largest city in Washington state. The incorporated area of Spokane Valley encompasses approximately 38.5 square miles of land area, with room for residential, commercial and industrial expansion. Within the incorporated city limits, there are about 438 miles of roadway. It has an extensive retail tax base and is home to several major auto dealerships and the Spokane Valley Mall, which includes over 700,000 square feet of gross leasable floor area. There are more than 10,000 businesses registered to operate in Spokane Valley as of February 2017, with estimated annual retail sales in 2016 of $2.34 billion. Representative Photo INVESTMENT HIGHLIGHTS Recently Extended Lease to 10 Years (May 2017) Low Rent $8.93/SF Hard Signalized Corner Credit Tenant: S&P BBB+ Minimal Landlord Responsibilities Great Visibility and Traffic Counts above 26,000 Major Retail Trade Area # 5

6 PROPERTY 10 YEAR O'REILLY NAME SPOKANE VALLEY, WA PRICING AND TENANT VALUATION SUMMARY MATRIX O'Reilly Automotive, Inc. CREDIT RATING: B1 December 31, 2016 Address General Information 233 South Patterson, Springfield, Missouri, 65802, United States Phone Website Key Personnel President & Chief Executive Officer Greg L. Henslee Executive Vice President & Chief Financial Officer Thomas McFall Store Base Store Count 4,829 TTM Sales $8,593,096,000 Financial Markets Stock Ticker ORLY Current Price $ as of 5/15/17 52 Week High/Low $ / $ O'Reilly Automotive provides American drivers with the tools and parts to support their voracious driving habits. The fast-growing company sells automotive aftermarket parts (both new and remanufactured), maintenance supplies, professional service equipment, tools, and accessories through some 4,570 stores across some 44 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. Fiscal Year Ended December 31, #

7 10 PROPERTY YEAR O'REILLY NAME SPOKANE VALLEY, WA E Sprague Ave, Spokane Valley, WA PRICING REGIONAL AND LOCATION VALUATION TENANT AND LOCAL SUMMARY OVERVIEW MATRIX MAP 7#

8 10 YEAR O'REILLY SPOKANE VALLEY, WA AERIAL PHOTO 8

9 10 YEAR O'REILLY SPOKANE VALLEY, WA PROPERTY SUMMARY OFFERING SUMMARY NOTES 9 #

10 10 PROPERTY YEAR O'REILLY NAME SPOKANE VALLEY, WA PRICING AND LOCATION VALUATION TENANT MARKETING DEMOGRAPHICS SUMMARY OVERVIEW MATRIX TEAM CREATED ON MAY 15, Miles 3 Miles 5 Miles POPULATION 2021 Projection 11,847 72, , Estimate 11,158 68, , Census 10,692 65, , Census 9,331 55,925 86,621 INCOME Average $60,257 $61,852 $64,692 Median $48,764 $50,157 $51,684 Per Capita $25,279 $24,780 $25,951 HOUSEHOLDS 2021 Projection 4,998 28,851 44, Estimate 4,627 27,239 41, Census 4,421 26,060 40, Census 3,620 21,990 34,236 HOUSING 2016 $183,980 $192,992 $192,226 EMPLOYMENT 2016 Daytime Population 2016 Unemployment 2016 Median Time Traveled 12,318 63, , % 7.03% 6.89% RACE & ETHNICITY White 89.72% 90.17% 90.83% Native American 0.13% 0.30% 0.26% African American 1.09% 1.14% 1.05% Asian/Pacific Islander 2.22% 1.94% 1.80% Source: 2015 Experian 10#