NATIONAL NNN. FOR SALE PPG PAINTS Clayton, MO (St. Louis MSA) Zach Wright, Associate Advisor Jeff Johnson, Principal

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1 FOR SALE PPG PAINTS Clayton, MO (St. Louis MSA) I N V E S T M E N T S A L E S G R O U P Zach Wright, Associate Advisor Jeff Johnson, Principal One Broadway #A300 Denver, CO

2 DISCLOSER This confidential Offering Memorandum, has been prepared by Pinnacle Real Estate Advisors, LLC ( Pinnacle REA ) for use by a limited number of qualified parties. This Offering Memorandum has been provided to you at your request based upon your assurances that you are a knowledgeable and sophisticated investor in commercial real estate projects and developments. Pinnacle REA recommends you, as a potential buyer/investor, should perform your own independent examination and inspection of the property described herein as 6717 Clayton Road located in Clayton, MO (the Property ) and of all of the information provided herein related to the Property. By accepting this Offering Memorandum, you acknowledge and agree that you shall rely solely upon your own examination and investigation of the Property and you shall not rely on any statements made in this Offering Memorandum or upon any other materials, statements or information provided by Pinnacle REA or its brokers. Pinnacle REA makes no guarantee, warranty or representation about the completeness or accuracy of the information set forth in this Offering Memorandum. You are responsible to independently verify its accuracy and completeness. Pinnacle REA has prepared the information concerning the Property based upon assumptions relating to the general economy, its knowledge of other similar properties in the market, and on other market assumptions including factors beyond the control of the Pinnacle REA and the Owner of the Property. Pinnacle Real Estate Advisors make no representation or warranty as to either the accuracy or completeness of the information contained herein, and the information set forth in this Offering Memorandum in not intended to be a promise or representation as to the future performance of the Property. Although the information contained herein is believed to be accurate, Pinnacle REA and the Property Owner disclaim any responsibility or liability for any inaccuracies. Further, Pinnacle REA and the Property Owner disclaim any and all liability for any express or implied representations and warranties contained in, or for any omissions from, the Offering Memorandum and for any other written or oral communication transmitted or made available to you. Pinnacle REA shall make available to you, as a qualified prospective investor, additional information concerning the Property and an opportunity to inspect the Property upon written request. This Offering Memorandum and the contents are intended to remain confidential except for such information which is in the public domain or is otherwise available to the public. By accepting this Offering Memorandum, you agree that you will hold and treat Offering Memorandum in the strictest confidence, that you will not photocopy or duplicate it, or distribute it. You agree you will not disclose this Offering Memorandum or its contents to any other person or entity, except to outside advisors retained by you and from whom you have obtained an agreement of confidentiality, without the prior written authorization of Pinnacle REA. You agree that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the Property. If you determine you have no interest in the property, kindly return the Offering Memorandum to Pinnacle REA at your earliest convenience. Zach Wright, Associate Advisor ZWright@PinnacleREA.com Jeff Johnson, Principal JJohnson@PinnacleREA.com Listed in Association with: David Wright Lawyers Realty Co. LLC MO DRE Lic#

3 TABLE of Contents Executive Summary Investment Highlights Investment Overview Aerial Overview Aerial View Location Overview Tenant Overview Exclusively Listed by: Zach Wright, Associate Advisor Jeff Johnson, Principal One Broadway, Suite 300A Denver, CO Pinnacle Real Estate Advisors, LLC. All information contained herein has been obtained from sources we believe to be reliable. However, we accept no responsibility for its accuracy and encourage verification of all information prior to making financial decisions. 3

4 EXECUTIVE Summary The Wright Johnson National Net Lease Group of Pinnacle Real Estate Advisors is pleased to exclusively market for sale a single tenant PPG Paints property located within the affluent St. Louis suburb of Clayton. The tenant has successfully operated at this property for approximately 44 years. The lease features significantly below market rent of $10.93 per square foot with no remaining renewal options. The property is located within a vibrant retail corridor along the area s primary east-west thoroughfare. The PPG Paints net lease expires on September 30, The tenant is PPG Architectural Finishes, Inc. which is a wholly owned subsidiary of PPG Industries. PPG Industries is a publicly traded company (NYSE: PPG) with a market capitalization in excess of $25 billion and is an investment grade rated company (S&P: A-). The property is located within Clayton which is one of St. Louis most affluent suburbs and features a CBD that boasts 7,000,000 square feet of prestigious office space with 1,000,000 square feet of retail space. The PPG Paints property is strategically located just off of the heavily trafficked signalized intersection of Big Bend Road and Clayton Road which experiences traffic counts in excess of 42,000 vehicles per day. Clayton Road and Big Bend Road are primary east-west and northsouth thoroughfares respectively. Further attributing to the strength of the property is its proximity to the Interstate 64 and Interstate 170 interchange which experiences traffic counts of 270,000 vehicles per day. The prestigious Washington University, which has a total enrollment of 15,000 students, is located less than one mile north of the property. The PPG Paints is located within a vibrant retail corridor that features Schnucks, Walgreens, AMC Theater, Office Depot, Einstein s, Qdoba, Sprint and SSM Health St. Mary s Hospital all in the immediate vicinity. The immediate area is affluent with average annual household incomes in excess of $122,000 within a one mile radius. The surrounding area is densely concentrated with commercial and residential buildings providing significant barriers to entry. There are over 132,000 people living within a three mile radius of the property. 4

5 INVESTMENT Highlights Investment Highlights Located in the affluent St. Louis suburb of Clayton Tenant is a wholly-owned subsidiary of PPG Industries which is an investment grade rated company (S&P: A-) Tenant has a long standing and successful operating history at this location (since 1973) Significantly below market rent ($10.93/ft) with no renewal options remaining PPG Industries is ranked 190 on the Fortune 500 list and had sales in 2015 of approximately $15 billion High barriers to entry as the surrounding area is densely concentrated with commercial and residential buildings Located just off of the heavily trafficked signalized intersection of Clayton Road and Big Bend Road (42,000 VPD) Clayton Road is a primary east-west thoroughfare in the St. Louis MSA Strategic location near the Interstate 64 and Interstate 170 interchange (270,000 VPD) Vibrant retail corridor that features Schnucks, Walgreens, AMC Theater, Office Depot, Einstein s, Qdoba, Sprint and SSM Health St. Mary s Hospital all in the immediate vicinity Positioned less than one mile south of Washington University (15,000 students) Affluent area with average annual household incomes within a one mile radius in excess of $122,000 Densely populated area with over 132,000 people living within a three mile radius of the property 5

6 INVESTMENT Overview PAINTS 6717 Clayton Road Clayton, MO Purchase Price: $1,449,000 Net Operating Income: $87,690 ($10.93/ft) Cap Rate: 6.05% Lease Expiration: September 30, 2019 Renewal Options: None Rental Escalations: None Lease Type: NN (LL Responsible for Roof & Structure Replacement) Tenant: Parent Company Credit: Building Size: Land Size: PPG Architectural Finishes, Inc (D/B/A PPG Paint Wholly Owned Subsidiary of PPG Industries Inc.) Investment Grade (S&P: A-) 8,025 SF 10,393 SF Area Demographics: 1 Mile 3 Mile 5 Mile Total Population 19, , ,174 Total Households 7,982 61, ,893 Median Household Income $72,911 $54,025 $47,188 Average Household Income $122,945 $84,992 $74,874 6

7 AERIAL Overview DOWNTOWN CLAYTON 6717 Clayton Road Clayton, MO WASHINGTON UNIVERSITY in ST LOUIS HEADQUARTERS 127,000 VPD INTERSTATE 170 S BIG BEND BOULEVARD CLAYTON ROAD FOREST PARK ST. LOUIS GALLERIA 164,000 VPD INTERSTATE 64 S BIG BEND BOULEVARD CLAYTON ROAD 7

8 AERIAL Overview DOWNTOWN ST. LOUIS 6717 Clayton Road Clayton, MO CLAYTON ROAD 8

9 CONCORDIAN LANE AERIAL View PPG PAINTS 6717 Clayton Road Clayton, MO SITE CLAYTON ROAD 9

10 LOCATION Overview PPG PAINTS 6717 Clayton Road Clayton, MO Clayton Road Clayton, MO 10

11 LOCATION Overview Clayton is recognized throughout the metropolitan area for an outstanding quality of life which has become its trademark. Clayton combines a bustling downtown with quiet, secure residential neighborhoods. It is a chic suburban community with urban flair. Just west of the City of St. Louis, Clayton is the hub of metropolitan St. Louis and the seat of St. Louis County. Clayton s central location and convenient access to several interstates and major arteries place it within minutes of just about anywhere in the region. While 81% of Clayton s land is dedicated to residential or park use, the City s Central Business District combines 7,000,000 square feet of prestigious office space with the vitality of 1,000,000 square feet of retail space. Clayton s bustling downtown is the region s premier business district and home to Forbes and Fortune 500 headquarters and branch offices. Clayton maintains one of the highest commercial occupancy rates in the region. Enriching the City s quality of life is its award-winning public school system. The City s public school district is one of the nation s best, with 95% of its high school graduates going on to college. Clayton is also home to several stellar private institutions, including Washington University, Fontbonne University and Concordia Seminary. St. Louis MSA is the area surrounding the independent city of St. Louis and includes party of Missouri and Illinois. The MSA is the 20th largest in the United States with a total population in excess of 2.8 million people. The region is home to nine Fortune 500 companies (Express Scripts, Emerson Electric, Monsanto, Reinsurance Group of America, Centene, Peabody Energy, Ameren, Graybar Electric, and Edward Jones) and many other large corporations (such as Anheuser-Busch, Energizer, Panera, Enterprise and Purina). St. Louis is home to two national research universities, Washington University and Saint Louis University. St. Louis is also home to two major league sports teams, the St. Louis Cardinals and St. Louis Blues. St. Louis is home to many parks including Forest Park which occupies 1,400 acres of land making it approximately twice as large as Central Park in New York City. St. Louis is served by four major interstates (I-44, I-55, I-64 & I-70) and is strategically located along the Mississippi River. St. Louis features two passenger airports, Lambert St. Louis International Airport and MidAmerica St. Louis Airport. Lambert Airport is the largest and busiest airport in Missouri with over 255 daily departures and over 13 million annual passengers. MidAmerica St. Louis Airport is the secondary passenger airport serving the metropolitan area and is located 17 miles east of the city downtown core. 11

12 TENANT Overview PPG Industries Inc. is an American Fortune 500 company that is a global supplier of paints, coatings, optical products, specialty materials, and fiber glass. The company was founded in 1883 and is headquartered in Pittsburgh, Pennsylvania. The company operates in three segments: Performance Coatings, Industrial Coatings, and Glass. The Performance Coatings segment provides coatings products for automotive and commercial transport/fleet repair and refurbishing; light industrial and specialty coatings for signs; coatings, sealants, and transparencies for commercial, military, regional jet and general aviation aircraft, and transparent armor for specialty applications; and chemical management services. The Industrial Coatings segment provides adhesives and sealants for the automotive industry; metal pretreatments and related chemicals for industrial and automotive applications; precipitated silicas for tire, battery separator, and other markets; substrates used in radio frequency identification tags and labels, e-passports, drivers licenses, and identification cards; organic light emitting diode materials for use in displays and lighting; optical lens materials and photochromic dyes for optical lenses and color-change products. The Glass segment produces flat and fiber glass for use in commercial and residential construction, wind energy, energy infrastructure, transportation, and electronics industries. PPG Industries employs over 47,000 people globally and approximately 19,000 people in North America. PPG is ranked 190 on the Fortune 500 and had sales in 2015 of approximately $15 billion. PPG Industries is a publicly traded company (NYSE: PPG) with a market capitalization in excess of $25 billion. PPG Industries Inc. is an investment graded rated company with a Standard and Poor s rating of A-. PPG Architectural Finishes, Inc. is the tenant and is a wholly owned subsidiary of PPG Industries Inc. PPG Architectural Finishes, Inc is the entity that is the tenant on all PPG Paint leases. Website: Credit Rating: Investment Grade (S&P A-) Stock Symbol: NYSE: PPG Market Capitalization: $25 Billion 2015 Sales: $14.8 Billion Headquarters: Pittsburgh, PA 12

13 I N V E S T M E N T S A L E S G R O U P One Broadway, Suite 300A Denver, CO Zach Wright, Associate Advisor Jeff Johnson, Principal