OFFERING MEMORANDUM. FERGUSON 3267 E 33rd Pl Yuma, AZ 85365

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1 OFFERING MEMORANDUM FERGUSON 3267 E 33rd Pl Yuma, AZ I N D U S T R I A L

2 OFFERING MEMORANDUM FERGUSON 3267 E 33rd Pl Yuma, AZ I N D U S T R I A L EXCLUSIVE LISTING AGENTS: Rahul Chhajed Net Lease Industrial DIRECT MOBILE rahul.chhajed@matthews.com License # Michael Moreno Senior Associate DIRECT MOBILE michael.moreno@matthews.com License # Aron Cline SVP & Senior Director DIRECT MOBILE aron.cline@matthews.com License # Don Mortensen Broker of Record License # LC

3 CONTENT EXECUTIVE SUMMARY 4 PROPERTY OVERVIEW 7 TENANT OVERVIEW 10 AREA OVERVIEW 12 fedexground Cookeville, TN 2

4 EXECUTIVE SUMMARY 4 MATTHEWS REAL ESTATE INVESTMENT SERVICES

5 EXECUTIVE SUMMARY INVESTMENT HIGHLIGHTS LEASE Stable Corporate Guaranty - Ferguson is almost a $14B company Healthy Rental Increases - Lease has CPI increase ranging from 9% - 15% per exercised option (see lease) NNN Lease - Tenant fully reimburses for insurance, taxes, and CAM Attractive Return - Deal is offered at a 7.00% cap rate LOCATION/PROPERTY Long Operating History - Ferguson has been at this location for over 10 years Close Proximity to Airport - Ferguson is 1 mile away from Yuma International Airport Industrial Synergy - Ferguson is located in an industrial park, Ramster Industrial Park, surrounded by various industrial tenants such as Alsco, Sun Rental & Sales, BGD Custom Creations, etc. Excellent Condition - Building and property are in excellent condition Great Freeway Access - Building is centrally located and sits in an ideal location for an industrial supplier Industrial Components - Building features 20 ft eave height, 1-grade level dock, 30,000 SF rear yard area, and approximately 7,500 SF of air conditioned showroom/office space TENANT Ferguson Enterprises is the largest and top-rated wholesale supplier of commercial and residential plumbing supplies Ferguson is a $13.8B company with over 1,400 locations and over 23,000 associates nationwide Ferguson was acquired by Wolseley PLC in 1982, it has approximately 47,000 employees and operates in 25 countries Ferguson, Yuma AZ 5

6 Ferguson 3267 E 33rd Pl Yuma, AZ List Price... $1,230,000 CAP Rate - Current % Gross Leasable Area... ± 12,500 SF Lot Size... ± 1.40 Acres (61,001 SF) Year Built Annualized Operating Data MONTHLY ANNUAL RENT CAP RATE CURRENT - 7/31/2020 $7, $86, % OPTION 4: 8/1/2020-7/31/2023 $7, $93, % OPTION 5: 8/1/2023-7/31/2023 $8, $102, % Tenant Summary Tenant Trade Name Ferguson Enterprises, Inc. Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Landlord Responsibilities Original Lease Term 5 Years Rent Commencement Date 8/1/2011 Lease Expiration Date 7/31/2020 Term Remaining on Lease ± 2.75 Years Options Three, 3-Year Options Increases CPI (9% - 15% Every 3 (Three) Year Option) 6 MATTHEWS REAL ESTATE INVESTMENT SERVICES

7 PROPERTY OVERVIEW Ferguson, Yuma AZ 7

8 PROPERTY OVERVIEW THE OFFERING ADDRESS 3267 E 33rd Pl Yuma, AZ SITE DESCRIPTION GLA ± 12,500 SF LOT SIZE ± 1.40 Acres APN PARKING SPACES 8 FRAMING METAL ROOF PITCHED PARKING SURFACE ASPHALT 8 MATTHEWS REAL ESTATE INVESTMENT SERVICES

9 SURROUNDING TENANTS Ferguson, Yuma AZ 9

10 TENANT OVERVIEW 10 MATTHEWS REAL ESTATE INVESTMENT SERVICES

11 Sales $13.8 B Employees ± 2,300 Locations ± 1,400 Distribution Centers 10 TENANT OVERVIEW Ferguson raises the bar for industry standards as the top-rated wholesale supplier of commercial and residential plumbing supplies. However, our expertise goes beyond plumbing. We are a diverse distributor that spans multiple businesses including HVAC/R, waterworks and industrial. In the past 63 years, we ve grown from a local distributor to a $13.8 billion dollar company with more than 1,400 locations and over 23,000 associates nationwide. We pride ourselves on delivering world-class service and our customers know that Nobody expects more from us than we do is more than just a tagline to Ferguson associates. It s a cultural belief that is demonstrated every day through exceptional customer service, product selection, and industry knowledge. Market Position Largest distributor of commercial and residential plumbing supplies, and pipe, valves, and fittings (PVF) in the US Second largest distributor of waterworks products Third largest distributor of industrial and HVAC/R products Ferguson, Yuma AZ 11

12 AREA OVERVIEW 12 MATTHEWS REAL ESTATE INVESTMENT SERVICES

13 YUMA, AZ Yuma is a city that can be found in the southwest corner of Arizona, bordering California and Mexico. Yuma is a great place for outdoor recreation including kayaking, swimming, golfing, or attend the annual Balloon glow festival that features the viewing of hot air balloons. Historic Downtown Yuma is a great place to be after dark with an exciting nightlife that attracts residents and visitors. Yuma, or the Gateway of the Great Southwest, is a beautiful city with an attractive climate that is the reason for the population nearly doubling in the winter months. Yuma is easy to access as it is home to the Yuma International Airport and the Yuma County Area Transit system. Being strategically located in the center of several states and 2 countries creates a unique situation that allows Yuma to be an international and southwest hub for markets that need to be served in as quick as a day. Many growing companies have found skilled workforce and convenient location in the Greater Yuma Area. POPULATION 3 Mile 5 Mile 7 Mile 2022 Projection 23,971 70, , Estimate 23,865 69, , Census 23,966 69, ,079 HOUSEHOLDS 3 Mile 5 Mile 7 Mile 2022 Projection 8,328 23,942 39, Estimate 8,248 23,598 39, Census 8,457 24,011 39, Census 8,658 22,582 35,857 INCOME 3 Mile 5 Mile 7 Mile 2017 Est. Average Household Income $55,132 $56,912 $57,128 Ferguson, Yuma AZ 13

14 ECONOMY Agriculture is the leading industry in Yuma, producing $2.5 billion a year into the county economy. The area s success in agriculture is largely due to the rich soil and skilled workforce. Another dominating industry in Yuma is the United States. Fort Yuma has been standing on Indian Hill for over 150 years. Yuma County is home to the Yuma Proving Ground and the Marine Corps Air Station Yuma. The U.S. Army John F. Kennedy Special Warfare Center and School is also in Yuma. The Facility trains troops for air operations requiring free falls from airplanes, the facility opened in 2014 and is the largest in the world. Tourism is the third largest contributor to the Yuma economy. In 2014 The Yuma Visitor s Bureau saw $664.7 million in Direct travel spending. That income led to the creation of 5,920 jobs and generated $15.6 million in earnings. Mexican visitors spend an estimated $2.2 billion on food, clothing, entertainments, and other activities in Yuma County every year. 14 MATTHEWS REAL ESTATE INVESTMENT SERVICES

15 YUMA COUNTY TOP EMPLOYERS Ferguson, Yuma AZ 15

16 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of Ferguson located at 3267 E 33rd Pl Yuma, AZ ( Property ). It has been prepared by Matthews Retail Advisors. 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 Retail Advisors. 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 completweness 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 Retail Advisors 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 Retail Advisors 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.

17 OFFERING MEMORANDUM FERGUSON 3267 E 33rd Pl Yuma, AZ I N D U S T R I A L Rahul Chhajed Net Lease Industrial DIRECT MOBILE rahul.chhajed@matthews.com License # Aron Cline SVP & Senior Director DIRECT MOBILE aron.cline@matthews.com License # MIchael Moreno Senior Associate DIRECT MOBILE michael.moreno@matthews.com License # Don Mortensen Broker of Record License # LC