INDUSTRIAL INVESTMENT PROPERTY 9610 J STREET Omaha, NE 68127

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1 INDUSTRIAL INVESTMENT PROPERTY CBRE MEGA is pleased to offer qualified investors the opportunity to acquire a netleased distribution facility, solely occupied by DXP Enterprises (DXP, NASDAQ), a publicly traded company and a leading industrial equipment supplier nationwide. In 2007, DXP acquired a global company, Precision Industries, the largest family owned industrial distribution company in the world, to strengthen their national supply-chain services. Formerly a Precision Industries National Distribution hub, this property currently functions as a mission critical facility. As such, it is a large branch, a regional distribution center and the hydraulic repair facility, all of which are essential to support DXP s Midwestern branches in the north central region. The 48,075 square foot facility sits on 2.94 acres in one of Omaha s best performing industrial submarkets. The location at 96th & J provides easy access to Interstate 80 and is two blocks north of L Street, a major east/west corridor traveled by over 49,000 vehicles per day. This location boasts some of the lowest warehouse vacancies (3.3%) and the highest year over year rent growth (4.8%) in the city. The Tenant has occupied the building for 25 years and recently executed a five-year lease at $5.45 psf with 3.5% annual rent escalations and a five-year renewal option. Precision Industries, a wholly-owned subsidiary of DXP, is the Tenant and has been the Tenant since PAUL J. LAFAVE, SIOR, CPM Executive Vice President plafave@cbre-mega.com MARK SEGER Executive Vice President mseger@cbre-mega.com HEIDI RUSH Vice President hrush@cbre-mega.com

2 FOR SALE PROPERTY OVERVIEW CBRE MEGA is pleased to exclusively offer a single, credit tenant leased showroom/distribution facility, located at J Street in Omaha, Nebraska. INVESTMENT HIGHLIGHTS ++ Corporate Lease (DXP) ++ Public company, NASDAQ (DXPE) ++ Located in high traffic area ++ NNN Lease ++ ±5 years remaining on lease, recent renewal, and a five-year renewal option ++ Strong demographics RETAIL SHOWROOM ++ Remodeled in 1993, 2002 and $5.45 PSF rent, 3.5% annual rent escalations HYDRAULIC FABRICATION AND REPAIR SHOP CUSTOMER SERVICE CENTER 2 UPGRADED POWER w w w.c b r e.us/om ah a

3 PROPERTY PHYSICAL & FINANCIAL SUMMARY Property Address: J Street Offering Price: $4,478,000 Cap Rate: 6.27% Price PSF: $93.15 Annual Rent/Net Operating Income: Annual Base Rent PSF: Occupancy: 100% Building Area: Traffic Counts: Land Area: $280,752 (Average Rent, Third Year) $5.84 (Average Rent, Third Year) 48,075 SF 49,584 vehicles per day 2.94 acres Year Built: 1967 Remodeled: 1993, 2002 and 2017 Clear Height: 18 Loading: Construction: Exterior Facade: Parking: Sprinkler: Roof: HVAC: Power: Zoning: Interior Usage: Four docks; one with rail access Block Block/EIFS 50 stalls Water suppression One section EPDM silicone sealed. One section rolled asphalt. One section mechanically fastened EPDM. Rooftop package units (RTU). Building 100%. 15 rooftop HVAC units, 2 new units in 2017 Two 800 amp electric service with total capacity of 1600 A 480V 3 phase General Industrial (GI) Approximately 7% showroom and 5% office, with the balance in warehouse/distribution WAREHOUSE CONVEYOR BELT HIGH RACK STORAGE 3

4 REASONS TO INVEST IN THIS ASSET + + Asset location is excellent at the northwest corner of 96th and J Streets. The property enjoys terrific access off L Street (one block to the south) and is minutes away from Interstate 80 access. + + The property is served on a rail spur for future potential rail access. + + The property is offered as a single-credit, net leased industrial building. The tenant (DXP) has been in the building for over 11 years and recently executed a new five-year lease at $5.45 PSF on 48,075 sq. ft., with 3.5% annual rent escalations and a five-year renewal option. The lease is triple net in nature, except for Landlord roof and structure responsibilities. + + The property is integral to DXP s regional operations. Recently, the hydraulics division consolidated into this building. In 2017, the tenant made a major investment remodeling the facility to incorporate this division. The likelihood for lease renewal with DXP is extremely high. + + The tenant, DXP Enterprises Inc., is a public company (DXPE/NASDAQ) with a B rating from Standard & Poor s. The company had revenue of nearly $1 billion in 2016 and is engaged in distributing maintenance, repair and operating products, equipment and services to energy and industrial customers in the United States. The company was founded in The property was built in 1967 and is in good condition. The tenant utilizes the premises as a distribution showroom facility. The property was remodeled in 1993, 2002 and Omaha industrial vacancy rates are at a 17-year low of 4.6%. The weighted average NNN asking rate for Omaha industrial space is $5.59 PSF (Xceligent, 2Q 2017). Additionally, asking rental rates increased by 4.8% from last year. In the South Central and Southwest submarkets, distribution warehouse vacancies are hovering around 3.3%. + + There are few net-leased property investments available in the Omaha market place, particularly those that have good re-leasing prospects should the tenant not renew. + + The subject property has excellent re-leasing potential given its location and design. + + The floor plan is approximately 3,000 sq. ft. office (includes 500 sq. ft. of mezzanine) and 3,500 sq. ft. showroom with the balance in warehouse/distribution. 4

5 TENANT SUMMARY + + DXP Enterprises, Inc., a publicly traded company (NASDAQ: DXPE), + + Tenant has annual sales in excess of $1 billion annually + + DXPE has shown a strong sales increase, up 9.5% Q vs LEASE SUMMARY + + Lessee: Precision Inc., a wholly-owned subsidiary of DXP Enterprises, Inc. + + Lease Term: New Five-Year Renewal with a Five-Year Renewal Option + + Expiration Date: 9/30/ Annual Base Rent: 10/1/17-9/30/18 $21,840.43/mo $262,085 annual 10/1/18-9/30/19 $22,604.85/mo $271,258 annual 10/1/19-9/30/20 $23,396.02/mo $280,752 annual 10/1/20-9/30/21 $24,214.88/mo $290,579 annual 10/1/21-9/30/22 $25,062.40/mo $300,749 annual + + Landlord Responsibility: NNN Lease, except for 1) structure/ walls and roof and 2) major repairs/replacements required in order for the tenant to reasonably continue its operation where the cost exceeds $10,000; in that event, Landlord pays for cost but tenant reimburses based on ratio of years remaining on lease to projected asset life. Tenant reimbursement is lengthened if tenant renews past current lease term. TENANT DESCRIPTION DXP Enterprises, Inc. engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services to energy and industrial customers in the United States. It operates through three segments: Service Centers, Supply Chain Services, and Innovative Pumping Solutions. The Service Centers segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers rotating equipment, bearing, power transmission, hose, fluid power, metal working, industrial supply, and safety products; and field safety supervision, in-house and field repair, and predictive maintenance services. This segment provides its MRO products for use in the oil and gas, food and beverage, petrochemical, transportation, and other general industrial industries, as well as for mining, construction, chemical, municipal, agriculture, and pulp and paper. The Supply Chain Services segment manages procurement and inventory management solutions; and offers inventory optimization and management, store room management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. This segment designs programs, such as SmartAgreement, a procurement solution for MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The Innovative Pumping Solutions segment provides pump packages comprising diesel and electric driven firewater, pipeline booster, potable water, pigging, lease automatic custody transfer charge unit, chemical injection wash down unit, seawater lift, jockey, condensate, cooling water, and seawater/produced water injection pump packages. The company was founded in 1908 and is headquartered in Houston, Texas. 5

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8 LOCATION AERIAL World s largest Kellogg s plant 72nd Street Subject Property L Street L Street Wells Fargo s 2018 CBRE MEGA, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE MEGA, Inc. does not doubt its accuracy, CBRE MEGA, Inc. has not verified it and makes no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. All marks displayed on this document are the property of their respective owners. Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited. CBRE MEGA Davenport St, Ste 300 Omaha, NE