JUST TIRES (Goodyear Corporate)

JUST TIRES (Goodyear Corporate) OFFERING MEMORANDUM ACTUAL PROPERTY Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0331979 1

Financial Overview OFFERING SUMMARY PRICE $2,316,160 CAP RATE 7.50% NOI $173,712 PRICE PER SQUARE FOOT $300.57 RENT PER SQUARE FOOT $22.54 YEAR BUILT 2007 APPROXIMATE LOT SIZE 0.98 Acres GROSS LEASEABLE AREA 7,706 TYPE OF OWNERSHIP Fee Simple LEASE GUARANTOR Corporate Guaranty LEASE TYPE Double-Net (NN) ROOF AND STRUCTURE Landlord Responsible LEASE SUMMARY LEASE COMMENCEMENT DATE 9/1/2007 LEASE EXPIRATION DATE 5/31/2025 LEASE TERM 11 Years TERM REMAINING 8 Years INCREASES In Options OPTIONS TO RENEW 5, 5-Year OPTIONS TO TERMINATE None OPTIONS TO PURCHASE None FIRST RIGHT OF REFUSAL Yes Base Rent ANNUALIZED OPERATING DATA Annual Rent Monthly Rent 8/1/2013 5/31/2018 $173,712 $14,476 6/1/2018 5/31/2025 $175,449 $14,621 1% OPTIONS 6/1/2025 5/31/2030 $184,222 $15,352 5.00% 6/1/2030 5/31/2035 $193,433 $16,119 5.00% 6/1/2035 5/31/2040 $203,104 $16,925 5.00% 6/1/2040 5/31/2045 $213,260 $17,772 5.00% 6/1/2045 5/31/2050 $223,923 $18,660 5.00% Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0331979 2

Investment Overview Marcus & Millichap is pleased to present this 7,706-square foot Just Tires in Knightdale, North Carolina; which is 14 miles east of Raleigh. The asset is corporately guaranteed by its parent company, Goodyear Tire & Rubber Company, a Fortune 500 company who did more than $15 billion in sales during 2016. The subject property is operating under a double-net (NN) lease with eight years remaining over the base term. The landlord s responsibilities are limited to roof and structure. Goodyear has demonstrated commitment to this location by executing their first extension option early in 2013. There are five, five-year options remaining, with rent escalations in each option. Just Tires is located on the signalized hard corner of Village Park Drive and Parkside Commons Drive, they also have great frontage along Knightdale Boulevard. Knightdale Boulevard is a major thoroughfare in Knightdale that provides direct access to Raleigh, and sees more than 32,000 vehicles per day (VPD). The asset benefits from the explosive population growth in the area. Within the five-mile radius the population rose 60 percent from 2000 to 2010 and in the last seven years the population has risen 14 percent. Just Tires is strategically located between United States Route-64 and Interstate-540, two major Interstate Highways that see more than 88,000 vehicles per day (VPD) combined. Additional Retailers in the immediate trade area include: Walmart, Lowe s, Chickfil-A, The Home Depot, Big Lots, Wendy s, Taco Bell, Long John Silver s, Burger King, Popeyes, Walgreens, McDonald s, Dunkin Donuts, CVS, AutoZone, and many more. Just Tires in Knightdale, North Carolina 14 Miles East of Raleigh Double-Net (NN) Lease With Eight Years Remaining Landlord Responsibilities Limited to Roof and Structure Corporate Guaranty Goodyear Tire & Rubber Company Number 184 on the Fortune 500 (June 2017) Tenant Demonstrates Commitment Executed First Extension Option Early in 2013 Signalized, Hard Corner Location Parkside Commons Drive and Knightdale Boulevard Major Thoroughfare in Knightdale More Than 32,000 Vehicles Per Day (VPD) Affluent Demographics Average Household Income is More Than $74,000 in the Five-Mile Radius Explosive Population Growth Population Rose a Staggering 60 Percent From 2000 to 2010 14 Percent Increases from 2010 to 2017 Centrally Located Between United States Route 64 and Interstate-540 Major Interstate Highways That See More Than 88,000 Vehicles Per Day (VPD) Additional Retailers in the Immediate Trade Area Include: Walmart, Lowe s, Chickfil-A, The Home Depot, Big Lots, Wendy s, Taco Bell, Long John Silver s, Burger King, Popeyes, Walgreens, McDonald s, Dunkin Donuts, CVS, AutoZone, and many more. FILE PHOTO Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0331979 3

Tenant Overview - Goodyear Tire & Rubber Company Goodyear Tire and Rubber Company is one of the world s leading manufacturers of tires, engaging in operations in most regions of the world. In 2016, net sales were $15,158 million and Goodyear s net income and net income available to common shareholders was $1,264 million. Together with its United States and international subsidiaries, the company develops, manufactures, markets and distributes tires for most applications. They also manufacture and market rubber-related chemicals for various applications. Goodyear is one of the world s largest operators of commercial truck service and tire retreading centers. In addition, the company operates approximately 1,100 tire and auto service center outlets, where they offer their products for retail sale and provide automotive repair and other services. Goodyear manufactures their products in 48 manufacturing facilities in 21 countries, including the United States, and they have marketing operations in almost every country around the world. The Goodyear company employs approximately 66,000 full-time and temporary associates worldwide. TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR TENANT PROFILE Just Tires Public NUMBER OF LOCATIONS 1,240 HEADQUARTERED WEB SITE The Goodyear Tire & Rubber Company The Goodyear Tire & Rubber Company Akron, OH www.goodyear.com SALES VOLUME $15 Billion (2016) NET WORTH $4.7 Billion (2016) STOCK SYMBOL BOARD CREDIT RATING RATING AGENCY GT NASDAQ BB Standard & Poors (S&P) RANK Number 184 in Fortune 500 (June 2017) Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0331979 4

Aerial Overview Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0331979 5

Area Overview & Demographics 1-Mile 3-Mile 5-Mile Population 2000 Population 2,794 16,236 47,409 2010 Population 5,275 25,852 75,776 2017 Population 6,184 30,248 86,620 2022 Population 6,875 33,622 95,977 1-Mile 3-Mile 5-Mile Households 2000 Households 1,060 6,123 17,719 2010 Households 2,024 9,842 27,502 2017 Households 2,384 11,518 31,260 2022 Households 2,653 12,804 34,610 1-Mile 3-Mile 5-Mile Household (HH) Incomes 2017 Average HH Income $76,185 $76,988 $74,711 2017 Median HH Income $64,331 $64,701 $61,532 2017 Per Capita Income $29,370 $29,316 $26,962 Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0331979 6

Market Overview - Knightdale, NC Knightdale, located just nine miles from downtown Raleigh, at the crossroads of Interstate-540 and United States Route 264, is an emerging city with magnetic energy fueled by the optimism and brain power of a young population. The town is home to the Knightdale Environmental Park, certified as a Backyard Habitat by the National Wildlife Federation. North Carolina is the ninth most populous state in the United States, and Knightdale is the seventh fastest growing town in the state. The city has become a part of the metro region and a suburb of Raleigh. Media has said it will be the fastest growing metro region in the nation between 2005-2025.The community is served by Wake County Public Schools, the largest school system in North Carolina, with nearly 150,000 students. While small business is alive and well, larger corporations also call Knightdale home, and an expanding healthcare industry has made its presence felt in the Town as well. In 2017, Knightdale was featured on MONEY s Best Places to Live in America and ranked number seventy-six. Knightdale was identified due to its healthy economy affordable homes and high quality of life. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap is a trademark of 2016 Marcus & Millichap. Activity ID: Y0331979 7

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.

Just Tires (Goodyear Corporate) Broker of Record Allen Smith 201 S Tryon St Suite 1220 Charlotte, NC 28202 Tel: 704-831-4600 License: 127350