HARBOR FREIGHT TOOLS A CORPORATE NET LEASED STORE WITH NEW 10-YEAR EXTENSION GURNEE, IL

HARBOR FREIGHT TOOLS A CORPORATE NET LEASED STORE WITH NEW 10-YEAR EXTENSION GURNEE, IL

Overview HARBOR FREIGHT TOOLS 3550 GRAND AVE, GURNEE, IL 60031 $1,905,001 PRICE 6.75% CAP LEASEABLE SF 20,574 SF LEASE EXPIRATION 6/30/2028 LAND AREA 1.50 Acres YEAR BUILT / RENOVATED 1975 / 2018 LEASE TYPE Corporate NN PARKING 49 Spaces Low and replaceable annual rents of $6.25/SF Corporate lease with 10 years remaining and rent increases throughout Tenant recently removed $5M sales threshold termination clause $4B revenue company with no debt Infill market with 175,000 population within a 5-mile radius This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 2

Investment Highlights THE OFFERING is a Corporate Harbor Freight Tools with 10 years remaining, located in Gurnee, IL. The tenant is a $4B revenue company with no debt. Harbor Freight recently removed their $5M sales threshold termination clause in the lease, demonstrating its commitment to the site and satisfaction with unit level performance. Traffic counts exceed 28,500 and is on one of the primary arterials in Gurnee. Contact the team JOHN ANDREINI jandreini@capitalpacific.com PH: 415.274.2715 CA BRE# 01440360 THE MARKET - Gurnee is home to a Six Flags Great America and Gurnee Mills Outlet Mall. A combined 26+ million people visit these two attractions in Gurnee each year, reflecting the size of the market. Other retailer in this area include Jewel-Osco, Walgreens, McDonalds, Starbuck s, T-Mobile, and others. LAKE COUNTY HEALTH DEPARTMENT AND COMMUNITY HEALTH CENTER IN CONJUNCTION WITH IL LICENSED BROKER: Jonathan Plotkin Endurance Retail Partners LLC 847.343.2204 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. THE REGION SEES 26+ MILLION VISITORS EVERY YEAR 3

94 Aerial GURNEE MILLS 37,900 SPAULDING ELEMENTARY 41 131 33,000 132 GRAND AVENUE IMMANUEL LUTHERAN SCHOOL H&R BLOCK 132 GR AN D AV E VIKING MIDDLE SCHOOL NU E 132 GRAND AVENUE WARREN TOWNSHIP HIGH SCHOOL GRAND AVENUE 28,500 PUBLIC LIBRARY CITY OF GURNEE 131 37,900 94 WOODLAND PRIMARY WOODLAND ELEMENTARY CHICAGO 40 MILES 41 115,500 CHRISTO REY ST. MARTIN COLLEGE PREP 39,100 HEATHER RIDGE GOLF COURSE 120 BELVIDERE ROAD 120 120 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 41 4

Surrounding Retail This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 5

Income & Expense PRICE $1,905,001 Price Per Square Foot: $92.59 Capitalization Rate: 6.75% Total Rentable Area (SF): 20,574 Lot Size (AC): 1.50 STABILIZED INCOME PER SQUARE FOOT Scheduled Rent $6.25 $128,588 Effective Gross Income $6.25 $128,588 LESS PER SQUARE FOOT Taxes NNN $0.00 Insurance NNN $0.00 Total Operating Expenses NNN $0.00 EQUALS NET OPERATING INCOME $128,588 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 6

Rent Roll TENANT INFO LEASE TERMS RENT SUMMARY TENANT NAME SQ. FT. CURRENT RENT MONTHLY RENT YEARLY RENT MONTHLY RENT/FT YEARLY RENT/FT Harbor Freight Tools* 20,574 6/25/2014 6/30/2023 $128,588 $10,716 $128,588 $0.52 $6.25 7/1/2023 6/30/2028 $11,519 $138,232 $0.56 $6.72 Option 1 7/1/2028 6/30/2033 $12,383 $148,599 $0.60 $7.22 Option 2 7/1/2033 6/30/2038 $13,312 $159,744 $0.65 $7.76 TOTALS: 20,574 $128,588 $10,716 $128,588 $0.52 $6.25 *Tenant waived its gross sales kickout and extended the lease an additional 4 years, through 06/30/2028 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 7

Lease Abstract EXPENSES TAXES Tenant shall reimburse Landlord for the ad valorem taxes payable with respect to the Property. TENANT Harbor Freight Tools BUILDING SF 20,574 SF LEASE TYPE Corporate NN TERM 10 Years RENT COMMENCEMENT 6/25/2014 RENT EXPIRATION 6/30/2028 OPTIONS Two 5-year options TENANT S OBLIGATIONS Tenant is responsible for the repairs and maintenance of all non-structural portions of the Premises, including the HVAC system. LANDLORD S OBLIGATIONS Landlord is responsible for the repairs and maintenance of the roof and structure, and any repair costs to the HVAC in excess of $2,500 in the aggregate per lease year. RENT BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 6/25/2014-6/30/2023 $10,716 $128,588 7/1/2023-6/30/2028 $11,519 $138,232 OPTION RENTS DATE RANGE MONTHLY RENT ANNUAL RENT #1. 7/1/2028-6/30/2033 $12,383 $148,599 #2. 7/1/2033-6/30/2038 $13,312 $159,744 This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. INSURANCE Tenant shall maintain the following insurance policies: (1) commercial general liability insurance with a combined single limit of $1 million per occurrence and $2 million in aggregate; and (2) All-risk insurance, insuring Tenant s property in the Premises on a 100% replacement cost basis. Landlord shall be named as additional insured. Landlord shall maintain the following insurance policies: (1) Commercial general comprehensive public liability insurance with a combined single equal to $1 million per occurrence and $2 million in aggregate; and (2) All-risk property insurance on a 100% replacement cost basis. UTILITIES Tenant is responsible for direct payment of all utilities to the appropriate billing authority, as well as for Tenant s pro-rata share of common area utility charges. 8

131 N GREEN BAY ROAD Site Plan 20,574 RENTABLE SF 1.50 ACRES 49 SPACES EXISTING DRIVE 33,000 132 GRAND AVENUE 28,500 BELLE PLAINE AVENUE MONUMENT SIGN 132 GRAND AVENUE This site plan is a rendering that has been created based on sources we believe to be reliable. We make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 9

Tenant Overview ABOUT HARBOR FREIGHT TOOLS Harbor Freight Tools, founded in 1977, began as a small family-owned discount tool and equipment retailer in Calabasas, California. Over the past 40 years, the privately held company has grown to become a $4 Billion business with 900+ locations in 47 states, and a customer base that exceeds 40 million. Harbor Freight offers more than 7,000 quality tools and accessories that match or exceed competing brands, but at prices that are up to 80% less. They sell power tools, air tools, hand tools, tool storage, automotive and motorcycle materials, engine and generator materials, material handling, and so much more. 900+ LOCATIONS IN THE U.S. COMPANY REVENUE $4 Billion This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 10

Demographics POPULATION 1-MILE 3-MILES 5-MILES 2010 8,944 100,886 175,280 2017 9,267 102,115 174,730 2020 9,412 103,023 175,597 GURNEE 2017 HH INCOME 1-MILE 3-MILES 5-MILES Average $70,918 $66,882 $79,201 CHICAGO (40 MILES) TOP EMPLOYERS IN CHICAGO MSA EMPLOYER # OF EMPLOYEES US Government 49,860 Chicago Public Schools 39,094 City of Chicago 30,340 Cook County 21,482 Advocate Health Care 18,512 THE AVERAGE HOUSEHOLD INCOME WITHIN A 5-MILE RADIUS IS OVER $79K This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 11

Location Overview GURNEE, ILLINOIS DOWNTOWN CHICAGO GURNEE is a village in Lake County, Illinois and, at only 40 miles north of Chicago, is part of the Chicago metropolitan area. The village is located along Lake Michigan and is easily accessible by Interstate 94. The village is home to Six Flags Great America and Gurnee Mills, together attracting over 26 million visitors annually. Six Flags Great America is a 20-acre amusement park, and belongs to the Six Flags chain. Six Flags has 25 parks globally, bringing in over $1.36 Billion in 2017 sales. Gurnee Mills is a 1,935,954 square foot outlet shopping center with nearly 200 national stores. The shopping center s placement strategically allows easy access from Chicago and Milwaukee, Wisconsin. ABOUT CHICAGO METRO AREA CHICAGOLAND is one of the largest economic centers in the world boasting a population of 9.5 million, 4.5 million jobs, and a $500 billion economy. There are over 160 company headquarters, 30 Fortune 500 headquarters, 12 Fortune Global 500 and 10 Financial Times Global 500 companies. It is a hub for agribusiness, life sciences and manufacturing. 9.5 MILLION CHICAGO MSA POPULATION (ESTIMATED) This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. 12

We d love to hear from you. JOHN ANDREINI jandreini@capitalpacific.com PH: 415.274.2715 CA BRE# 01440360 IN CONJUNCTION WITH IL LICENSED BROKER: Jonathan Plotkin Endurance Retail Partners LLC 847.343.2204 CAPITAL PACIFIC COLLABORATES. CLICK HERE TO MEET OUR SAN FRANCISCO TEAM: ZEB RIPPLE CHRIS KOSTANECKI CHRIS PETERS JOHN ANDREINI JOE CACCAMO DAVE LUCAS Copyright 2018 Capital Pacific Partners ZANDY SMITH RICK SANNER JACK NAVARRA This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. CAPITALPACIFIC.COM