Au t o Z o n e1 1 0 0 E W i l l i a m s S t , A p ex , N C 2 7 5 0 2O F F E R I N G M E M O R A N D U M

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CHAD KURZ KYLE MATTHEWSSVP & National Director BROKER OF RECORD

chad.kurz@matthews.comDIR (214) 692-2927MOB (562) 480-2937LIC # 01911 198 (CA)

LIC # C27092

E XC LU S I V E LY L I S T E D BY

CONRAD SARREALAssociate

conrad.sarreal@matthews.comDIR (310) 919-5760MOB (626) 230-1006LIC # 01982875 (CA)

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C O N T E N T S4 EXECUTIVE SUMMARY

5 FINANCIAL OVERVIEW

6 TENANT OVERVIEW

1 2 AREA OVERVIEW

4 | O f f e r i n g M e m o r a n d u m

I n v e s t m e n t H i g h l i g h t s

• High-Quality Construction – Brick exterior with metal canopies

• Low Rent/SF – AutoZone is only paying $12.92/SF which is lower than most of their other fee simple build-to-suit rents

• Minimal Landlord Responsibilities – Tenant responsible for parking lot, maintenance of HVAC, taxes, and insurance

• Top 2 MSA – Apex is a suburb of Raleigh and located in the 2nd largest MSA in North Carolina

• Explosive Growth – 1-mile population grew by ± 110% between ’00 and ’10 and ± 46% between ’10 and ’17

• Affluent Suburb – Average household incomes within a 3-mile and 5-mile radius exceed $117,000 (above Top 2 MSA)

• Excellent Retail Synergy – E Williams St is anchored by a Walmart Supercenter and features other notable tenants such as Dunkin Donuts, Family Dollar, Firestone, Arby’s, BB&T Bank, McDonald’s, and more

• Busy Traffic Counts – E Williams St sees an average traffic count of ± 38,000 VPD and is located off of US Highway 1 which has an average traffic count of ± 33,000 VPD

• Upcoming Developments – Upcoming Apex Developments include a 92-acre tract consisting of 900 homes and 550,000 SF of commercial space and West Village which is a 163-acre mixed-use development

• Strong Investment Grade Credit – AutoZone boasts investment grade credit of BBB (S&P)

• Largest Auto Parts Retailer – As of August 2016, AutoZone is the largest auto parts retailer with a total of 5,814 stores globally: 5,297 in the United States, 483 in Mexico, 8 in Brazil, and 26 IMC Branches

• Top Sales Producer – AutoZone concluded 2016 with ±$10.64 Billion in revenue compared to Advance Auto Parts and O’Reilly Auto Parts closing with $9.57 Billion and $8.6 Billion respectively

PROPERTY

LOCATION

TENANT

E X E C U T I V E S U M M A R Y

A u t o Z o n e , A p e x , N C | 5

A u t o Z o n e1 1 0 0 E W i l l i a m s S t , A p ex , N C 2 7 5 0 2List Price ........................................................................................... $1,440,000

CAP Rate - Current .................................................................................. 6.25%Gross Leasable Area ....................................................................... ± 6,921 SF Lot Size ............................................................................................. ± 1.11 Acres Year Built ...................................................................................................... 2004

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current $7,500 $90,000 $13.00 6.25%

Option 1 $8,250 $99,000 $14.30 6.88%

Option 2 $9,075 $108,900 $15.73 7.56%

Option 3 $9,983 $119,790 $17.31 8.32%

Option 4 $10,981 $131,769 $19.04 9.15%

Tenant Summary

Tenant Trade Name AutoZone

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof and Structure Landlord Responsible

Original Lease Term 20 years

Lease Commencement Date 2/1/2005

Rent Commencement Date 2/1/2005

Lease Expiration Date 1/31/2025

Term Remaining on Lease ± 7.5 years

Increases 10% in Options

Options Four, 5-Year Options

F I N A N C I A L O V E R V I E W

6 | O f f e r i n g M e m o r a n d u m

T E N A N T O V E R V I E W

A u t o Z o n e , A p e x , N C | 7

Te n a n t O v e r v i e wFor more than 30 years, AutoZone has been committed to providing the best parts, prices and customer service in the automotive aftermarket industry. To stay out of the no-driving zone, DIY car repairers with auto problems often enter the AutoZone. With more than 5,814 stores in the US and Puerto Rico, AutoZone is the nation’s #1 auto parts chain. The company also operates 24 Interamerican Motor Corporation (parts distribution) branches in the US. AutoZone stores sell hard parts (alternators, engines, batteries), maintenance items (oil, antifreeze), accessories (car stereos, floor mats), and non-automotive merchandise under brand names, as well as under private labels. AutoZone’s commercial sales program distributes parts and other products to garages, dealerships, and other businesses.

OPERATIONS

As part of its business, AutoZone operates through one reportable segment: Auto Parts Stores. Besides being a retailer and distributor of auto parts and accessories, AutoZone produces, sells, and maintains diagnostic and repair information software used in the auto repair industry through its ALLDATA business and sells directly to customers through its e-commerce site, autozone.com.

SALES AND MARKETING

AutoZone relies on targeted advertising and promotions to build its brand, offer advice about the overall importance of vehicle maintenance, and position its business as a great value. To drive traffic to its stores, the retailer advertises on broadcast and Internet media. It works to educate consumers about which products they need through the use of in-store signage and circulars, as well as creative product placement and promotions.

STRATEGY

AutoZone has grown quickly through a series of acquisitions over the past several years but now is focused on internal growth and development. Among the factors AutoZone considers when opening new stores is how many cars in an area are OKVs or “our kind of vehicles,” that is, cars older than seven years and no longer under their manufacturers’ warranty. The company’s core strategy includes expanding its stores network with a focus on new-store development and enhancement of existing stores.

GEOGRAPHIC REACH

Based in Tennessee, AutoZone sells auto and light truck parts, chemicals, and accessories through more than 5,814 AutoZone stores in 50 US, the District of Columbia, and Puerto Rico. Texas, California, Florida, Ohio, and Illinois represent the company’s largest markets and together account for more than a third of locations. AutoZone has distribution centers in more than half a dozen US states and Mexico, and has store support centers in California and Tennessee, as well as in Mexico and Brazil. The company’s fast-growing subsidiary in Mexico, AutoZone de México, operates more than 450 stores.

Company Name AutoZone

Ownership Public

No. of Locations ± 5,814

No. of Employees ± 84,000

Headquartered Memphis, Tennessee

Website www.autozone.com

Year Founded 1979

8 | O f f e r i n g M e m o r a n d u m

P R O P E R T Y O V E R V I E W

A u t o Z o n e , A p e x , N C | 9

T h e O f f e r i n g

Property Name AutoZone

Property Address 1100 E Williams St Apex, NC 27502

Assessor’s Parcel Number 0741.11-67-2067 0318843Zoning PC-CU

Site DescriptionNumber of Stories OneYear Built 2004Gross Leasable Area (GLA) ± 6,921 SFLot Size ± 1.11 Acres (48,352 SF) Type of Ownership Fee SimpleParking ± 32 Surface SpacesParking Ratio 4.74 : 1000 SF Landscaping ProfessionalTopography Generally LevelConstructionFoundation Concrete SlabFraming MetalExterior BrickParking Surface AsphaltRoof Flat

1 0 | O f f e r i n g M e m o r a n d u m

P a r c e l M a p

A u t o Z o n e , A p e x , N C | 1 1

Te n a n t M a p

1 2 | O f f e r i n g M e m o r a n d u m

A R E A O V E R V I E W

A u t o Z o n e , A p e x , N C | 1 3

A p e x , N C

A p e x A c c o l a d e s

R e g i o n a l M a pThe Town of Apex, North Carolina is located in Wake County which is situated within the Research Triangle area and has a well-deserved reputation for being one of the best places to live in the United States. Apex is less than 30 minutes from three Tier 1 Research Universities: University of North Carolina at Chapel Hill, North Carolina State University and Duke University.

It is 15 miles from Raleigh-Durham International Airport which is home to nine commercial air carriers and their regional partners. Combined, they fly customers to more than 40 destinations on 400 flights daily. Lastly, Apex is located less than 20 minutes from the prestigious Research Triangle Park placing innovation and creativity at the fingertips of any business that chooses to locate in Apex.

• 6th Safest City in North Carolina (February, 2016)• Best Places to Live: #1 in America (August, 2015)• #2 Best City in NC to get a Job (June, 2015)• 4th Safest Place to Live in North Carolina (January, 2015)

N o r t h C a r o l i n a A c c o l a d e s• #5 America’s Top States for Business (July, 2016)• #2 Best State Business Climate (November, 2015)• #2 Best State for Business and Careers (October, 2015)• #3 Best State for Business (May, 2015)• Top Ten Most Innovative States in the U.S (April, 2015)• #5 State for Clean Sector Job Creation (November, 2014)• #3 Fastest-Growing State for Tech Jobs (August, 2014)

Employer

Wake County Public Schools

EMC

Cooper Industries

Town of Apex

Target

ATI Industrial Automation

Bland Landscaping

Rex Healthcare

Walmart

Lowes Home Improvement

To p C o u n t y E m p l o y e r s

1 4 | O f f e r i n g M e m o r a n d u m

D e m o g r a p h i c sPopulation 1 Mile 3 Mile 5 Mile

2022 Projection 7,357 52,373 149,781

2017 Estimate 6,645 47,654 137,899

2010 Census 4,523 39,041 118,037

2000 Census 2,151 22,468 83,340

Households 1 Mile 3 Mile 5 Mile

2022 Projection 2,743 18,454 53,954

2017 Estimate 2,478 16,823 49,6692010 Census 1,676 13,867 42,5442000 Census 775 7,892 29,726

Income 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income $80,631 $117,067 $122,176

Tr a n s p o r t a t i o n

E c o n o m y

Apex is located near the intersection of US Highways 1 and 64, only minutes from Interstate 40 and connected to Interstate 540, Apex offers residents and businesses excellent access to one of the fastest growing regions in the nation.

Raleigh-Durham International Airport is located 15 minutes from Apex, easily accessible via Interstate 540. This part of the region’s “Outer Loop” provides Apex residents 6 lanes of interstate-quality access, reducing drive time by offering a more direct route free of traffic lights.

The population of Apex has grown from 5,000 people in 1990 to more than 46,000 people today. This 800% surge in population is caused by a strong regional economy, access to world-class healthcare, top-notch educational opportunities, a charming downtown and wonderful weather.

High-paying tech-industry jobs that help make the quality of life second to none. And unlike that other technology hub on the West Coast, Apex is still affordable. A three-bedroom home costs an average of $265,000, vs. more than $1 million for a comparable house in Silicon Valley.

The engine powering the local job market is the 7,000-acre Research Triangle Park.More than 200 companies, including IBM, Cisco, and pharma giant GlaxoSmithKline, have offices there and employ upwards of 50,000 workers.

Population Growth 1 Mile 3 Mile 5 Mile

Percent Change: 2017 to 2022 10.71% 9.90% 8.62%

Percent Change: 2010 to 2017 46.92% 22.06% 16.83%

Percent Change: 2000 to 2010 110.27% 73.76% 41.63%

Household Growth 1 Mile 3 Mile 5 Mile

Percent Change: 2017 to 2022 10.65% 9.51% 8.59%

Percent Change: 2010 to 2017 46.84% 20.10% 16.40%

Percent Change: 2000 to 2010 92.01% 69.60% 40.75%

D O W N T O W N A P E XR A L E I G H , N C - 1 4 M I F R O M A P E X , N C

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of AutoZone located at 1100 E Williams St, Apex, NC 27502 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

CHAD KURZSVP & National Director

chad.kurz@matthews.comDIR (214) 692-2927MOB (562) 480-2937LIC # 01911 198 (CA)

KYLE MATTHEWSBROKER OF RECORD

LIC # C27092

E XC LU S I V E LY L I S T E D BY

CONRAD SARREALAssociate

conrad.sarreal@matthews.comDIR (310) 919-5760MOB (626) 230-1006LIC # 01982875 (CA)

Au t o Z o n e1 1 0 0 E W i l l i a m s S t , A p ex , N C 2 7 5 0 2

O F F E R I N G M E M O R A N D U M