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R E T A I L A D V I S O R SOffering MeMOranduM

PeP BOys 2408 nOrthPark dr, kingwOOd tX 77339

representative Photo

Matthews retail advisors

CO 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

this O ffer ing Memorandum contains se lec t information per ta ining to the business and af fa i rs of Pep Boys located at 2408 northpark dr, kingwood tX 77339 (“Proper t y ”) . i t has been prepared by Matthews retai l advisors . this O ffer ing Memorandum may not be a l l - inc lus ive or contain a l l of the information a prospec t ive purchaser may desi re. the information contained in this O ffer ing Memorandum is conf ident ia l and furnished sole ly for the purpose of a review by a prospec t ive purchaser of the Proper t y. i t i s not to be used for any other purpose or made avai lable to any other person without the wr i t ten consent of s el ler or Matthews retai l advisors . the mater ia l i s based in par t upon information suppl ied by the s el ler and in par t upon f inancia l information obtained f rom sources i t deems re l iable. O wner, nor their of f icers, employees, or agents makes any representat ion or warrant y, express or impl ied, as to the accurac y or completeness of th is O ffer ing Memorandum or any of i ts contents and no legal l iabi l i t y i s assumed or shal l be impl ied with respec t thereto. Prospec t ive purchasers should make their own projec t ions and form their own conclus ions without re l iance upon the mater ia l contained herein and conduc t their own due di l igence.

By ack nowledging your receipt of th is O ffer ing Memorandum for the Proper t y, you agree:

1 . the O ffer 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 ic test of conf idence; and

3. you wi l l not , d i rec t ly or indirec t ly, d isc lose or permit anyone else to disc lose this O ffer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the s el ler.

O wner and Matthews retai l advisors express ly reser ve the r ight , at their sole discret ion, to re jec t any and a l l express ions of interest or of fers to purchase the Proper t y and to terminate discuss ions with any person or ent i t y reviewing this O ffer ing Memorandum or mak ing an of fer to purchase the Proper t y unless and unt i l a wr i t ten agreement for the purchase and sale of the Proper t y 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 Proper t y or in the future you discont inue such negot iat ions, then you agree to purge a l l mater ia ls re lat ing to this Proper t y including this O ffer ing Memorandum.

a prospec t ive purchaser ’s sole and exclus ive r ights with respec t to this prospec t ive t ransac t ion, the Proper t y, or information provided herein or in connec t ion with the sa le of the Proper t y shal l be l imited to those express ly provided in an executed Purchase agreement and shal l be subjec t to the terms thereof. i n no event shal l a prospec t ive purchaser have any other c la ims against s el ler or Matthews retai l advisors or any of their af f i l iates or any of their respec t ive of f icers, direc tors, shareholders, owners, employees, or agents for any damages, l iabi l i t y, or causes of ac t ion re lat ing to this sol ic i tat ion process or the market ing or sa le of the Proper t y.

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

eXCLusiVeLy L isted By:

table of ContentsPriCing & finanCiaL anaLysis

investment Overview ...............................................................................2investments highlights ...........................................................................2executive summary ..................................................................................3

PrOPerty desCriPtiOnPhysical description .................................................................................7aerial Map ....................................................................................................8regional Map ..............................................................................................9Birds eye ..................................................................................................... 10

deMOgraPhiCsCity Overview | kingwood, tX ............................................................ 12demographics report ........................................................................... 13

Braden Crockettsenior associate direCt +1.310.919.5814 MOBiLe +1.714.345.6206 braden.crockett@matthews.com License no. 01946071

™

Mark CohenBroker of record License no. 447509

Matthews retail advisors rePresentatiVe PhOtO

PriCing & finanCiaL anaLysis

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OFFERING MEMORANDUM | Pep BoysP. 2 Matthews retail advisors

inVestMent OVerView

investments highlights• Purchase price of only $1,168,000 or an attractive 6.50% cap

rate

• absolute nnn lease – no Landlord responsibilities.

• newer Business Model – service Only Location

• strong demographics – over $100,000 average incomes in the 3 and 5 Mile radii.

• explosive growth in Population

• strong traffic Counts – almost 30,000 cars per day

• national retailers in the vicinity include Mcdonalds, walgreens, gold’s gym, walmart neighborhood Center, and starbucks.

• down the street from kingwood Park high school

• renovated in 2011 when acquired by Pep Boys

• rent is flat for the initial 10 year term - suggests under market rent at renewal.

• attractive financing available

• Over 100,000 people in a 5-mile radius

rePresentatiVe PhOtO

Matthews retail advisors P. 3Pep Boys | OFFERING MEMORANDUM

PRICING ANALYSISeXeCutiVe suMMary

PeP BOys2408 nOrthPark dr kingwOOd tX 77339

List Price ......................................................................................................... $1,167,692CaP rate - Current ..............................................................................................6.50 %gross Leasable area ........................................................................................ 3,950 sfLot size ................................................................................... 0.73 acres ( 31,711 sf)year Built .................................................................................................................... 1995

annualized Operating dataMonthly rent annual rent rent/sf CaP rate

Current - 8/31/2021 $6,325.00 $75,900.00 $19.22 6.50%

Option 1 - 8/31/2026 $6,957.50 $83,490.00 $21.14 7.15%

Option 2 - 8/31/2031 $7,653.25 $91,839.00 $23.25 7.87%

Option 3 - 8/31/2036 $8,418.58 $101,022.90 $25.58 8.65%

tenant summary

tenant trade name Pep Boys

type of Ownership fee simple

Lease guarantor Corporate

Lease type nnn

roof and structure tenant responsible

Original Lease term 10 years

Lease Commencement date 9/1/2011

rent Commencement date 9/1/2011

Lease expiration date 8/31/2021

term remaining on Lease +/- 5.5 years

increases 10 % in the Options

Options 3,5 year Options

OFFERING MEMORANDUM | Pep BoysP. 4 Matthews retail advisors

COMPany OVerView

Property name Pep Boys

gross Leasable area 3,950 sf

Property type net Leased auto Parts service

Parent Company trade name Pep Boys inc.

Ownership Public

Credit rating B

rating agency standard & Poor’s

revenue $2.09 Billion

net income $13.16 Million

stock symbol PBy

Board nyse

no. of Locations ±800

no. of employees ±18,000

headquartered Philadelphia, Pa

web site www.pepboys.com

year founded 1921

the Pep Boys: Manny, Moe & Jack, (branded as and commonly abbreviated as Pep Boys) is a full-service and tire automotive aftermarket chain.the first store, originally named Pep auto supplies, was founded in Philadelphia, Pennsylvania in 1921 by emanuel (Manny) rosenfeld, Maurice L. (Moe) strauss, w. graham (Jack) Jackson, and Moe radavitz. Currently headquartered in the allegheny west section of Philadelphia, Pep Boys operates more than 800 stores and approximately 7,000 service bays in 35 states and Puerto rico. along with its full-service vehicle maintenance and repair capabilities, the company also serves the commercial auto parts delivery market. it is one of the leading sellers of replacement tires in the united states, and in 2005 was named one of the 500 fastest-growing u.s. companies. it operates service locations that offer a range of automotive maintenance and repair services; and install tires, parts, and accessories. the company sells new and remanufactured parts for vehicles; chemicals and maintenance items; fashion, electronic, and performance accessories; and nonautomotive merchandise.

PrOPerty desCriPtiOn

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OFFERING MEMORANDUM | Pep BoysP. 6 Matthews retail advisors actual Property

Matthews retail advisors P. 7Pep Boys | OFFERING MEMORANDUM

PROPERTY DESCRIPTIONPhysiCaL desCriPtiOn

the Offering

Property name ......................................................................................................Pep Boys

Property address ...............................................................................2408 northpark dr

kingwood tX 77339

assessor’s Parcel number ............................................................... 114-852-000-0005

site desCriPtiOn

number of stories ..........................................................................................................One

year Built .......................................................................................................................... 1995

gross Leasable area (gLa) ................................................................................. 3,950 sf

Lot size ........................................................................................... 0.73 acres (31,711 sf)

type of Ownership ........................................................................................... fee simple

Parking .................................................................................................. 20 surface spaces

Parking ratio ................................................................................................5.10 : 1,000 sf

Landscaping .....................................................................................................Professional

topography ............................................................................................... generally Level

COnstruCtiOn

foundation ................................................................................................... Concrete slab

framing .......................................................................................................................... wood

exterior ............................................................................................................................. Brick

Parking surface .....................................................................................................Concrete

roof ..............................................................................................................................Pitched

OFFERING MEMORANDUM | Pep BoysP. 8 Matthews retail advisors

Birds eye

CPd: 28,000

Matthews retail advisors P. 9Pep Boys | OFFERING MEMORANDUM

PROPERTY DESCRIPTIONregiOnaL MaP

Offering MeMOranduM | Pep BoysP. 10 Matthews retail advisors

tenant MaP

deMOgraPhiCs

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OFFERING MEMORANDUM | Pep BoysP. 12 Matthews retail advisors

DEMOGRAPHIC ANALYSISCity OVerView | kingwood, tX

kingwood, also know as the “Livable forest,” was created by the friend-swood development Company in 1971 and has grown rapidly since. the new community was named “kingwood” after king ranch, one of the original developers before being bought by the friendswood develop-ment Company.

kingwood is best known for being a community that exists in harmony with nature. kingwood’s heavily wooded acreage is canopied with tall pines and magnolias, along with 20 other types of shade trees. the community is also host to a variety of wildlife including deer, fish, birds, and more, that can be found in the 500+ acres of private nature pre-serves and parks. Over 75 miles of hike and bike trails, known as the “greenbelt,” run through kingwood’s naturally beautiful woods and lakes.

kingwood is also a thriving commercial center. Big name retail, shop-ping, and dining venues call kingwood home, and can be found throughout the area, mostly near the front of kingwood drive and in kingwood’s town Center off of Lake houston Parkway. in addition, king-wood is only three miles north of deerbrook Mall and humble, texas’ commerical centers. kingwood is generally considered to have good commute times relative to surrounding houston communities.

and there’s always something entertaining to do in kingwood, which boasts of over 100 different clubs and organizations, a myriad of parks, and two private clubs--deerwood Club and the kingwood Country Club, which provide challenging and beautiful golf courses.

Matthews retail advisors P. 13Pep Boys | OFFERING MEMORANDUM

DEMOGRAPHIC ANALYSISdeMOgraPhiCs rePOrt

Population 3-Mile 5-Mile 7-Mile2020 Projection 71,891 118,306 227,4362015 estimate 67,150 109,590 207,6542010 Census 62,046 100,002 185,2462000 Census 52,338 80,498 126,767growth 2000-2010 18.55% 24.23% 46.13%growth 2010-2015 8.23% 9.59% 12.10%growth 2015-2020 7.06% 7.95% 9.53%

households2020 Projection 27,992 44,240 79,2592015 estimate 25,969 40,722 72,4192010 Census 23,706 36,776 65,0342000 Census 18,597 27,920 43,593growth 2000-2010 27.47% 31.72% 49.19%growth 2010-2015 9.55% 10.73% 11.35%growth 2015-2020 7.79% 8.64% 9.45%

income$0 - $15,000 6.57% 6.27% 6.45%$15,000 - $24,999 7.08% 7.41% 7.26%$25,000 - $34,999 7.40% 7.01% 7.41%$35,000 - $49,999 12.60% 11.48% 12.25%$50,000 - $74,999 15.39% 15.48% 17.78%$75,000 - $99,999 14.24% 13.96% 14.15%$100,000 - $124,999 9.58% 9.86% 10.43%$125,000 - $149,999 7.23% 7.80% 7.52%$150,000 - $199,999 9.59% 9.66% 8.28%$200,000 - $249,999 3.88% 3.91% 3.14%$250,000 - $499,999 4.95% 5.26% 4.00%$500,000+ 1.49% 1.90% 1.33%2015 est. average household income $101,732 $105,456 $96,5272015 est. Median household income $76,692 $79,198 $73,385

Matthews retail advisors | 841 apollo street, suite 150 | el segundo, Ca 90245 | www.Matthews.com

PeP BOys2408 northpark drkingwood tX 77339Offering MeMOranduM

Mark CohenBroker of record License no. 447509

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Braden Crockettsenior associate direCt +1.310.919.5814 MOBiLe +1.714.345.6206 braden.crockett@matthews.com License no. 01946071