CAR-X (2-TENANT)424 37th St NE • Rochester, MN 55906

Offering Memorandum

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N O N - E N D O R S E M E N T A N D D I S C L A I M E R N O T I C E

Confidentiality and DisclaimerThe information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap andshould not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverifiedinformation to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough duediligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, thefuture projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's orasbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or anytenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable;however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these mattersand makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all ofthe information set forth herein. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary,especially given the unpredictable changes resulting from the continuing COVID-19 pandemic. Marcus & Millichap has not been retained to perform, and cannot conduct, due diligence onbehalf of any prospective purchaser. Marcus & Millichap’s principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers. Marcus &Millichap and its investment professionals cannot and will not act as lawyers, accountants, contractors, or engineers. All potential buyers are admonished and advised to engage otherprofessionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro formafinancial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections,analyses, and decision-making.

Non-Endorsement NoticeMarcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or nameis not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, orcommercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

CAR-X (2-TENANT)Rochester, MNACT ID ZAB0510212

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TABLE OF CONTENTS

SECTION

INVESTMENT OVERVIEW 01Offering SummaryRegional Map

Local Map

Aerial Photo

FINANCIAL ANALYSIS 02Tenant Summary

Lease Expiration Chart

Operating Statement

Notes

Pricing Detail

Acquisition Financing

MARKET OVERVIEW 03Market Analysis

Demographic Analysis

CAR-X (2-TENANT)

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CAR-X (2-TENANT)

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INVESTMENT

OVERVIEW

CAR-X (2-TENANT)

OFFERING SUMMARY

Car-X Lease Corporately Guaranteed by MonroMuffler Brake, Inc

Location Has Remained Open, Paying Full Rent During COVID-19

Adjacent Vacancy to Car-X Provides Additional Upside Potential

Seller to Sign Master One Year Lease for Vacant Space at COE

Location built as Car-X in 1995 as Franchised Location - Acquired in 2016 by Corporate

Significant Development Occurring in Immediate Area

Exposure to 25,000 Cars Per Day

INVESTMENT HIGHLIGHTS

Marcus & Millichap is pleased to present this two-tenant Car-X property for sale in Rochester, MN. Withapproximately six years remaining on the Car-X lease and upside via leasing of the adjacent space, thisasset provides both stability along with potential long-term upside. Seller will sign a one-year master leasefor the vacant space at closing.

The building was originally built specifically for Car-X in 1995, which was operated by the seller for severalyears. In 2016, Car-X was acquired by Monro Muffler Brake. Around the same time, Monro also acquiredthe business operations for the subject property and entered into a long-term lease with the Seller,demonstrating the location’s long-term viability. As a result, this is a corporately operated Car-X location withthe lease guaranteed by Monro Muffler Brake, Inc.

The area immediately around the subject property continues to experience strong development growth.Development work occurring in the immediate includes the following:* HyVee Grocery, just to the west, recently completed a major remodel and expansion.* Think Bank relocated from approximately 1 mile away to their new site directly across the street from thesubject property.* Behind Think Bank, there has been a major amount of residential development with new apartments andtown homes built.* Next to Think Bank, Tommy’s Express Car Wash was a recent build to suit and is now open for business.* The former Shopko, just to the east, is being redeveloped into a new showroom for Haley ComfortSystems, along with the Purple Goat Bar & Grill and additional retail space.* Rooster's Barn & Grill plans to open their third Rochester location, just to the east, adjacent to the formerShopko site.

The subject property is located on 37th Street, a busy corridor featuring 25,000 cars per day.

Rochester is the county seat of Olmsted county and is the third-largest city in Minnesota. The city has beenfrequently recognized since the 1980's as one of the best places to live in the United States.Mayo Clinic has its world headquarters in Rochester and forms the core of Rochester's economy. As of2019, Mayo employed 36,000+ people and draws more than 2 million visitors annually. In addition, MayoClinic is in the early stages of a $6 billion expansion called Destination Medical Center (DMC) during whichMayo will add in excess of 30,000 new employees to their Rochester Campus. The stability of the economyin Rochester as well as expected future growth make this an attractive long-term investment.

INVESTMENT OVERVIEW

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AERIAL PHOTO

CAR-X (2-TENANT)

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25K CARS PER DAY

Marcus & Millichap closes

more transactions than any other

brokerage firm.

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CAR-X (2-TENANT)

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PROPERTY PHOTO

Car-X Lease Corporately Guaranteed by Monro Muffler Brake, Inc.

Location Has Remained Open, Paying Full Rent During COVID

Adjacent Vacancy to Car-X Provides Additional Potential Upside

Deemed Essential Business

Seller to Sign Master One Year Lease for Vacant Space at COE

Location built as Car-X in 1995 - Acquired in 2016 by Corporate

Significant Development Occurring in Immediate Area

Daily Traffic Counts in Excess of 25K Cars Per Day

AERIAL PHOTO

37TH ST STRIP CENTER

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FORMER SHOPKO –CURRENTLY BEING

REDEVELOPED

25K CARS PER DAY

REPORTEDLY FUTURE

LOCATION

17K CARS PER DAY

Recently Remodeled

AERIAL PHOTO

37TH ST STRIP CENTER

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25KCARS PER DAY

NEW CAR WASH (OPENED IN 2020)

ONGOING DEVELOPMENT

BowmanTool

(Newly Relocated)

HyVee Recently

Underwent Major Remodel

Former Think Bank(currently being

redevelopedby Rochester Police Dept)

Gage Elementary

School

LOCAL MAP

CAR-X (2-TENANT)

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CAR-X (2-TENANT)

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FINANCIAL

ANALYSIS

CAR-X (2-TENANT)

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EXECUTIVE SUMMARYOFFERING SUMMARY

MAJOR EMPLOYERS

EMPLOYER # OF EMPLOYEES

Mayo Clinic 30,353

Mayo Clinic Hospital-Rochester 11,381

Saint Marys Hospital 3,250

IBM 3,000

Olmsted Medical Center 1,244

Benchmark Electronics Inc 1,000

Short-Elliott-Hendrickson Inc 718

Walmart 650

Mayoclinic Assoc 555

Crenlo Cab Products Inc 529

New Horizon Enterprises Inc 525

Hammel Green & Abrahamson Inc 500

DEMOGRAPHICS

1-Miles 3-Miles 5-Miles

2019 Estimate Pop 6,540 57,472 109,847

2010 Census Pop 6,091 54,283 101,004

2019 Estimate HH 2,821 25,150 45,405

2010 Census HH 2,580 23,122 40,928

Median HH Income $85,377 $64,206 $71,183

Per Capita Income $46,236 $39,489 $40,458

Average HH Income $107,017 $89,239 $97,180

VITAL DATAYEAR 1 YEAR 2

Price $1,180,000 CAP Rate 6.89% 7.46%

Down Payment 25% / $295,000 Net Operating Income $81,275 $88,067

Loan Amount $885,000 Net Cash Flow After Debt Service 6.21% / $18,310 8.51% / $25,102

Loan Type Proposed New Total Return 16.48% / $48,605 19.17% / $56,552

Interest Rate / Amortization 3.75% / 20 Years

Gross Leasable Area (GLA) 5,932 SF

Price/SF $198.92

Current Occupancy 100%

Year Built / Renovated 1995

Lot Size 0.77 acre(s)

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MAJOR TENANTSTENANT GLA LEASE EXPIRATION LEASE TYPE

Car-X 4,235 7/31/2026 NNN

TBD 1,697 NNN

FINANCIAL ANALYSIS

CAR-X (2-TENANT)

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TENANT SUMMARY

FINANCIAL ANALYSIS

CAR-X (2-TENANT)

OPERATING STATEMENT

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Notes:• Seller to sign a 1-year NNN Master Lease for vacancy at COE at $8.00 PSF for base rent.• Car-X rent includes rent increase that occurs 8/1/2021. Seller to credit buyer rent difference at closing.• Car-X does not reimburse for management fees or owner’s insurance policy.• Car-X has 15-day Right of First Refusal to purchase property.

FINANCIAL ANALYSIS

CAR-X (2-TENANT)

PRICING DETAIL

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Notes:• Seller to sign a 1-year NNN Master Lease for vacancy at COE at $8.00 PSF for base rent.• Car-X rent includes rent increase that occurs 8/1/2021. Seller to credit buyer rent difference at closing.• Car-X does not reimburse for management fees or owner’s insurance policy.• Car-X has 15-day Right of First Refusal to purchase property.

FINANCIAL ANALYSIS

CAR-X (2-TENANT)

CAR-X LEASE EXCERPT: IMPOSITIONS

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Tenant shall pay, as additional rent, all taxes, assessments, sewer charges, assessments for local, district and special district improvements that may be assessed against or become a lien upon the Leased Premises, or any part thereof, by virtue of any present or future law or regulation of any governmental authority ("Impositions") directly to the taxing authorities. Tenant shall also pay all utility charges for water, gas, fuel oil and electricity consumed on the Leased Premises. Tenant shall not be obligated to make any payments on any mortgages now or hereafter encumbering the Leased Premises, nor shall Tenant be obligated to pay any franchise, corporation,capital stock, capital levies, transfer, estate, excise, inheritance or income tax or excess profits tax which is or may become payable by Landlord or which may be imposed against Landlord or against the rents payable hereunder or upon the income or profits of Landlord by reason of any law now in force or hereafter enacted, unless such taxes are a result of a shift of the incidence of taxation now ordinarily imposed on realty.

RIGHT OF FIRST REFUSAL:In the event that Landlord shall receive a bona fide offer to purchase the Leased Premises, then, Tenant shall have the right of first refusal to meet any bona fide written offer of purchase on the same terms and conditions of such offer. Upon Tenant's failure to meet such bona tide offer within fifteen ( 15) days after notice thereof from Landlord, Landlord shall be free to sell the Leased Premises to such third person, provided the financial terms of the sale are in substantial compliance with the financial terms disclosed to Tenant. "Substantial Compliance" shall mean the purchase price cannot be reduced by more than five percent (5%) of the purchase price disclosed to Tenant. If the purchase price is reduced in excess of five percent (5), than a new notice shall be provided to Tenant. If the third party offer does not close within sixty (60) days afler Tenant's failure to meet such offer, then this right of first refusal shall revive.

FINANCIAL ANALYSIS

CAR-X (2-TENANT)

CAR-X LEASE EXCERPT: MAINTENANCE & REPAIR

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Except as provided for in this Lease, Tenant assumes the responsibility for the operation and maintenance of the Leased Premises. Except as provided for in this Lease, Landlord shall have no responsibility with respect thereof and shall have no liability for damage to the property of Tenant or any tenant, subtenant or other occupant of the Leased Premises or any portion thereof on any account, except as caused by the negligent acts or omissions of Landlord, its agents, employees or invitees. Except as provided for in this Lease, Tenant shall lake good care of the Leased Premises and al its own expense make, as and when needed, all necessary repairs and replacements to the leased Premises, including all mechanical systems located therein (including electrical and plumbing), windows and doors, parking lot, and non-structural components of the Leased Premises. All repairs and replacements made by Tenant shall be done in a good and workmanlike manner. If Tenant shall fail to make such repairs or replacements or if after commencing them shall fail to complete them with reasonable diligence, then after written notice and opportunity to cure or dispute the need for such repairs or replacements, such repairs or replacements may be made or completed by Landlord in a good and workmanlike manner at Tenants expense. Any reasonable amounts spent by Landlord to make or complete such repairs or replacementsshall be repaid by Tenant as additional rent and shall be payable to Landlord within thirty (30) calendar days following Tenant's receipt of a statement from Landlord for such amounts expended. Landlord shall be responsible for, and at its own expense make, as and when needed, all structural repairs and replacements to the Building, foundation, floor slab and all structural elements of the Building, expressly including the roof and all components thereto to the extent the necessary repairs and/or replacements to the roof arise before or during the first 5 years of the initial Lease Term (July 10, 2016- July 31, 2021}. Tenant shall be responsible for, and at its own expense make, as and when needed all repairs and replacements to the roof and all components thereto to the extent the necessary repairs and/or replacements to the roof arise following the expiration of the first 5 years of the initial Lease Term until the termination or expiration of the Lease. Further, Landlord shall be responsible for all repairs, maintenance and replacement of the exterior walls of the Building. The term "walls" as used herein shall not include windows, glass or plate glass. doors, special store fronts or office entries. Tenant shall within a reasonable amount of time give Landlord written notice of a defect or need for repairs, after which Landlord shall have reasonable opportunity to repair same or cure such defect. In the event Landlord fails to make the foregoing repairs or replacements, or if after commencing them shall fail to complete them withreasonable diligence, then after written notice by Tenant to Landlord, such repairs or replacements may be made by Tenant in a good and workmanlike manner at Landlord's expense. If Landlord foils to pay for same upon presentation of a statement from Tenant, Tenant may offset such amount against rent until such amount is paid in full. Tenant shall have no right to create any lien against the Leased Premises and Tenant hereby indemnifies Landlord against any mechanics lien or other lien or claim in connection with the making of such repairs. In the event that any such lien or claim shall be issued, filed or recorded, Tenant shall cause it to be discharged by satisfaction or bonding.

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TENANT PROFILES

CAR-X (2-TENANT)

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Car X Auto Service runs a chain of automotive service centers in the United

States out of which some are owned by them and others being franchised. The

company was founded in the year 1971 and has its headquarters in Schaumburg,

Illinois. The company offers a wide range of automotive repair and maintenance

services for sports vehicles, light trucks, muscle cars, and SUVs under the hood and

under the car, as well as for exteriors, accessories, and performance. The company

also extends its services in the areas of oil change, engine transmission, discount tires,

auto repair, car batteries, mufflers exhaust, and brake repair.

Car-X was acquired by Monro in 2015.

General Information

Tenant Name Car-X

Website https://www.carx.com/

Parent Company Monroe Muffler Brake (https://corporate.monro.com/)

Headquartered Rochester, NY

Rentable Square Feet 4,235 SF

Percentage of RBA 71.00%

Lease Commencement 7/10/2016

Lease Expiration 7/31/2026

No. of Locations 145+ (Car-X Locations)

Monro Muffler Brake was founded in 1957 by Chuck August in Rochester, New

York as part of the Midas organization. Monro broke off from Midas in 1966 and the

Monro name was born.

In 1991 Monro became a publicly traded company at 143 stores. MNRO (NASDAQ)

In 1998 Monro acquired 205 US Speedy Muffler King stores.

In 2002-2005 Monro acquired 60 Tread Quarters, Kimmel and Mr. Tire stores.

In 2009 Monro acquired 41 Tire Warehouse stores.

In 2012 Monro acquired 140 additional stores.

Monro acquird Car-X in 2015.

In 2016 Monro topped 1,000 stores.

In 2017 Monro topped $1 Billion in sales.

Monro’s portfolio now includes Monro Auto Service & Tire Centers, Mr. Tire, Tire

Choice, Ken Towery’s, Auto Tire, Tire Warehouse, Tire Barn, Tread Quarters Discount

Tire, Tires Now and Car-x

MARCUS & MILLICHAP ADVANTAGE

MARCUS & MILLICHAP CAPITAL CORPORATION CAPABILITIESMMCC—our fully integrated, dedicated financing arm—is committed to providing superior capital market expertise, precisely managed execution, and unparalleled access to capital sources providing the most competitive rates and terms.

We leverage our prominent capital market relationships with commercial banks, life insurance companies, CMBS, private and public debt/equity funds, Fannie Mae, Freddie Mac and HUD to provide our clients with the greatest range of financing options.

Our dedicated, knowledgeable experts understand the challenges of financingand work tirelessly to resolve all potential issues for the benefit of our clients.

Optimum financing solutions to enhance value

Enhanced control through MMCC’s ability to qualify investor finance contingencies

Questions on financing an acquisition or refinancing an existing asset?

Contact:Michael HughesSenior Director – Capital MarketsMarcus & Millichap Capital Corporation(262) 364-1938 direct(414) 795-4420 mobileMichael.hughes@marcusmillichap.com

Enhanced control through quickly identifying potential debt/equity sources, processing, and closing buyer’s finance alternatives

WHY MMCC?

National platform operating

within the firm’s brokerage offices

$ 7.18 billion total national

volume in 2019

Access to more capital sources than any other

firm in the industry

Closed 1,994debt and equity

financings in 2019

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CAR-X (2-TENANT)

CAR-X (2-TENANT)

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MARKET

OVERVIEW

MARKET OVERVIEW

OVERVIEWROCHESTER, MN

Home to the world-famous Mayo Clinic, the Rochester metro is situated

approximately 90 miles southeast of St. Paul. Interstate 90 traverses the metro to

the south of the city of Rochester. The Mayo Clinic and the University of

Minnesota Rochester are at the core of an initiative to make Rochester a premier

destination for health and wellness. Already the region hosts nearly 3 million

visitors annually. The metro encompasses Olmsted, Fillmore, Dodge and

Wabasha counties, portions of which are mainly rural. Agricultural is dominant in

these areas and in addition to family farms, employers in this sector include

Reichel Foods, Kemps, Pace Dairy Foods and Rochester Meat.

Economic drivers include life sciences, technology, manufacturing, tourism and agriculture. Besides the Mayo Clinic, other healthcare-related firms include Olmsted Medical Center, Cardinal

of Minnesota, Federal Medical Center, Samaritan Bethany and Home Instead Senior Care. Technology firms representing a wide array of industries are found in the area. Companies include

Benchmark Electronics, Vyriad, Craniovation and Pace. Approximately 300 manufacturing and distribution businesses are in the metro. Geotek, Lincoln

Industries, EZ Fabricating, Crenlo and Con-tech Manufacturing are a few of the many firms with a local presence.

DEMOGRAPHICS

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ECONOMY

METRO HIGHLIGHTS

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; Rochester Area Economic Development Inc.; U.S. Census Bureau

CAR-X (2-TENANT)

MAYO CLINICThe Mayo Clinic is the largest employer with more than 36,300 full- and part-time workers and serves approximately 1.3 million patients each year.

TECH SECTORAnchored by IBM since the 1950s, tech companies have long been a part of the local economy. Many firms cater to the medical and life science industry.

HIGHER EDUCATIONThe Mayo Clinic, University of Minnesota-Rochester and Rochester Community and Technical College provide employers a skilled labor pool.

223K2019

POPULATION:

90K2019

HOUSEHOLDS:

38.22019

MEDIAN AGE:

$72,3002019 MEDIAN

HOUSEHOLD INCOME:

U.S. Median:38.1

U.S. Median:$60,8006.0%

Growth2019-2024*:5.2%

Growth2019-2024*:

PROPERTY NAME

MARKETING TEAM

CAR-X (2-TENANT)

DEMOGRAPHICS

Source: © 2019 Experian

Created on August 2020

POPULATION 1 Miles 3 Miles 5 Miles 2024 Projection

Total Population 6,828 59,601 115,943 2019 Estimate

Total Population 6,540 57,472 109,847 2010 Census

Total Population 6,091 54,283 101,004 2000 Census

Total Population 6,013 53,017 88,213 Current Daytime Population

2019 Estimate 5,962 105,690 157,189HOUSEHOLDS 1 Miles 3 Miles 5 Miles 2024 Projection

Total Households 2,981 26,385 48,370 2019 Estimate

Total Households 2,821 25,150 45,405Average (Mean) Household Size 2.37 2.21 2.37

2010 CensusTotal Households 2,580 23,122 40,928

2000 CensusTotal Households 2,340 21,728 34,917

Occupied Units2024 Projection 2,981 26,385 48,3702019 Estimate 2,882 26,238 47,366

HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles 2019 Estimate

$150,000 or More 16.44% 12.11% 14.07%$100,000 - $149,000 22.90% 16.79% 18.71%$75,000 - $99,999 17.98% 14.17% 14.82%$50,000 - $74,999 14.22% 17.91% 17.70%$35,000 - $49,999 9.71% 11.62% 10.94%Under $35,000 18.73% 27.39% 23.75%

Average Household Income $107,017 $89,239 $97,180Median Household Income $85,377 $64,206 $71,183Per Capita Income $46,236 $39,489 $40,458

HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 MilesTotal Average Household Retail Expenditure $84,176 $74,791 $78,478 Consumer Expenditure Top 10 Categories

Housing $21,728 $19,128 $20,147Transportation $14,555 $13,495 $13,900Shelter $12,425 $10,941 $11,484Food $8,583 $7,616 $8,039Personal Insurance and Pensions $8,103 $6,709 $7,341Health Care $7,383 $6,171 $6,524Utilities $4,244 $3,743 $3,901Entertainment $3,710 $3,232 $3,410Household Furnishings and Equipment $2,695 $2,335 $2,487

Cash Contributions $2,223 $1,801 $1,857POPULATION PROFILE 1 Miles 3 Miles 5 Miles Population By Age

2019 Estimate Total Population 6,540 57,472 109,847Under 20 23.73% 23.49% 26.14%20 to 34 Years 18.67% 23.56% 22.44%35 to 39 Years 6.32% 6.76% 7.26%40 to 49 Years 10.62% 10.62% 10.97%50 to 64 Years 23.20% 18.51% 18.15%Age 65+ 17.45% 17.05% 15.04%Median Age 41.19 37.05 35.91

Population 25+ by Education Level2019 Estimate Population Age 25+ 4,606 40,067 74,298Elementary (0-8) 0.73% 1.40% 1.25%Some High School (9-11) 3.27% 3.47% 3.34%High School Graduate (12) 17.61% 21.13% 19.79%Some College (13-15) 17.67% 19.28% 18.70%Associate Degree Only 10.76% 10.20% 10.72%Bachelors Degree Only 30.71% 25.75% 25.70%Graduate Degree 19.02% 17.80% 19.36%

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CAR-X (2-TENANT)

DEMOGRAPHICS

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