S h e r w i n W i l l i a m s , M u s k o g e e , O K | 1O F F E R I N G M E M O R A N D U M

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Sherwin Williams1 8 2 1 N Y o r k S t | M u s k o g e e , O K

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EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

EXCLUSIVELY L ISTED BY:

MIchael MorenoSenior Associate

Michael .Moreno@matthews.comDIR (949) 432-4511MOB (818) 522-4497LIC # 01982943 (CA)

Conrad SarrealAssociate

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

Jessica DearnleyBROKER OF RECORDLIC # 170787

Rahul ChhajedAssociate

Rahul .Chhajed@matthews.comDIR (949) 432-4513MOB (818) 434-1106LIC # 01986299 (CA)

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INVESTMENT HIGHLIGHTS

Property Highlights

• Rare Increase Schedule – There’s a 10% rental increase in Year 3, then 10% Every 5 Years thereafter

• Landlord receives an additional $1,322/year in rent from a billboard on the property

• Ideal 1031 Candidate – 9.75 years left on the lease offers investors long-term cash flow

• Low Rent/SF – Tenant is only paying $6.51/SF

• Low Replacement Cost – Price/SF is just above $100

• Strong Commitment to Location - Tenant recently extended the lease out to 10 years

Location Highlights

• Long Operating History – Tenant has been successfully operating at this site for 24+ years

• Good Traffic Counts – N York St benefits from an average of ±18,000 VPD and ±25,000 VPD from Highway 62

• Strong Retailers Nearby – Surrounding nearby retailers include Lowe’s, Hobby Lobby, Harbor Freight Tools, Big Lots, and Dollar General

• Tulsa Accessible – Muskogee is driving distance from the 2 largest cities in Oklahoma, Oklahoma City and Tulsa

• Continual Commercial Growth – Over the last 5 years, the city of Muskogee has issued 77 new commercial construction permits which represents investments worth more than approx. $94 million

Tenant Highlights

• Top 300 Company – Sherwin-Williams is a Fortune 300 Company with a market cap of $22.41 Billion

• Extremely Strong Credit – Sherwin-Williams’ S&P A Rating is one of the strongest amongst retailers

• High Growth Tenant – Sherwin-Williams has continually expanded their national and international footprint, especially with their pending acquisition of Valspar Paint

• Industry Leader – Sherwin-Williams is the largest paint store tenant in the entire country

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Financial OverviewFinancial OverviewFinancial Overview

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Annualized Operating DataMonthly Rent Annual Rent Rent/SF Increases

Base - 2020 $3,254.17 $39,050 $6.51 6.35%

Base - 2020-2025 $3,619.17 $43,430 $7.24 7.06%

Base - 2025-2027 $4,019.17 $48,230 $8.04 7.84%

Option 1 - 2027-2030 $4,019.17 $48,230 $8.04 7.84%

Option 1 - 2030-2032 $4,461.67 $53,540 $8.92 8.71%

Option 2 - 2032-2035 $4,461.67 $53,540 $8.92 8.71%

Option 2 - 2035-2037 $4,948.42 $59,381 $9.90 9.66%

Option 3 - 2037-2040 $4,948.42 $59,381 $9.90 9.66%

Option 3 - 2040-2042 $5,483.85 $65,806 $10.97 10.70%

Tenant Summary

Tenant Trade Name Sherwin Williams

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof and Structure Landlord Responsible

Original Lease Term 10 Years

Rent Commencement Date 9/1/2017

Lease Expiration Date 8/31/2027

Term Remaining on Lease ± 9.75 Years

Increases 10% in Year 3 and 10% Every 5 Years after that

Options Three, 5-Year Options

List Price$613,050

Cap Rate6.35%

GLA± 6,000 SF

Lot Size± 0.86 Acres

Year Built1993

Sherwin Williams1821 N York St

Muskogee, OK 74403

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*Landlord is receiving an additional $1,322/year in billboard rent

**NOI = $43,920(Sherwin Rent) + $1,322(Billboard Rent) - $2,624(Taxes) - $3,568(Insurance) = $39,050

***Billboard Lease recently got extended until July 1, 2022

Sherwin-Williams Cap Rate 6.30% - $598,857

Billboard Cap Rate 9.31% - $14,215

Blended Cap Rate 6.35% - $613,050

Cap Rate Breakdown

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TenantOverview

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Property Name Sherwin-Williams Store

Property Type Net Leased Paint Store

Parent Company Trade Name The Sherwin-Williams Company

Ownership Public

No. of Locations ± 4,340

No. of Employees ± 40,706

Headquartered Cleveland, Ohio

Website www.sherwin-williams.com

Year Founded 1866

Credit Rating (S&P) A

TENANT OVERVIEW

Sherwin-Williams is one of the top paint manufacturers in the US and worldwide, along with Akzo-Nobel, PPG Industries, and Henkel. The company’s products include a variety of paints, finishes, coatings, applicators, and varnishes sold under brands such as Dutch Boy, Krylon, Sherwin-Williams, Thompson’s WaterSeal, Ronseal, Sayerlack, and Minwax. Additionally, it sells automotive finishing and refinishing products through wholesale branches worldwide. Other outlets include mass merchandisers, home centers, independent dealers and automotive retailers.

STRATEGYSherwin-Williams focuses on enhancing its operations and growing market share. As part of its strategy, Sherwin-Williams invests more than $100 million per year in research, development, and commercialization of new product technologies. Acquisition are also key to the company’s strategy for growth, such as that of the pending acquisiton of rival Valspar, as well as for the addition of new technologies.

OPERATIONSSherwin-Williams has expanded its operating segments from three to four because of growth in sales, geographic reach, and product lines. It added a Latin American Coatings Group to its Paint Stores Group, Global Finishes Group, and Consumer Group segments. Subsidiaries of the company include Comex North America, Inc., Contract Transportation Systems Co, Oy Sherwin-Williams Finland Ab, Sherwin-Williams Bel, Sherwin-Williams (Belize) Limited, and Sherwin-Williams France Finishes SAS.

GEOGRAPHIC REACHWith a customer base in more than 100 countries, Sherwin-Williams has operations in the Asia/Pacific, Canada, Caribbean, Europe, and the Americas.

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Lot Size± 0.86 Acres (37,400 SF)

Assessor’s Parcel Number0000-24-15N-18E-1-111-00

GLA± 6,000 SF

The OfferingParcel Map

N York St ± 19,000 ADT

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R e g i o n a l M a p

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Under an hour outside of Tulsa, Muskogee is a populated city in Muskogee County. It is a family-oriented area and is home to Bacone College. The town is in close proximity to Arkansas, Verdigris, and the Grand Rivers. The community’s recent focus has been to grow their community as they continue to grow their international waterway. Muskogee’s economy is highly dependent on being an industrial hub. Other sectors that have recently influenced the economy is in health care and education.

The residents of the community are dedicated to the area since many have lived there for generations. They have built several monuments throughout the area that represents the countries history, while also paying tribute to the town itself. The community also loves to celebrate the holidays throughout the year. They have been nationally recognized for their amazing decorations and festivities.

AreaOverview

Population 1 Mile 3 Mile 5 Mile2022 Projection 3,229 26,483 38,687

2017 Estimate 3,269 26,365 39,028

2010 Census 3,360 27,092 40,018

2000 Census 3,215 27,064 39,976

Households 1 Mile 3 Mile 5 Mile2022 Projection 1,293 11,209 16,393

2017 Estimate 1,262 10,769 15,956

Income 1 Mile 3 Mile 5 Mile2017 Est. Average Household Income

$56,262 $51,316 $50,886

Muskogee, OK

Demographics

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Tulsa- “Oil Capital of the World,” is located on in northeast Oklahoma along the Arkansas River. Since 1907 Glenn Pool, OK, now a Tulsa suburb, made Oklahoma the nation’s biggest oil producer. Today

Tulsa remains one of the global leaders in oil and natural gas exploration/production. Many energy companies find themselves in Tulsa because of the success of the oil and gas

sector workforce in the area. More than 20,000 workers in E&P work for hundreds of companies large and small in the Tulsa area. Not only does Tulsa have a large

industry in oil, energy and natural gas, but it is also a vastly diverse region when it comes to the different segments of the industry. Companies in

Tulsa vary from E&P to utility, pipeline, energy services, energy supply, and alternative energy. This diverse environment

makes Tulsa home to traditional and renewable energy and increases the development in the industry in

the region.

Tulsa, OK

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395,599Tulsa Population

35.0Median Age

$41,957Median Household Income

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The median household income in Tulsa is $53,025 and the cost of living is 4.4% below the national average. Some of the nation’s largest companies can be found in the Tulsa region due to the fact that the region offers the fifth-lowest cost of doing business while being at the top of Forbes list of best cities for young entrepreneurs in 2013.

The future of Tulsa is projected to continue in growth and success. The mayor of Tulsa has an action plan to fund 80 percent of the 37 economic development projects by 2022. In addition, the city has invested millions of dollars in public transit, the rebirth of down-town Tulsa, education, and the Arkansas River and surrounding area.

Economic Development

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Sherwin Williams located at 1821 N York St, Muskogee, OK 74403 (“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

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BROKER OF RECORD

e x c l u s i v e ly l i s t e d b y

Sherwin Williams1 8 2 1 N Y o r k S t | M u s k o g e e , O K

™

MIchael MorenoSenior Associate

Michael .Moreno@matthews.comDIR (949) 432-4511MOB (818) 522-4497LIC # 01982943 (CA)

Jessica DearnleyBROKER OF RECORD

LIC # 170787

Conrad SarrealAssociate

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

Rahul ChhajedAssociate

Rahul .Chhajed@matthews.comDIR (949) 432-4513MOB (818) 434-1106LIC # 01986299 (CA)