OFFERING MEMORANDUM1802 SOUTHERN AVE | SHREVEPORT, LA

ALEXANDER HARROLD

BROKER OF RECORD

EXCLUSIVE LISTING AGENTS:

AVP & Senior Director | Industrial

DIRECT 1 310 919 5790MOBILE 1 310 977 1651alex.harrold@matthews.comLIC # 02009656 (CA)

CONTENTINVESTMENT SUMMARY 2

FINANCIAL OVERVIEW 5

PROPERTY OVERVIEW 7

AREA OVERVIEW 12

DONNIE JARREAUBroker of RecordLIC #995685215 (LA)

WILDER DENHOLMAssociate | Industrial

DIRECT 1 310 919 5778MOBILE 1 203 253 0044 wilder.denholm@matthews.comLIC # 02071254 (CA)

INVESTMENT SUMMARY

INVESTMENT SUMMARYINVESTMENT HIGHLIGHTS

Exceptional Location - This investment is located within a major commercial section of Shreveport off of Inter-state 49 and Interstate 20, the main highway connecting Shreveport to Dallas. This property is located +/- 5 miles from Shreveport Regional Airport and +/- 3 miles from Shreveport Downtown Airport.

Building Features - This facility has 37,081 total square feet on a ± 3 acre lot and has a total of 4 loading docks, allowing access to the facility from different sides of the facility. The clear height is 20 ft.

Below Market Rent – Beacon Roofing Supply is paying significantly below market rent of $1.97 per square foot compared to the Shreveport industrial market rent of $5.00 per square foot (Costar). Current offering is at $26 Price/SF far below replacement costs.

Tenant Security - Beacon Roofing Supply, a Fortune 500 company (NASDAQ: BECN), has strong invest-ment grade credit, S&P rated BB-. Beacon Roofing Supply is one of the largest distributors of roofing and building products in North America. They operate 580+ Locations in 50 states and have an annual sales of $ 6.42 Billion (2018).

BEACON ROOFING SUPPLY 1802 Southern AveShreveport, LA 71101

List Price $1,000,000

Price/SF $26.96

Cap Rate 7.32%

GLA ± 37,081 SF

Lot Size ± 2 Acres

TENANT SUMMARY

Tenant Beacon Roofing Supply

Premises Address11802 Southern AveShreveport, LA 71101

Rentable Square Feet ± 37,081 SF

Percent Occupied 100%

Loading Doors 4

Clear Height 20'

Construction Brick/Metal

Type of Ownership Fee Simple

Lease Guarantor Beacon Roofing Supply

Lease Type NNN

Utilities, Taxes, CAM, HVAC, Insurance Tenant Responsible

Roof & Structure Landlord Responsible

Lease Commencement Date 8/31/06

Lease Expiration Date 9/30/24

Term Remaining ± 5.25 years

FINANCIAL OVERVIEW

Annualized Operating Data

Term Monthly Rent Annual Rent Rent/SF Cap Rate

Current - 9/30/2019 $5,922.50 $71,070.00 $1.92 7.11%

10/1/2019 - 9/30/2020 $6,100.18 $73,202.10 $1.97 7.32%

10/1/2020 - 9/30/2021 $6,283.18 $75,398.16 $2.03 7.54%

10/1/2021 - 9/30/2022 $6,471.68 $77,660.11 $2.09 7.77%

10/1/2022 - 9/30/2023 $6,665.83 $79,989.91 $2.16 8.00%

10/1/2023 - 9/30/2024 $6,865.80 $82,389.61 $2.22 8.24%

* price is based off the upcoming rent increase

PROPERTY OVERVIEW

PROPERTY PHOTOS

PARCEL MAP

SOUTHERN AVE ±10,000 VPD

1-20 ±86,000 VPD

1-49 ±73,000 VPD

Louisiana C Store Wholesale

1-20 ±86,000 VPD

Superior Stone Works

Cowtown Materials

SURROUNDING TENANT MAP

SURROUNDING TENANT MAP

TENANT OVERVIEW

BEACON ROOFING SUPPLY

Tenant Beacon Roofing Supply

Headquarters Herndon, VA

No. of Locations 589 Locations

Founded 1928

Symbol (NASDAQ) BECN

Sales $6.42 Billion (2018)

Market Cap S&P Rating BB-

BEACON ROOFING SUPPLY(NASDAQ:BECN)

Beacon Roofing Supply, Inc. is one of the largest distributors of residential

and non-residential roofing and complementary building products in North

America. Beacon currently operates over 550 locations in 50 U.S. states and

6 Canadian provinces. Beacon’s mission is “to be the leading North American

supplier to commercial and residential roofing and exterior building contractors

through a family of long-established regional suppliers and to add value to our

contractor customers’ businesses, to our employees’ careers, to our investors’

assets, and to our suppliers’ products.”

Beacon has grown by expanding its existing regions and by making strategic

acquisitions. Beacon’s business is well-balanced between new and re-roof

applications in both residential and commercial markets. A highly scalable

platform, a proven business model, results-oriented management and a

strong people-focused corporate culture give Beacon a solid foundation for

continued growth.

WHY BEACON?When careful investors search for a true growth company, Beacon Roofing

Supply comes first. Beacon is known for being well-grounded, performance-

oriented and rapidly growing. Beacon has grown from annual sales of $653

million in 2004, with 67 branches in 12 states and three Canadian provinces,

to approximately $6.42 Billion (2018), operating in 550+ branches in 50

states and 6 Canadian provinces.

AREA OVERVIEW

DEMOGRAPHICSPOPULATION 1-MILE 3-MILE 5-MILE

2010 CENSUS 6,940 66,913 153,681

2019 ESTIMATE 6,416 62,335 145,943

2024 PROJECTION 6,234 60,889 143,590

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2010 CENSUS 2,934 27,360 62,005

2019 ESTIMATE 2,748 26,244 60,113

2024 PROJECTION 2,682 25,906 59,614

INCOME 1-MILE 3-MILE 5-MILE

AVERAGE HH INCOME $40,234 $46,929 $50,318

SHREVEPORT, LAAs the third-largest city in the state of Louisiana and the seat of Caddo Parish, Shreveport extends along the Red River. Shreveport was once a major player in United States oil business, and at one time could boast Standard Oil of Louisiana as a locally based company. Recently, Shreveport has largely transitioned into a service economy specifically within the gaming industry and tourism.

BUSINESS CLIMATEThe Shreveport-Bossier City was recently named as a growing area for the technology industry by technology magazine “Innovation and Tech Today”. The recent increase in tech industry jobs through employers such as CSRA and Eatel has put the area on a shortlist of places to watch. The growing number of technology and IT companies located in the region has created nearly 3,000 new tech jobs in the last few years. In addition to the tech growth, the region has seen an increase of Fortune 500 companies like CenturyLink and IBM to technology start-ups such as CyberReef Solutions. Shreveport allows those who live there to work virtually anywhere.

This Offering Memorandum contains select information pertaining to the business and affairs of the Beacon Roofing Supply located at 1802 Southern Ave, Shreveport, LA 71101 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

The Offering Memorandum and its contents are confidential;

You will hold it and treat it in the strictest of confidence; and

You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY & DISCLAIMER STATEMENT

EXCLUSIVE LISTING AGENTS:

I N D U S T R I A L

ALEXANDER HARROLD

BROKER OF RECORDKYLE MATTHEWS

Broker of RecordLIC #9005919 (TX)

EXCLUSIVE LISTING AGENTS:

AVP & Senior Director | Industrial

DIRECT 1 310 919 5790MOBILE 1 310 977 1651

alex.harrold@matthews.comLIC # 02009656 (CA)

WILDER DENHOLMAssociate | Industrial

DIRECT 1 310 919 5778MOBILE 1 203 253 0044

wilder.denholm@matthews.comLIC # 02071254 (CA)

OFFERING MEMORANDUM1802 SOUTHERN AVE | SHREVEPORT, LA 71101