OFFERING MEMORANDUM5338 159th St. Oak Forest, IL

SHERWIN WILLIAMS

™

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EXCLUSIVELY LISTED BY Michael MorenoSenior Associatemichael.moreno@matthews.comDIR (949) 432-4511MOB (818) 522-4497LIC # 01982943

Aron ClineSVP & Senior Directoraron.cline@matthews.comDIR (949) 432-4509MOB (818) 632-0233LIC # 01904371 (CA)

Broker of RecordKyle MatthewsLIC # 471.019766 (IL)

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

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EXECUTIVE OVERVIEW

PROPERTY DETAILS

• Brand New High Quality Construction – Build-To-Suit Sherwin-Williams building opened its doors for business in 2018• Inflation Protected Lease Structure – Attractive 10% Rental Increases Every Five Years provides investors with a very strong

hedge against future inflation• Extremely Passive Investment – Minimal Landlord Responsibilities – Roof & Structure are sole Landlord Responsibilities• Ideal Sherwin-Williams Building – Property is directly in line with tenant’s latest prototypical building• Perfect 1031 Exchange Property – This net leased property provides a future landlord a brand-new investment with 10%

rental increases every 5 years, leased to one of the strongest tenants in the entire retail industry

LOCATION

• High Density Market – Population within a 5-mile radius of the property exceeds 230,000• Strong Consumer Demographics – Average resident income within a 1-mile radius is greater than $84,000• Excellent Street Visibility – The property is strategically located off the intersection of Central Ave and 159th St, which

features over 38,000 vehicles in Average Daily Traffic• Highly Visited Location – Sherwin-Williams is located in a retail corridor with a national tenant lineup that features The Home

Depot, Menards, Walmart, Target, Lowe’s, Jewel-Osco, McDonald’s, Fresenius Medical Care, Jiffy Lube, Walgreens, Circle K, Dunkin’ Donuts, Starbucks, and CVS amongst many others

TENANT

• Investment Grade Credit Tenant – Sherwin-Williams is a Fortune 200 company with a market cap of $38.52 Billion• High Growth Tenant – Sherwin-Williams is continuing to expand their national and international footprint, especially with the

recent acquisition of Valspar Paint• Market Leader – Sherwin-Williams is the global leader in the paints and coating industry

INVESTMENT HIGHLIGHTS

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LIST PRICE

$1,842,105

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FINANCIAL OVERVIEW

FINANCIAL OVERVIEW

Tenant Trade NameThe Sherwin Williams

Company

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Roof & Structure Landlord Responsible

Original Lease Term 10 Years

Rent Commencement Date 2/23/2018

Lease Expiration Date 2/29/2028

Term Remaining ±9.75 Years

Increases 10% Every 5 Years

Options Two, 5-Year Options

Lease Commence Monthly Rent Annual Rent Rent PSF CAP

Base Term - 2018-2023 $8,750.00 $105,000.00 $30.00 5.70%

Base Term - 2023-2028 $9,625.00 $115,500.00 $33.00 6.27%

Option 1 - 2028-2033 $10,587.50 $127,050.00 $36.30 6.90%

Option 2 - 2033-2038 $11,646.25 $139,755.00 $39.93 7.59%

ANNUALIZED OPERATING DATA

Property Name Sherwin Williams

Address5338 159th Street

Oak Forest, IL 60452

Year Built 2018

GLA ±3,500 SF

Lot Size ±0.77 AC

EXECUTIVE SUMMARY

TENANT SUMMARY

LIST PRICE

$1,842,105

CAP RATE

5.70%

TERM REMAINING

±9.75 Years

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TENANT OVERVIEW SHERWIN WILLIAMSSherwin-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. Acquisitions are also key to the company’s strategy for growth, such as that of the pending acquisition 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.

PARENT COMPANY TRADE NAME

The Sherwin Williams Company

NO. OF LOCATIONS

±4,340

NO. OF EMPLOYEES

±40,706

HEADQUARTERED

Cleveland, Ohio

YEAR FOUNDED

1866

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159TH STREET ±38,000 VPD

PARCEL MAP

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SURROUNDING AREA

159TH STREET ±38,000 VPD

CHICAGOLAND

Situated on the southwestern shore of Lake Michigan, the City of Chicago covers an area of 234 square miles. Chicagoland is an informal name for the metropolitan area associated with the city of Chicago and its suburbs. The region is often considered to include areas beyond its corresponding MSA, as well as portions of the greater CSA.

Chicago has one of the world’s largest and most diversified economies, with more than four million employees and generating an annual gross regional product (GRP) of over $575 billion, which is more than countries like Sweden and Norway. Having been listed as an alpha global city by the Global Cities Index, it is a key player in every sector from risk

management, innovation and information technology to manufacturing and health services.

Over $575 billionGross regional product

(GRP)

2,695,598Residents

Over 40 Million annual visitors

AREA OVERVIEW

ECONOMYThe city is an efficient economic powerhouse, home to more than 400 major corporate headquarters, including 31 in the Fortune 500. Boeing, United Continental Holdings, Inc., Exelon Corporation, R. R. Donnelley & Sons Company, and Archer Daniels Midland are just a few of the Fortune 500 companies based in the area. Motorola Solutions, Inc. intends to move their headquarters from Schaumburg, IL to Chicago in the coming future. McDonald’s has become the latest Fortune 500 company to establish its presence in Chicago as it is preparing to move its headquarters from Oak Brook, IL to the windy city by early 2018.

As a multicultural city that thrives on the harmony and diversity of its neighborhoods, Chicago embodies the values of America’s heartland integrity. It is this level of diversification that has resulted in Chicago being rated as having the most balanced economy in the United States. Additionally, its central location allows Chicago to be at the center of global trade, transit and data networks.

HIGHER EDUCATIONChicago has been a world center of higher education and research with several universities inside its city limits. Most notably, Northwestern University and the University of Chicago are two top universities that call the city home.

Northwestern University is a large, private research university based in Evanston with a comprehensive doctoral program. Attracting over $650 million in sponsored research each year, Northwestern has the eighth largest university endowment in the country.

The University of Chicago is one of the world’s leading and most influential institutions of higher learning. Its main campus is located seven miles south of downtown Chicago in the Hyde Park and Woodlawn neighborhoods. The University of Chicago has many prominent alumni, including 92 Nobel laureates that have been affiliated with the university as professors, students, faculty or staff.

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O’HARE INTERNATIONAL AIRPORTChicago O’Hare International Airport is located on the far northwest side of the city, about 17 miles northwest of the Loop. It is the primary airport of the Chicago metropolitan area. As the fourth-busiest airport in the world by passenger traffic, O’Hare is a major hub for American Airlines, United Airlines and Air Choice One. With eight runways, more than any major international airport, O’Hare has direct service to 210 destinations.

MIDWAY INTERNATIONAL AIRPORTEight miles from the Loop on the southwest side of Chicago, Chicago Midway International Airport is the second-largest passenger airport in Chicagoland. Southwest Airlines is the dominant carrier at Midway, offering around 250 daily departures to sixty nonstop destinations. Passengers enjoy easy access to downtown thanks to the services provided by the CTA.

CHICAGO TRANSIT AUTHORITYThe Chicago Transit Authority (CTA) operates an extensive network of buses and the “L” rapid transit system, which provide service to Chicago and forty surrounding suburbs. On an average weekday, CTA offers 1.7 million rides on buses and trains. As one of the city’s distinguishing features, the “L” has been credited with fostering the growth of Chicago’s dense city core.

METRA

Metra is the second-most used passenger regional rail network in the country, which operates 241 station on 11 different rail lines. This commuter railroad services passengers through stations throughout the Chicago metropolitan area. Metra’s Electric Line shares its trackage with Northern Indiana Commuter Transportation District’s South Shore Line, which provides commuter service between South Bend and Chicago.

GETTING AROUND

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POINTS OF INTEREST

NAVY PIER

MAGNIFICENT MILE WILLIS TOWER JOHN HANCOCK CENTER

Navy Pier is Chicago’s lakefront treasure on the shoreline of Lake Michigan. The pier encompasses more than fifty acres of parks, gardens, shops, restaurants, family attractions and exhibition facilities. Drawing nearly nine million visitors annually, Navy Pier is one of the most visited attractions in the entire Midwest.

Adjacent to downtown and one block east of Rush Street, the Magnificent Mile is an upscale section of Chicago’s Michigan Avenue, which runs from the Chicago River to Oak Street in the Near North Side. Several of the tallest buildings in the country lie in this district, such as the John Hancock Center and the Trump International Hotel and Tower. Serving as the main thoroughfare between Chicago’s Loop business district and Gold Coast, the Magnificent Mile contains a mixture of high-end department stores, restaurants, luxury retailers, residential and commercial buildings, financial services companies and hotels, primarily catering to tourists and the affluent.

Still commonly referred to as Sears Tower, the Willis Tower is the second-tallest building in the United States. This bustling community of business, tourism and culture offers breathtaking views of the city from its Skydeck. Visitors can experience the Ledge, all-glass balconies that allow visitors to look through the glass floor to the street 1,353 feet below.

The John Hancock Center is currently the eighth-tallest building in the country. Equipped with a restaurant and lounge on the 95th floor, the Observatory (360 Chicago), and America’s highest indoor swimming pool, the John Hancock Center appeals to residents and tourists alike. From the restaurant, diners can take in views of the city.

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The suburban city of Oak Forest sits approximately 24 miles southeast of Chicago. Oak Forest is very conveniently located with easy access to Interstates 57, 80, and 294.

Oak Forest is surrounded by the Cook County Nature Preserves, which create a beautiful landscape for residents and visitors to enjoy. The Nature Preserves are one of the most popular attractions in the area, spanning approximately 640 acres. Over 20 miles of recreational trails connect the nature preserves.

Another popular attraction is the Chicago Gaelic Park, one of the nation’s largest Irish Cultural Centers. The park sits on 50 acres of land and holds events year-round. The George Dunne National Golf Course in Oak Forest was recognized by Golf Digest as the best public golf course in the region.

With average median household income and estimated median home values well above the state and national averages, Oak Forest has a thriving economy. The largest industries in Oak Forest are healthcare, manufacturing, and education. The unemployment rate in Oak Forest is also well below the national average, and the city has seen promising recent job growth. Future job growth in the area is projected to be 36.89% over the next 10 years.

Known for its family-friendliness and top-notch public schools, Oak Forest is a great place to raise a family. Crime rates in the city are well below the national average, and it is ranked amongst the suburbs with the lowest cost of living in Illinois.

Oak Forest is also a great place for young people, being ranked on the list of Best Suburbs for Millennials in the state in 2018. The city has great nightlife, with plenty of taverns, bars, and fun restaurants throughout the area.

OAK FOREST, IL

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POPULATION 1-Mile 3-Mile 5-Mile

2018 Estimate 10,712 81,893 230,247

HOUSEHOLDS 1-Mile 3-Mile 5-Mile

2018 Estimate 4,171 31,242 85,628

INCOME 1-Mile 3-Mile 5-Mile

Average Household Income 2018

$87,341 $85,073 $85,661

AREA DEMOGRAPHICS

MEDIAN HOUSEHOLD INCOME

Oak Forest : $84,346I l l inois Average: $60,960Nat ional Average: $65,443

UNEMPLOYMENT RATE

Oak Forest : 4.5%I l l inois Average: 5.1%Nat ional Average: 5.2%

REAL ESTATE IN OAK FOREST

Median home value in Oak Forest is $192,942, wel l above I l l inois and Nat ional averages.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Sherwin Williams located at 5338 159th St Oak Forest, IL 60452 (“Property”) . I t has been prepared by Matthews Retai l Advisors. 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 Retai l Advisors. 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 Retai l Advisors 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 Retai l Advisors 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

EXCLUSIVELY LISTED BY

™

OFFERING MEMORANDUM5338 159th St. Oak Forest, ILSHERWIN WILLIAMS

Michael MorenoSenior Associatemichael.moreno@matthews.comDIR (949) 432-4511MOB (818) 522-4497LIC # 01982943

Aron ClineSVP & Senior Directoraron.cline@matthews.comDIR (949) 432-4509MOB (818) 632-0233LIC # 01904371 (CA)

Broker of RecordKyle MatthewsLIC # 471.019766 (IL)

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