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Kyle Hartung | 216-381-8200 x 205 [email protected]

Tractor Supply - Long Term Lease

Goodman Real Estate Services Group LLC www.goodmanrealestate.com

Exclusive Offering By:

Beaver Falls, Pennsylvania

Offering Memorandum

actual store photo

Disclaimer

PLEASE REVIEW THIS INFORMATION CAREFULLY

- Disclaimer -

The information contained herein has been obtained from sources believed to be reliable. Goodman Real Estate Services Group LLC and its agents, associates, and employees make no guarantee, warranty or representation about it. The information may be subject to changes in price, financing, leases, or other errors and omissions without prior notice. Evaluating retail investment opportunities requires careful due diligence and information gathering, which is why we suggest that you and your advisors conduct your own careful investigation of the property.

Beaver Falls, Pennsylvania Tractor Supply - Long Term Lease

Table of Contents

SECTION 1 - The Property

Investment Summary Pg. 1 Property Description Pg. 2 Property Photos Pg. 3 SECTION 11 - Performance and Tenancy Rent Roll Pg. 4 Tenant Information Pg. 5

SECTION 1II - Market Overview

Market Aerial Pg. 6 Regional Map Pg. 7 Local Map Pg. 8 Demographics Pg. 9-11


Presented By: Kyle Hartung Director of Investment Sales Goodman Real Estate Services Group LLC 25333 Cedar Road, Suite 305 Cleveland, Ohio 44122 Email: [email protected] Phone: 216-381-8200 x205


The Property - Investment Summary

Goodman Real Estate Services Group LLC www.goodmanrealestate.com 1

Property

Lease Guarantor

Property Address

Major MSA

Store Size

Lease Type

Fee Type

Debt Type

Rent Commencement Date

Guaranteed Term Remaining

Rent Increases

Next Rental Increase

Renewal Options

Current Base Rent

Rent Per Square Foot

Current NOI

Capitalization Rate

Price

Tractor Supply Tractor Supply Company, a Delaware Corporation Nasdaq: TSCO 142 McKinley Road Beaver Falls, PA 15010 Pittsburgh Population: 2,360,000 19,097 square feet NN - Landlord responsible for roof and structure 100% Fee-Simple Land and Building Delivered Free and Clear of Debt at Closing January 1, 2009 12 Years. Base Term Expires September 30, 2030 INITIAL TERM AND OPTIONS - See Rent Roll May 1, 2024 Three Five-Year Options $210,000 $10.99 $210,000 5.85% $3,590,000


Actual Store Photo

The Property - Property Description


Investment Highlights Tractor Supply Net Lease Investment Long-term Corporate Lease with 12 Years Remaining

(Nasdaq: TSCO) One of the Most Sought After Net Lease Tenants in the Marketplace Building Lease - Depreciable Asset Early Lease Extension, Showing Tenant’s Commitment to the

Property Current Rent Only $10.99 Per Square Foot Property Description For sale to qualified investors is a rare opportunity to own a fee-simple (land and building) net lease Tractor Supply located in Beaver Falls, Pennsylvania. The lease is corporately signed by Tractor Supply Company, which is publicly traded on the Nasdaq exchange under the ticker symbol TSCO. The company is the largest operator of farm and ranch stores in the United States, with over 1,488 locations in 49 states as of December 2015, and annual revenue of $6.2 billion. Although Tractor Supply has no public debt rating, they are generally considered investment grade. The majority of Tractor Supply net lease offerings are purchased by institutional investors prior to being seen on the public market, which makes this offering unique to the individual investor. Constructed in 2009 under an initial 15-year lease, Tractor Supply has already extended the lease for an additional 6 years, indicating their commitment to the site. The lease now has 12 years in guaranteed term remaining, plus options. The property is located on heavily trafficked McKinley Road in the retail center of Beaver Falls, and is surrounded by other national retailers including Walmart, Home Depot, Kmart, Giant Eagle, Walgreens, CVS, Aldi, Dollar Tree, Dollar General, Applebee’s, McDonald’s, Burger King, Pizza Hut, Sears, Staples, Pet Sense, Shoe Show, Save-a-lot, Fifth Third Bank, Verizon, McDonald’s, Applebee’s, Taco Bell, and others.

Beaver Falls, Pennsylvania Beaver Falls is a city in Beaver County, Pennsylvania, and part of the Pittsburgh MSA. The population was 8,987 at the 2010 census. Its location northwest of Pittsburgh and on the Beaver River, six miles from its confluence with the Ohio River, helped establish the city dating back to 1868 as a center of trade and commerce. Geneva College is located in the College Hill neighborhood on the north side of the city, and has over 1,400 students and 30 majors. The world's first recorded college basketball game occurred in the city on April 8, 1893 when the intramural team from Geneva College defeated the New Brighton YMCA. The Pittsburgh MSA is the second largest in Pennsylvania and is the largest in both the Ohio Valley and Appalachia and the 20th-largest in the U.S. Aside from the MSA’s notable production of steel, the area has led in aluminum, glass, shipbuilding, petroleum, foods, sports, transportation, computing, autos, and electronics. In 2015, Pittsburgh was named on a list of the "eleven most livable cities in the world." Google, Apple, Bosch, Disney, Uber, Intel and IBM are among 1,600 technology firms generating $20.7 billion in annual area payrolls, with the area also serving as the long-time federal agency headquarters for cyber defense, software engineering, robotics, and energy research. The area is also home to Carnegie Mellon University, the University of Pittsburgh, and Duquesne University, among others.


The Property - Property Photos



Performance & Tenancy - Rent Roll


Square Lease Term Rental Rates Recovery

Tenant Name Feet Pro‐rata Begin End Begin Annually Monthly Type Comments/Op ons Tractor Supply Company 19,097 100% 1‐1‐2009 9‐30‐2030 Current

5‐1‐2024

Op ons: 10‐1‐2030 Jan‐2037 Jan‐2040

$210,000 $224,400

$245,736 $270,180 $295,956

$17,500 $18,700

$20,478 $22,515$24,663

NN Tenant pays for property taxes, insurance, and property maintenance and repair, excep ng the roof, structure, and u lity lines to the point of building entry, which are Landlord’s responsibility.

Op ons: Three (3) Five‐year op ons to renew

Right of First Refusal: 30 days


Performance & Tenancy - Tenant Information

Goodman Real Estate Services Group LLC 5


Tractor Supply Company (NASDAQ: TSCO) is a the largest operator of farm and ranch stores in the United States, with over 1,488 locations in 49 states as of December 2015, and annual revenue of $6.2 billion. Stores offer products for home improvement, agriculture, lawn and garden maintenance, and livestock, equine and pet care. Founded as a mail order tractor parts business in 1938, the first Tractor Supply Co. retail store was founded in 1939 in Minot, North Dakota. Today, TSC is headquartered in Brentwood, Tennessee, a suburb of Nashville. Tractor Supply sells five major product categories. The livestock and pet products category accounted for 44 percent of the company's sales in 2014. The category with the second highest sales was hardware, tools, truck and towing products, with 22 percent of sales. Seasonal products such as lawn and garden equipment, gifts and toys were 20 percent of sales, followed by clothing and footwear with 9 percent and agricultural products with 5 percent of sales. They have achieved success in rural areas and larger markets alike. In 2004, when the company reported revenues of more than $1.7 billion, Fortune magazine named Tractor Supply to its list of the 100 fastest growing businesses. Eleven years later, as of December 26, 2015, Tractor Supply Company operated 1,488 stores in 49 states with revenue of $6.2 billion, and operated an online store at TractorSupply.com. The company projects continued growth with expansion into many more underserved market throughout the U.S.

Market Overview - Market Aerial



BEAVER COUNTY AIRPORT

CONSTITUTION BOULEVARD

6

Market Overview - Regional Map



Market Overview - Local Map



Market Overview - Demographics



142 McKinley Road 3 Miles 5 Miles 7 Miles 10 Miles


POPULATION

2015 Estimated Population 13,285 34,347 58,641 115,323 2020 Projected Population 13,205 34,438 58,686 114,915 2010 Census Population 13,204 33,774 58,484 115,313 2000 Census Population 12,840 35,134 61,330 121,902 Projected Annual Growth 2015 to 2020 -0.1% 0.1% - -0.1% Historical Annual Growth 2000 to 2015 0.2% -0.1% -0.3% -0.4%

HOUSEHOLDS

2015 Estimated Households 5,679 14,452 24,507 49,360 2020 Projected Households 5,758 14,787 25,027 50,179 2010 Census Households 5,488 13,806 23,752 47,904 2000 Census Households 5,129 13,730 23,741 48,318 Projected Annual Growth 2015 to 2020 0.3% 0.5% 0.4% 0.3% Historical Annual Growth 2000 to 2015 0.7% 0.4% 0.2% 0.1%

AGE

2015 Est. Population Under 10 Years 10.1% 10.4% 10.4% 10.4% 2015 Est. Population 10 to 19 Years 11.6% 12.3% 12.1% 11.8% 2015 Est. Population 20 to 29 Years 10.2% 12.9% 11.8% 11.7% 2015 Est. Population 30 to 44 Years 15.9% 15.8% 16.1% 16.5% 2015 Est. Population 45 to 59 Years 22.9% 21.8% 22.2% 22.1% 2015 Est. Population 60 to 74 Years 19.2% 16.9% 17.4% 17.8% 2015 Est. Population 75 Years or Over 10.1% 9.9% 10.0% 9.8% 2015 Est. Median Age 45.3 42.1 43.1 43.4

INCOME

2015 Est. HH Income $200,000 or More 3.9% 2.3% 2.1% 1.7% 2015 Est. HH Income $150,000 to $199,999 4.4% 3.2% 3.1% 3.1% 2015 Est. HH Income $100,000 to $149,999 13.9% 11.0% 11.6% 10.9% 2015 Est. HH Income $75,000 to $99,999 13.3% 11.8% 12.7% 12.8% 2015 Est. HH Income $50,000 to $74,999 18.3% 19.6% 19.3% 19.7% 2015 Est. HH Income $35,000 to $49,999 13.6% 14.1% 14.2% 14.8% 2015 Est. HH Income $25,000 to $34,999 13.9% 12.7% 12.9% 12.2% 2015 Est. HH Income $15,000 to $24,999 10.4% 12.2% 11.7% 11.8% 2015 Est. HH Income Under $15,000 8.3% 13.2% 12.5% 13.1% 2015 Est. Average Household Income $74,436 $62,884 $62,831 $60,392 2015 Est. Median Household Income $56,928 $49,784 $50,194 $48,954 2015 Est. Per Capita Income $31,887 $26,679 $26,487 $25,994






EDUCATION (Adults 25 or Older)

2015 Est. Adult Population (25 Years or Over) 11,188 27,980 48,302 95,842 2015 Est. Elementary (Grade Level 0 to 8) 2.8% 4.0% 4.5% 4.4% 2015 Est. Some High School (Grade Level 9 to 11) 7.0% 10.1% 9.6% 10.8% 2015 Est. High School Graduate 31.9% 33.8% 33.4% 34.7% 2015 Est. Some College 16.5% 14.2% 14.8% 14.8% 2015 Est. Associate Degree Only 10.2% 9.8% 9.8% 9.6% 2015 Est. Bachelor Degree Only 14.1% 13.3% 13.6% 13.1% 2015 Est. Graduate Degree 17.5% 14.9% 14.4% 12.6%

HOUSING

2015 Est. Total Housing Units 5,925 15,250 25,896 52,168 2015 Est. Owner-Occupied 74.2% 65.6% 67.9% 67.6% 2015 Est. Renter-Occupied 21.7% 29.2% 26.8% 27.0% 2015 Est. Vacant Housing 4.1% 5.2% 5.4% 5.4%

HOMES BUILT BY YEAR

2010 Homes Built 2005 or later 3.4% 2.5% 2.6% 2.5% 2010 Homes Built 2000 to 2004 6.7% 4.3% 3.8% 3.9% 2010 Homes Built 1990 to 1999 8.7% 7.1% 7.5% 7.5% 2010 Homes Built 1980 to 1989 7.1% 6.5% 7.1% 6.9% 2010 Homes Built 1970 to 1979 14.0% 12.1% 12.2% 12.1% 2010 Homes Built 1960 to 1969 12.2% 11.3% 11.1% 10.7% 2010 Homes Built 1950 to 1959 21.2% 17.5% 18.5% 17.3% 2010 Homes Built Before 1949 26.7% 38.8% 37.2% 39.0%

HOME VALUES

2010 Home Value $1,000,000 or More 0.3% 0.2% 0.3% 0.3% 2010 Home Value $500,000 to $999,999 1.4% 1.4% 1.5% 1.4% 2010 Home Value $400,000 to $499,999 2.5% 1.6% 1.4% 1.5% 2010 Home Value $300,000 to $399,999 7.4% 5.1% 5.0% 4.0% 2010 Home Value $200,000 to $299,999 10.9% 11.0% 11.9% 11.6% 2010 Home Value $150,000 to $199,999 25.0% 17.9% 18.3% 16.8% 2010 Home Value $100,000 to $149,999 26.8% 23.1% 24.4% 24.7% 2010 Home Value $50,000 to $99,999 17.7% 27.7% 26.0% 29.6% 2010 Home Value $25,000 to $49,999 4.2% 7.7% 6.8% 6.1% 2010 Home Value Under $25,000 3.8% 4.3% 4.2% 4.2% 2010 Median Home Value $142,474 $123,191 $125,855 $120,597 2010 Median Rent $533 $460 $453 $460






LABOR FORCE

2015 Est. Labor Population Age 16 Years or Over 10,992 28,478 48,503 95,536 2015 Est. Civilian Employed 58.7% 57.1% 57.8% 58.4% 2015 Est. Civilian Unemployed 2.4% 3.1% 3.1% 3.1% 2015 Est. in Armed Forces - - - - 2015 Est. not in Labor Force 38.9% 39.8% 39.1% 38.5% 2015 Labor Force Males 47.6% 47.5% 47.6% 47.7% 2015 Labor Force Females 52.4% 52.5% 52.4% 52.3%

OCCUPATION

2010 Occupation: Population Age 16 Years or Over 6,032 15,093 25,969 52,332 2010 Mgmt, Business, & Financial Operations 12.3% 11.4% 12.0% 11.2% 2010 Professional, Related 23.3% 20.1% 19.9% 19.3% 2010 Service 17.2% 19.1% 19.1% 19.5% 2010 Sales, Office 24.6% 25.1% 24.1% 24.5% 2010 Farming, Fishing, Forestry 0.1% 0.2% 0.2% 0.2% 2010 Construction, Extraction, Maintenance 8.6% 8.7% 8.9% 8.6% 2010 Production, Transport, Material Moving 13.9% 15.4% 15.7% 16.7% 2010 White Collar Workers 60.2% 56.6% 56.1% 55.0% 2010 Blue Collar Workers 39.8% 43.4% 43.9% 45.0%

TRAVEL TIME

2010 Travel to Work in 14 Minutes or Less 29.6% 31.3% 30.2% 31.0% 2010 Travel to Work in 15 to 29 Minutes 37.7% 35.3% 35.6% 35.2% 2010 Travel to Work in 30 to 59 Minutes 27.7% 27.6% 27.5% 26.7% 2010 Travel to Work in 60 Minutes or More 5.0% 5.7% 6.7% 7.1% 2010 Average Travel Time to Work 20.6 20.5 21.1 20.9

CONSUMER EXPENDITURE

2015 Est. Total Household Expenditure $325 M $734 M $1.25 B $2.45 B

2015 Est. Apparel $11.2 M $25.4 M $43.0 M $84.4 M

2015 Est. Contributions, Gifts $21.9 M $47.4 M $80.0 M $156 M

2015 Est. Education, Reading $12.2 M $26.7 M $44.9 M $87.2 M

2015 Est. Entertainment $18.2 M $40.8 M $69.3 M $136 M

2015 Est. Food, Beverages, Tobacco $49.8 M $114 M $194 M $381 M

2015 Est. Furnishings, Equipment $11.1 M $24.7 M $41.9 M $82.0 M

2015 Est. Health Care, Insurance $28.8 M $66.1 M $112 M $221 M

2015 Est. Household Operations, Shelter, Utilities $101 M $228 M $387 M $759 M

2015 Est. Miscellaneous Expenses $4.83 M $11.0 M $18.7 M $36.8 M

2015 Est. Personal Care $4.20 M $9.53 M $16.2 M $31.8 M

2015 Est. Transportation $61.8 M $140 M $239 M $470 M

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