AAMCO 104 STEKOIA LANE, KNOXVILLE, TN 37912

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1 AAMCO 104 STEKOIA LANE, KNOXVILLE, TN OFFERING MEMORANDUM R E T A I L A D V I S O R S

2 CONFIDENTIALITY & DISCLAIMER STATEMENT This Offering Memorandum contains select information pertaining to the business and affairs of AAMCO located at 104 Stekoia Lane, Knoxville, TN ( Property ). It has been prepared by Matthews Retail Advisors. 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 Retail Advisors. 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: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. 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 Retail Advisors 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 Retail Advisors 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. Matthews Retail Advisors

3 Table of Contents PRICING & FINANCIAL ANALYSIS Investment Overview... 2 Executive Summary...3 Company Overview...4 PROPERTY DESCRIPTION Physical Description...7 Birds Eye... 8 Regional Map... 9 Tenant Map...10 DEMOGRAPHICS City Overview Knoxville, TN...12 Demographics Report...13 EXCLUSIVELY LISTED BY: Braden Crockett Senior Associate DIRECT MOBILE braden.crockett@matthews. com License No Jim Schuchert Senior Associate DIRECT MOBILE jim.schuchert@matthews.com License No James Holleman Broker of Record License No

4 Matthews Retail Advisors

5 PRICING & FINANCIAL ANALYSIS

6 INVESTMENT OVERVIEW Brand New Recently Extended 10-Year Absolute-NNN AAMCO Successful 2-unit operator recently extended for 10 years showing commitment to this site. Operator has been successfully operating out of this location for the past 14 Years and been in business for over 40 Years. Offered at an attractive 7.50% return. Large 6 Bay facility that is optimal for strong tenant performance. Investments Highlights Strong Hedge Against Inflation - 10% increases every 5 Years. Absolute NNN - No Landlord responsibilities. Right Across the Street from Home Depot. High Traffic corridor with the connection of U.S. Route 25 and Schaad Rd. Nearby retailers include Home Depot, Walmart Supercenter, Target, Kroger, Lowe s, Ross, Office Max, and ALDI. Explosive population growth with 11.44% from , 4.55% from , with a projected growth of 4.03% from within a 3-mile radius. No Remaining Options at end of lease term - gives the new owner the opportunity to re-negotiate the lease with the current operator. P. 2 Matthews Retail Advisors OFFERING MEMORANDUM AAMCO

7 PRICING ANALYSIS EXECUTIVE SUMMARY AAMCO 104 STEKOIA LANE KNOXVILLE, TN List Price...$800,000 CAP Rate - Current % Gross Leasable Area***...3,400/3,925 SF*** Lot Size Acres (22,889 SF) Year Built ***Owner does not have a survey, buyer to verify actual SF. Annualized Operating Data Monthly Rent Annual Rent CAP Rate Current - 2/29/2021 $5,000 $60, % 3/1/2021-2/29/2026 $5,500 $66, % Tenant Summary Tenant Trade Name AAMCO Type of Ownership Fee Simple Lease Guarantor Franchisee (2-Unit Operator) Lease Type Absolute NNN Roof and Structure Tenant Responsible Original Lease Term 10 Years Lease Commencement Date 2/01/2016 Rent Commencement Date 2/01/2016 Lease Expiration Date 2/29/2026 Term Remaining on Lease ± 9.25 Years Increases 10% in Year 6 Options None Financials Available None AAMCO OFFERING MEMORANDUM Matthews Retail Advisors P. 3

8 COMPANY OVERVIEW Property Name AAMCO Property Type Automotive Maintenance Parent Company Trade Name American Driveline Systems, Inc. Ownership Private No. of Locations (Parent Co.) +600 Headquartered Horsham, PA Web Site Year Founded 1957 With over 50 Years of service, AAMCO Transmissions and Total Car Care is one of the most trusted and recognized automotive brands in the country. Soon after opening his first AAMCO shop, Anthony A. Martino realized there was more transmission work available than he could handle, so he decided to shed the total car care offerings and specialize only in transmissions. He then partnered with two friends from Northeast Philadelphia, Rich Silva and Walt DeLutz to expand operations. These two realized the rapidly growing need for automatic transmission repair service. Together, they opened several shops in the area. Fast forward 50 years later, AAMCO has become one of America s top franchisees still thriving in the automotive segment with over 600 locations nationwide. P. 4 Matthews Retail Advisors OFFERING MEMORANDUM AAMCO

9 PROPERTY DESCRIPTION

10 P. 6 Matthews Retail Advisors OFFERING MEMORANDUM AAMCO

11 PROPERTY PHYSICAL DESCRIPTION THE OFFERING Property Name... AAMCO Property Address Stekoia Lane Knoxville, TN Assessor s Parcel Number MA-007 SITE DESCRIPTION Number of Stories...One Year Built Gross Leasable Area (GLA)... 3,400/3,925 SF*** Lot Size Acres (22,889 SF) Type of Ownership...Fee Simple Parking Surface Spaces Parking Ratio : 1,000 SF Landscaping...Professional Topography... Generally Level CONSTRUCTION Foundation...Concrete Slab Framing...Wood Exterior...Painted Brick Parking Surface...Asphalt Roof...Flat ***Buyer to verify actual SF. AAMCO OFFERING MEMORANDUM Matthews Retail Advisors P. 7

12 BIRDS EYE P. 8 Matthews Retail Advisors OFFERING MEMORANDUM AAMCO

13 PROPERTY REGIONAL DESCRIPTION MAP AAMCO OFFERING MEMORANDUM Matthews Retail Advisors P. 9

14 TENANT MAP P. 10 Matthews Retail Advisors OFFERING MEMORANDUM AAMCO

15 DEMOGRAPHICS

16 DEMOGRAPHIC CITY OVERVIEW ANALYSIS Knoxville, TN Knoxville is a city in the state of Tennessee, and the county seat of Knox County. The city had a population of 178,874 as of the 2010 census and an estimated population of 183,270 in 2013, making it the state s third largest city. Knoxville is the principal city of the Knoxville Metropolitan Statistical Area, which in 2013, had an estimated population of 852,715. The KMSA is the central component of the Knoxville-Sevierville-La Follette Combined Statistical Area, that in 2013, had a population of 1,096,961. Knoxville was the first capital of Tennessee, spurred by the arrival of the railroad in 1855, which led to an economic boom. Following the Civil War, Knoxville grew rapidly as a major wholesaling and manufacturing center. In addition, the city of Knoxville hosted the 1982 World s Fair, and thereafter, revitalization initiatives by city leaders and private developers had major success in cultivating urban and metropolitan growth. Knoxville is the home of the flagship campus of the University of Tennessee, whose sports teams, called the Volunteers or Vols, are extremely popular in the surrounding area. Knoxville is also home to the headquarters of the Tennessee Valley Authority, as well as, the Tennessee Supreme Court s courthouse for East Tennessee and corporate headquarters of several national and regional companies. As one of the largest cities in the Appalachian region, Knoxville has positioned itself in recent years as a repository of Appalachian culture, and is one of the gateways to the Great Smoky Mountains National Park. P. 12 Matthews Retail Advisors OFFERING MEMORANDUM AAMCO

17 DEMOGRAPHICS ANALYSIS REPORT Population 3-Mile 5-Mile 10-Mile 2021 Projection 46, , , Estimate 44, , , Census 42, , , Census 38, , ,900 Growth % 4.24% 4.17% Growth % 4.71% 4.77% Growth % 11.66% 11.53% Households 2021 Projection 19,092 54, , Estimate 18,347 52, , Census 17,563 50, , Census 15,654 45, ,148 Growth % 4.18% 4.15% Growth % 4.38% 4.55% Growth % 9.86% 10.44% Income $0 - $15, % 13.70% 14.64% $15,000 - $24, % 11.73% 11.95% $25,000 - $34, % 13.06% 11.73% $35,000 - $49, % 16.46% 14.54% $50,000 - $74, % 18.82% 17.25% $75,000 - $99, % 11.00% 10.89% $100,000 - $124, % 6.47% 6.97% $125,000 - $149, % 4.02% 4.42% $150,000 - $199, % 2.63% 3.61% $200,000 - $249, % 0.90% 1.50% $250,000 - $499, % 0.87% 1.76% $500, % 0.35% 0.75% 2016 Est. Average Household Income $64,650 $59,618 $66, Est. Median Household Income $51,141 $45,491 $47,055 AAMCO OFFERING MEMORANDUM Matthews Retail Advisors P. 13

18 AAMCO 104 Stekoia Lane Knoxville, TN OFFERING MEMORANDUM Braden Crockett Senior Associate Jim Schuchert Senior Associate DIRECT DIRECT MOBILE MOBILE com License No License No Matthews Retail Advisors 841 Apollo Street, Suite 150 El Segundo, CA James Holleman Broker of Record License No