Pep Boys - Waukegan, IL (Chicago) $6,943, % CAP

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1 - Waukegan, IL (Chicago) $6,943, % CAP Representative Photo Highlights Strong Corporate Guaranty Absolute NNN Lease with Annual Rental Escalations Excellent Access & Visibility Tenant Has Operated at This Location for Over 19 Years Surrounded by Major Employers Michael A. Paéz Investment Advisor BRE# Jacob Abusharkh Managing Director BRE#

2 CONTENTS PROPERTY OVERVIEW Executive Summary Tenant Summary Tenant Press FINANCIAL OVERVIEW Financial Summary LOCATION INFORMATION Location Maps Aerial Photo DEMOGRAPHICS Demographics Analysis Demographics Map

3 PROPERTY OVERVIEW Executive Summary Tenant Summary Tenant Press

4 Executive Summary 620 North Green Bay Road Waukegan, IL Price: $6,943,138 Building SF: 22,146 Lot Size: 2.05 AC Price/SF: $314 County: Lake NOI: $451,304 CAP Rate: 6.50% Year Built/Remodeled: 1997/2005 Property Info The subject property is a 22,146 SF fee simple Pep Boys in Waukegan, IL. Subject property has 8 years left on a 15 year NNN corporate lease with 4-5 year options and annual increases of 1.5% through the base term. The property sits on 2.05 acres and strategically situated on heavily traveled N Green Bay Rd. Area Info Waukegan is a city and the county seat of Lake County, Illinois. As of the 2013 census estimate, the city had a population of 88,826. It is the ninth-largest city in Illinois by population. It is the fifth-largest city on the western shore of Lake Michigan, after Chicago, Milwaukee, Green Bay, and Kenosha.

5 Tenant Summary Corporate Information Ticker Symbol: NYSE: PBY, NASDAQ: PBY Founded: 1921, Philadelphia Employees: 19,000 No. of Locations: 800+ Website: Tenant Highlights Leading seller of replacement tires in U.S. Named one of the 500 fastest-growing U.S. companies Tenant Overview The Pep Boys: Manny, Moe & Jack, (branded as and commonly abbreviated as Pep Boys) is a full-service and tire automotive aftermarket chain. The first store, originally named Pep Auto Supplies, was founded in Philadelphia, Pennsylvania in 1921 by Emanuel (Manny) Rosenfeld, Maurice L. (Moe) Strauss, W. Graham (Jack) Jackson, and Moe Radavitz. Currently headquartered in the Allegheny West section of Philadelphia, Pep Boys operates 803 stores and approximately 7,000 service bays in 35 states and Puerto Rico. Along with its full-service vehicle maintenance and repair capabilities, the company also serves the commercial auto parts delivery market. It is one of the leading sellers of replacement tires in the United States, and in 2005 was named one of the 500 fastestgrowing U.S. companies.

6 Tenant Press Bridgestone to Acquire Pep Boys (PBY) in ~$835M Deal October 26, :33 AM EDT Bridgestone Americas, Inc. (Bridgestone) and The Pep Boys Manny, Moe & Jack (NYSE: PBY) today announced that Pep Boys and Bridgestone Retail Operations, LLC (BSRO), a wholly owned subsidiary of Bridgestone, have entered into a definitive merger agreement under which BSRO will acquire Pep Boys in an all-cash transaction for $15.00 per share, or approximately $835 million in aggregate equity value. This represents a premium of 23 percent over Pep Boys' closing price of $12.15 on October 23, 2015 and a premium of 62 percent over Pep Boys' unaffected (prior to market speculation of a potential transaction) price of $9.25 on May 19, The transaction is structured as a tender offer. "Bridgestone and Pep Boys are two leading companies that share a proud heritage in the American automotive services industry," said Gary Garfield, CEO and President of Bridgestone Americas. "Our shared expertise and commitment to our customers and employees will help us build an even stronger organization." Pep Boys, headquartered in Philadelphia, has been one of the nation's leading automotive aftermarket chains since With more than 7,500 service bays in more than 800 locations in 35 states and Puerto Rico, Pep Boys offers tires, maintenance and repair and parts and accessories. The acquisition accelerates the global growth strategy of Bridgestone Corporation, the world's largest tire and rubber company and parent of Bridgestone Americas. Pep Boys will add approximately 800 locations to BSRO's nationwide network of 2,200 tire and automotive service centers, which operate under the Firestone Complete Auto Care, Tires Plus, Hibdon Tires Plus and Wheel Works brand banners. Along with these company-owned stores and Bridgestone's more than 5,000 long-standing dealers and distributors in the United States, Pep Boys' distribution network will help reach even more consumers with the products and services they want when they need them. The acquisition represents an immediate nationwide expansion of more than 35 percent for BSRO. "We are excited to join the Bridgestone family of companies to become part of the world's largest company-owned tire and automotive service retail network," said Scott Sider, CEO of Pep Boys. "This transaction delivers a significant premium for Pep Boys' shareholders and offers new opportunities for our employees across a bigger business. We look forward to working with the Bridgestone team for a smooth and successful transition." The transaction is expected to close Tweet Share in the beginning of Under the terms of the agreement, which has been unanimously approved by the boards of both Bridgestone and Pep Boys, a wholly owned subsidiary of BSRO will commence a tender offer for all outstanding shares of Pep Boys at $15.00 per share in cash. The completion of the tender offer will be conditioned on Pep Boys' shareholders tendering at least a majority of Pep Boys' outstanding shares, determined on a fully diluted basis, and other customary closing conditions, including expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act. Following completion of the tender offer, both companies will complete a merger in which Pep Boys shares that were not tendered in the tender offer will be cancelled and converted into the right to receive $15.00 per share in cash. Following completion of the transaction, Pep Boys will be wholly owned by and operate under BSRO. Pep Boys' stock will no longer trade on the New York Stock Exchange. J.P. Morgan Securities LLC is acting as the exclusive financial advisor to Bridgestone. Jones Day is acting as legal advisor to Bridgestone. Rothschild is acting as the exclusive financial advisor to Pep Boys. Morgan, Lewis & Bockius LLP is acting as legal advisor to Pep Boys.

7 FINANCIAL OVERVIEW Financial Summary

8 Financial Summary 620 North Green Bay Road Waukegan, IL $6,943, % CAP Building SF: 22,146 SF Lot Size: 2.05 AC Year Built/Remodeled: 1997/2005 Market: Chicago Tenant Name GLA Lease Begin Lease End Annual Rent Increases/Options Pep Boys Auto 22,146 SF 8/1/2008 7/31/2023 $451, % Annual Increases Tenant has four 5 year options to renew Operating Summary Current Net Operating Income $451,304 $458,074 $464,945 $471,919 $478,998 CAP Rate 6.50% 6.60% 6.70% 6.80% 6.90% Net Operating Income $486,183 $493,475 $500,877 $508,391 CAP Rate 7.00% 7.10% 7.20% 7.30%

9 LOCATION INFORMATION Location Maps Aerial Photo

10 2. LOCATION OVERVIEW Pep Boys PEP BOYS Location Maps Location Maps All Sperry Van Ness The information Offices Independently listed above Owned has been & Operated. obtained from sources we believe to be reliable, however, we accept no responsibility for correctness. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 9

11 Aerial Photo

12 DEMOGRAPHICS Demographics Analysis Demographics Map

13 PEP BOYS Pep Boys Demographics Report Demographics Analysis 620 North Green Bay Rd Waukegan, IL For Sale $6,685,900 1 Mile 3 Miles 5 Miles Total Population 12, , ,036 Total Number of Households Total Number of Persons per Household Average House Value Average Household Income 4,624 35,925 64, $165,790 $157,304 $180,898 $62,548 $60,024 $65,037 Median Age Median Age - Male Median Age - Female Total Population - White Total Percent - White 5,932 51,031 99, % 47.6% 50.7% Total Population - Black Total Percent - Black 2,278 17,502 36, % 16.3% 18.3% Total Population - Asian Total Percent - Asian 776 5,694 10, % 5.3% 5.1% Total Population - Hawaiian Total Percent - Hawaiian % 0.0% 0.0% Total Population - Indian Total Percent - Indian % 0.2% 0.2% Total Population - Other Total Percent - Other 3,264 29,620 44, % 27.6% 22.8% Total Population - Hispanic Total Percent - Hispanic 5,804 53,298 81, % 49.7% 41.6% * Demographic information provided by BuildOut, Inc. All Sperry Van Ness Offices Independently Owned & Operated. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 14

14 4. DEMOGRAPHICS PEP BOYS Demographics Map Demographics Map Dollar General Net Leased Offering Demographics Analysis 3530 N Governor Williams Hwy Darlington, SC RADIUS MAP 620 North Green Bay Rd Waukegan, IL miles 7 miles 10 miles Radius Map Total Population 6,523 16,087 36, North Market Street McArthur, OH Total Number of Households 2,375 6,051 13,934 1 Mile Average Houeshold Income 3 Miles $54,646 5 Miles $49,412 $46,526 Total Population Median 12,585 5 Age Miles ,296 7 Miles , Miles 38.5 Total Number of Households Total Population 4,624 4,541 35,925 7,575 *Demographic information provided by BuildOut, LLC 64,924 16,215 Average Total Household Number Income of Households $62,548 1,853 $60,024 3,069 $65,037 6,502 Average Median Household AgeIncome 34.1 $42, $42, $41,857 Radius Map Median Age * Demographic information provided by BuildOut, LLC * Demographic information provided by BuildOut, LLC All Sperry Van Ness Offices Independently Owned & Operated. All Sperry Van Ness Offices Independently Owned & Operated. 15

15 PRESENTED BY Michael A. Paéz Investment Advisor BRE# Jacob Abusharkh Managing Director BRE# All rights reserved