Actual Site

OFFERING MEMORANDUM

Andrew FallonExecutive Managing Director703.787.4733 | afallon@calkain.com

7-ELEVEN Pittsburgh, PA

Asset Summary

Net Operating Income (NOI) $105,000

Rent/Month $8,750

Rent/SF $42.89

Rentable Square Feet 2,448+/- SF

Land Area 0.29+/- Acres

Tenant 7-Eleven

Credit Rating S&P: AA-

Guarantor Corporate

Ownership Type Fee Simple

Lease Type Absolute NNN

Landlord Responsibilities None

Year Built 1980

Lease Term Remaining 9+ Years

Lease Commencement Extended in 2017

Lease Expiration December 31, 2027

Increases 10% Every 5 Years

Options Four (4), Five (5) Year

Gas Pumps Four (4) Tanks Replaced in 2007

Investment Highlights

• Structured 10% rent increases every 5 years starting January 1, 2023

• Average cap rate of 7.71% over life of the full lease

• 7-Eleven operating history with 40 years at this location

• Absolute NNN fee simple lease; No landlord responsibilities

• Corner location with combined traffic counts of 15,000+ VPD

• Strong investment grade credit S&P: AA-

• Corporate guaranty

Rent Schedule

Term Increases Annual Rent Monthly Rent

Cap Yield

Current – 12/31/2022 - $105,000.00 $8,750.00 6.00%

1/1/2023 – 12/31/2027 10% $115,500.00 $9,625.00 6.60%

1/1/2028 – 12/31/2032* 10% $127,050.00 $10,587.50 7.26%

1/1/2033 – 12/31/2037* 10% $139,755.00 $11,646.25 7.97%

1/1/2038 – 12/31/2042* 10% $153,730.50 $12,810.83 8.79%

1/1/2043 – 12/31/2047* 10% $169,103.55 $14,091.92 9.66%

Asking Price$1,720,000

Cap Rate 6.10%

6403 Brownsville RoadPittsburgh, PA 15236

*Option periods

Calkain Companies | 2

7-Eleven | Financial Summary

Tenant Snapshot

About 7-ElevenKnown for bladder-busting beverages Slurpee and Big Gulp, 7-Eleven operates more than 11,500 company-owned or franchised convenience stores in the US, Canada, and Mexico under the 7-Eleven name. Globally, 7-Eleven licenses more than 65,000 stores in nearly 20 countries, mostly in the Asia-Pacific region and the Nordic countries of Europe. In addition to its iconic beverages, the chain sells thousands of other traditional convenience items (many under its own private-label brand), as well as sandwiches, salads, pizza, cut fruit, and other ready-to-eat foods. Some locations sell gasoline and offer services such as bill payment and self-service lockers.

7-Eleven aggressively adds new stores, particularly targeting high-growth regions. This is achieved through organic store openings (about 500 total in 2016 and 2017) and acquisitions, including a 2018 purchase of more than 1,000 stores in more than 15 US states.

# of Stores Worldwide

65,000

Credit Rating

S&P: AA-

Market Cap

$39 BillionTenant Snapshot

The company has plans for nearly 1,000 new organic store openings through 2019. In addition to new store growth in North America, the company is working to expand the 7-Eleven name into new countries and regions.

In early 2018, 7-Eleven added significantly to its North American store portfolio with the $3.3 billion acquisition of more than 1,000 Sunoco convenience stores across some 15 US states. The deal, which is the largest in the company’s history, supports its strategy of accelerated store growth.

• 7-Eleven is ranked #1 on Entrepreneur magazine’s 2017 Top 500 Franchises List

• 7-Eleven ranked on Fast Company magazine’s World’s Top 10 Most Innovative Companies in Retail

Founded in 1927

31,500 Employees

Calkain Companies | 3

Tenant Overview

Hollywood

Harrisburg, PA

Cleveland, OH

Pittsburgh, PA

70

99

76

75

Youngstown, OH

Hagerstown, MD

State College, OH

Morgantown, WV

Seven Springs, PA

80

Seven Springs, PA 57 miles

Morgantown, WV 68 miles

Youngstown, OH 77 miles

Cleveland, OH 145 miles

State College, PA 159 miles

Hagerstown, MD 173 miles

Subject Site

Calkain Companies | 4

Location Overview

Distance To

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Subject Site

Brownsville Rd 15,000 VPD

Cochrans Mill Rd 5,000 VPD

South Park Golf Course

Century Field South Park Soccer

6403 Brownsville Rd | Pittsburgh, PA

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South Park Golf Course

Subject Site

Allegheny County Airport

Century Square S.C.

Southland S.C.

Jefferson Memorial Cemetery

Curry Hollow Center

Century III Mall

6403 Brownsville Rd | Pittsburgh, PA

Location Highlights

15,000 VPD Pass the Site

Corner Location

C

lick fo

r Street View

1 Mile 3 Miles 5 MilesPopulation2018 Population 3,427 68,474 173,868

2023 Population 3,449 68,911 174,542

2018 Median Age 47.0 47.3 46.0

Households2018 Total Households 1,383 29,061 74,003

2023 Total Households 1,391 29,277 74,323

Median Household Income2018 Median HH Income $80,279 $67,236 $66,775

2023 Median HH Income $89,897 $75,774 $75,200

Average Household Income2018 Average HH Income $91,293 $85,965 $91,011

2023 Average HH Income $102,927 $96,302 $101,169

Population 173,868

Median Age 46.0

Avg HH Income $91,011

Total Businesses 5,452

Total Employees 66,602

Net Worth $201,688

5 Mile Radius | Demographics

Location Overview, 1/3/5 Miles

1 Mile

3 Miles

5 Miles

Calkain Companies | 7

Pittsburgh, PALocated at the confluence of the Allegheny and Monongahela Rivers at the head of the Ohio River, Pittsburgh was referred to as the “Gateway to the West” from its early days as a frontier village. Easily navigable waterways with an abundance of natural resources, (coal, timber, natural gas, iron and limestone) helped Pittsburgh become the industrial center for a growing nation.

Today Pittsburgh welcomes visitors from around the globe. Its strengths lie in its authenticity as an all-American city, and its genuine, hard-working and welcoming sense of community that has transformed it into one of the most surprisingly beautiful and progressive cities in the USA. To fully relive Pittsburgh’s past, visit the Senator John Heinz History Center for an immersive historical experience.

Pittsburgh continues rise to the top of cities worth visiting. Recently named one of the “Best Places to Travel in 2016” by Travel + Leisure, rated the nation’s “No. 1 Food City” by Zagat and named among the “Top Destinations on the Rise” by TripAdvisor, it’s easy to see why everyone’s talking about Pittsburgh. Outstanding attractions and amenities, award-winning restaurants and world-class accommodations are among the biggest draws. Add to that the friendly people, affordability and walkability, you’ve got the perfect recipe for an ideal getaway. Come celebrate Pittsburgh and see for yourself. As of 2017, a population of 305,704 lives within the city limits, making it the 63rd-largest city in the U.S.

Metro Population

2.3 Million

1 Mile Median HH Income

$80,2792.29% Growth

The metropolitan population of 2,353,045 is the largest in both the Ohio Valley and Appalachia, the second-largest in Pennsylvania (behind Philadelphia), and the 26th-largest in the U.S.

Calkain Companies | 8

Market Overview

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Disclaimer: The information contained in this document is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Calkain and its subsidiaries, and should not be made available to any other person or entity without the written consent of Calkain. This document has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property(s). The information contained herein is not a substitute for a thorough due diligence investigation. Calkain and its subsidiaries have not made any investigation, and make no warranty or representation, with respect to the income or expenses for the subject property(s), the future projected financial performance of the property, the size and square footage of the property(s) and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property(s). The information contained in this document has been obtained from sources we believe to be reliable; however neither Calkain and its subsidiaries nor the Seller have verified, and will not verify, any of the information contained herein, nor has Calkain and its subsidiaries or the Seller conducted any investigation regarding these matters and make no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

$12 Billion in Closed Transactions

$400 Million

in Active Listings

About UsCalkain Companies LLC is a boutique commercial real estate investment banking firm that provides consulting and brokerage services to both private and institutional clientele with a focus on single tenant net lease investments. We pride ourselves on being an innovative leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, debt and equity placement and wealth management.

Calkain has built solid, lasting relationships that have been the cornerstone of how we do business. Calkain approaches each assignment with an eye toward each client’s individual needs. Whether private or institutional investors, Calkain delivers real estate solutions that maximize value while building wealth for all of our clients.

At Calkain, our foresight and innovation are leading the net lease investment industry.

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