CHEVRONDQ GAS STATION & C-STORE

5 9 6 0 N O R T H O R A C L E R O A D | T U C S O N | 8 5 7 0 4

±3,988 SF SINGLE TENANT NET LEASED INVESTMENT PRICE: $2,990,000.00 CAP RATE: 5.35%

O F F E R I N G M E M O R A N D U M

TIM WESTFALLManaging Director

602 952 3822 | twestfall@ngkf.com

AFFILIATED BUSINESS DISCLOSURE

Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of 5960 North Oracle Road, Tucson, Arizona 85704 (the ”Property”) by ‘Ownership’ (the “Seller”).

This Memorandum does not constitute a representation that the business or affairs of the Property or Seller since the date of preparation (11/19/19) of this Memorandum have remained the same. Analysis and verification of the information contained in this Memorandum are solely the responsibility of the prospective purchaser.

Additional information and an opportunity to inspect the Property will be made available upon written request of interested and qualified prospective purchasers. Seller and Agent each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the Property, and/or terminate discussions with any party at any time with or without notice. Seller reserves the right to change the timing and procedures for the Offering process at any time in Seller’s sole discretion. Seller shall have no legal commitment or obligations to any party reviewing this Memorandum, or making an offer to purchase the Property, unless and until such offer is approved by Seller, and a written agreement for the purchase of the Property has been fully executed and delivered by Seller and the Purchaser thereunder.

This Memorandum and the contents, except such information which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not forward, photocopy or duplicate it, that you will not disclose this Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Seller or Agent, and that you will not use this Memorandum or any of the contents in any fashion or manner detrimental to the interest of Seller or Agent.

DAVID GUIDOManaging Director

602 952 3875 | dguido@ngkf.com

PREPARED BY

2398 East Camelback Road, Suite 950Phoenix, AZ 85016

RYAN MORONEYDirector

602 952 3820 | rmoroney@ngkf.com

01 EXECUTIVE SUMMARY

02 FINANCIAL & LEASE SUMMARY

03 TENANT PROFILE

04 AREA OVERVIEW

CONTENTS

01 EXECUTIVE SUMMARY

THE OFFERING

Newmark Knight Frank (NKF), as exclusive advisor, is pleased to present

the opportunity to acquire the Chevron | DQ (the Property) absolute net

lease offering, a 3,988-square-foot gas station and convenience store

(c-store) in Tucson, Arizona.

This single-story building is located on ±0.84 acres with frontage at a

signalized intersection of one of Tucson’s busiest arterials, Oracle Road.

The Chevron | DQ location on this main arterial is 15 minutes from

Downtown Tucson and the University of Arizona (±44,831 students).

The property boasts strong income in the area ($80K+ within 3 miles)

and ±47,000 vehicles per day on North Oracle Road.

PROPERTY NAME Chevron | DQ

BUILDING ADDRESS 5960 North Oracle Road | Tucson, Arizona 85074

TENANT Chevron & Dairy Queen

YEAR BUILT 1985

TOTAL BUILDING AREA ±3,988 SF

LAND AREA 0.84 AC

TRAFFIC COUNTS ±47,000 VPD

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WEST RUDASILL ROAD

WEST RUDASILL ROAD

TUCSON TRAVELERS ASSOC. HOME FURNITURE OF TUCSONGUISEPPE’SKIDS UNLIMITEDSHAFFER DRY CLEANING & LAUNDRY

ARTIQUESALAN’S SHOESLESCO OPTICAL

WITHIN THE HEART, OF NORTH TUCSON DENSE TRADE AREA

OFFERING HIGHLIGHTS

ON THE HARD CORNER OF A SIGNALIZED

INTERSECTION

LOW RENT PSF COMPARED TO COMPETING USERS IN THIS CATEGORY

19.1 YEARS REMAINING ON AN ORIGINAL 20-YEAR TERM W/ TWO (2) TEN-YEAR OPTIONS

2% INCREASES EVERY YEAR THROUGHOUT THE INITIAL TERM

OF THE LEASE

TENANT/OPERATOR HAS REPORTED

STRONG UNIT LEVEL SALES

TUCSON MALL±1,287,206 SF

ORACLE RIDGE SHOPPING CENTER

±30,623 SF + PADS and U/C

NORTH ORACLE ROAD: ±47,000 VPD

NORTH ORACLE ROAD: ±47,000 VPD

WEST RUDASILL ROAD

WEST RUDASILL ROAD

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02 FINANCIAL & LEASE SUMMARY

PRICE $2,990,000.00

CAP RATE 5.35%

NOI / ANNUALLY $160,000.00 (as of November 2019)

FINANCING Free & Clear

FINANCIAL SUMMARY

FINANCIAL & LEASE SUMMARY

LEASE SUMMARY

TENANT Chevron & Dairy Queen

LEASE GUARANTOR Sal Markets, LLC,(4-Unit Entity & Personal Guarantee)

LEASE TYPE Absolute NNN Lease

NOI / ANNUALLY $160,000.00 (as of November 2019)

RENT PER SF $40.12

TENANT RESPONSIBILITY

Tenant shall keep and maintain the Premises and Premises’ Improvements, including maintenance of interior and exterior building, all maintenance/repair of HVAC, plumbing and electrical systems.

LANDLORD RESPONSIBILITY None

LEASE COMMENCEMENT 11/1/2018

LEASE EXPIRATION 11/30/2038

ORIGINAL LEASE TERM 20 Years

REMAINING TERM 19.1

LEASE OPTIONS Two 10-year options to renew

RENTAL INCREASES 2% annually

The absolute NNN lease has 19.1 years remaining on its original 20-year term. There are two 10- year options with increases. This offering also provides the rare opportunity for an investor to see two percent (2%) annual increases throughout the original lease term.

TUCSON MALL±1,287,206 SF

ORACLE RIDGE SHOPPING CENTER±30,623 SF + PADs

and U/C

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03 TENANT PROFILE

LEASE EXPIRATION 11/30/2038

WEBSITE chevron.com

180+ COUNTRIES

CHEVRON RANKS

OIL REFINERIES

2.93M NET OIL BARRELS/DAY

In 2018, Chevron produced 2.93 million net oil-equivalent barrels per day from operations around

the world

Chevron Corporation is an American multinational

energy corporation. One of the successor companies

of Standard Oil, it is headquartered in San Ramon,

California, and active in more than 180 countries.

Chevron is engaged in every aspect of the oil, natural

gas, and geothermal energy industries, including

hydrocarbon exploration and production; refining,

marketing and transport; chemicals manufacturing

and sales; and power generation. Chevron is one of

the world’s largest oil companies; as of 2019, it ranked

eleventh in the Fortune 500 list of the top US closely

held and public corporations and 28th on the Fortune

Global 500 list of the top 500 corporations worldwide.

It was also one of the Seven Sisters that dominated the

global petroleum industry from the mid-1940s to the

1970s. Chevron is incorporated in California.Chevron is a multinational

corporation with business and retail locations in more than

180 countries

Chevron ranked 11th in the Fortune 500 list of the top US closely held and public corporations & 28th on the Fortune Global 500 list of the top 500 corporations worldwide.

Chevron ranked 11th in the Fortune 500 list of the top US closely held and public

corporations

LEASE EXPIRATION 11/30/2038

WEBSITE dairyqueen.com

Dairy Queen (DQ) is an American chain of soft serve ice

cream and fast-food restaurants owned by International

Dairy Queen, Inc., a subsidiary of Berkshire Hathaway.

International Dairy Queen, Inc., also owns Orange

Julius and Karmelkorn.

The first DQ restaurant was located in Joliet, Illinois.

It was operated by Sherb Noble and opened for

business on June 22, 1940. It served a variety of frozen

products, such as soft serve ice cream.

The company’s corporate offices are located in the

Minneapolis suburb of Edina, Minnesota.

The company’s stores are operated under several

brands, all bearing the distinctive Dairy Queen logo and

carrying the company’s signature soft-serve ice cream

(along with the trademark “curl”). In the 1970s, most

restaurants were “Brazier” locations with a second floor

for storage, recognizable for their red mansard roofs.

The largest Dairy Queen in the United States is located in

Bloomington, Illinois. The largest store in the world was

built in Riyadh, Saudi Arabia. The busiest store in the

world is located in Charlottetown, Prince Edward Island.

Through its subsidiaries, IDQ develops, licenses and

services a system of more than 6,800 locations in the

United States, Canada and more than 25 other countries.

Today, DQ is a $4.5B brand.

6,800+LOCATIONS

In the United States, Canada and more than

25 other countries.

$4.5 BILLIONBRAND

International Dairy Queen has been positioned as a leader in the quick-service restaurant

industry both in the U.S. as well as internationally. Today, the DQ

system is a $4.5 billion brand

04 AREA OVERVIEW

TUCSON

A diverse and welcoming community, Tucson offers an outstanding quality of life along with a low cost of doing business. Our manufacturers lead the

way in innovation, in sectors as varied as aerospace, biotech, defense, healthcare, information technology, optics, solar, and water.

Tucson has the highest concentration of startups of any U.S. city its size and is ranked as a top five city for entrepreneurs by Entrepreneur Magazine.

Just 60 miles from the Mexico border, with high-capacity border and transportation infrastructure, Tucson is the natural choice for companies doing

business in the U.S. and Mexico.

MARANA

Marana is fast becoming known as the most business supportive community in Southern Arizona. With exceptional access to multimodal transportation,

a newly reorganized Development Services Center and a local government that values corporate investment, businesses both large and small are taking

advantage of development opportunities in Marana.

5-MILE DEMOS

181,437POPULATION

80,096HOUSEHOLDS

39.1MEDIAN AGE

$71,860AVERAGE HH INCOME

AREA OVERVIEW

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NORTH ORACLE ROAD: ±47,000 VPD

NORTH ORACLE ROAD: ±47,000 VPD

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RYAN MORONEYDirector

+1 602 952 3820rmoroney@ngkf.com

DAVID GUIDOManaging Director+1 602 952 3875dguido@ngkf.com

TIM WESTFALLManaging Director+1 602 952 3822

twestfall@ngkf.com

PREPARED BY

2398 East Camelback Road, Suite 950Phoenix, AZ 85016

Newmark Knight Frank (the “Agent”) has been engaged as the exclusive sales representative for the sale of [insert building address here] (the ”Property”) by ‘Ownership’ (the “Seller”). The information contained herein has been obtained from sources deemed reliable but has not been verified and no guarantee, warranty or representation, either express or implied, is made with respect to such information. Terms of sale or lease and availability are subject to change or withdrawal without notice.