Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

JEFF BOGARTDIRECTOR

(703) 596-5602 jbogart@calkain.com

Exclusive ListingOffering Memorandum

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C A L K A I N .C O MC A L K A I N .C O M

Sheetz (Ground Lease) | Dulles, VA

Representative Photo

Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

Yardley Ridge Dr & VA-606 | Dulles, VA 20166

Asking Price $4,440,000 | Cap Rate 5.00%

Net Operating Income (NOI) $222,000

Rent/Month $18,500

Rent/SF $35.85

Rentable Square Feet 6,558+/- SF

Land Area 3.13+/- Acres

Tenant Name Sheetz, Inc.

Website www.sheetz.com

Guarantor Corporate

Ownership Type Ground Lease

Lease Type NNN

Landlord Responsibilities None

Store Opens Est. July 11, 2018

Lease Term Remaining 15 Years

Rent Commencement May 15, 2018

Lease Expiration May 14, 2033

Increases 10% Every 5 Years in Options

Options Seven (7), Five (5) Year

Rent Schedule

Term Increases Annual Rent Monthly RentYears 1-15 - $222,000 $18,500

Years 16-20 (Option 1) 10% $244,200 $20,350

Years 21-25 (Option 2) 10% $268,620 $22,385

Years 26-30 (Option 3) 10% $295,482 $24,624

Years 31-35 (Option 4) 10% $325,030 $27,086

Years 36-40 (Option 5) 10% $357,533 $29,795

Years 41-45 (Option 6) 10% $393,287 $32,775

Years 46-50 (Option 7) 10% $432,615 $36,053

Investment Highlights • Co-located with Walmart, IHOP, Advance Auto Parts, PetSmart, ALDI,

T.J. Maxx & Home Goods

• Average HH income of $164,432 with a population of 114,113 within

5 miles

• Strategically situated between Route 50 and Route 28 (adjacent to Dulles

Airport) on Route 606 ( Old Ox Rd). VPD forecasted to grow to 100K VPD

by 2030 with current expansion of Route 606 from 2 lanes to 8 lanes

• Subject site is 5 miles from “Silver Line” metro station- expected

completion 2019

• Corporate guarantee (Sheetz annual sales for 2017 was $6.4B)

• 10% rent increases in option periods

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Financial Summary

Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

About Sheetz• Sheetz is a family-owned Mid-Atlantic

chain with more than 500 stores

and 17,500 employees. In 2016 the

company celebrated an anniversary

and a major milestone in convenience store customer experience. In 1986,

Sheetz coined the term Made-to-Order, or “MTO.” It’s the ordering system

that allows for made to order sandwiches at the store. It took the stigma

away from a “gas station sandwich” and transformed the business.

• Sheetz ranked #56 on Forbes America’s largest private companies list of

2017

• Massive tenant investment at this site utilizing the newest and largest

prototype

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Tenant Overview

Dulles, VA

Frederick, MD

Baltimore, MD

Alexandria, VA

Washington, DC

95

95

32 mi

67 mi

40 mi

40 mi

55 min

1 hr 26 min

49 min

56 min

Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

Location Overview

66

270

Subject Site

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Yardley Ridge Dr & VA-606 | Dulles, VA

Lee Jackson Memorial Hwy 38,000 VPD

Sully Rd 140,000 VPD

South Riding Market Square

Dulles Landing

Dulles International Airport 135 Airline Gates

21.7M Annual Passengers79 Non-stop US Flights

47 Non-stop International Flights

East Gate Marketplace

Old O

x Rd 30,000 VPD

Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

Subject SiteEVERGREEN

DEVELOPMENT

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Yardley Ridge Dr & VA-606 | Dulles, VA

Old

Ox R

d 30

,000

VPD

Evergreen Mills Rd

UNDER DEVELOPMENT

Yardley Ridge Dr

Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

Subject Site

EVERGREEN DEVELOPMENT

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Yardley Ridge Dr & VA-606 | Dulles, VA

Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

Evergreen Development Project

Evergreen Mills Rd (Route 621)

Loudoun County Pkwy (Route 606) 30,000 VPD

Yard

ley Ri

dge D

r

Liberty Harvest Ct

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Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

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Site Plan

Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

Dulles Corridor Metrorail Project

Subject Site

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Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

Radius 1 Mile 3 Miles 5 MilesPopulation2017 Population 1,232 58,637 114,113

2022 Population 1,640 74,590 144,611

2010-2017 Annual Rate 28.24% 8.66% 7.92%

2017-2022 Annual Rate 5.89% 4.93% 4.85%

2017 Male Population 48.0% 49.1% 49.2%

2017 Female Population 52.0% 50.9% 50.8%

2017 Median Age 35.0 33.3 33.2

Households2017 Total Households 371 18,037 35,074

2022 Total Households 493 22,861 44,139

2010-2017 Annual Rate 27.43% 8.35% 7.53%

2017-2022 Annual Rate 5.85% 4.85% 4.71%

2017 Average Household Size 3.32 3.25 3.25

Median Household Income2017 Median Household Income $109,014 $144,938 $141,985

2022 Median Household Income $114,290 $156,771 $155,958

2017-2022 Annual Rate 0.95% 1.58% 1.90%

Average Household Income2017 Average Household Income $116,378 $164,400 $164,432

2022 Average Household Income $131,255 $186,543 $187,289

2017-2022 Annual Rate 2.44% 2.56% 2.64%

Per Capita Income2017 Per Capita Income $45,154 $50,128 $50,483

2022 Per Capita Income $50,837 $56,630 $57,105

2017-2022 Annual Rate 2.40% 2.47% 2.50%

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Demographics

Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

Demographics | 5 Mile Radius

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Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

Loudoun CountyTraditionally a rural county, Loudoun’s population has grown dramatically since the 1980s. Having undergone heavy suburbanization since 1990, Loudoun has a full-fledged service economy. It is home to world headquarters for several Internet-related and high tech companies, including Verizon Business, Telos Corporation, Orbital Sciences Corporation. Like Fairfax County’s Dulles Corridor, Loudoun County has economically benefited from the existence of Washington Dulles International Airport, the majority of which is in the county along its border with Fairfax.

The Overland Center is just off major commuter corridors that link the southern portion of Loudoun County with points east in Fairfax County including the Route 28 corridor and also serves as a gateway to destinations to the west, including the Route 15 area, and western towns and villages.

• Nationally ranked #20 of all counties. Nationally ranked #7 of counties with a population of 100,000 or more in population growth.

• The supply of new housing and strong school system attracts young families to Loudoun. Therefore, Loudoun’s population is aging much more slowly than the country as a whole.

• Median household income - ranked #1 nationally in 2015 for jurisdictions with a population of 65,000 or greater, and have been since 2007. Ranked #1 nationally for the 2010-2014 period out of all jurisdictions in the nation. Income is more than double the national median household income.

Alamo Drafthouse Cinema – Loudoun

DullesDulles is an unincorporated area in Loudoun County, VA, which is part of the Washington metropolitan area. The headquarters of Orbital ATK, GeoEye, and ODIN technologies and the former headquarters of MCI Inc. and AOL are located in Dulles. The National Weather Service Baltimore/Washington forecast office and the National Weather Service’s Sterling Field Support Center are also both in Dulles. Dulles Airport is one of the three major airports in the larger Baltimore–Washington metropolitan area with more than 21 million passengers a year. Dulles has the most international passenger traffic of any airport in the Mid-Atlantic outside of the New York metropolitan area, including approximately 90% of the international passenger traffic in the Baltimore-Washington region. On a typical day, more than 60,000 passengers pass through Washington Dulles to and from more than 125 destinations around the world. However, Dulles Airport now ranks behind both Baltimore-Washington International Airport (BWI) and Ronald Reagan Washington National Airport (DCA) in total annual passenger boardings.

Washington Dulles International Airport

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Market Overview

Sheetz (Ground Lease) | Dulles, VAOffering Memorandum

JEFF BOGARTDIRECTOR

(703) 596-5602 jbogart@calkain.com

Who Are We? Calkain Companies LLC is a national commercial real estate firm that provides consulting and brokerage services to both private and institutional clientele with an expertise on triple net lease investments. We pride ourselves on being a world class leader by providing our clients a full array of commercial real estate investment brokerage and asset management solutions, including advisory, research, estate planning and wealth management.

We have built solid relationships throughout our decades of experience and innovation, implementing long-term allocation within the context of each client’s particular risk tolerance and identifying how best to acquire and dispose of income producing properties for each entities’ specific set of investment criterion. At Calkain, our foresight and past performance are leading the net lease investment industry.

Our HistoryLike most success stories, Calkain was formulated from humble beginnings. Jonathan W. Hipp, President and CEO, took the initiative to build upon his decades of experience and performance and left a large international brokerage firm to become an independent and innovative leader within the triple net lease investment community. Armed with a sole employee and a single office, the firm has grown exponentially since its infancy in 2005.

With the growth in staff, seasoned professionals have been attracted to Calkain’s model of innovation, entrepreneurship and the fostering of long-lasting and meaningful relationships. Industry experts have joined Calkain in the hopes of implementing the skills they have honed in complementary aspects of real estate investment.

Through a tremendous endeavor, tireless hours have been committed to continually prove that Calkain is America’s Net Lease Company®. Its countless accolades received from the world’s leading business publications, including Forbes™, Fortune™ and the New York Times™ have confirmed that Calkain is a true leader in triple net lease investing services.

Client Testimonial

“USRA has worked with Calkain on numerous occasions. They have always been meticulous in their work ethic, providing superior service and extremely prompt attention to our needs. I highly recommend them.

- Jack Genende, Partner | U.S. Realty Advisors, LLC. (USRA)

$11.5 Billion in Closed Transactions

$350 Million

in Active Listings

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C A L K A I N .C O MC A L K A I N .C O M

About Calkain

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 regula-tions, 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.

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