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Phillips 661 2 0 1 E 1 S t S t | M c P h e r s o n , K S

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E X E C U T I V E S U M M A R Y

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Kyle MatthewsBroker of Record

Lic # CO00002672

b i l l p e d e r s e n

Senior Associate

Bi l l .Pedersen@matthews.comDIR (949) 432-4501MOB (831 ) 246-0646LIC # 01975700 (CA)

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e x e c u t i v e s u m m a r y

PROPERTY

• Attractive 10% return

• ±9.5 years remaining of guaranteed lease term

• Absolute NNN Lease - zero landlord responsibilities

LOCATION

• Lack of competition in immediate trade area

• Located on a hard, signalized corner on a major thoroughfare in McPherson, KS

• Strong demographics - $73,000 average household income in 1-Mile Radius

TENANT

• Phillips 66 branded gasoline

• Strong Tenant – Empire Petroleum is a leading motor fuels distributor in 29 states of top brands including Shell, Sunoco, BP, Chevron, Texaco, Valero, Gulf, Marathon, ExxonMobil, Phillips 66, Crown, and 76

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P h i l l i p s 6 61201 E 1St StMcPherson, KS 67460

List Price ..........................................................................................$500,000CAP Rate................................................................................................10.00%Gross Leasable Area ..................................................................... 2,907 SFLot Size ................................................................... 0.96 Acres (41,818 SF)Year Built .................................................................................................... 1997Number of Pumps .................................................................................. Eight

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Increases

Current to 3/1/22 $4,166.67 $50,000.00 $13.17 10.00%

Current - 4/1/22 to 3/31/27 $4,583.33 $55,000.00 $14.49 11.00%

Option 1 - First 5 Years $5,000.00 $60,000.00 $15.81 12.00%

Option 1 - Second 5 Years $5,500.00 $66,000.00 $17.39 13.20%

Option 2 - First 5 Years $6,000.00 $72,000.00 $18.97 14.40%

Option 2 - Second 5 Years $6,583.33 $79,000.00 $20.81 15.80%

Tenant Summary

Tenant Trade Name Phillips 66

Type of Ownership Fee Simple

Lease Guarantor Empire Petroleum Partners, LLC

Lease Type NNN

Roof and Structure Tenant Responsible

Original Lease Term 20 Years

Lease Commencement Date March 29, 2007

Rent Commencement Date April 1, 2007

Lease Expiration Date March 31, 2027

Term Remaining on Lease ± 9.5 Years

IncreasesOne Percent (1%) Annual Increases in

Initial Term and Renewal Terms

Options Two, 10-Year Options

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Tenant: Phillips 66

Guarantor: Sunshine Energy KS V, LLC

Address: 1201 E. 1st St, McPherson, KS

Size: 2,907 SF

Date of Lease: March 29, 2007

Lease Commencement: April 1, 2007

Lease Expiration: March 31, 2027

Lease Term: Twenty (20) years

Renewal Options:Two (2) ten (10) year options. Tenant must notify landlord by written notice at least twelve (12) months before the last day of the initial term (or any renewal term, as applicable).

Current Rent: $50,000

Rent Increases: Every five years

Real Estate Taxes: Tenant shall pay and discharge all taxes.

Maintenance and Repairs:Tenant shall at all times, put and maintain the leased premises, including, without limitation, all equipment, systems, installations, appurtenances, roofs, structure, trade fixtures and facilities, landscaping, walls, footings, foundations, parking lot improvements, including periodic repainting and repaving of every kind and nature.

Insurance: Tenant shall maintain at its sole cost and expense all insurance for the property.

Utilities:Tenant shall pay directly to the proper authorities charged with the collection thereof all charges for water, sewer, gas, oil, electricity, telephone, and other utilities or services used or consumed on the leased premises during the term.

Tenant Assignment and Subletting:

Tenant shall have the right to assign its interest in the lease with the prior written consent of landlord, provided that tenant remains fully liable under the terms and conditions of the lease. Tenant shall have the right to sublet the leased premises. If at any time during the term tenant desires to assign or sublet all or part of the lease or leased premises, tenant shall notify landlord.

Right of First Refusal None

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Property Name Phillips 66

Property Type Net Leased Gas Station

Parent Company Trade Name Phillips 66

Ownership Public

Rating Agency Standard & Poor’s

Revenue ±$100.95 B

Net Income ±$4.23 B

Stock Symbol PSX

Board NYSE

No. of Employees ±14,000

Headquartered Houston, TX

Web Site www.phillips66gas.com

Year Founded 1875

Phillips 66 operates as an energy manufacturing and logistics company. It operates through four segments: Midstream, Chemicals, Refining, and Marketing and Specialties (M&S). The Midstream segment gathers, processes, transports, and markets natural gas; and transports, fractionates, and markets natural gas liquids in the United States. The Chemicals segment manufactures and markets ethylene and other olefin products. The Refining segment buys, sells, and refines crude oil and other feedstocks into petroleum products comprising gasolines, distillates, and aviation fuels at 14 refineries primarily in the United States and Europe. The M&S segment purchases for resale and markets refined petroleum products consisting of gasolines, distillates, and aviation fuels in the United States and Europe. It also manufactures and sells specialty products, such as petroleum coke, waxes, solvents, and polypropylene. In addition, this segment is involved in the generation of electricity. Phillips 66 was founded in 1875 and is headquartered in Houston, Texas.

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Property Name Phillips 66

Property Address 1201 E 1St St

McPherson, KS 67460

Assessor’s Parcel Number 135-22-0-30-02-001.01-0

Site DescriptionNumber of Stories One

Year Built 1997

Gross Leasable Area (GLA) ± 2,907 SF

Lot Size ± 0.96 Acres (41,818 SF)

Type of Ownership Fee Simple

Parking ± 22 Surface Spaces

Parking Ratio 5.80 : 1,000 SF

Landscaping Professional

Topography Generally Level

ConstructionFoundation Concrete Slab

Framing Wood

Exterior Painted Stucco

Parking Surface Asphalt

Roof Flat

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Nestled in the middle of Kansas, the community of McPherson is known for its majestic parks, flourishing downtown, and vibrant industrial base. McPherson has been a model for municipal progress in Kansas and throughout the Midwest. In the past decade, the city of McPherson has been consistently ranked in the top 40 of the “Best Small Towns in America,” and Progressive Farmer magazine recently named McPherson County the third-best place to live in rural America and the best place to live in the rural Midwest. McPherson is one of the hidden jewels of the Midwest.

Centrally located at the junction of I-135 and Hwy 56, McPherson is an ideal location for statewide gatherings, whether they be professional conventions, auto enthusiast meets or family gatherings.

D e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 6,051 13,500 13,948

2017 Estimate 6,032 13,533 13,988

2010 Census 6,028 13,661 14,130

2000 Census 5,362 14,319 14,828

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 2,609 5,719 5,903

2017 Estimate 2,594 5,701 5,886

Growth 2017 - 2021 0.58% 0.32% 0.29%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$72,934 $73,880 $74,231

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This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Phillips 66 located at 1201 E 1St St, McPherson, KS 67460 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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BROKER OF RECORD

e x c l u s i v e ly l i s t e d b y

Phillips 661 2 0 1 E 1 S t S t | M c P h e r s o n , K S

™

b i l l p e d e r s e n

Senoir Associate

Bi l l .Pedersen@matthews.comDIR (949) 432-4501MOB (831 ) 246-0646LIC # 01975700 (CA)

Kyle MatthewsBroker of Record

Lic # CO00002672