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

1705 N MAIN STREETROSWELL, NM 88201

HARBOR FREIGHT &

LITTLE CAESARS

FINANCIAL OVERVIEW8

TENANT OVERVIEW12 AREA OVERVIEW16

PROPERTY OVERVIEW 4

1705 N MAIN STREETROSWELL, NM 88201

EL WARNER

D: (949) 873-0507 M: (858) 752-3078E: el.warner@matthews.comLicense No. 01890271 (CA)

™

BROKER OF RECORDKYLE MATTHEWSLicense No. 19601 (NM)

HARBOR FREIGHT &

LITTLE CAESARS

CAITLIN ZIRPOLO

D: (949) 432-4518 M: (760) 685-6873E: caitlin.zirpolo@matthews.comLicense No. 01987844 (CA)

JORDAN GOMEZ

D: (949) 432-4503 M: (951) 264-5994E: jordan.gomez@matthews.comLicense No. 02008809 (CA)

DAVID MALOY

D: (949) 777-5983 M: (917) 515-9975E: david.maloy@matthews.comLicense No. 10401244229 (NY)

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NET RENTABLE AREA

±22,637 SF

LIST PRICE

$3,399,000

CAP RATE

6.85%

» Newly renovated in 2018 for Harbor Freight & Little Caesars

» Harbor Freight has a new 10-year NNN Corporate lease with 10% rental increases every 5-years

» Little Caesars has a new 10-year NNN lease with 10% rental increases in the option periods

» New Roof with a 10-year warranty

» Rare Little Caesars drive-thru location

» 100% leased to Nationally recognized brands

» Located along US-285 with ±23,000 VPD and the major thoroughfare in Roswell, NM

» Roswell is the UFO Capital of the World and the 5th largest city in the state of New Mexico, attracting thousands of tourists to the city each and every year

» Located next door to New Mexico Military Institute which enrolls over 1,000 cadets each year

» Ability to place new debt on the asset at low interest rates

I N V E S T M E N T H I G H L I G H T S

Matthews Real Estate Investment Services is pleased to present to qualified investors this rare opportunity to acquire a fee simple interest in a newly renovated (2018), NNN leased-building occupied by Harbor Freight Tools & Little Caesars. Located across from New Mexico Military Institute, the subject property is strategically situated along the major corridor that runs through the heart of Roswell which sees over ±23,000 vehicles per day and is home to national retailers including Walmart, Target, Home Depot, Sam’s Club, Hobby Lobby, Albertsons, Marshalls, Petco, Walgreens and many others.

Harbor Freight, the leading discount tool retailer in the United States with annual revenues exceeding $4 billion, recently executed a brand new 10-year corporate lease which features attractive 10% rental increases every 5 years throughout the initial term and at the beginning of each option period. Little Caesars, one of the largest pizza chains in the United States with roughly 5,500 locations Worldwide, also recently executed a brand new 10-year lease with 10% rental increases at the beginning of each option period and comes equipped with a rare drive-thru. There is also a 10-year roof warranty in place that started in 2018, virtually making this a hands-off investment. Most importantly, this location was hand selected by Harbor Freight Tools due to the income demographics of the local residents which lend perfectly for the “Do-it-yourself” contractors and small business owners that want to purchase their tools and related products at a Harbor Freight store.

O F F E R I N G S U M M A R Y

P R O P E R T YO V E R V I E W

SECTION 1

5

LAND AREA

(APN: 4-136-060-027-319-000000) totaling approximately 2.0 AC

BUILDING AREA

± 22,637 SF

TRAFFIC COUNTS

N Main Street: ±23,000 VPD

YEAR BUILT

Built in 2004 - 2018 Renovation

DESIGNATED PARKING SPACES

±75 Surface Spaces±3.30 spaces per 1,000 Square Feet

PARCEL MAP

AVERAGE REMAINING TERM

±9.9 Years

6

JP WHITE FIELDN M

AIN STREET ±23,000 VPDROSWELL

SUBJECT PROPERTY

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N M

AIN

STR

EET

±23,

000

VPD

SUBJECT PROPERTY

F I N A N C I A LO V E R V I E W

SECTION 2

9

YEAR IN-PLACE

TOTAL $/SF

INCOME

Rental Income $232,910 $10.29

Other Income $0 $0.00

Reimbursement Revenue $47,799 $2.11

Effective Gross Income $280,709 $12.40

EXPENSES

Real Estate Taxes $19,299 $0.85

Insurance $5,750 $0.25

CAM $22,750 $1.00

Total Operating Expense $47,799 $2.11

Net Operating Income $232,910 $10.29

I N C O M E & E X P E N S E S

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SUITE TENANT LEASE START

LEASEEND SF % OF NRA

CONTRACT RENTAL RATE RENT $ PSFDATE

RENT INCREASES

OPTIONSYEAR MONTH $ PSF/

YR $ PSF/MO. $ PSF/YR $ PSF/MO.

A Harbor Freight Tools Jul-18 Jul-28 20,300 89.7% $196,910 $16,409 $9.70 $0.81 Jul-23 $10.67 $0.89

5x5 years: (1) $11.74/yr. (2) $12.91/yr. (3) $14.20/yr. (4)

$15.62/yr. (5) $17.18/yr.

B Little Caesars Pizza Apr-19 Apr-29 2,337 10.3% $36,000 $3,000 $15.40 $1.28

3x5 years: (1) $16.94/yr. (2) $18.64/yr. (3) $20.50/

yr.

TOTALS 22,637 100.0% $232,910 $19,409 $10.29 $0.86

R E N T R O L L

TENANT SF LEASE EXPIRATION IN-PLACE RENT % OF REVENUE TENANT TYPE CREDIT

Harbor Freight Tools 20,300 Jul-28 $196,910 84.5% Anchor National/Credit

Little Caesars Pizza 2,337 Apr-29 $36,000 15.5% Restaurant National/Credit

TOTAL 22,637 $232,910 100%

S U M M A R Y T E N A N T P R O F I L E

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TENANT SF LEASE EXPIRATION IN-PLACE RENT % OF REVENUE

1 2019 0 0% 0%

2 2020 0 0% 0%

3 2021 0 0% 0%

4 2022 0 0% 0%

5 2023 0 0% 0%

6 2024 0 0% 0%

7 2025 0 0% 0%

8 2026 0 0% 0%

9 2027 0 0% 0%

10 2028 20,300 90% 90%

11 2029 2,337 10% 100%

TOTAL 22,637 100%

L E A S E E X P I R A T I O N S C H E D U L E

TENANT EXPIRATIONS

EXPI

RIN

G S

QU

AR

E FE

ET

CUM

ULA

TIV

E %

OF

NR

A

5,000

25,000

15,000

2028202720262025202420232022202120202019

100%

80%

60%

40%

20%

0%

20,300

0 00

YEAR

0

20,000

10,000

0

120%

00000

2029

2,337

T E N A N TO V E R V I E W

SECTION 3

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H A R B O R F R E I G H T

In 1977, when Harbor Freight Tools was started as a small family-owned business, we made a commitment to provide working people with great quality tools at the lowest prices. And for over 35 years, Harbor Freight Tools has done just that. In the year 2018, they did $5 billion in revenue. From hand tools and generators, to air and power tools, from shop equipment to automotive tools, Harbor Freight offers more than 7,000 tools and accessories at quality levels that match or exceed competing brands, but at prices that are up to 80% less. Harbor Freight currently employs 2,781 employees with 1,000+ store locations and opening up roughly 30 new sites per year and employing over 17,000 people. Harbor Freight Tools is dedicated to generous pay for performance compensation and long-term careers. People who can combine personal accomplishment, leadership and a true commitment to teamwork thrive at our company.

HEADQUARTERSCALABASAS, CA

YEAR FOUNDED1977

NO. OF LOCATIONS±1,000

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L I T T L E C A E SA R S

Little Caesars Enterprises, Inc. is the third-largest pizza chain in the United States with annual sales of $1.78 billion. The company was founded in 1959 and is based in Detroit, Michigan. Known for its quick, convenient, and friendly service, and Little Caesars remains a value leader in the industry. Little Caesars sold its first franchise in 1962 and, by 1987, had restaurants in all 50 states. Between 2008–2015, Little Caesars was the fastest-growing pizza chain in the United States. By 1987, the company was operating across the Northern United States, purchasing the Mother’s Pizza chain out of receivership in Canada, the United States, and the United Kingdom in 1989. As of 2018, the company is present in Canada (some Canadian cities had locations since 1969), Puerto Rico, US Virgin Islands, Guam, Honduras, Costa Rica, the Dominican Republic, Mexico, Panama, Peru, Turkey, Jordan, Egypt, Guatemala, Kuwait, Saudi Arabia, El Salvador, Jamaica, Bahrain, Australia, Trinidad and Tobago and Chile.

HEADQUARTERSDETROIT, MI

YEAR FOUNDED1959

NO. OF LOCATIONS±5,463

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A R E AO V E R V I E W

SECTION 4

ROSWELL, NM

Most famously known for the Roswell UFO incident, Roswell is a city nestled below the most southern outskirts of the Rocky Mountains in the center of New Mexico’s Pecos Valley. As the fifth-largest city in the state and a center for irrigated farming, dairying, ranching, manufacturing, distribution, and petroleum production, Roswell is the hub of Southeastern New Mexico. As the county seat of Chaves County, the city serves the needs of the majority of the county population.

Roswell is an enjoyable place to live, offering residents everything from local coffee shops and wineries to festivals and diverse outdoor activities, including easy proximity to skiing. It is home to a diverse collection of art, culture and natural treasures. Anderson Museum of Contemporary Art showcases the work of artists from all over the world at The Roswell Artists in Residence Program and galleries can be found up and down Main Street, both evident of an active artist community. Meanwhile, the Roswell Little Theatre provides opportunities to see the Roswell Symphony and live theater performances.

Population 1 Mile 3 Mile 5 Mile

2024 Projection 6,649 37,744 49,663

2019 Estimate 6,425 37,099 48,519

2010 Census 6,344 36,872 48,102

Households 1 Mile 3 Mile 5 Mile

2024 Projection 2,660 14,395 18,611

2019 Estimate 2,541 14,029 18,053

2010 Census 2,498 13,907 17,859

Income 1 Mile 3 Mile 5 Mile

Average HH Income $51,293 $53,558 $53,458

DEMOGRAPHICS

170,000+ ANNUAL VISITORS

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BUSINESS CLIMATE

Abundant Water, Energy, and Infrastructure set the region apart from any other place in the Southwest, especially when combined with low local utility rates. Located at the Gateway to the Permian Basin, with four lane highways in every direction and served by both rail and commercial air service, businesses have direct access to Lubbock, El Paso, Albuquerque and Midland/Odessa. Roswell’s economy is extremely diverse encompassing agriculture, oil and gas, banking, tourism and one of the largest commercial aviation industries in the Southwest. Additionally, the city is home to Leprino Foods, one of the world’s largest mozzarella factories.

NEW MEXICO MILITARY INSTITUTE (NMMI)New Mexico Military Institute is a state-supported educational institution that is one of five military junior colleges in the United States. It is the only state-supported military college in the western United States. Offering a program of strong, challenging academics, leadership preparation, and character development, NMMI is known as “The West Point of the West.” NMMI remains the only state-supported co-educational college preparatory high school and junior college in the United States. Serving the educational needs of an international student population, the Institute has strict admissions standards that yearly result in an enrollment of approximately 1,000 students who come from 43 states, the District of Columbia, and 13 foreign nations.

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This Offering Memorandum contains select information pertaining to the business and affairs of Harbor Freight & Little Caesar’s located at 1705 N Main Street Roswell, NM 88201 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1 . The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in

any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the MS of affairs of the Property or constitute an indication that there has been no change in the MS of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY AGREEMENT & DISCLAIMER

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

1705 N MAIN STREETROSWELL, MN 88201

™

LISTED BY

HARBOR FREIGHT &

LITTLE CAESARS

EL WARNER

D: (949) 873-0507 M: (858) 752-3078

E: el.warner@matthews.comLicense No. 01890271 (CA)

BROKER OF RECORDKYLE MATTHEWS

License No. 19601 (NM)

CAITLIN ZIRPOLO

D: (949) 432-4518 M: (760) 685-6873

E: caitlin.zirpolo@matthews.comLicense No. 01987844 (CA)

JORDAN GOMEZ

D: (949) 432-4503 M: (951) 264-5994

E: jordan.gomez@matthews.comLicense No. 02008809 (CA)

DAVID MALOY

D: (949) 777-5983 M: (917) 515-9975

E: david.maloy@matthews.comLicense No. 10401244229 (NY)