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SCOTCHMAN104 Seaborn Dr. | Myrtle Beach, SC

OFFERING MEMORANDUM

LISTED BY

Conrad SarrealSenior Associate Mobile +1 (626) 230-1006Direct +1 (214) 692-2847conrad.sarreal@matthews.comLicense No. 01982875 (CA)

Kyle MatthewsBroker of Record License No. 22684 (SC)

T A B L E O F C O N T E N T S

EXECUTIVE OVERVIEW4 FINANCIAL OVERVIEW10

TENANT OVERVIEW12 AREA OVERVIEW14

SCOTCHMAN104 Seaborn Dr. | Myrtle Beach, SC

OFFERING MEMORANDUM

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EXECUTIVE OVERVIEW

LEASE:

• Ideal 1031 Opportunity: There are 11+ years remaining on the lease with options for the tenant to remain at this location until 2048.

• Absolute NNN Lease: The tenant takes care of taxes, insurance, and maintenance for the property, offering a completely passive investment for both local and out-of-state investors.

• Helpful Annual Increases: Compared to most other corporate retail deals that offer increases every 5 years or worse, no rent increases throughout the base term, this investment opportunity offers rare CPI increases (not to exceed 2%) every year.

• Corporate Guaranty: GPM Investments, LLC, the parent company, is currently the 6th largest c-store operator in the country with currently 1,400+ locations and is working to finalize the acquisition of Empire Petroleum who distributes 1.2 billion gallons to more than 1,600 gas stations and operates 70+ retail locations.

• Rare Access to Financials: The most useful piece of information a landlord can have is access to financials, and the owner of this investment has that luxury. (Contact broker for more details)

• Recent Renovation: In 2018, the tenant decided to upgrade the exterior of the store, canopy, and fuel stations, demonstrating promising commitment to the location.

TENANT:

• Top 10 Company: GPM lands at 6th on CSP’s Top 202 Convenience Store Chains with 1,472 locations across 22 states. They’re significantly larger than many other recognized brands such as: Wawa, Quiktrip, Sheetz, Cumberland Farms, Racetrac, and Love’s Travel Stop.

• Consistent Growth Mode: Since its inception in 2003, GPM has acquired nearly 1,000 convenience store operations through 13 separate acquisitions with Empire Petroleum soon to add to that figure.

• Multi-Brand Operator: GPM Investments operates under various brands such as: Fas Mart, Shore Stop, Scotchman, Breadbox, Young’s, Li’l Cricket, Next Door, Village Pantry, Apple Market, Jiffi Stop, Admiral, Roadrunner, Jiffy Food Marts, EZ Mart, 1-Stop, Townstar, and Jetz.

INVESTMENT HIGHLIGHTS

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LOCATION/MARKET:

• Prime Positioning for Gas: Subject property is located along the main thoroughfare to Myrtle Beach, Highway 501, which sees an average of nearly 50,000 cars per day and grants easy access to the property.

• Most Popular Beach in South Carolina: Myrtle Beach is recognized by numerous forums as the most popular beach destination in the state with 19 million visitors annually.

• Top Vacation Destination: Myrtle Beach Boardwalk and Promenade (the Grand Strand) is a lively, jam-packed section of sand where you can walk back and forth and people watch all day. On hot summer nights, attractions like the SkyWheel and Adventure Matrix Aerial Park at Zipline Adventures are teeming with eager families and packs of teens, and it’s an experience just to walk the strip.

• Top National Grocer across the street: Kroger, the second largest grocer in the country, finished 2018 with $121.2 Billion in gross sales, and anchors the shopping center across the street.

• National Outlet Mall Nearby: Tanger Factory Outlet Centers, Inc has 37 different locations across the country totaling 12+ million square feet. Because of the premier lineup of tenants, they service an astounding 181 Million shoppers each year. Ideally, the closet one is located walking distance from the subject property, which in addition to Kroger, helps draw traffic to this intersection. Some of the notable tenants include Nike, Banana Republic, Adidas, Forever 21, GUESS, J.Crew, Ralph Lauren, Under Armour, Lee Wrangler, Levi’s, and dozens more.

• Strong Retail Corridor: The immediate proximity is home to the best retailers in the industry that help draw cars to this intersection. Such retailers include Kroger, Walmart Supercenter, Chick Fil-A, Bojangles, Carmax, Walgreens, and Starbucks.

• International Airport: Subject property is only minutes from Myrtle Beach International Airport, which is the is the second busiest airport in South Carolina with 2.4 million passengers in 2018.

• Medical Center: Just under three miles west of Conway Medical Center that includes 210 hospital beds.

• Coastal Carolina University: Located on the same thoroughfare 3 miles west, Myrtle Beach is home to over 10,000 Chanticleer’s. (CCU’s Mascot)

INVESTMENT HIGHLIGHTS CONTINUED

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S C O T C H M A N | 7

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S C O T C H M A N | 9

1 0 | D I S P O S I T I O N P R O P O S A L1 0 | D I S P O S I T I O N P R O P O S A L

FINANCIAL OVERVIEW

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Address 104 Seaborn Dr. Myrtle Beach, SC

APN 162-00-01-117

Year Built/Remodeled 2001/2018

GLA of Building 3,374 SF

Lot Size ±.1.50 Acres (±65,340 SF)

BUILDING INFO

$2,788,000LIST PRICE

$146,263.32NOI

5.35%CAP RATE

S C O T C H M A N | 11

Date Monthly Rent Annual Rent Cap Rate

Current - 3/31/2020 $12,188.61 $146,263.32 5.25%

4/1/2020 - 3/31/2021 $12,432.38 $149,188.59 5.35%

4/1/2021 - 3/31/2022 $12,681.03 $152,172.36 5.46%

4/1/2022 - 3/31/2023 $12,934.65 $155,215.81 5.57%

4/1/2023 - 3/31/2024 $13,193.34 $158,320.12 5.68%

4/1/2024 - 3/31/2025 $13,457.21 $161,486.52 5.79%

4/1/2025 - 3/31/2026 $13,726.35 $164,716.25 5.91%

4/1/2026 - 3/31/2027 $14,000.88 $168,010.58 6.03%

4/1/2027 - 3/31/2028 $14,280.90 $171,370.79 6.15%

4/1/2028 - 3/31/2029 $14,566.52 $174,798.21 6.27%

4/1/2029 - 3/31/2030 $14,857.85 $178,294.17 6.40%

4/1/2030 - 3/31/2031 $15,155.00 $181,860.05 6.52%

ANNUALIZED OPERATING DATA

Lease Guarantor Corporate (1,400+ Units)

Type of Ownership Fee Simple

Lease Type NNN

Roof and Structure Tenant Resposible

Term Remaining ±11.25 years

Original Lease Term 23 Years

Lease Commencement Date 3/27/08

Lease Expiration Date 3/31/31

Increases Annual CPI Increases Every 5 Years

Options 1,10-Year & 1,7-Year

TENANT SUMMARY

*CPI Increases are capped at 2% per the lease and are assumed to be 2%+ annually.

TENANT OVERVIEW

» Company Name GPM Investments, LLC

» Ownership Private

» Year Founded 2003

» Industry Convenience Store

» Headquarters Richmond, VA

» Locations ± 1,400

GPM Investments, LLC, based in Richmond, VA, operates or supplies stores in Arkansas, Connecticut, Delaware, Florida, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Michigan, Missouri, Nebraska, New Jersey, North Carolina, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas and Virginia and is the 6th largest convenience store chain in the country.

Many of the company’s stores have hot, fresh food offerings. Its proprietary brand is RED’S. Some of its other proprietary brands include: Two Chicks, The Creamery, and Luigi’s Pizzas & Subs. In addition to its proprietary programs, many GPM stores also offer branded QSR programs, such as, Dairy Queen, Dunkin’, Godfather’s Pizza, Noble Roman’s Pizza, Subway, and Taco Bell.

GPM commenced operations in 2003 and, as of 2013, operated over 200 fas mart® and shore stop® locations in Connecticut, Delaware, Maryland, North Carolina, Pennsylvania, Tennessee and Virginia. GPM started on its growth path in August 2013 with the purchase of a 263-store convenience store group located in North Carolina, South Carolina, Tennessee, and Virginia, which included the brand names of Scotchman®, Young’s, Li’l Cricket, Quick & Easy Everyday Shop & Café®, BreadBox, and Cigarette City®. In early 2015, GPM began operating eight One Stop Stores in North and South Carolina which have been re-branded as Scotchman® and are also a part of GPM Southeast.

With its many acquisitions, GPM has widened its reach to approximately 1,400 convenience stores which it operates or to which it supplies fuel in 22 states.

GPM INVESTMENTS, LLC

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AREA OVERVIEW

POPULATION 1-MILE 3-MILE 5-MILE2025 Projection 3,539 40,785 91,0092020 Estimate 3,217 37,012 82,8252010 Census 1,951 25,263 58,701Growth 2020-2025 10.01% 10.19% 9.88%

Growth 2010-2020 64.89% 46.51% 41.10%

INCOME 1-MILE 3-MILE 5-MILE2020 Avg Household Income

$82,007 $77,484 $71,473

DEMOGRAPHICS

HOUSEHOLD 1-MILE 3-MILE 5-MILE2025 Projection 1,272 15,831 34,7912020 Estimate 1,162 14,394 31,7182010 Census 729 9,973 22,802Growth 2020-2025 9.47% 9.98% 9.69%

Growth 2010-2020 59.40% 44.33% 39.10%

S C O T C H M A N | 1 5

MYRTLE BEACH, SCThe City of Myrtle Beach is a residential community and vacation destination at the heart of the Grand Strand, a 60-mile stretch of natural beauty on South Carolina’s northeastern coast. Our 30,000 permanent residents and 19 million visitors enjoy the wide beaches, the warm weather and an incredible range of entertainment, nightlife, golf, shopping, dining and live theatre.

For nearly 50 years, Myrtle Beach was a military town, first as home to the U.S. Army Air Corps in the 1940s, and then to the Myrtle Beach Air Force Base beginning in the 1950s. The base closed in 1993, and the property has since been redeveloped as the Market Common District, complete with an urban town center known as The Market Common, a Grand Park that features open space, recreation fields, a large lake and several walking and bicycling trails.

Warbird Park features static displays of three types of U.S. planes that were stationed at the Myrtle Beach Air Force Base. The park also is home to the Wall of Service, a memorial wall featuring names of the military personnel and civilian staff who lived and worked at the base during its existence.

Today, Myrtle Beach is a well-known destination for vacationers from around the country, Canada and abroad. The city’s 900 staff members are dedicated to being “First in Service.”

19 M VISITORS

4% - 7% YEARLY EXPENDITURE

INCREASE

$10.8 B IN EXPENDITURES

$

TOURISM & ECONOMYThe Myrtle Beach area’s tourism industry continues to grow and sets new records each year. In 2018, 20.4 million people visited the destination and generated $10.8 billion in expenditures, up 4% and 7% year over year respectively. While 2019 numbers will not be calculated until spring 2020, tax collections indicate strong year over year growth, including a 10% increase for TDF through October.

The Myrtle Beach economy is heavily dependent upon leisure travel and that is directly impacted by consumer confidence. Fortunately, U.S. Consumer Confidence continues to surge as of August 2018 reaching 133.4, a near 18-year high, and future forecasts remain strong.

With 41% of Horry County’s workforce employed in Accommodations, Food Services, and Retail, the Myrtle Beach area continues to be heavily dependent on the tourism industry.

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

This Offering Memorandum contains select information pertaining to the business and affairs of Scotchman located at 104 Seaborn Dr. , Myrtle Beach, SC 29579 (“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 state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

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LISTED BY

Conrad SarrealSenior Associate Mobile +1 (626) 230-1006Direct +1 (214) 692-2847conrad.sarreal@matthews.comLicense No. 01982875 (CA)

Kyle MatthewsBroker of Record License No. 22684 (SC)

SCOTCHMAN104 Seaborn Dr. | Myrtle Beach, SCOFFERING MEMORANDUM