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Actual Location

Offered Exclusively By Andrew Ackerman | Associate Director aackerman@stanjohnsonco.com

Actual Location

Offering Memorandum

Rahill Lakhani | Associate rlakhani@stanjohnsonco.com Mike Sladich | Associate msladich@stanjohnsonco.com In Association With: Britton Burdette GA Lic #299304

Phillips 66 Council Bluffs, Iowa Atlanta Chicago New York

Houston Los Angeles Miami

Phoenix San Francisco Tulsa


Confidential Disclaimer This Confidential Memorandum has been prepared by Stan Johnson Company (“SJC”) and is being furnished to you solely for the purpose of your review of the commercial property located at 3607 9th Avenue, Council Bluffs, Iowa 51501 (the “Property”). The material contained in this Offering Memorandum shall be used for the purposes of evaluating the Property for acquisition and shall not be used for any purpose or made available to any other person without the express written consent of Stan Johnson Company (“Broker”). By accepting the Confidential Memorandum, you acknowledge and agree that: (1) all of the information contained herein and any other information you will be receiving in connection with this transaction, whether oral, written or in any other form (collectively, the “Materials”), is confidential; (2) you will not reproduce the Confidential Memorandum in whole or in part; (3) if you do not wish to pursue this matter, you will return this Confidential Memorandum to SJC as soon as practicable together with all other materials relating to the Property which you may have received from SJC; and (4) any proposed actions by you which are inconsistent in any manner with the foregoing agreements will require the prior written consent of SJC. This Confidential Memorandum has been prepared by SJC, based upon certain information pertaining to the Property and any information obtained from SJC to assist interested parties in making their own evaluation of the Property is offered on a no representation or warranty provision other than customary warranties of title and is sold on an “as-is, where-is” basis and with all faults. The material and transaction does not purport to be all inclusive. This Confidential Memorandum contains descriptive materials, financial information and other data compiled for the convenience of parties interested in the Property. The Materials are being delivered by SJC to prospective investors with the understanding that it is not all inclusive and that it is qualified in its entirety by independent investigation by prospective investors of those matters which they deem appropriate in evaluating this offering without reliance upon SJC, the Broker or any of their respective affiliates or any of the information set out in the Materials. Neither SJC, the Broker, nor any of their respective affiliates have independently verified any of the information contained herein or in any of the Materials, and no representations or warranties as to the accuracy or completeness thereof or of any other kind whatsoever are made or intended and none should be inferred. SJC, for itself and its affiliates of the Property, expressly disclaim any and all liability for statements or representations, express or implied, contained herein or for omissions from the Materials or for any other written, oral or other format of communication transmitted to a prospective investor in the course of its evaluation of the proposed transaction. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents and/or financial statements, which upon request may be made available. The terms and conditions described herein are subject to change without notice. This Confidential Memorandum does not constitute an offer to accept any investment proposal but is merely a solicitation of interest with respect to the investment described herein. The Confidential Memorandum does not constitute an offer of security. The investment described herein may be financed or withdrawn from the market, without prior notice. By accepting this Confidential Memorandum you agree to release SJC and hold it harmless from any kind of claim, expense, or liability arising out of your discovery or purchase of the Property. SJC reserves the right to request the return of the Materials at any time. Ownership of the Property reserves the right to negotiate with one or more prospective investors at any time.

Page 2

Team Ackerman | Atlanta Office

THE NET LEASE AUTHORITY®


Purchase Price $574,737 Stan Johnson Company is pleased to offer for sale to qualified investors a Phillips 66 gas station property located at 3607 9th Avenue Council Bluffs, Iowa. Phillips 66 is operating under a brand-new, fifteen (15) year NNN base lease term with four (4), five (5) year renewal options. There is a seven (7) percent scheduled rental increase every five (5) years during the primary term and all renewal options. The subject property was remodeled in 2012 and is located just off Interstate 29 which averages about 42,000 vehicles per day. The property’s lottery sales are some of the highest in the region for the state of Iowa.Not only is the property priced below replacement cost, but it also has a rent-to-sales ratio of 1.49 percent.

Cap Rate 9.50% Property Highlights Strong national brand 15 year absolute NNN lease Low rent per square foot High yield cap rate Priced below replacement cost Lottery sales are some of the highest in the region for the state of Iowa 2012 - 745,564 Gallons 2012- $3,659,832 Sales

Tenant Highlights Multi-unit operator Strong operator with track record 1.49 percent rent-to-sales ratio

Page 3

Team Ackerman | Atlanta Office

THE NET LEASE AUTHORITYÂŽ


Lease Abstract Property Address 3607 9th Avenue Council Bluffs, Iowa 51501

Actual Location

Property Type

Retail

Tenant

Phillips 66

Guarantor

NEW CO. LLC

Year Built

1968 (Remodeled 2012)

Base Rent

$54,600

Rent Commencement

At closing

Lease Expiration

January 1, 2029

Building SF

+/- 1,479 SF

Acreage

+/- 0.52 Acres

Remaining Term

Fifteen (15) years

Lease Type

NNN - no landlord responsibilities

Renewal Options

Four (4), Five (5) year options

Rent Increase

7% every five (5) years

Actual Location

Page 4

Team Ackerman | Atlanta Office

THE NET LEASE AUTHORITY速


Brand Overview •

Phillips 66 operates as an independent downstream energy company

Phillips 66 was founded in 1875 and is headquartered in Houston, Texas

The company operates in three segments: Refining and Marketing (R&M), Midstream, and Chemicals

ConocoPhillips Headquarters - Houston, TX

The R&M segment purchases, refines, markets, and transports crude oil and petroleum products, such as gasolines, distillates, and aviation fuels primarily in the United States, Europe, and Asia

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 petrochemicals and plastics

As of February 11, 2013, it had 15,000 miles of pipeline systems and 10,000 owned or supplied branded marketing outlets

As of September 30, 2013 Phillips 66 (NYSE: PSX) had a total revenue of $172.68 billion, net income of $3.6 billion, and a net worth of $85.32 billion.

Operator Overview •

Multi-Unit Operator

Strong Operator with a Track Record

1.49% Rent-to-Sales Ratio

Actual Location

Page 5

Team Ackerman | Atlanta Office

THE NET LEASE AUTHORITY®


DODGE RIVERSIDE GOLF COURSE

I-29 (42,129 VPD)

I-480 (23,36 6 VPD)

MISSOURI RIVER

HARRAH’S COUNCIL BLUFFS HOTEL & CASINO

Page 6

Team Ackerman | Atlanta Office

THE NET LEASE AUTHORITY®


Location Overview Council Bluffs is a city in, and the county seat of Pottawattamie County, Iowa. It sits on the east bank of the Missouri River across from the city of Omaha, Nebraska. The population of Council Bluffs was 62,230 at the 2010 census. Along with neighboring Omaha to the west, Council Bluffs was part of the 60th-largest metropolitan area in the United States in 2010, with an estimated population of 865,350 residing in the eight counties of the Omaha-Council Bluffs metropolitan area. The liberalization of Iowa gambling laws was followed by the opening of The Bluffs Run Greyhound Park in 1986. By 2005 Council Bluffs was the 19th largest casino market in the United States, with revenue equaling nearly $434 million. Casinos include Ameristar Casino Hotel Council Bluffs, Harrah’s Council Bluffs, and the Horseshoe Council Bluffs.

Council Bluffs, IA

Tyson Foods, Con-Agra, Grundorf, American Games, Omaha Standard, Barton Solvents, Katelman Foundry, Red Giant Oil, and Griffin Pipe all have manufacturing plants in the city. In 2007 Google began construction of a server farm.

Bayliss Park

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Team Ackerman | Atlanta Office

THE NET LEASE AUTHORITYÂŽ


Sold Comparables Tenant

City, State

SF

Price

Rent/SF

Price/SF

Lease Term Remaining

Cap Rate

Council Bluffs, IA

1,479

$574,737

$36.92

$388.60

15

9.50%

Chevron

Decatur, GA

3,000

$1,050,000

$28.00

$350.00

20

8.00%

Chevron

Waveland, MS

4,000

$1,100,000

$27.50

$275.00

20

10.00%

Shell

Anderson, SC

4,000

$1,356,751

$29.68

$339.19

10

8.75%

Auburn, AL

3,000

$750,000

$20.00

$250.00

20

8.00%

Exxon

Mosheim, TN

4,346

$1,000,000

$18.41

$230.10

20

8.00%

Exxon

Jefferson City, TN

2,604

$945,000

$29.03

$362.90

20

8.00%

Subject Property

Chevron

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Team Ackerman | Atlanta Office

THE NET LEASE AUTHORITY速


Demographics 3607 9TH AVE, COUNCIL BLUFFS, IA 51501

0-1 Mile

%

0-3 Miles

%

0-5 Miles

%

Population 2019 Projection

7,634

82,311

206,098

2014 Estimate

7,701

81,092

202,100

2010 Census

7,780

80,232

199,420

2000 Census

7,416

78,310

197,178

Growth 2000 - 2010

4.91%

2.45%

1.14%

Growth 2010 - 2014

-1.02%

1.07%

1.34%

Growth 2014 - 2019

-0.88%

1.50%

1.98%

2019 Projection

3,395

31,555

80,197

2014 Estimate

3,403

30,624

77,952

2010 Census

3,409

29,775

76,072

2000 Census

3,130

29,903

77,402

Growth 2000 - 2010

8.92%

-0.43%

-1.72%

Growth 2010 - 2014

-0.18%

2.85%

2.47%

Growth 2014 - 2019

-0.25%

3.04%

2.88%

7,701

81,092

202,100

Households

2014 Est. Population by Single Classification Race White Alone

6,798

88.27

58,802

72.51

135,386

66.99

157

2.04

7,101

8.76

27,102

13.41

American Indian and Alaska Native Alone

47

0.61

1,162

1.43

2,672

1.32

Asian Alone

89

1.16

1,027

1.27

4,027

1.99

8

0.10

67

0.08

187

0.09

Some Other Race Alone

333

4.32

10,061

12.41

25,268

12.50

Two or More Races

269

3.49

2,871

3.54

7,458

3.69

Black or African American Alone

Native Hawaiian and Other Pacific Islander Alone

2014 Est. Average Household Income

$45,439

$44,010

$48,964

2014 Est. Median Household Income

$38,530

$34,019

$36,597

Page 9

Team Ackerman | Atlanta Office

THE NET LEASE AUTHORITY速


Andrew Ackerman | Associate Director aackerman@stanjohnsonco.com Rahill Lakhani | Associate rlakhani@stanjohnsonco.com Mike Sladich | Associate msladich@stanjohnsonco.com In Association With: Britton Burdette GA Lic #299304 Stan Johnson Company 3340 Peachtree Rd NE | Suite 1800 Atlanta, GA 30326 404.812.5380


Phillips66 councilbluffs ia aa om