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OFFERING MEMORANDUM

7-ELEVEN741 Kenmore Ave, Buffalo, NY 14223

Confidentiality and Disclaimer

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and shouldnot be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified information toprospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.Marcus & Millichap has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financialperformance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with Stateand Federal regulations, 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 itsoccupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified,and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoeverregarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Marcus & Millichap is aservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is notintended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commerciallisting of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, norhas Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completenessof any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. ThisMarketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligenceexamination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of anet leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitabilityof the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related tothe property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for someproperties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents forthe area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may beinterrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her owninvestigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant shoulddefault or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability tomake alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out ofyour investigation and/or purchase of this net leased property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY.PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

N O N - E N D O R S E M E N T & D I S C L A I M E R N O T I C E / N E T L E A S E D D I S C L A I M E R

EXECUTIVE SUMMARY

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FINANCIAL ANALYSIS 7-ELEVEN

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2015 Marcus & Millichap

PURCHASE PRICE: $837,800CAP RATE: 7.50%

ADDRESS

741 Kenmore Ave, Buffalo, NY 14223

VITAL DATA

Price Per Square Foot (GLA) $295.52

Gross Leasable Area (GLA) 2,835 SF

Year Built/Renovated 1994

Lot Size 0.26 AC

Down Payment $837,800 (100%)

Net Operating Income - Current $62,835

Net Cash Flow After Debt Service - Current $62,835

Cash on Cash Return - Current 7.50%

DEMOGRAPHICS1 Miles 3 Miles 5 Miles

POPULATION2021 Projection 28,070 183,799 373,8282016 Estimate 28,371 186,413 381,9972010 Census 28,491 186,533 382,2252000 Census 30,097 196,900 412,799

INCOMEAverage $67,892 $62,317 $58,369Median $55,824 $45,726 $41,667

7-Eleven

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INVESTMENT OVERVIEW 7-ELEVEN


Store BaseStore Count 8,500TTM Sales $15,030,000,000

7-Eleven, Inc.

7-Eleven History

What started out as an ice house in Dallas, Texas, back in 1927 has grown and evolved into the world’s largest operator, franchisor and licensor of convenience stores.

The company operates, franchises and licenses approximately 10,700 convenience stores in North America. Of the close to 8,500 stores the company operates and franchises in the United States, more than 6,700 are franchised.

Outside of the U.S. and Canada, there are more than 60,000 7-Eleven and other convenience stores in Japan, Taiwan, Thailand, South Korea, China, Malaysia, Mexico, Singapore, Australia, the Philippines, Indonesia, Norway, Sweden, Denmark and United Arab Emirates. 7-Eleven has announced plans to open stores in Vietnam.

7-Eleven is the world’s largest convenience store chain operating, franchising and licensing stores in 18 countries. Approximately 10,700 of the 60,000 7-Eleven stores worldwide are in North America.

Information provided by: http://corp.7-eleven.com/corp-BAK/about

LEASE INFORMATION

Tenant Name 7-Eleven

Guarantor 7-Eleven, Inc.

Rentable Square Feet 2,835 SF

Lease Commencement 6/22/1994

Lease Expiration 3/31/2020

Options Four - Five Year Options

Rent Increases Next Option Period

ROFR / Option to Purchase No

Roof & Structure Landlord Responsible

Parking Lot Tenant Repairs & Replaces

Utilities Tenant Responsible

HVAC Tenant Responsible (Repair & Replace)

Taxes Tenant Responsible

Insurance Tenant Responsible

ANNUALIZED OPERATING INFORMATIONINCOME

Net Operating Income $62,835

RENT SCHEDULE

YEAR ANNUAL RENT MONTHLY RENT RENT/SF

Extended Term $62,835 $5,236 $22.16

Option 3 $68,505 $5,709 $24.16

Option 4 $71,340 $5,945 $25.16

Option 5 $74,175 $6,181 $26.16

Option 6 $77,010 $6,418 $27.16

http://corp.7-eleven.com/corp-BAK/about

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INVESTMENT OVERVIEW

• Triple Net Lease - Minimal Landlord Responsibilities

• Corporate Guarantee - S&P AA-

• Worlds Largest Convenience Store Chain

• 60,000+ Locations Worldwide

LOCATION & PROPERTY• Hard Corner Location

• Long Term Tenancy As A Convenience Store

• Close To Downtown Buffalo, NY

• Has Extended Lease Twice Past Initial 15 Year Term

TENANT

Marcus & Millichap is pleased to present the 7-Eleven in Buffalo, NY.

This investment consists of a single tenant convenience store leased to 7-Eleven. The lease was first signed in 1994 but was extended and currently is leased through 3/31/2020. The tenant has four remaining option terms, originally six but 7-Eleven has exercised two thus far.

The structure of the lease is NNN whereas the tenant is responsible for all taxes, insurance, common area maintenance. Landlord is responsible for replacement (including roof and structure).

Buffalo is a city in western part of the state of New York. Buffalo sits on the eastern side of Lake Erie. As of 2016, Buffalo is New York state's second most populous city after New York City, with 275,983 residents. The metropolitan area has a population of 1.13 million.

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741 Kenmore Ave, Buffalo, NY 14223

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Source: © 2015 Experian

DEMOGRAPHICS 7-ELEVEN


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OVERVIEWBUFFALO

Containing the popular tourist attraction Niagara Falls and located less

than 100 miles from Toronto, the Buffalo metro consists of Erie and

Niagara counties, with the city of Buffalo representing the county seat of

Erie County. The metro generates a significant portion of revenue

through tourism, while the economy also specializes in financial services,

healthcare and retailing. The market lies within 500 miles of 40 percent of

the U.S. population.

1.1M2016

POPULATION:

473K2016

HOUSEHOLDS:

40.92016

MEDIAN AGE:

$52,300 2016 MEDIAN

HOUSEHOLD INCOME:

DEMOGRAPHICS

U.S. Median:

37.7U.S. Median:

$57,2001%

Growth2016-2021*:

0.1%

Growth2016-2021*:

ECONOMY

METRO HIGHLIGHTS

* Forecast Sources: Marcus & Millichap Research Services; BLS; Bureau of Economic Analysis; Experian; Fortune; Moody’s Analytics; U.S. Census Bureau

CENTRALIZED LOCATIONThree certified Foreign Trade Zones and a centralized location to major metropolitan areas provide a base of operations for manufacturing and logistics.ADVANCED MANUFACTURING BASENo state income tax for manufacturing companies has supported a growing advanced manufacturing base, with over 66,000 skilled workers in the metro.

WORLD-CLASS LIFE-SCIENCES RESEARCHRoughly 15 percent of local graduates receive degrees in life sciences, making it the fourth-ranked metro on a per capita basis in the nation.

Comprehensive healthcare systems companies Kaleida Health and Catholic Health employ nearly 20,000 people combined, underscoring the vast healthcare diagnostics and research employment base.

M&T Bank, the 17th largest commercial bank in the nation, is headquartered in Buffalo. The firm employs more than 7,500 workers in the metro.

The Buffalo Niagara Medical Campus, a 120-plus acre collaborative research park in downtown Buffalo, provides space for research and development for more than 75 companies in biotech and life sciences.

The metro is the leading dairy producer in the state, while New York is the third largest dairy-producing state in the nation.


DEMOGRAPHICS 7-ELEVEN


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CREATED ON SEPTEMBER 5, 2017

1 Miles 3 Miles 5 Miles

POPULATION2021 Projection 28,471 184,134 373,639

2016 Estimate 28,778 186,755 381,814

2010 Census 28,898 186,871 382,035

2000 Census 30,501 197,299 412,639

INCOMEAverage $68,326 $62,403 $58,321

Median $56,013 $45,740 $41,634

Per Capita $30,783 $26,906 $25,474

HOUSEHOLDS2021 Projection 12,931 78,732 161,102

2016 Estimate 12,952 79,146 163,076

2010 Census 13,015 79,494 164,089

2000 Census 13,149 81,478 172,950

HOUSING2016 $117,701 $106,256 $103,101

EMPLOYMENT2016 Daytime Population 16,187 184,255 425,978

2016 Unemployment 4.78% 7.55% 8.31%

2016 Median Time Traveled 22 21 21

RACE & ETHNICITYWhite 81.23% 63.07% 61.43%

Native American 0.06% 0.04% 0.05%

African American 10.14% 27.59% 27.39%Asian/Pacific Islander 3.61% 3.61% 4.56%

7-ELEVEN - BUFFALO, NY

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