goodman distribution | 2631 n farmers market rd

2631 N FARMERS MARKET RD | SPRINGFIELD, ILOFFERING MEMORANDUM

2 GOODMAN DISTRIBUTION S P R I N G F I E L D , I L

TABLE OF CONTENTS03 EXECUTIVE OVERVIEW

04 FINANCIAL OVERVIEW

06 TENANT OVERVIEW

07 AREA OVERVIEW

KYLER BEANA S S O C I A T E - I N D U S T R I A LD I R : ( 2 1 4 ) 6 9 2 -2 1 9 2M O B : ( 3 2 5 ) 2 2 7- 0 8 9 3ky l e r . b e a n @ m a t t h e w s . c o mL I C N O : 6 4 6 9 1 0 ( TX )

LISTED BY:

BROKER OF RECORDP A T W E I B E LL I C N O : 47 1 0 1 8 2 6 6 ( I L )

CHAD KURZS V P & N A T I O N A L D I R E C T O RD I R : ( 2 1 4 ) 6 9 2 -2 9 2 7M O B : ( 5 6 2 ) 4 8 0 -2 9 3 7c h a d . k u r z @ m a t t h e w s . c o mL I C N O : 0 1 9 1 1 1 9 8 ( C A )

JOHNNY DUNNA S S O C I A T E - I N D U S T R I A LD I R : ( 2 1 4 ) 6 9 2 -2 1 1 4M O B : ( 8 1 7 ) 3 7 2 - 1 74 2j o h n n y. d u n n @ m a t t h e w s . c o mL I C N O : 6 7 7 5 0 6 ( TX ) SALES AND DISTRIBUTION

M A T T H E W S ™ 3

G O O D M A N D I S T R I B U T I O N 2631 N Farmers Market RdS P R I N G F I E L D , I L 6 2 7 0 7

EXECUTIVE OVERVIEW

$114,750A N N U A L R E N T

8.50%C A P R A T E

$1,350,000 L I S T P R I C E

INVESTMENT HIGHLIGHTS » Brand New Lease Extension – Tenant Recently extended their lease for 5 Years

showing a commitment to Market.

» International Parent Company – In 2012, Goodman Global was sold to Japan’s Daikin Industries Ltd. for $3.7 Billion. Daiken’s 2016 revenue was $18.92 Billion and has been in operations since 1924.

» Build To Suit – Property was developed for Goodman in 2006 showing a commitment to market.

» Room For Expansion – Goodman Distribution is situated on 4.11 Acres offering an investor upside in building expansion to increase business operations for Tenant.

» Passive Lease – Landlord responsibilities are only exterior, roof, structure, and HVAC replacement.

» High Rate of Return – Investment is offered at an 8.50% Cap, giving an investor a high rate of return with a national company backing.

» Hedge Against Inflation – Rent increases approximately 2.5% annually providing an investor an overall return of 9.62% at the end of the lease.

» Landlord Improvements - Prior to lease renewal, landlord completed significant improvements for site including new paint, carpet, lighting fixtures, cabinets, flooring, and new dock leveler showing their commitment to location.

» Industry Innovators - For over three decades, HVAC pros have recognized Goodman’s commitment to quality products. Recently, Goodman built out a 4.2 million square foot manufacturing facility to be ISO 9001-certified, the independent standard for quality manufacturing and management processes, and ISO 14001-certified, an international environmental certification.

SALES AND DISTRIBUTION


LEASE SUMMARYTYPE OF OWNERSHIP Fee Simple

LEASE Corporate

LEASE TYPE NN+

ROOF & STRUCTURE Landlord Responsible

LEASE TERM 6 Year Term

TERM REMAINING ±4 Years

OPTIONS One, 5-Year Term - Fair Market Value

RENTAL INCREASES Approximately 2.5% Increases

PARCEL MAP

G O O D M A N D I S T R I B U T I O N 2631 N Farmers Market RdS P R I N G F I E L D , I L 6 2 7 0 7

FINANCIAL OVERVIEW

ANNUALIZED OPERATING DATATERM RENT PSF MONTHLY RENT ANNUAL RENT CAP RATE

10/1/2016- 9/30/2017 $6.75 $9,562.50 $114,750.00 8.50%

10/1/2017- 9/30/2018 $6.92 $9,801.56 $117,618.72 8.71%

10/1/2018- 9/30/2019 $7.09 $10,046.60 $120,559.20 8.93%

10/1/2019- 9/30/2020 $7.27 $10,297.77 $123,573.24 9.15%

10/1/2020- 9/30/2021 $7.45 $10,555.21 $126,662.52 9.38%

10/1/2021- 9/30/2022 $7.64 $10,819.09 $129,829.08 9.62%

±17,000 SF G L A

±4.11 ACL O T S I Z E

15-18.0-102-008P A R C E L

SUBJECT PROPERTY

I-55±27,000 VPD


SUBJECT PROPERTY

I-55±27,000 VPD

SURROUNDING AREA


Goodman Manufacturing is a subsidiary of the Daikin Group, the world's largest manufacturer of Heating, Ventilation and Air Conditioning products and systems. The company, founded in 1975 and based in Houston, Texas, manufactures residential heating and cooling systems.

The company recently built out 4.2 million square foot manufacturing facility to be ISO 9001-certified, the independent standard for quality manufacturing and management processes, and ISO 14001-certified, an international environmental certification for $417 million.

Major Goodman manufactured products are residential split air conditioners and heat pumps, gas furnaces, air handlers and coils, packaged unit, and ComfortNet™ controls and thermostats. Goodman focuses on helping millions and millions of homeowners achieve reliable, high-quality and affordable indoor comfort with products that continue to be designed, engineered and assembled in the U.S.A. As a result, the Goodman brand has earned the loyalty and respect from thousands of local independent heating and cooling professionals across North America.

W W W . G O O D M A N M F G . C O M

±5,000E M P L O Y E E S

±$2.6 BillionR E V E N U E

W O R L D ' S L A R G E S T H V A C M A N U F A C T U R E R


AREA OVERVIEWAs the largest city in central Illinois, with a population of 117,000, Springfield is best known for being the home of our 16th President Abraham Lincoln and the place where President Barack Obama spent his early career in politics. Springfield is truly rich with history while maintaining a progressive and strong business environment.

Conveniently located on Interstate Highways 55 and 72, Springfield is in close proximity to Springfield to the south; Chicago to the north and Indianapolis to the east. This central location gives Springfield a reach of over 536,000 people within a 40-mile radius. In addition to Interstate access, five class I railroads and two short-line railroads serve the city and Sangamon County, providing direct shipment to major markets throughout the United States. Springfield's Abraham Lincoln Capital Airport is three miles northwest of the City's downtown and is a full-service provider that accommodates both passengers as well as freight services.

DEMOGRAPHICS

SPRINGFIELD, ILLINOIS

POPULATION 1-MILE 3-MILE 5-MILE

2023 Projection 1,662 25,602 64,591

2018 Estimate 1,702 26,175 65,529

2010 Census 1,781 27,352 67,507

HOUSEHOLDS 1-MILE 3-MILE 5-MILE

2023 Projection 705 11,069 27,317

2018 Estimate 720 11,257 27,625

2010 Census 748 11,598 28,198

INCOME 1-MILE 3-MILE 5-MILE

Average Household Income $77,828 $61,153 $59,513


SPRINGFIELD ECONOMYPrincipal industries in Springfield include agriculture and dairy farming; trade, transportation, and utilities; educational and health services; government; and manufacturing. The Springfield area is rich in natural resources such as stone, lime, zinc, barium, coal, marble, sand, gravel, and lead. Abundant hardwood forests yield white oak, post oak, black oak, scarlet oak, hickory, maple, and black walnut. Indigenous wildlife includes deer, fur-bearing animals, quail, rabbits, squirrels, doves, and waterfowl.

As an agribusiness center, the city is home to Springfield Regional Stockyards, one of the nation's largest stockyards and feeder cattle facilities. Other agriculture-related firms are creameries, meatpacking plants, and flour mills. Springfield is also a shipping center for poultry, eggs, and milk. Diversified manufacturing comprises nearly one-fourth of the metropolitan area employment base; major manufacturers include Willow Brook Foods, Aarons Automotive Products, Kraft Foods, FASCO Industries (electric motors), Sweetheart Cup Co., and General Electric.

Springfield is a regional hub for retailing and financial services and is a popular tourist destination. The health care industry employs 25,000 people, or 15 percent of the Springfield area's total workforce, and has an economic impact of more $3 billion. The third-largest retail market in Missouri—sales total more than $3 billion annually—Springfield ranks in the top 170 markets in the nation. Two medical centers, which are among Springfield's top employers, form the basis of the major health care system in the area. As the gateway to the Ozark Mountain country, the city receives millions of visitors each year.


HEALTHCARESpringfield's medical and healthcare sectors are a core industry for central Illinois. We are the headquarters for the Hospital Sisters Health System (HSHS) and Memorial Health Systems and our two main hospitals, St. John's Hospital and Memorial Medical Center are currently undergoing major expansions at cost of $200 million and $140 million respectively.

The community is also home to Springfield Clinic; Prairie Heart Institute; Prairie Education and Research Cooperative; Southern Illinois School of Medicine (SIU); Simmons Cancer Institute; along with St. John's School of Nursing and the University of Illinois at Springfield's nursing program.

Springfield is a regional provider of health care services. An example of the confidence that our medical community has in the central location is most recently evidenced by the action leading up to the 2015 opening of Memorial Medical Center's 72,000-square-foot, four-story Center for Learning and Innovation. As only one of six in the nation, the Center houses a state-of-the-art Simulation Center, providing learners with the opportunity to develop their skills through simulation and skills training in settings that include a nursing station, general medical patient care room, operating room, emergency treatment and trauma room, labor/delivery room, physician exam room, and outdoor ambulance setting and a home setting in addition to featuring classrooms, training rooms and a conference center.

The lore and reputation of Abraham Lincoln has made Springfield a global destination because of the story of his life and the location in Springfield of his home and the Abraham Presidential Library and Museum. However, Springfield draws people year-round for festivals and events including the Illinois State Fair; the annual Route 66 Mother Road Festival; the International Carillon Festival; downtown's Old Capitol Farmer's Market; the SoHo Music Festival and activities at Southwind Park, an 80-acre state-of-the-art park that serves as a national model by providing inclusion for all people, with a special emphasis given to individuals with physical and cognitive needs.

TOURISM


CONFIDENTIALITY AGREEMENT & DISCLAIMERThis Offering Memorandum contains select information pertaining to the business and affairs of Goodman Distribution located in 2631 N Farmers Market Rd, Springfield, IL 62707 (“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.


LISTED BY:

BROKER OF RECORDP A T W E I B E LL I C N O : 47 1 0 1 8 2 6 6 ( I L )

KYLER BEANA S S O C I A T E - I N D U S T R I A LD I R : ( 2 1 4 ) 6 9 2 -2 1 9 2M O B : ( 3 2 5 ) 2 2 7- 0 8 9 3ky l e r . b e a n @ m a t t h e w s . c o mL I C N O : 6 4 6 9 1 0 ( TX )

CHAD KURZS V P & N A T I O N A L D I R E C T O RD I R : ( 2 1 4 ) 6 9 2 -2 9 2 7M O B : ( 5 6 2 ) 4 8 0 -2 9 3 7c h a d . k u r z @ m a t t h e w s . c o mL I C N O : 0 1 9 1 1 1 9 8 ( C A )

JOHNNY DUNNA S S O C I A T E - I N D U S T R I A LD I R : ( 2 1 4 ) 6 9 2 -2 1 1 4M O B : ( 8 1 7 ) 3 7 2 - 1 74 2j o h n n y. d u n n @ m a t t h e w s . c o mL I C N O : 6 7 7 5 0 6 ( TX )

2631 N FARMERS MARKET RD | SPRINGFIELD, ILOFFERING MEMORANDUM

goodman distribution | 2631 n farmers market rd

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