ARLINGTON, TEXASOFFERING MEMORANDUM

In Association with Jennifer Stein of JDS Real Estate Services, Inc. | A Licensed Texas Broker #9004326

RECENTLY ACQUIRED BY PEP BOYS

ACTUAL PROPERTY

OFFERING MEMORANDUMARLINGTON, TEXAS

EXCLUSIVELY LISTED BY:

Eric WohlExecutive Vice President ewohl@higrea.com844.585.7673

Austin BlodgettAssociateablodgett@higrea.com844.585.7624

In Association with Jennifer Stein of JDS Real Estate Services, Inc. | A Licensed Texas Broker #9004326

TABLE OF CONTENTS:Offering Summary 3

Investment Highlights 4

Proposed Signage Modification 5

Lease Summary 6

Site Plan/Parcel Map 7

Aerial Overview 8

Regional Map 9

Tenant Profile 10

Area Overview 11

Demographics 13

3

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

LOCATION

Just Brakes

3031 S. Cooper Street

Arlington, TX 76015

OFFERING SUMMARY

Price: $1,850,000

March 2018 Net Operating Income (NOI): $145,200

Capitalization Rate: 7.85%

Price per Square Foot: $344

Net Rentable Area: 5,382

Year Built: 1978; R-2008

Lot Size (Acres): 0.43

FINANCING SUMMARY

All Cash or Cash to New Financing

(Contact Hanley Investment Group for Further Details)

OFFERING SUMMARY

ACTUAL PROPERTY

4

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

INVESTMENT HIGHLIGHTS

yy Single-Tenant NNN Just Brakes:

yο Pep Boys (owned by Icahn Enterprises LP) acquired Just Brakes in January 2017

yο Corporate lease guaranteed by Pep Boys (900+ locations in 35 states)

yο Absolute NNN lease; zero landlord responsibility

yο 6 years of firm term remaining

yο Three 5-Year options with 10% increases

yο Above market cap rate of 7.85%

yy Prime Location: This property is minutes from The University of Texas at Arlington (51,000 students) and The Parks at Arlington Mall (22,000,000 visitors annually)

yy Excellent Highway Exposure: This property benefits from over 85,000 cars per day on Highway 157 and features highly visible pylon signage

yy Dense Infill Location: The 5-mile trade area has a population in excess of 363,000 people

yy Dallas-Fort Worth MSA Location with a Combined Population of Nearly 7.1 Million People

yy Retail Synergy: Nearby credit tenants include Macy’s, Dillard’s, Dick’s Sporting Goods, Sears, The Home Depot, Target, Best Buy, 24 Hour Fitness, McDonald's, Whataburger, Jack in the Box, and Wendy’s

ACTUAL PROPERTY

5

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

PROPOSED SIGNAGE MODIFICATION

PHOTO REPRESENTATION OF PROPOSED IMAGE MODIFICATION FROM PEP BOYS

6

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

LEASE SUMMARY

LEASE SUMMARY (1)

Tenant: Just Brakes (Pep Boys)

Lease Commencement: March 1, 2008

Lease Expiration: June 30, 2023

Lease Type: NNN

Net Operating Income: (2) $145,200

Net Rentable Area: 5,382

Monthly Rent Per Square Foot: $2.25

Rental Increases: 10% Every 5 Years

Renewal Options: Three 5-Year @ 10%

Property Taxes: Tenant Responsibility

Insurance: Tenant Responsibility

Common Area Maintenance: Tenant Responsibility

Repairs & Maintenance: Tenant Responsibility

Roof & Structure: Tenant Responsibility

NOTES

(1) All lease provisions to be independently verified by Buyer during the Due Diligence Period.

(2) Based off of the rent increase in March 2018.

ACTUAL PROPERTY

7

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

SITE PLAN / PARCEL MAP

N

SIGN

COO

PER

STRE

ET

SUBJECT PROPERTY PROPERTY PARCEL APN: 28060-47

8

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

AERIAL OVERVIEW

2016 DEMOGRAPHICS

Population:1-Mile Radius 15,2643-Mile Radius 129,3005-Mile Radius 343,025

Household Income:1-Mile Radius $59,8873-Mile Radius $66,4895-Mile Radius $72,350

N

ARLINGTON HIGHLANDS

- 737,000 SF LIFESTYLE CENTER -- BUILT IN 2007 -

THE PARKS AT ARLINGTON- 172 RETAIL STORES; 1.5M SF -

SUBJECTPROPERTY

THE UNIVERSITY OF TEXAS AT ARLINGTON- 2 MILES FROM SUBJECT PROPERTY -

- 51,000 STUDENTS - COO

PER S

TREE

T

160,000 CPD

86,0

00 C

PD

PIONEER PARKWAY

9

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

REGIONAL MAP

SUBJECTPROPERTY

ARLINGTON

N

10

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

TENANT PROFILE

Pep Boys Auto, founded in 1921, operates in the automotive aftermarket industry, providing services, tires, parts, and accessories throughout the United States and Puerto Rico. With over 7,500 service bays in more than 900 locations in 35 states and Puerto Rico, Pep Boys is one of the longest-running and world’s

largest automotive parts retail chains.

JUST BRAKES ACQUISITIONIn January of 2017, Pep Boys announced the purchase of the privately held Just Brakes company, an automotive repair and maintenance chain. Just Brakes, has been in business for 36 years, has 134 locations, and operates in 8 states and 14 major metropolitan markets. Following the closing of the transaction, all Just Brakes locations will assume the Pep Boys banner, pushing the company’s total store count to more than 900 locations across the country.

ICAHN ENTERPRISES ACQUISITIONIn December of 2015, Pep Boys agreed to be acquired by Carl Icahn’s Icahn Enterprises L.P. for more than $1 billion after the Japanese Bridgestone Corporation backed down from a bidding war with the billionaire investor. Pep Boys benefits from being housed within Icahn’s Automotive segment, allowing it to leverage synergies with other Icahn-held companies including Federal-Mogul, a major global supplier of technology and innovation in vehicle and industrial products, and Auto Plus, a smaller automotive aftermarket company with more than 270 locations around the country.

PRE-ACQUISITION PERFORMANCEPrior to the Icahn acquisition, Pep Boys was its own publicly-traded company with shares listed on the New York Stock Exchange trading under the ticker symbol, PBY. The company’s performance at that time can be characterized by a combination of growth and falling debt levels. Since the mid-2000s, Pep Boys has grown its store base from approximately 550 locations to more than 800 prior to the Icahn acquisition – since the December 2015 purchase, Pep Boys has added roughly 150 locations, pushing the total store count north of 900. During that same time period, Pep Boys cut its debt-to-equity ratio and total long-term debt levels by more than half. Additionally, since 2009, Pep Boys has increased its revenues by nearly $500 million, currently generating upwards of $2 billion in annual revenues.

Company Type: Public (NSDQ: IEP; S&P: BB+)Locations: 900+ Stores (7,500 Service Bays)Website: www.pepboys.com

REPRESENTATIVE PHOTOS

11

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

Arlingtonyy 7th most populous city in of Texas, and the 50th most populous city in the United States

yο 400,000 total population

yο 7.5% population growth since 2010

yy AT&T Stadium is an 80,000 seat venue that opened in May of 2009

yο Home of the NFL’s Dallas Cowboys

yο Annual host of the Cotton Bowl, as well as numerous other special events including:

y� 1st ever College Football National Championship (2015)

y� 50th annual Academy of Country Music Awards show (2015)

y� Wrestle Mania 32 (2016)

yy General Motors Arlington Assembly Plant

yο $1.5 billion invested for a range of improvements from 2015 to 2016

y� 1.2 million square feet of plant expansion, as well as, an increase in the number of employees

yο Builds high-quality, full-size SUVs, including the Chevy Tahoe and Suburban, Cadillac Escalade, and GMC Yukon

yy D. R. Horton, America’s largest home builder and a Fortune 500 company, plans to relocate its corporate headquarters to a new $20 million building in North Arlington

yο 500 corporate employees will move to the new building

yy Blue Apron, a fresh ingredient and recipe delivery service, is opening a new fulfillment center in Arlington in 2017

yο Approximately 600 employees to be hired

yy The Viridian mixed-use development is a planned 2,300 acre community

yο 3,600 homes, condominiums and high-end rentals

yο 10-15 years to complete the development

yο Will eventually house approximately 15,000 people

VIRIDIAN DEVELOPMENT

AT&T STADIUM

GLOBE LIFE PARK

AREA OVERVIEW

12

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

Dallas-Fort Worth Areayy Major urban center in the state of Texas

yο 4th most populous metropolitan area in the United States

yο 7 million total population

yο 5th largest economy in the United States

yο 4th largest employment center in the nation (behind New York City, Los Angeles and Chicago) with more than 3 million non-farm jobs

yy One of the fastest growing areas in the country

yο 9% total population growth since 2010

yο 7.5% expected population growth over the next 5 years

yy 3rd largest concentration of Fortune 500 companies in the nation

yο Referred to as "Silicon Prairie" because of its high concentration of telecommunications companies

yο Home to more than 5,700 companies including Texas Instruments, AT&T, Ericsson, Fujitsu, Nokia, Rockwell Collins, Cisco Systems, Sprint, Verizon Communications, and XO Communications

yο Texas Instruments is a world-renowned manufacturer that employs more than 10,000 people at its corporate headquarters and chip plants in Dallas

yy Dallas/Fort Worth International Airport is the 2nd largest airport in the country and 6th largest in the world

yο 3rd busiest airport in the world in terms of aircraft movements

yο 7th busiest airport in the world in terms of passenger traffic

yο 65 million passengers annually

yy Dallas Area Rapid Transit (DART) includes nearly 100 miles of track and covers 13 cities in the area

yο DART Blue Line is in the process of adding an additional 3 miles of track to serve the University of North Texas campus

yο Orange Line completed its expansion to the DFW International Airport in 2014

DALLAS AREA RAPID TRANSIT

DOWNTOWN DALLAS

DALLAS MUSEUM OF ART

AREA OVERVIEW

13

JUST BRAKES

The information contained herein has been obtained from sources we deem reliable. We cannot assume responsibility for its accuracy.

DEMOGRAPHICS

1-Mile 3-Mile 5-MilePopulation:

2021 Projection 15,239 128,700 351,9112016 Estimate 15,264 129,300 343,0252010 Census 14,339 121,346 319,5662000 Census 12,970 118,221 295,103Growth 2000-2010 10.56% 2.64% 8.29%Growth 2010-2016 6.45% 6.55% 7.34%

Households2021 Projection 6,396 47,845 126,6972016 Estimate 6,202 46,933 120,9142010 Census 5,868 44,459 113,7102000 Census 5,134 43,592 105,897Growth 2000-2010 14.30% 1.99% 7.38%Growth 2010-2016 5.69% 5.56% 6.34%Growth 2016-2021 3.13% 1.94% 4.78%

2016 Est. Population by Single-Classification RaceWhite Alone 8,635 72,330 187,326 Black or African American Alone 2,983 22,498 69,120 American Indian and Alaska Native Alone 90 918 2,333 Asian Alone 1,181 12,232 26,653 Native Hawaiian and Other Pacific Islander Alone 14 207 446 Some Other Race Alone 1,861 16,331 44,319 Two or More Races 470 4,514 11,952

2016 Est. Pupulation by Ethnicity (Hispanic or Latino)Hispanic or Latino 4,317 38,896 106,172 Not Hispanic or Latino 10,947 90,404 236,853

2016 Est. Average Household Income $59,887 $66,489 $72,350

In Association with Jennifer Stein of JDS Real Estate Services, Inc. | A Licensed Texas Broker #9004326

The information contained herein does not purport to provide a complete or fully accurate summary of the Property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospective buyers may need or desire. All financial projections are based on assumptions relating to the general economy, competition, and other factors beyond the control of the Owner and Broker and, therefore, are subject to material variation. This Marketing Package does not constitute an indication that there has been no change in the business or affairs of the Property or the Owner since the date of preparation of the information herein. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective buyers.

Neither Owner nor Broker nor any of their respective officers, Agents or principals has made or will make any representations or warranties, express or implied, as to the accuracy or completeness of this Marketing Package or any of its contents, and no legal commitment or obligation shall arise by reason of the Marketing Package or its contents. Analysis and verification of the information contained in the Marketing Package is solely the responsibility of the prospective buyer, with the Property to be sold on an as is, where-is basis without any representations as to the physical, financial or environmental condition of the Property.

Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or terminate discussions with any entity at any time with or without notice. Owner has no legal commitment or obligations to any entity reviewing this Marketing Package or making an offer to purchase the Property unless and until such sale of the Property is approved by Owner in its sole discretion, a written agreement for purchase of the Property has been fully delivered, and approved by Owner, its legal counsel and any conditions to the Owner’s obligations thereunder have been satisfied or waived.

This Marketing Package and its contents, except such information which is a matter of public record or is provided in sources available to the public (such contents as so limited herein called the Contents), are of a confidential nature. By accepting this Marketing Package, you unconditionally agree that you will hold and treat the Marketing Package and the Contents in the strictest confidence, that you will not photocopy or duplicate the Marketing Package or any part thereof, that you will not disclose the Marketing Package or any of the Contents to any other entity (except in the case of a principal, who shall be permitted to disclose to your employees, contractors, investors and outside advisors retained by you, or to third-party institutional lenders for financing sought by you, if necessary, in your opinion, to assist in your determination of whether or not to make a proposal) without the prior authorization of the Owner or Broker, and that you will not use the Marketing Package or any of the Contents in any fashion or manner detrimental to the interest of the Owner or Broker.

CONFIDENTIALITY AGREEMENT

ARLINGTON, TEXAS

EXCLUSIVELY LISTED BY:

Austin BlodgettAssociateablodgett@higrea.com844.585.7624

Eric WohlExecutive Vice President ewohl@higrea.com844.585.7673