Safelite AutoGlassMobile, Alabama

OFFERING MEMORANDUM

Douglas Longyear 415-677-0458Doug.Longyear@cassidyturley.comLic #00829911

Andrew Bogardus 415-677-0421Andy.Bogardus@cassidyturley.comLic #00913825

Christopher Sheldon415-677-0441Chris.Sheldon@cassidyturley.comLic #01806345

Sonny Culp205-380-1080sonnyc@grahamcompany.comAL Lic #000029566-0

Disclaimer

The information contained in this marketing brochure (“Materials”) is proprietary and confidential. It is intended to be reviewed only by the person or entity receiving the Materials from Cassidy Turley (“Agent”). The Materials are intended to be used for the sole purpose of preliminary evaluation of the subject property/properties (“Property”) for potential purchase.

The Materials have been prepared to provide unverified summary financial, property, and market information to a prospective purchaser to enable it to establish a preliminary level of interest in potential purchase of the Property. The Materials are not to be considered fact. The information contained in the Materials is not a substitute for thorough investigation of the financial, physical, and market conditions relating to the Property.

The information contained in the Materials has been obtained by Agent from sources believed to be reliable; however, no representation or warranty is made regarding the accuracy or completeness of the Materials. Agent makes no representation or warranty regarding the Property, including but not limited to income, expenses, or financial performance (past, present, or future); size, square footage, condition, or quality of the land and improvements; presence or absence of contaminating substances (PCB’s, asbestos, mold, etc.); compliance with laws and regulations (local, state, and federal); or, financial condition or business prospects of any tenant (tenants’ intentions regarding continued occupancy, payment of rent, etc). A prospective purchaser must independently investigate and verify all of the information set forth in the Materials. A prospective purchaser is solely responsible for any and all costs and expenses incurred in reviewing the Materials and/or investigating and evaluating the Property.

By receiving the Materials you are agreeing to the Confidentiality and Disclaimer set forth herein.

65

Government B

oulevard

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DEALERS AUTO AUCTION

USED CARS

Governm

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oulev

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90

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Cottage

Hill

Road

The Offering

• An industrial building located in Mobile, Alabama leased to Safelite Fullfillment, Inc. through February 28, 2025

• Price – $1,971,200 Cap Rate – 6.75%

Lease / Tenant

• Safelite AutoGlass is the largest auto glass replacement company in the U.S.

• Over 10 years remaining on the lease

Real Estate

• Low rent

• Low price per square foot

• Interstate 65 frontage – 81,190 average car traffic count per day

Area Strengths

• Mobile has a dynamic economy with 70 aerspace companies and the largest deepwater port along the Central Gulf Coast

Investment Offering & Highlights

SKF USA, Inc. 2FedEx Ground iSafelite AutoGlass 1

Location 1650 S Beltline Highway, Mobile, Alabama

Lot Size Approximately 1.28 acres – 55,757± square feet

Improvements A one story, 23,467± square foot (per the lease) concrete block vehicle glass repair/replacement facility, including storage and warehouse use for SAFELITE AUTOGLASS.

New Improvements — The owner recently spent approximately $225,000 for a new roof, new skylights, exterior painting, parking area slurry coat and restriping, and other improvements.

Lease Leased to SAFELITE FULLFILLMENT, INC. from June 19, 2013 until February 28, 2025. The current annual net rent of $133,056 increases to $143,040 on March 1, 2020. The lease is net with the tenant responsible for all taxes, insurance and maintenance. The landlord is responsible for roof and structure. There are two 5-year options to renew with 5% rental increases each option period.

Annual Rent

Price: $1,971,200 – 6.75% Cap Rate

Rent Per Square Foot $5.67 net per year – $0.47 net per month

Price Per Square Foot $84

Investment Years Annual Rent Return

07/01/13 – 02/28/20 $133,056 6.75%

03/01/20 – 02/28/25 $143,040 7.26%

03/01/25 – 02/28/30 (Option 1) $150,192 7.62%

03/01/30 – 02/28/35 (Option 2) $157,704 8.00%

Investment Overview

Safelite AutoGlass 2

Possible Financing

10 Year Loan - 50% LTVLOAN TERMS CAPITALIZATION CASH FLOW Amortization (Yrs) 30 Price $1,971,200 Rent $133,056 LTV 50% Loan < 985,600> Debt Service < 59,927> Interest 4.50% Equity $ 985,600 Cash Flow $ 73,129 Constant 6.08%

Cash on Cash 7.42%

10 Year Loan - 60% LTVLOAN TERMS CAPITALIZATION CASH FLOW Amortization (Yrs) 25 Price $1,971,200 Rent $133,056 LTV 60% Loan <1,182,720> Debt Service < 71,912> Interest 4.40% Equity $ 788,480 Cash Flow $ 61,144 Constant 6.08%

Cash on Cash 7.75%

Safelite AutoGlass 3

Safelite AutoGlass / Belron

SAFELITE AUTOGLASS is a member of the Safelite Group (privately held), the world’s largest family of retail auto glass companies.

Based in Columbus, OH, Safelite Group, a subsidiary of Belron, is a multifaceted auto glass and claims management service organization. The company is composed of four major business operations:

• Safelite Fulfillment, Inc., – Auto glass fulfillment services, operating under the trade names Safelite AutoGlass and Giant Glass.

• Safelite Solutions LLC and Alliance Claims Solutions, Safelite Group’s claims processing operation, which processes P+C claims for insurance companies.

• Service AutoGlass, a national provider of wholesale vehicle glass products as well as installation and repair materials and tools.

• Safelite Glass Corp., the company’s glass manufacturing unit.

• Safelite AutoGlass

The retail auto glass division of Safelite specializes in replacing all types of vehicle glass damage. In addition to replacement services, the company operates a team of repair specialists dedicated to delivering high quality windshield repairs.

As the largest auto glass repair and replacement organization in the U.S., the company’s 3,700 technicians serve more than 4.1 million customers each year and ensure the highest quality of work on each job they do.

Safelite AutoGlass  provides convenient mobile auto glass repair and replacement services, available to more than 95% of drivers in all 50 states.

Service AutoGlass is a national provider of wholesale vehicle glass products as well as installation and repair materials and tools. Service AutoGlass provides service to vehicle glass companies through a network of 91 warehouses located throughout the U.S.

Website: www.safelite.com

BELRON is the world’s largest dedicated vehicle glass repair and replacement company, operating in 34 countries across five continents with over 24,000 employees. Belron operates through a variety of brands including Carglass, Safelite Autoglass, O’Brien, Apple Auto Glass, Glass Medic and Speedy Glass.

Website: www.belron.com

Safelite AutoGlass 4

Safelite AutoGlass 7

90

90

65

65

The subject property is located at 1636-1650 South Beltline Highway in Mobile, Alabama. South Beltline Highway is a frontage road on the west side of Interstate 65. The neighboring properties along South Beltline Highway are service and retail and industrial properties. I-65 is easily accessed at the Government Road and Cottage Hill Road interchanges. The building is highly visible from Interstate 65.

Most of the area’s car dealers are located across I-65 and along Government Blvd.

Location

Safelite AutoGlass 8

85

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101010

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59

5549

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Jackson

Shreveport

New Orleans

Mobile

Pensacola

Tallahassee

Birmingham Atlanta

Memphis

Area Map

Mobile

Mobile is located in the southwest quadrant of Alabama, approximately 54 miles northwest of Pensacola, FL; 74 miles northeast of Gulfport, MS; and 144 miles northeast of New Orleans, LA. Mobile is the third most populous city in Alabama, the county seat of Mobile County, Alabama, and the largest municipality on the Gulf Coast between New Orleans, Louisiana, and St. Petersburg, Florida. Mobile has a population of approximately 195,111. Mobile County is the principal municipality of the Mobile MSA (the third largest statistical area in Alabama) and comprises the majority of the MSA’s population of 412,992.

• Forbes included Mobile in its list of Best Places for Business and Careers.

• Bloomberg ranked Mobile as #6 in its list of Least Expensive Housing Markets.

EconomyMobile has multiple major industries contributing to its economy including aerospace, steel, ship building, retail services, construction, medicine, and manufacturing, which are highlighted on the following pages.

Government Plaza City-County Administration Building

Safelite AutoGlass 7

Mobile Aeroplex at BrookleyThe Mobile Aeroplex at Brookley is a mixed-use industrial complex and airport located 3 miles south of the central business district of Mobile. The Aeroplex is the largest industrial and transportation complex in the Central Gulf Coast region with over 70 companies, spreading over 1,650 acres. Notable employers at the Aeroplex include Airbus North American Engineering, ST Aerospace Mobile (a division of ST Engineering), and Continental Motors.

Airbus Group, Inc.Airbus Group, Inc. (formerly known as European Aeronautic Defense and Space Company (EADS) North America) is the world’s second largest aerospace and defense company. Airbus North America participates in U.S. Department of Defense programs, in some cases as a prime contractor. It employs approximately 2,000 people and had 2011 revenues of $1.3 billion. The company oversees several subsidiaries including Airbus Helicopters, Inc., Cassidian Communications, Airbus Military North America,

Fairchild Controls, and EADS North America Test and Services.

Airbus has started construction of a $600 million final assembly facility in Mobile for its popular A320 jetliner. Aircraft assembly is planned to begin at the facility in 2015 with the first delivery of a A320 jetliner in 2016. At full capability, the assembly line and associated facilities will employ 1,000 highly skilled workers.

Airbus Military Americas facilities are located at the Mobile Regional Airport.

Airbus FAL Alabama 3D aerial view

Airbus’ first U.S.-based production facility – which will build A320 Family jetliners at the Brookley Aeroplex in Mobile, Alabama, beginning in 2015 – will produce between 40 and 50 aircraft annually by 2018

FedEx Ground 7

Port of MobileThe Port of Mobile, located along the Mobile River, is the only deep-water port in Alabama. The Port of Mobile has public, deepwater terminals with direct access to 1,500 miles of inland and intracoastal waterways serving the Great Lakes, the Ohio and Tennessee river valleys (via the Tennessee-Tombigbee Waterway), and the Gulf of Mexico. The Alabama State Port Authority owns and operates the public terminals at the Port of Mobile. The public terminals handle containerized, bulk, break bulk, roll-on/roll-off, and heavy lift cargoes. The port is also home to private bulk terminal operators. The container, general cargo and bulk facilities have immediate access to two interstate systems and four Class I railroads. Additionally, the CG Railway operates from the port as a rail ferry service to Coatzacoalcos, Veracruz, in Mexico.

The Port of Mobile is the largest break bulk forest products port in the United States. The Alabama State Port Authority’s McDuffie Terminal is one of the largest coal terminals in the United States. The port was the fourth largest exporter of coal during 2012, with the majority of exports for metallurgical processes.

In 2010, the Alabama State Port Authority announced that it planned to spend $360 million over the following five years to improve infrastructure at the port. The improvements include land acquisition, new rail and inter-modal yards, cargo terminal improvements and enhancements to improve servicing of deep-water oil and gas field vessels and equipment. Since 2000, the Port Authority has undergone nearly $500 million in capital improvements and expansion projects to serve containerized, bulk and break bulk commodities. Improvements include a new rail ferry terminal, a steel terminal to service the $4.6 billion steel facility in Calvert, Alabama, new warehousing, a new container terminal, and expansions at the McDuffie Coal Terminal.

Port of Mobile

Mobile (continued)

FedEx Ground 7

HealthcareMobile serves the central Gulf Coast as a regional center for medicine, with over 850 physicians and 175 dentists. There are four major centers within the city limits:

• Mobile Infirmary Medical Center, the largest nonprofit hospital in the state With 704 beds;

• Providence Hospital, 349 beds;

• The University of South Alabama Medical Center, a teaching hospital with Mobile’s only Level I Trauma Center and regional burn center, 346 beds;

• Springhill Medical Center, Mobile’s only for-profit facility with 252 beds.

University of South AlabamaThe University of South Alabama (USA) is a public, national research university located in Mobile, Alabama. USA is the only major public university along the upper Gulf Coast with ten colleges and schools, including one of Alabama’s two state-supported medical schools. The university has an enrollment of over 15,000 students and has awarded over 75,000 degrees.

The University has the following research centers and institutes: Center for Design & Performance Improvement, Center for Real Estate and Economic Development, Center for Archaeological Studies, Center for Forensics and Information Technology Security, Center for Lung Biology, South Alabama Research and Inservice Center, and Mitchell Cancer Institute (MCI).

University of South Alabama Mitchell Cancer Institute Safelite AutoGlass 10

RSA Bank Trust Building

Mobile (continued)

TransportationMobile is served by two major interstate highways, Interstates 10 and 65. I-10 connects Jacksonville, FL with Los Angeles, CA and passes through Pensacola, FL, Mobile, AL, New Orleans, LA, Baton Rouge, LA, Beaumont, TX, Houston, TX, San Antonio, TX and Phoenix AZ. I-65 runs north/south and connects Mobile with Birmingham, AL, Huntsville, AL, Nashville TN, and Louisville, KY. The city is also served by US Highways 31, 43, 45, 90 and 98 which radiate from Mobile traveling east, west, and north.

RailMobile is served by four Class I railroads, including the Canadian National Railway (CNR), CSX Transportation (CSX), the Kansas City Southern Railway (KCS), and the Norfolk Southern Railway (NS). The Alabama and Gulf Coast Railway (AGR), a Class III railroad, links Mobile to the Burlington Northern and Santa Fe Railway (BNSF) at Amory, Mississippi. These railroads converge at the Port of Mobile, which provides intermodal freight transport service to companies engaged in importing and exporting. Other railroad service in the area includes the CG Railway (CGR), a rail ship service to Coatzacoalcos, Veracruz, and the Terminal Railway Alabama State Docks (TASD).

AirportThe nearest international airport is Louis Armstrong New Orleans International Airport (MSY), located 155 miles southwest of Mobile. The carriers serving this airport include AirTran, Alaska, American, Delta, Frontier, JetBlue, Spirit, Southwest, United, and US Airways.

The closest regional airport is Pensacola International Airport which is located 54 miles to the east. The carriers serving this airport include American, Delta, Frontier, United, and US Airways.

Demographics

2014 Summary 3 miles 5 miles 7 miles

Population 66,124 162,203 229,601

Households 27,256 67,303 92,608

Families 16,462 40,709 58,002

Average Household Size 2.37 2.35 2.42

Owner Occupied Housing Units 13,503 36,123 52,537

Renter Occupied Housing Units 13,753 31,180 40,071

Median Age 34.2 36.4 36.7

Median Household Income $35,744 $36,872 $36,917

Average Household Income $50,316 $53,172 $52,864

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