Offering Memorandum Tractor Supply...

Tractor Supply Company1352 Michigan Ave. | Benzonia, MI 49616

Offering Memorandum

Representative Photo

In Association With:Melissa Diane StickelsMI Broker #6502387293

Stan Johnson Company3340 Peachtree Road NE | Suite 650 Atlanta, Georgia 30326 404.823.6360

stanjohnsonco.com

Jason Powell, CCIM [email protected] P: +1 404.823.6754

Tyler Molleson [email protected] P: +1 404.823.6760

Confidential Disclaimer

Offered Exclusively by

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 1352 Michigan Ave., Benzonia, MI 49616 (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.

Tractor Supply Company • Benzonia, MI 3

The OfferingStan Johnson Company is pleased to offer for sale to qualified investors the opportunity to acquire a Tractor Supply Company property located on Michigan Avenue in Benzonia, MI.

Tractor Supply Company has a long term lease on the subject property providing approximately thirteen (13) years of base term. The corporate-guaranteed lease features ten (10%) percent rent increases every five (5) years during the primary term and options.

Investment HighlightsStrong Tenant - Founded in 1938, Tractor Supply Company is a large retail chain of stores that offers products for home improvement, agriculture, lawn and garden maintenance, and livestock/pet care. They currently have over 1,422 locations nationwide and have annual revenue of over $6.22 billion with net income of over $410 million.

Rent Increases - The lease includes 10% rent increases every five years during the initial term and option periods. Many other retail leases are flat, or provide modest rent increases every five years. The rent increases also provide leverage for the landlord in future lease negotiations.

Remaining Lease Term - With over 13 years of lease term remaining, the subject Tractor Supply Company property provides investors with long term, steady cash flow.

Recently Constructed - The subject building was built in 2014 so roof and structure maintenance will be minimal. In addition, the construction warranty is still in place.

Purchase Price: $3,293,548



Lease Abstract


Tenant Tractor Supply Company

Address 1352 Michigan Ave., Benzonia, MI 49616

Building SF +/- 19,097 SF

Outdoor SF +/- 15,000 SF

Lease Start Date 9/20/2014

Lease End Date 9/30/2029

Lease Structure NN (Roof, Exterior Structure, Parking Lot)

Rent Increases 10% every five (5) years

Renewal Options Four (4), five (5) Year Renewal Options with 10% rent increases each period

Cap Rate

Due to a confidentiality agreement with Tractor Supply Company, we cannot disclose the cap rate in the OM. Please contact broker for details.


Tenant OverviewTractor Supply Company (NASDAQ: TSCO) operates rural lifestyle retail stores in the United States. It offers a selection of merchandise, including equine, livestock, pet,

and animal products, such as items necessary for their health, care, growth, and containment; hardware, truck, towing, and tool products; seasonal products comprising lawn and garden items, power equipment, gifts, and toys; work/recreational clothing and footwear products; and maintenance products for agricultural and rural use.

As of March 28, 2015, it operated 1,422 retail stores in 49 states. It operates its retail stores under the Tractor Supply Company, Del’s Feed & Farm Supply, and HomeTown Pet names. The company sells its products to recreational farmers, ranchers, and others, as well as to tradesmen and small businesses. Tractor Supply Company was founded in 1938 and is based in Brentwood, Tennessee.

As of December 26, 2015, Tractor Supply Company has total revenues in excess of $6.22 Billion, net income in excess of $410 Million and a net worth in excess of $1.39 Billion.

TENANT PROFILEParent Company: Tractor Supply Company

Stock Symbol: TSCO

Exchange: NASDAQ

Total Revenue: (As of December 2015)

$6.22 billion

Net Income: (As of December 2015) $410 million

Net Worth: (As of December 2015) $1.39 billion

Tenant Business: Retail

Founded: 1938

Headquarters: Brentwood, Tennessee

Website: www.tractorsupply.comRepresentative Photo


Location OverviewBenzonia is a village in Benzie County in Michigan. The population was 497 at the 2010 census. The village is located within Benzonia Township at the southeast end of Crystal Lake on U.S. Highway 31 at the junction with M-115 west. Benzonia has beautiful swimming beaches and several small shops to visit. Crystal Lake, the largest lake of this name in Michigan, is located near Lake Michigan in Benzie County about 25 miles southwest of Traverse City and about 2 miles northeast of Frankfort.

Crystal Lake


BENZONIA PUBLIC LIBRARY

CRYSTAL FALLS MINI GOLF &

STORAGE

BETSIE VALLEY SALES & SERVICE

VACATION TRAILER SALES

CENTRAL STATE BANK

HILL TOP SODA SHOPPE

BENZONIA RECREATIONAL

CENTER

WATSON BENZIE

BENZIE COUNTY CENTRAL SCHOOLS

MICHIGAN AVE (7,013 VPD)

Demographics 1352 Michigan Ave. | Benzonia, MI 49616 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.

Population

2015 Population 722 2,457 4,826

2020 Population 711 2,448 4,864

2010-2015 Annual Rate -0.80% -0.47% -0.19%

2015-2020 Annual Rate -0.31% -0.07% 0.16%

Households

2015 Total Households 288 1,044 2,042

2020 Total Households 285 1,042 2,062

2010-2015 Annual Rate -0.65% -0.31% -0.02%

2015-2020 Annual Rate -0.21% -0.04% 0.20%

2015 Average Household Income $55,946 $57,242 $58,530

2015 Median Household Income $42,170 $44,716 $45,330

N

going beyond

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.

Stan Johnson Company3340 Peachtree Road NE | Suite 650 Atlanta, Georgia 30326 404.823.6360

stanjohnsonco.com

Jason Powell, CCIM Director [email protected] P: +1 404.823.6754 Tyler Molleson Associate [email protected] P: +1 404.823.6760

In Association With: Melissa Diane StickelsMI Broker #6502387293

Offered Exclusively by

Offering Memorandum Tractor Supply...

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