JEWEL-OSCO (Albertsons | Chicago MSA) 16625 W 159th …

NET LEASE INVESTMENT OFFERING

JEWEL-OSCO (Albertsons | Chicago MSA)

16625 W 159th Street Lockport, IL 60441

TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile Executive Summary Investment Highlights Property Overview Rent Schedule

II. Location Overview Photographs Aerial Site Plan Map

III. Market & Tenant Overview Demographic Report Market Overview Tenant Overview

NET LEASE INVESTMENT OFFERING

DISCLAIMER STATEMENT

DISCLAIMER STATEMENT:

The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective 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. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NET LEASE INVESTMENT OFFERING

EXECUTIVE SUMMARY

EXECUTIVE SUMMARY:

The Boulder Group is pleased to exclusively market for sale the fee simple interest in a single tenant absolute triple net leased Jewel-Osco grocery store located within the Chicago MSA in Lockport, Illinois. The property is strategically located along a primary east-west thoroughfare (20,000 VPD) and just off Interstate 355 (59,900 VPD). Jewel-Osco is committed to this location as evidenced by their long operating history at this location (since 2002) and recently executed 20-year lease which expires in January 2038. The lease is enhanced by a guaranty from Albertsons Companies, Inc. and features low rent per square foot ($11.23), rental escalations and eight 5-year renewal option periods. This is a high performing location with above average sales per square foot. Jewel-Osco is a supermarket chain with more than 185 stores throughout the Chicagoland area, Indiana and Iowa. Jewel-Osco is a wholly owned subsidiary of Albertsons Companies, Inc., the second largest traditional grocer in the United States.

The 67,450 square foot building sits on a 10.34 acre parcel along the primary thoroughfare of Lockport, Illinois. There are over 100,000 people living within a five-mile radius of the property with average annual household income of $94,840 per year The Jewel-Osco property is located near other retailer including Walmart Supercenter, Walgreens, Starbucks, ALDI and Chase. Additionally, the property is located in close proximity to Lockport Township High School East Campus (3,596 students), which drives continual traffic to the corridor.

There are 19.5 years remaining on the corporate guaranteed lease, which expires January 31, 2038. The absolute triple net lease features rental escalations throughout the term as seen on the `Rent Schedule' (Page 5). Jewel-Osco, which is part of Albertsons Companies (2,300+ stores and approximately 173,000 employees nationwide), is the leading grocer by market share in the Chicago MSA.

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NET LEASE INVESTMENT OFFERING

INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS:

Investment Opportunity to Acquire a Grocery Store Leased to Illinois' Premier Grocer

? Jewel-Osco is the leading grocer by market share in the Chicago MSA ? Jewel-Osco operates more than 185 stores throughout the Chicagoland area, Indiana and Iowa ? Jewel-Osco was acquired in 2013 by Albertsons Companies, Inc., the second largest supermarket chain in the

United States

Corporate Guarantee from Albertsons Companies, Inc., The Second Largest Traditional Grocer in the United States

? Largest privately held and second largest traditional grocer in the United States ? Approximately 34 million customers per week ? Operates stores across 35 states and the District of Columbia under 20 well-known banners ? Over 2,300 stores and approximately 173,000 employees nationwide

Long Operating History

? 16 year operating history at this location with an established customer base

? Recently executed a new long-term lease (20 years) showing commitment to the location

? Above average store sales

Attractive Lease Structure

? Long term lease with 19.5 years remaining

? Absolute triple net lease with no landlord responsibilities

? Rental escalations in the primary term and each renewal option period

? Corporate guaranty (Albertsons Companies, Inc.)

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? Low rent per square foot ($11.23)

INVESTMENT HIGHLIGHTS

INVESTMENT HIGHLIGHTS:

Modern Grocery Store Format

? Renovated in 2009 ? Abundant parking with 325 parking spaces ? Exceptional visibility and easy access

Strategic Location

? Located within the Chicago MSA ? Positioned along a primary east-west thoroughfare (20,000 VPD) and just off Interstate 355 (59,900 VPD) ? Attractive demographics ? Over 100,000 people living within a five mile radius with average annual household income of $94,840 per year ? Retailers located in the immediate area include Walmart Supercenter, Walgreens, Starbucks, ALDI and Chase ? Located in close proximity to Lockport Township High School East Campus (3,596 students)

Desirable Market

? Chicago is the most populous metropolitan area in the Midwestern United States ? The area is one of the world's largest and most diversified economies, with more than four million employees

and generating an annual gross regional product of over $561 billion. ? The region hosts more than 400 major corporate headquarters, including 31 in the Fortune 500

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NET LEASE INVESTMENT OFFERING

PROPERTY OVERVIEW

PROPERTY OVERVIEW:

Price: Cap Rate: Net Operating Income: Rental Escalations: Renewal Options: Lease Commencement Date: Lease Expiration Date: Tenant: Guaranty: Year Built / Renovated: Lease Type: Parking: Building Size: Land Size:

$13,729,464 5.60% $768,850* (See `Rent Schedule' on Next Page) Eight 5-Year (See `Rent Schedule' on Next Page) January 18, 2018 January 31, 2038 New Albertson's, LP, d/b/a Jewel-Osco Albertsons Companies, Inc. 2002/2009 Absolute NNN - No Landlord Responsibilities 325 Spaces 67,450 SF 10.34 AC

*Seller will credit the rent differential from upcoming rental escalation at closing

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NET LEASE INVESTMENT OFFERING

Tenant Jewel-Osco

Options

Square Feet

64,907 SF

Option 1 Option 2 Option 3 Option 4 Option 5 Option 6 Option 7 Option 8

Term

Current - January 31, 2019 February 1, 2019 - January 31, 2020 February 1, 2020 - January 31, 2021 February 1, 2021 - January 31, 2022 February 1, 2022 - January 31, 2023 February 1, 2023 - January 31, 2024 February 1, 2024 - January 31, 2025 February 1, 2025 - January 31, 2026 February 1, 2026 - January 31, 2027 February 1, 2027 - January 31, 2028 February 1, 2028 - January 31, 2029 February 1, 2029 - January 31, 2030 February 1, 2030 - January 31, 2031 February 1, 2031 - January 31, 2032 February 1, 2032 - January 31, 2033 February 1, 2033 - January 31, 2034 February 1, 2034 - January 31, 2035 February 1, 2035 - January 31, 2036 February 1, 2036 - January 31, 2037 February 1, 2037 - January 31, 2038 February 1, 2038 - January 31, 2039 February 1, 2039 - January 31, 2040 February 1, 2040 - January 31, 2041 February 1, 2041 - January 31, 2042 February 1, 2042 - January 31, 2043 February 1, 2043 - January 31, 2044 February 1, 2044 - January 31, 2045 February 1, 2045 - January 31, 2046

Current Rent

RENT SCHEDULE

Monthly Rent

$63,124 $64,071 $65,032 $66,007 $66,997 $66,997 $66,997 $66,997 $66,997 $66,997 $72,022 $72,022 $72,022 $72,022 $72,022 $77,424 $77,424 $77,424 $77,424 $77,424 $83,231 $89,473 $96,184 $103,397 $111,152 FMV* FMV* FMV*

Yearly Rent

$757,487 $768,850 $780,382 $792,088 $803,970 $803,970 $803,970 $803,970 $803,970 $803,970 $864,267 $864,267 $864,267 $864,267 $864,267 $929,087 $929,087 $929,087 $929,087 $929,087 $998,769 $1,073,676 $1,154,202 $1,240,767 $1,333,825

FMV* FMV* FMV*

Increase (%)

1.50% 1.50% 1.50% 1.50% 0.00% 0.00% 0.00% 0.00% 0.00% 7.50% 0.00% 0.00% 0.00% 0.00% 7.50% 0.00% 0.00% 0.00% 0.00% 7.50% 7.50% 7.50% 7.50% 7.50% FMV* FMV* FMV*

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* Tenant shall pay equal to the greater of the rent of the proceeding lease year or fair market value.

NET LEASE INVESTMENT OFFERING

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