NET LEASE INVESTMENT OFFERING

SHOPKO HOMETOWN 291 S Main Street Clintonville, 54929 TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Aerial Demographic Report Investment Highlights Site Plan Market Overview Property Overview Map Tenant Overview

NET LEASE INVESTMENT OFFERING DISCLAIMER STATEMENT

DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. STATEMENT: 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 The Boulder Group is pleased to exclusively market for sale the fee simple interest in a single tenant absolute triple SUMMARY: net leased Hometown property located in Clintonville, Wisconsin. The property is strategically located along Wisconsin Highway 45 which experiences traffic volume of 12,600 vehicles per day. Shopko is committed to this location as evidenced by their long operating history at this location (since 1978). There are approximately 13 years remaining on the Shopko lease that features a low rent per square foot ($4.15), significant rental escalations and two 10-year renewal option periods. This is a high performing location with above average sales per square foot.

The 37,820 square foot building is well located within the regional trade area. The property is strategically located along Wisconsin Highway 45 and near other retailers including McDonald’s, Fleet Farm, O’Reilly Auto Parts, and Dollar General. Additionally, the Shopko Hometown is near St. Martin Lutheran Parochial School, Rexford-Longfellow Elementary School, St. Rose and St. Mary School which drives additional traffic to the property.

There are approximately 13 years remaining on the lease that expires May 31, 2031. The triple net lease features rental escalations every three years and two 10-year renewal option periods. Clintonville is the birthplace of four-wheel drive technology and Wisconsin Central Airlines. Clintonville also has a large manufacturing presence, including Seagrave Fire Apparatus, the longest running fire apparatus manufacturer in the . Shopko operates more than 360 stores in 24 states throughout the Central, Western and Pacific Northwest regions. The company was founded in 1962 and is headquartered in Green Bay, Wisconsin.

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT • Long term lease with approximately 13 years remaining HIGHLIGHTS: • Absolute triple net lease with no landlord responsibilities

• Significant rental escalations in primary term and renewal option periods

• Strong location with favorable unit level performance

• Drive-thru

• 40 year operating history at this location

• Low rent per square foot ($4.15)

• Retailers in the immediate area including McDonald’s, Fleet Farm, O’Reilly Auto Parts, Walgreens and Dollar General

• Located near St. Martin Lutheran Parochial School, Rexford-Longfellow Elementary School, St. Rose and St. Mary School which drives additional traffic to the property

• Tenant is a privately held $3 billion retailer that operates over 360 locations in 24 states

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $1,878,898 OVERVIEW: Cap Rate: 8.35% Net Operating Income: $156,888 Rental Escalations: Every 3 Years* Renewal Options: Two 10-Year Lease Expiration Date: May 31, 2031 Tenant: Specialty Shops Holding Co. – d.b.a. Shopko Hometown Lease Type: Absolute Triple-Net (NNN) Rentable Square Feet 37,820 SF Lot Size: 2.7 Acres

* The Base Rent increases by the lesser of: (i) 1.25 multiplied by the product of (A) the Base Rent in effect and (B) the CPI Increase or (ii) 6% of the Base Rent. (Most recent escalation occurred on 6/1/2018).

NET LEASE INVESTMENT OFFERING AERIAL

NET LEASE INVESTMENT OFFERING SITE PLAN

NET LEASE INVESTMENT OFFERING MAP

NET LEASE INVESTMENT OFFERING MAP

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 3-Mile 5-Mile 10-Mile REPORT: Total Population 5,510 7,119 14,835 Total Households 2,380 2,998 6,092

Income 3-Mile 5-Mile 10-Mile

Average Household Income $52,301 $55,610 $61,835

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Clintonville, Wisconsin OVERVIEW: Clintonville is a city in Waupaca County, Wisconsin, United States. The population was 4,559 at the 2010 census. Clintonville is the birthplace of four-wheel drive technology and Wisconsin Central Airlines. Clintonville also has a very large manufacturing presence, including Seagrave Fire Apparatus, the longest running fire apparatus manufacturer in the United States. There are also numerous parks and lots of recreational opportunities such as boating, fishing, golfing, hiking, and sports. Clintonville is located in central Wisconsin, and just northwest of Green Bay and Appleton.

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

TENANT Shopko OVERVIEW: Shopko Stores Operating Co., LLC operates a chain of general merchandise stores in the United States. Its stores comprise jewelry and watches, home, kitchen and dining, furniture, electronics, toys, sports and team shop, health and beauty, and patio and seasonal departments; clothing and accessories for men, women, kids, and babies, as well as nursery furniture. The company’s stores also include in-store and optical centers. It also serves customers online. Shopko Stores Operating Co., LLC was formerly known as ShopKo Stores, Inc. The company was founded in 1962 and is headquartered in Green Bay, Wisconsin. It has distribution centers in DePere, Wisconsin; Boise, ; Omaha, ; and Lebanon, .

Shopko operates more than 360 stores in 24 states throughout the Central, Western and Pacific Northwest regions. Retail formats include more than 130 Shopko stores, providing quality name-brand merchandise, great values, pharmacy and optical services in small to mid-sized cities; 5 Shopko Express Rx stores, a convenient neighborhood drugstore concept; 5 Shopko Pharmacy locations; and more than 220 Shopko Hometown stores, a smaller concept store developed to meet the needs of smaller communities.

Shopko Stores Operating Co., LLC is an affiliate of , Inc., a leading private investment firm focused on leverage buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 340 companies worldwide. Sun Capital has offices in Boca Raton, Los Angeles, and New York, and affiliates with offices in London, Tokyo, and Shenzhen, China.

Website: www.shopko.com Founded: 1962 Number of Locations: 360+ Number of Employees: 16,900+ Headquarters: Green Bay, Wisconsin Parent Company: Sun Capital Partners, Inc.

NET LEASE INVESTMENT OFFERING Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

3520 Lake Avenue, Suite 203 Wilmette, IL 60091

www.bouldergroup.com