OFFERING MEMORANDUM WALGR EENS

14902 S. Route 59 Plainfield, IL 60544

Actual Site NON - ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer

The information contained in the follow ing Marketing Brochure is proprietary and strictly confidential. It is intended to be review ed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap has not made any investigation, and makes no warranty or representation, w ith respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance w ith State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; how ever, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no w arranty 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated w ith, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation w ith, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. Plainfield, IL PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. ACTIVITY ID: ZAB0370008 Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property. WALGREENS

INVESTMENT HIGHLIGHTS ► Over Twelve Years Remaining on Absolute-Net Lease ► Strategically Located Within Residential Area; High Barrier-to-Entry Zero Landlord Responsibilities Located Across from ATI Physical Therapy, 7-Eleven, Starbucks, and Mobile Gas Station ► Investment Grade Credit | S&P Rating: BBB- Largest Drug Retailer in the United States with Over 8,100+ ► Great Visibility and Exposure from Signalized Intersection locations and a Market Cap of $86 Billion Three Points of Ingress & Egress with a Traffic Count of 50,900 VPD

► Built-To-Suit Store with Drive-Thru Pharmacy Window ► Strategically Located in the Center of Plainfield Only Drugstore with a Drive Thru Within 2.5 Miles Over 10 School Institutions Located Within a 2-Mile Radius

► Affluent Sub-Market Average Household Income of $115,000 Within a 1-Mile Radius

INVESTMENT OVERVIEW

Marcus & Millichap is proud to present a 14,490-square foot Walgreens located in Chicago's affluent Southwest’s suburb of Plainfield. The property was built in 2004 as a build-to-suite for Walgreens, featuring a drive through pharmacy window. The property benefits from its ample parking of 65 parking stalls and excellent visibility from its signalized intersection; providing easy access from its three points of ingress/egress and a traffic count of 50,900 vehicles per day.

Walgreens is operating under a 75-year absolute-net lease with the option to terminate their lease after the 25th year and every five years thereafter through February 28, 2082. There are currently just over 12 years remaining on its initial base term before Walgreens can exercise their first termination right. There are also no rent increase and options available.

Plainfield is located 35 miles southwest from downtown Chicago. The subject property is situated on the southeast corner of West Main Street and Route 59. Route 59 is a major thoroughfare that runs north-south through Plainfield, averaging 34,100 vehicles per day. The subject property is strategically located in the heart of Plainfield; just down the street from Plainfield's Public Library, across the street from Plainfield Medical Center and ATI Therapy Center. Other nearby retailers include 7-Eleven, Starbucks, Chase, BMO Harris, and many more.

A new investor has the opportunity to acquire a corporate guaranteed (S&P BBB) net-leased property with zero landlord responsibilities. Given the subject property's central location within the city and their long-term tenancy, an investor can feel confident in acquiring a net-lease investment with peace of-mind for years to come. PROPERTY DETAILS

THE OFFERING LEASE SUMMARY

Property Name Walgreens Property Subtype Net Leased Drug Store

14902 S. Route 59 Tenant Walgreens Co. Property Address Plainfield, IL 60544 Rent Increases None

Price $6,059,322 Guarantor Corporate Guarantee Capitalization Rate 5.90% Lease Type Absolute-Net Price/SF $418.17 Lease Commencement 03/01/2007 PROPERT Y DESCRIPTION Lease Expiration 02/28/2032 Year Built 2007

Gross Leasable Area 14,490-SF Lease Term 25 Years

Zoning Commercial Remaining Lease Term - As of Jan-2020 12.2 Years

Type of Ownership Fee Simple Option To Renew Eight, 5-Yr Options Lot Size 1.61 Acres Landlord Responsibility None - Zero Landlord Responsibilities Parking Spots | Parking Ratio 65 Stalls | 4.48/1,000 Tenant Responsibility Maintenance and Replacement of Entire Property Parking Asphalt

Right of First Refusal Tenant has Forty-Five (45) Days to respond to Bona Fide Offer

LEASE SUMMARY PROPOSED FINANCING

ANNUAL MONTHLY Loan Amount $3,817,373 YEAR RENT/SF CAP RATE RENT RENT Loan Type New Loan Current $357,500 $29,792 $24.67 5.90% Loan-to-Value 63% Options 1 through 8 $357,500 $29,792 $24.67 5.90% Down Payment 37% | $2,241,949

Interest Rate 3.82% Fixed

Loan Term / Amortization 10 Years | 30 Years

Annual Debt Service $213,970

Debt Service Coverage 1.67x

Net Cash Flow After Debt Service / Cash-on-Cash Return $143,530 / 6.40%

* Please contact Marcus & Millichap Capital Corp. for a tailored loan quote. Financing also available for 25-Year amortization, various debt leverages, and 5-Year or 7-Year fixed rates AlternativeAlternative InvestmentsInvestments

BOR: John Krueger BOR: J.D. Parker NY Lic. # 10311205789 CT Lic. # REB.0788985 Walgreens Walgreens Webster, NY (Rochester MSA) Torrington, CT $5,752,200 $5,320,116 13+ Years Remaining 13+ Years Remaining

The above properties are also available by Seller. Either properties can be purchased all-together or individually. Please contact listing agent for additional information. 1 TENANT OVERVIEW WALGREENS Originally founded in Chicago in 1901, Walgreens Alliance has grown today to become the nation’s second largest drugstore retailer in term of revenue. The company’s retail locations are engaged in the sale of prescription and non- prescription drugs and carry additional product lines, such as: general merchandise, cosmetics, toiletries, liquor and beverage, and tobacco.

Walgreens Boots Alliance is ranked #19 on the Fortune 500 and is rated “BBB” by Standard and Poor’s, giving investors superior financial stability. During FYE 2017, the company generated over $118,000 billion in revenue and produced net earnings of $4.1 billion. believes in quality over quantity, home- spun growth rather than growth through acquisition, and builds rather than buys stores so that the company can pick only the best store locations. As of FYE 2017, Walgreens Boots Alliance operated 12,822 stores across the globe, including nine different counties.

In April 2010, the company acquired New York-based drug store chain from affiliates of Oak Hill Capital Partners for a total enterprise value of $1.1 billion in cash. The acquisition included 257 drug stores and two distribution centers providing the company with the leading market share position in New York City. In 2013, the company acquired 76 stores from North Carolina drug store chain Kerr Drug. Kerr Drug annual sales were $380 million.

In 2012, Walgreens launched the Balance Rewards loyalty program with 85 million active members, making Balance Rewards one of the most successful launches of a loyalty program in the history of retail. Also in June 2012, the company merged with , for $6.7 billion to create of the world’s largest drugstore and pharmacy retailers.

In late 2014, Walgreens acquired the remainder of Alliance Boots stocks for $15.3 billion. The company remains headquartered in Deerfield, Illinois. Walgreens recently acquired 1,932 stores for approximately $4.4 billion in cash, adding to their global network of retail pharmacy locations. WALGREENS

PROPERTY PHOTOS WALGREENS LOCAL MAP WALGREENS REGIONAL MAP

Lake Michigan

38 Miles From Chicago WALGREENS LOCATION OVERVIEW

ABOUT PLAINFIELD, ILLINOIS

The Village of Plainfield is located 35 miles southwest from Downtown Chicago, IL. Plainfield is a prosperous and bustling Village, with a population of 39,581 residents. Easily accessible, the Village is close to several interstates and state highways making it an excellent place to live, own a business, or simply spend the day shopping and dining in our historic downtown.

Downtown Plainfield, which is the heart of the community, is a vibrant, pedestrian-focused destination for shopping, dining, and entertainment. Each year, the downtown is home to several special events including Plainfield Fest, classic car nights, movies, and concerts. Plainfield is also home to the Lake Renwick Heron Rookery, numerous historic districts and landmarks, a wonderful park and trail system, and the DuPage River which provides numerous outdoor recreational opportunities.

At the crossroads of the historic Lincoln Highway and Route 66, Plainfield continues to build upon its already rich history, and the Village Government is well positioned to accommodate growth and welcomes new commercial and industrial development to help parallel the success of its residential expansion.

The first permanent settler was James Walker who was introduced to the area along the DuPage River by his father-in-law, Rev. Jesse Walker, a pioneer Methodist circuit rider. The two Walkers traveled through the area, as early as 1826, on one of the many trips in which Rev. Walker evangelized the Potawatomie Indians. Two years later, in 1828, James Walker returned in the company of several men to stake a claim and erect a sawmill around which the settlement of Walkers' Grove developed. However, it was not until 1833 that the first government land sales occurred in what is, today, Will County. The earliest land transactions were completed in Chicago.

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2018 Marcus & Millichap 29 WALGREENSPROPERTY NAME

DEMOGRAPHICS

CREATED ON JANUARY 2020

1 Miles 3 Miles 5 Miles 5-Miles POPULATION 2023 Projection 4,591 57,484 185,488 2018 Estimate 4,093 47,807 153,165 2010 Census 3,870 46,076 147,992 2000 Census 4,413 25,215 73,170 3-Miles INCOME Average $115,407 $120,163 $110,371 Median $97,739 $101,231 $92,904 Per Capita $46,999 $36,307 $34,530

1-Mile HOUSEHOLDS 2023 Projection 1,904 17,377 58,158 2018 Estimate 1,654 14,432 47,770 2010 Census 1,569 13,951 46,371 2000 Census 1,576 8,146 24,056

HOUSING 2018 $272,154 $262,297 $246,709

EMPLOYMENT 2018 Daytime 8,667 41,122 115,715 Population 2018 5.09% 4.83% 5.76% Unemployment 2018 Median Time 38 41 40 Traveled

RACE & ETHNICITY White 86.21% 73.21% 72.65% Native American 0.02% 0.02% 0.03% African American 3.58% 8.45% 8.84% Asian/Pacific 4.59% 8.72% 7.80% Islander

Source: © 2015 Experian WALGREENS WALGREENS

MARKET OVERVIEW CHICAGO OVERVIEW

Chicago-Naperville-Elgin is one of the largest metros in the nation. Also known as the Greater Chicagoland area, it is bounded to the east by Lake Michigan, expands over a 5,000-square-mile region in northeastern Illinois and extends into Wisconsin and Indiana. The metro houses 9.6 million people and comprises 14 counties. The city of Chicago contains 2.7 million residents. The greatest growth during the past 20 years occurred in the western portion of the region. In recent years, however, businesses are relocating back into the city to attract young workers, supporting the development of high-rise residential towers in the downtown Chicago.

METRO HIGHLIGHTS

THIRD-LARGEST METROPOLITAN AREA The metro population trails only New York City and Los Angeles in size. It will expand to nearly 9.9 million residents by 2023.

WEALTH OF INTELLECTUAL CAPITAL The number of corporate headquarters in Chicago is second only to New York City. There are 34 Fortune 500 companies based locally.

LARGE, DIVERSE EMPLOYMENT BASE The Chicago metro employs nearly 4.8 million workers in an array of industries, including a growing tech sector.

1 PR ESENTED BY : BROKER OF RECORD: STEVEN WEINSTOCK LICENSE #: 471. 011175 -ILLINOIS

MARCUS & MILLICHAP

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