Caribou Coffee & Einstein Bros. Bagels

Not Actual Photo Caribou Coffee & Einstein Bros. Bagels

1418 College Drive East | Marshall, MN | 56258

Caribou Coffee & Einstein Bros. Bagels CONFIDENTIALITY & DISCLAIMER Marshall, MN NET LEASED DISCLAIMER

Upland Real Estate Group, Inc. hereby advises all prospective purchasers of Net Leased property as follows:

The information contained in this Marketing Package has been obtained from sources we believe to be reliable. However, Upland Real Estate Group, Inc. has not and will not verify any of this information, nor has Upland Real Estate Group, Inc. conducted any investigation regarding these matters. Upland Real Estate Group, Inc. 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 Package is not a substitute for your thorough due diligence investigation of this investment opportunity. Upland Real Estate Group, Inc. 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 Package 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, legal and other advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation ofany 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, financial and other advisors must request and carefully review all legal, financial and other documents related to the property and tenant. While 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 ofthe 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.

All information, including price change and withdrawal from the market, is subject to change without notice.

By accepting this Marketing Package you agree to release to Upland Real Estate Group, Inc. 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.

CONFIDENTIALITY AND DISCLAIMER: The information contained in the following Marketing Package is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Upland Real Estate Group, Inc. and should not be made available to any other person or entity without the written consent of Upland Real Estate Group, Inc. This Marketing Package 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. Upland Real Estate Group, Inc. has not made any investigation, and makes no warranty or representation, with 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 with State and Federal regulations, the physical condition of the improvements thereon, the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property or any other matter related to the subject property. The information contained in this Marketing Package has been obtained from sources we believe to be reliable; however, Upland Real Estate Group, Inc. has not verified, and will not verify, any of the information contained herein, nor has Upland Real Estate Group, Inc. 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. KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600 PAGE 2

Caribou Coffee & Einstein Bros. Bagels HIGHLIGHTS Marshall, MN

PRICE: $1,742,500 CAP: 6.00% NOI: $104,550.00

 Strong corporate tenant, Caribou Coffee, with 410 stores in 20 states.

 New construction with a NN 10 year lease.

 Situated along the main retail corridor, with nearby retailers including Sears, Slumberland, Maurice's, Ramada Inn, Jimmy John’s, McDonald’s, Dairy Queen and more.

 Near Southwest Minnesota State University with nearly 3,700 students.

Not Actual Photo  Less than a half of a mile from Avera Marshall Regional Medical Center.

KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600 PAGE 3

Caribou Coffee & Einstein Bros. Bagels PROPERTY OVERVIEW Marshall, MN

INVESTMENT SUMMARY LEASE INFORMATION

PRICE $1,742,500 LEASE TYPE NN

CAP 6.00% LEASE TERM 10 Years NOI $104,550.00 RENEWAL OPTIONS Two 5-years RENT/SF $41.82

PRICE/SF $697.00 LEASE COMMENCEMENT April 2016

RENT ADJUSTMENTS LEASE EXPIRATION April 2026 Not Actual Photo YEARS 1-5: $104,550.00 LEASE NOTES: YEARS 6-10: $115,005.00 Tenant is responsible for maintaining and repairing the roof covering/roof membrane. Landlord is responsible for replacement of roof OPTION 1: $126,505.50 covering/roof membrane. See Lease Agreement.

OPTION 2: $139,156.05

PROPERTY INFORMATION DEMOGRAPHIC INFORMATION 1418 College Drive 1-MILE RADIUS 3-MILE RADIUS 5-MILE RADIUS ADDRESS East, Marshall, MN 56258 2015 POPULATION 4,291 13,789 14,681

BUILDING SIZE 2,500 SQFT 2020 POPULATION 4,275 13,964 14,855

LOT SIZE 0.87 2015 MEDIAN HOUSEHOLD INCOME $41,127 $49,325 $50,578

COUNTY Lyon 2015 AVERAGE HOUSEHOLD INCOME $54,562 $59,909 $61,208

YEAR BUILT 2015 All demographic information is obtained from Site To Do Business, which compiles US Census Bureau data and Esri projections for 2015 and 2020.

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. Upland has not reviewed or verified this information. Buyer must verify the information and bears all risk for any inaccuracies. KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600 PAGE 4

Caribou Coffee & Einstein Bros. Bagels TENANT INFORMATION Marshall, MN

PROPERTY CARIBOU COFFEE & EINSTEIN BROS. BAGELS

TENANT CARIBOU COFFEE COMPANY INC.

REVENUES PRIVATE

NET WORTH PRIVATE

S&P RATING NON-RATED

Founded in 1992, Caribou Coffee operates the second-largest non-franchised coffee chain in the US (based on the number of locations) behind Starbucks with more than 410 stores in about 20 states, mostly in Minnesota. The outlets, designed to resemble mountain lodges, offer fresh-brewed coffee along with specialty coffee drinks and baked goods. The stores also sell whole bean coffee and brewing supplies. Caribou Coffee has about 170 franchised outlets, including many in international markets. Beyond its coffee shops, the company sells roasted coffee and related supplies to grocery stores and foodservice suppliers. Caribou Coffee is a proud recipient of the Rainforest Alliance Corporate Green Globe Award and is committed to operating practices that promote sustainability and environmental protection.

Caribou Coffee, which had been a public company since 2005, was taken private in early 2013 by JAB Beech, a member of the Joh. A. Benckiser group of companies, which also owns rival Peet's Coffee & Tea and former Sara Lee coffee division D.E. Master Blenders. The Germany-based Joh. A Benckiser paid $340 million for Caribou Coffee.

Caribou Coffee & Einstein Bros. Bagels SURROUNDING PROPERTIES Marshall, MN

Avera Marshall Regional Medical Center

Southwest Minnesota State University

Caribou Coffee & Einstein Bros. Bagels AERIAL Marshall, MN

Caribou Coffee & Einstein Bros. Bagels AREA INFORMATION Marshall, MN

This Caribou Coffee is located along East College Drive in Marshall, Minnesota. Nearest traffic counts along East College Drive tally 11,100 Marshall Senior High School vehicles per day. East College Drive is one of the main retail corridors in Marshall, which intersects two of the main highways in Marshall, Highway 23 and 59. Less than a half of a mile east of the property is the Highway 23 and East College Drive intersection. Just north of the intersection is Marshall Senior High School, with 850 students, the Southwest Regional Sporting Complex, currently under construction, and Southwest Minnesota State University. Adjacent to the property is an Arby’s and Bank of the West. Nearby retailers include Sears, Maurice’s, Comfort Inn, Ramada Inn, Hardee’s, Taco John’s, Applebee’s, Jimmy John’s, McDonald’s, Dairy Queen and more. Less than a mile west of the property is Avera Marshall Regional Medical Center, with 25 beds.

Marshall is located in Lyon County and is the County Seat, with a population of nearly 17,000 people, although that number fluxes to 25,000 people during the daytime. Marshall was ranked number 28 of the Top 100 Most Livable Small Towns in America by Livability.com. Marshall is a vibrant city and is the regional center in southwest Minnesota. It is a predominantly agricultural area where the Redwood River begins. Schwan Food Company, which is the largest frozen food company in the US and the third largest privately held corporation, is headquartered in Marshall along with Southwest Minnesota State University. Southwest Minnesota State University is a public four-year University with approximately 3,700 students. Minnesota West Technical College also has a campus here. Runnings Farm and Fleet is a regional retail chain with headquarters in Marshall. Other major employers include Midwest Aviation, Archer Daniels Midland Company, US Bancorp, Affiliated Community Medical Centers, Turkey Valley and more. Marshall is also the site of the Exelon Wind’s Marshall Wind Project. The Southwest Minneapolis Regional Airport is located on the western edge of town. There are many parks and outdoor attractions including a 9/11 Memorial Park, Redwood River Reservoir, Marshall Golf Club, Legion Field, Independence Park and more. Southwest Minnesota is one of the fastest growing regions in rural Minnesota. In addition to having a growing and balanced local economy featuring manufacturing, healthcare, education, service and retail, the region features a quality high of life and access to broadband infrastructure.

Marshall is approximately 90 miles east of Sioux Falls and about 150 miles southwest of the Twin Cities. The city is situated on the prairie of the Great Plains at the junction of Interstate 90 and Interstate 29. The city is the fastest growing metro area in South Dakota and the metropolitan area accounts for almost thirty percent of the state’s population. Sioux Falls maintains a network of more than 70 parks and greenways that are spread throughout the city. Probably the best known of these is Falls Park, established around the city's namesake waterfalls on the Big Sioux River, just north of downtown. Partially due to the lack of a state corporate income tax, Sioux Falls is the home of a number of financial companies. The largest employers among these, and fourth and fifth largest employers overall, are Wells Fargo and Citigroup. Other important financial service companies located in Sioux Falls include Great Western Bank, Western Surety Company, Total Card Inc., Capital Card Services, Midland National Life Insurance Company, Capital One, and First Premier Bank. Sioux Falls is a significant regional health care center. There are four major hospitals in Sioux Falls: Sanford Health Avera McKennan Hospital, the South Dakota Veterans Affairs Hospital, and the Avera Heart Hospital of South Dakota. Because of the relatively long distances between Sioux Falls and larger cities, Sioux Falls has emerged as an important regional center of shopping and dining. The Empire Mall, with over 180 stores, anchors one of the primary retail zones in the southwest section of the city. Sioux Falls hosts many annual events and festivals including the SculptureWalk, First Fridays, Festival of Bands, Party in the Park and more.

Southwest Minnesota State University

Memorial Park Schwan Food Company Headquarters

Caribou Coffee & Einstein Bros. Bagels MAPS Marshall, MN

Caribou Coffee 1418 College Drive East Marshall, MN

Caribou Coffee & Einstein Bros. Bagels TOP MINNESOTA COMPANIES Marshall, MN

2015 Fortune 500 Rankings

State Rank Company Fortune 500 Rank City Revenues ($ Billions) Net Worth ($ Billions) 2014 Rank

1 UnitedHealth Group 14 Minnetonka $130.0 $32.454 14 2 Target Corporation 36 Minneapolis $74.5 $13.997 36 3 CHS, Inc. 69 Inver Grove Heights $42.6 $6.448 62 4 Best Buy Co., Inc. 72 Richfield $41.9 $4.995 60 5 3M Company 98 St. Paul $31.8 $13.109 94 6 U.S. Bancorp 138 Minneapolis $21.3 $43.479 101 7 Supervalu, Inc. 164 Eden Prairie $18.3 -$0.646 140 8 General Mills, Inc. 171 Minneapolis $17.9 $4.996 159

9 Land O’Lakes, Inc. 203 Arden Hills $15.2 $1.418 199 10 Ecolab, Inc. 213 St. Paul $14.2 $7.315 213 11 C.H. Robinson Worldwide, Inc. 225 Eden Prairie $13.4 $1.047 220 12 Ameriprise Financial, Inc. 247 Minneapolis $12.2 $8.124 249 13 Xcel Energy, Inc. 255 Minneapolis $11.6 $10.214 257 14 Hormel Foods Corporation 310 Austin $9.3 $3.605 311 15 The Mosaic Company 320 Plymouth $9.0 $10.703 283 16 Thrivent Financial for Lutherans 333 Minneapolis $8.1 $5.798 335 17 St. Jude Medical, Inc. 466 St. Paul $5.5 $4.199 462

Source: Fortune 500 (2015) from FORTUNE Magazine. Retrieved from: http://fortune.com/fortune500/ [June 2015].

Caribou Coffee & Einstein Bros. Bagels ABOUT UPLAND Marshall, MN

THE UPLAND ADVANTAGE PROVEN SUCCESS RECORD

 Completed in excess of 600 net leased sales transactions totaling Upland Real Estate Group, Inc., which was founded in 1995, is a over $1.7 billion Minneapolis based commercial real estate, brokerage, and investment  Combined sales experience of over 55 years company, which focuses on passive real investments, 1031 solutions,  Specialized in NNN investment market for more than 19 years real estate portfolio diversification, and wealth preservation. Upland offers "big business service" with the attentiveness you expect from a Upland’s 1031 investment specialists have successfully completed net boutique shop. lease sales transactions with tenants including, but not limited to: 7-Eleven Dollar General O’Reilly Auto Parts Our ability to swiftly match buyers with sellers is one of the many Advance Auto Family Dollar Petco reasons Upland Real Estate Group, Inc. is the nation's primary Applebee’s Gander Mountain Sherwin Williams Arby’s Goodwill Starbucks resource for the purchase or sale of net leased, credit investment BJ’s Wholesale Jack in the Box Taco Bell properties. Many investors and 1031 tax deferred exchange buyers Bridgestone/Firestone Jiffy Lube Tires Plus have benefited from the experience and expertise of our team of net Buffalo Wild Wings KinderCare Learning Center Tractor Supply leased investment sales specialists. Burger King Kohl’s Trader Joe’s Camping World McDonald’s Valvoline CVS Pharmacy National Tire & Battery Walgreens BENEFITS OF WORKING WITH UPLAND

 Nationally recognized CCIM accredited sales team

 Comprehensive and searchable online database

 Excellent reputations and credibility

 Online Letter of Intent forms

 Access to confidential off-market properties

 Extensive referral network

 Prompt follow-up and attention to detail

www.nnnsales.com L to R: Anna Blake ; Amanda Leathers; Keith Sturm, CCIM; Deb Vannelli, CCIM, Katie Serakos

KEITH A. STURM, CCIM | AMANDA C. LEATHERS | 612.332.6600 PAGE 12