OFFERING MEMORANDUM

SCHNUCKS FRESH FOODS 1750 BRADFORD LN. NORMAL, IL 61761 SCHNUCKS FRESH FOODS

This Confidential Offering Memorandum (“Memorandum”) is being delivered subject to the terms of the Confidentiality Agreement (the “Confidentiality Agreement”) signed by you and constitutes part of the Confidential Information (as defined in the Confidentiality Agreement). It is being given to you for the sole purpose of evaluating the possible investment in 1750 Bradford Lane, Normal, IL 61761 (the “Project”), and is not to be used for any other purpose or made available to any other party without the prior written CONTACT: consent of its exclusive broker, Cushman & Wakefield. This Memorandum was prepared by Cushman & Wakefield based primarily on information supplied by Managing Member. It contains select information about the Project and the real estate market but BROKER: does not contain all the information necessary to evaluate the Project. The financial projections contained herein (or in any other of Confidential Information) are for general reference only. They are based on assumptions relating to the overall economy and local TABLE RYAN GOMEZ competition, among other factors. Accordingly, actual results may vary materially from such projections. Various documents have Senior Director been summarized herein to facilitate your review; these summaries are not intended to be a comprehensive statement of the terms Capital Markets | Net Lease Group or a legal analysis of such documents. While the information contained in this Memorandum and any other Confidential Information Direct: 760-431-3824 is believed to be reliable, neither Cushman & Wakefield nor Managing Member guarantees its accuracy or completeness. Because of Mobile: 858-822-9811 the foregoing and since the investment in the Project is being offered on an “As Is, Where Is” basis, a prospective investor or other CONTENTS [email protected] party authorized by the prospective investor to use such material solely to facilitate the prospective purchaser’s investigation, must License: CA 01753933 make its independent investigations, projections and conclusions regarding the investment in the Project without reliance on this Memorandum or any other Confidential Information. Although additional Confidential Information, which may include engineering, i. Investment Overview environmental or other reports, may be provided to qualified parties as the marketing period proceeds, prospective purchasers should seek advice from their own attorneys, accountants, engineers and environmental experts. Neither Cushman & Wakefield Listed in conjunction with nor Managing Member guarantees the accuracy or completeness of the information contained in this Memorandum or any other ii. Financial Summary Broker of Record: Confidential Information provided by Cushman & Wakefield and Managing Member. Managing Member expressly reserves the right, Jerrod Wigal at its sole discretion, to reject any offer to invest in the Project or to terminate any negotiations with any party at any time with License: IL 475.128826 or without written notice. Managing Member shall have no legal commitment or obligations to any prospective investor unless and until a written sale agreement has been fully executed, delivered and approved by Managing Member and any conditions to iii. Tenant Overview Managing Member’s obligations thereunder have been satisfied or waived. Managing Member has retained Cushman & Wakefield as its exclusive broker and will be responsible for any commission due to Cushman & Wakefield in connection with a transaction relating to the Project pursuant to a separate agreement. Cushman & Wakefield is not authorized to make any representation or agreement on behalf of Managing Member. Each prospective investor will be responsible for any claims for commissions by any iv. Market Summary other broker in connection with an investment in the Project if such claims arise from acts of such prospective investor or its broker. This Memorandum is the property of Managing Member and all parties approved by Managing Member and may be used only by parties approved by Managing Member. No portion of this Memorandum may be copied or otherwise reproduced or disclosed to anyone except as permitted under the Confidentiality Agreement. i. Investment Overview

INVESTMENT HIGHLIGHTS SCHNUCKS FRESH FOODS

PROPERTY ADDRESS 1750 Bradford Ln. Normal, IL 61761 Surrounded by brand new student housing and hospitality SIZE projects Land: 6.05 Acres (263,538 sqft) Bldg: 57,573 sqft Long term NNN Lease

Over 6 years remaining YEAR BUILT 2008 on initial term

Six 5-year options to renew FRONTAGE & PARKING SPACES Adjacent 13 acres also available Ratio of 5.49/1,000 sqft Buildable out-lot included i. Investment Overview

7 PROPERTY OVERVIEW

Existing 300-bed student housing

• Over 107,000 residents within a 5 mile radius

• Normal, IL is a transportation hub with I-74, I-55 and I-39 converging in the city

N School St 190,000+ • Hard corner location, 1/2 mile off I-55 exit Bloomington-Normal which has 34,800 VPD

McKnight St MSA population

8 • Anchor at Constitution Trail Centre where other

tenants include Great Clips, Wendy’s, Subway

W Raab Rd Rd Raab Raab W W and Starbucks Drive-Thru

5 Buildable • Schnucks is located in the heart of the trade out-lot included 20,000+ area with approximately 1.2 million visits in the Bradford Ln Students past 12 months Adjacent to Illinois State 4 3 2 1 6 University

VIEW PROPERTY VIDEO i. Investment Overview

SURROUNDING NEW DEVELOPMENT OVERVIEW

1 2 3 4 5 6 7 8

FUTURE BUSEY BANK FUTURE JIFFY LUBE FUTURE STAND-ALONE FUTURE TACO BELL FUTURE MEDICAL OFFICE FUTURE HOME 2 SUITES BY EXISTING 300 BED 13 ACRES AVAILABLE BRANCH DENTIST BUILDING SIZE: 39,640 (0.9 AC) BUILDING HILTON HOTEL STUDENT HOUSING FOR SALE SIZE: 54,886 (1.3 AC) SIZE: 39,640 (0.9 AC) SIZE: 212,572 SF (4.9 AC) DEVELOPMENT Closed land sale December 2019. Taco Bell is an American fast food Owner occupied. SIZE: 166,399 SF (3.8 AC) As of September 30, 2019, Busey Development to begin early 2020. chain known for its inventive, Owner occupied. Site work commenced December Last remaining develop-able parcel Bank, a wholly-owned bank often whimsical, Mexican-inspired 2019. Total of 104 rooms planned. The Park at Constitution Trail at Constitution Trail. subsidiary, with total assets of Stonebriar Auto Services, a Frisco- menu items. Along with KFC and Centre is an 85-unit, 13 building $7.80 billion is headquartered in based company looking to open Pizza Hut, Taco Bell is owned by Home2 Suites by Hilton is a more apartment complex on a 3.8 acre Champaign, Illinois and has 44 150 franchise locations nationwide, Louisville, Kentucky-based Yum! affordable, all-suite extended- area east of the AMC Classic banking centers serving Illinois, 13 plans to development a Jiffy Lube Brands and serves 42 million stay hotel featuring contemporary Normal 14 movie theater. The banking centers in the St. Louis, in 2020. Central Illinois currently is customers a week at nearly 7,000 accommodations and customizable project includes one-, two- and metropolitan area, five bare of Jiffy Lube locations. This restaurant locations worldwide. guest room design. It will compete three-bedroom units, including a banking centers serving southwest location offers a lot of upside for with Marriott TownePlace and three story building and as many Florida and a banking center in future growth and an existing strong InterContinental Hotels Group’s as 300 beds. Indianapolis, . Through development. This store is Candlewood Suites the Busey Wealth Management planned to be a new concept of division, the Company provides Jiffy Lube, offering not only quick asset management, investment oil changes but brakes, alignments, and fiduciary services to tires and more complicated auto individuals, businesses and services as well. Stonebriar also foundations. plans to open Jiffy Lube locations in Morton and Peoria. i. Investment Overview ii. FInancial Summary

LEASE DETAILS RENT SCHEDULE

Lease Type NNN Cap rate YEAR MONTHLY RENT ANNUAL RENT 8.0% Lease Guarantor 1-17 $54,717.00 $656,604.00 CORPORATE Price $57,093.23 $685,118.70 Option 1 $8,208,000 Rent Commencement Date MARCH 2009 Option 2 $59,492.10 $713,905.20 Price/ft Land

Lease Expiration Date Option 3 $61,890.98 $742,691.70 $31.15 MARCH 2026

Option 4 $64,289.85 $771,478.20 Price/ft bldg. Term Remaining on Lease $142.57 6+ YEARS Option 5 $66,688.73 $800,264.70

Options NOI Option 6 $69,087.60 $829,051.20 SIX-5 YEAR $656,604 iii. Tenant Overview

SCHNUCKS FRESH FOODS

Schnuck Markets, Inc. is one of the largest privately held chains in the and dominates the St. Louis metro grocery market. It also owns and operates with in-store pharmacies in Missouri, Illinois, Indiana, , and . The company operates bakery, cheese (specialty), deli, floral, gluten-free, meat and seafood, pharmacy, produce, and wine and beer departments; conducts cooking classes; and offers savings and services, including gift cards, specials and promotions, fuel rewards, fundraising, and donation requests.

Founded in 1939 and headquartered in St. Louis, Missouri, the company has built a strong presence in the area. In 1995, Schnucks acquired 57 stores from in the St. Louis metropolitan area, which marked an incredible growth year and established Schnucks as St. Louis’ number one grocery store. The company continued its expansion by entering Rockford, IL and acquiring Logli Supermarkets in 1998, which was a similar store and market to Schnucks. To better compete in the Rockford market, Schnucks acquired seven area Hilander stores from The Company in 2011. Schnucks now operates 11 supermarkets in the Rockford metropolitan area.

In February 2017, Schnucks launched a home delivery service in partnership with Instacart called Schnucks Delivers to the Metro St. Louis area. The initial response and order quantities broke numerous Instacart records. Schnucks Delivers subsequently launched in the Rockford and Evansville Markets in April 2017. The Schnucks Delivers service is now available company-wide, including the Peoria/Champaign/Bloomington markets, as well as the Janesville, Wisconsin and Bettendorf, Iowa locations. iv. Market Summary

DEMOGRAPHICS

TRAFFIC COUNTS (2018)

DIST. CROSS ST. TRAFFIC POPULATION 1 MILE 3 MILE 5 MILE COLLECTION ST. CROSS ST. FROM DIST./DIR. VOLUME SUBJECT

2019 Total Population: 13,062 59,027 107,091 W Raab Rd N School St 0.04 W 8,785 W Raab Rd

2024 Population: 13,413 59,016 106,362 W Raab Rd Frontage Dr 0.06 W 9,644 W Raab Rd

Pop Growth 2019-2024: 2.69% (0.02%) (0.68%)

N Main St W Raab Rd 0.05 N 17,344 N Main St Average Age: 31.90 31.70 34.20

Sugar Creek W Raab Rd 0.02 W 6,098 W Raab Rd HOUSEHOLDS 1 MILE 3 MILE 5 MILE Blvd

N Linden St E Raab Rd 0.09 S 5,314 N Linden St 2019 Total Households: 4,975 20,592 41,009

HH Growth 2019-2024: 3.08% (0.01%) (0.68%) E Raab Rd N Linden St 0.06 W 8,037 E Raab Rd

Median Household Inc: $69,104 $68,739 $59,764 N Main St I-55 0.08 S 8,924 N Main St

Avg Household Size: 2.40 2.40 2.30

2019 Avg HH Vehicles: 2.00 2.00 2.00

HOUSING 1 MILE 3 MILE 5 MILE

Median Home Value: $148,101 $152,681 $154,308

Median Year Built: 2010 2010 1989 iv. Market Summary

TRADE AREA CONSUMER TRAFFIC

This data was provided by Placer.ai, a company that tracks HEAT MAP OF VISITORS IN THE TRADE AREA consumer data via smartphone apps. Currently there are over 20+ million active devices and various platforms and metrics to compare industry trends and analyze trade areas. Schnucks is clearly located in the heart of the trade area with approximately 1.2 million visits in the past 12 months. This strong indication helps validate the strength of the area and shows the high volume of consumer traffic that the property is poised to capture.

In the past 12 months over 198,000 unique customers came to shop at the Constitution Trail shopping center.

On average, customers spend approximately 56 minutes at the shopping center with the highest concentration of visits around HOURLY VISITS (TRAILING 12 MONTHS) noon and 5:00 pm. In addition, the shopping center receives 300,000 approximately the same number of visitors on a daily basis. The steady flow of consumers on all days of the week helps validate 200,000

the strength of Schnucks grocery as Schnucks is open 7 days per # of visits week and is the anchor to Constitution Trail. 100,000

0 12:00 am 02:00 am 04:00 am 06:00am 08:00am 10:00am 12:00pm 02:00pm 04:00pm 06:00pm 08:00pm 10:00pm LENGTH OF STAY BY CUSTOMERS Average Stay (TRAILING 12 MONTHS) 56 min DAILY VISITS BY CUSTOMERS THROUGHOUT THE WEEK 600,000 240,000

400,000 160,000

200,000 # of visits 80,000

0 0 15-29 30-44 45-59 60-74 90-104 105-119 120-134 120-134 150< Monday Tuesday Wednesday Thursday Friday Saturday Sunday SCHNUCKS FRESH FOODS

RYAN GOMEZ Senior Director Capital Markets | Net Lease Group Direct: 760-431-3824 // Mobile: 858-822-9811 [email protected] License: CA 01753933

©February 12, 2020 3:45 PM Cushman & Wakefield. All rights reserved. The information contained in this communication is strictly confidential. This information has been obtained from sources believed to be reliable but has not been verified. No warranty or representa- tion, express or implied, is made as to the condition of the property (or properties) referenced herein or as to the accuracy or completeness of the information contained herein, and same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by the property owner(s). Any projections, opinions or estimates are subject to uncertainty and do not signify current or future property performance.