Walgreens 8250 Flying Cloud Drive, Eden Prairie, MN 55344

™ OFFERING MEMORANDUM EXCLUSIVELY LISTED BY

MAXX BAUMAN CHAD KURZ MARK HULSEY National Drug Store Specialist SVP & National Director BROKER OF RECORD Lic No. 40169559 [email protected] [email protected] DIR (214) 692-2024 DIR (214) 692-2927 MOB (310) 994-0262 MOB (562) 480-2937 LIC # 01996741 (CA) LIC # 01911198 (CA) ™ CONTENTS

4 INVESTMENT OVERVIEW

6 FINANCIAL ANALYSIS

8 TENANT OVERVIEW

10 PROPERTY OVERVIEW

14 AREA OVERVIEW

™ INVESTMENT OVERVIEW

4 | Walgreens Investment Highlights

Property / Lease • At list price, the buyer will recapture 95% of their initial investment throughout the base term of the lease • Long Term Absolute NNN Lease – Perfect 1031 Up-Leg • 2010 Construction Building • Property equipped with a drive thru pharmacy designed to bolster pharmaceutical sales

Location • Eden Prairie was voted #1 Place to Live in Minnesota in 2017 • Minneapolis – St. Paul is the 16th largest MSA in the country • The Twin Cities are home to more than 3,800,000 residents • Situated in the Regional Retail Hub - the property is immediately surrounded by more than 2,000,000 SF of retail • Strategically situated between the intersection of Hwy 212 and Hwy 494 which sees 182,000 cars per day • Over 63,000 residents call the city of Eden Prairie home • Average HH Income over $104,000 in a 1 Mile Radius

Tenant • Walgreens #17 of Fortune 500 Companies • Investment Grade Credit tenant, S&P rated BBB • Walgreens has a total revenue of $117.35B

Offering Memorandum | 5 FINANCIAL ANALYSIS

6 | Walgreens Walgreens 8250 Flying Cloud Dr. Eden Prairie, MN 55344

List Price ��$6,818,181 CAP Rate - Current �� 5.50% Gross Leasable Area �� ± 14,580 SF Lot Size �� ± 1.05 Acres (45,738 SF) Year Built ��2010

Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate Current: $31,250 $375,000 $25.72 5.50% Fifty, 1-Year Options: $31,250 $375,000 $25.72 5.50%

Tenant Summary

Tenant Trade Name Walgreens Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 25 Years Lease Commencement Date 1/1/2009 Lease Expiration Date 12/31/2034 Term Remaining on Lease ± 18 Years Options Fifty, 1-Year Options

Offering Memorandum | 7 TENANT OVERVIEW

8 | Walgreens Company Name Walgreen Co. Parent Company Trade Name Walgreens Boots Alliance, Inc. (NASDAQ: WBA) Ownership Public Revenue $117.35 B Net Income $4.173 B No. of Locations ± 8,300 No. of Employees ± 253,400 Headquartered Deerfield, Illinois Website www.walgreens.com Year Founded 1901

TENANT OVERVIEW

The nation’s #1 drugstore chain, Walgreens, operates close to 8,300 stores in all 50 US states, the District of Columbia, the Virgin Islands and Puerto Rico. Prescription drugs are the focus of the company as they account for close to two-thirds of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics and groceries. Most locations offer drive-through pharmacies and one-hour photo processing, which separates them from competition. Recently, Walgreen Co. fully acquired Alliance Boots, Europe’s leading drug wholesaler, to create Walgreens Boots Alliance, of which it is a subsidiary.

WALGREENS HEALTH FOCUS Walgreens’ overall value proposition differentiates it from competitors in valuable ways. Specifically, a focus on health gives Walgreens a competitive advantage over other pharmacies. By putting health at the forefront of all aspect of the business and reducing customers’ shopping time, Walgreens has achieved placement in a league of its own as competition aims their focus on things such as convenience, design, or low prices.

MARKETING STRATEGY Walgreens focuses on customer need and satisfaction. For example, the curbside pick-up service stemmed from the needs of working mothers who don’t have the time to go into the store and shop. Creating loyalty amongst patrons is a priority for the company as it keeps them coming back and spending money.

Offering Memorandum | 9 PROPERTY OVERVIEW

10 | Walgreens The Offering

Property Name Tenant Name 8250 Flying Cloud Drive Property Address Eden Prairie, MN 55344

Assessor’s Parcel Number 14-116-22-31-0051

Site Description Number of Stories One Year Built 2010 Gross Leasable Area (GLA) ± 14,580 SF Lot Size ± 1.05 Acres (45,738 SF) Type of Ownership Fee Simple Parking ± 56 Surface Spaces N Parking Ratio 3.84 : 1,000 SF Landscaping Professional Topography Generally Level

Offering Memorandum | 11 Bird’s Eye

12 | Walgreens Tenant Map

Offering Memorandum | 13 AREA OVERVIEW

14 | Walgreens EDEN PRAIRIE, MN Eden Prairie is located in Hennepin County, just 12 miles southwest of downtown Minneapolis Demographics Minnesota. Eden Prairie is a suburb that makes up the Minneapolis-Saint Paul Metropolitan area, this is the 15th largest metropolitan area in the United States. The town has made Population 1 Mile 3 Mile 5 Mile MONEYs best places list several times. It flourishes due to its self-sustaining economy, Eco- 2022 Projection 9,914 57,109 153,591 friendly homes, and several large employers in the area. Optum, C.H. Robinson, Starkey, and 2017 Estimate 9,193 54,491 146,947 Supervalu all have their headquarters in Eden Prairie which contributes to the unemployment rate being as low as 3.6%. 2010 Census 8,066 50,753 137,684 Growth 2017 - 2022 7.84% 4.80% 4.52% Eden Prairie’s strategic location makes it greatly accessible by several forms of transportation. Growth 2010 - 2017 13.97% 7.37% 6.73% Interstate 494 and Highways 212, 62, 169 and 5 all converge in the heart of Eden Prairie. The Flying Cloud airport is commonly used for corporate and personal air travel. This ideal location Growth 2000 - 2010 44.04% 4.47% 3.09% makes it convenient for the 13-million guests per year that stay in the dozens of hotels and dine at the various award-winning restaurants that the town has to offer. Households 1 Mile 3 Mile 5 Mile

The town not only experiences economic prosperity but environmentally as well. The town is 2022 Projection 4,662 23,781 64,527 home to 37 parks, 17 lakes, and miles and miles of walking trails. The town focuses on keeping 2017 Estimate 4,369 22,695 61,667 a balance between nature preservation along with industry. 2010 Census 3,934 21,204 57,753 Growth 2017 - 2022 6.71% 4.79% 4.64% Growth 2010 - 2017 11.06% 7.03% 6.78%

Income 1 Mile 3 Mile 5 Mile 2017 Est. Average $104,677 $135,547 $129,946 Household Income

Offering Memorandum | 15 Minneapolis, MN

Minneapolis is the larger of the Twin Cities, the largest city in the state of Minnesota. The Twin Cities, made up of Saint Paul and Minneapolis create the second-largest economic center in the Midwest, only behind Chicago. Minneapolis contains the fifth-highest concentration of Fortune 500 companies in the country.

The abundance of lakes create the beautiful park system that make residents proud to call this city home. The city has attractions for all types of people. From the nightlife scene in downtown, Craft brews and art exhibits in Northeast Minneapolis, the streets of the North Loop has Minnesota Twins fans parading to and from Target field, and Uptown accommodates various outdoor ventures along the lakes and trails. There is always something to do in the city of Minneapolis.

16 | Walgreens Fortune 500 Companies UnitedHealth Group

Target

Best Buy

US Bank

CHS

U.S. Bancorp

General Mills

Supervalu

Land O’Lakes

EcoLab

C.H. Robinson Worldwide

Ameriprise Financial

Xcel Energy

Hormel Foods

Thrivent Financial

Mosaic

St. Jude Medical

Offering Memorandum | 17 CONFIDENTIALITY & DISCLAIMER STATEMENT

This Offering Memorandum contains select information pertaining to the business and affairs of Walgreens located at 8250 Flying Cloud Dr Eden Prairie, MN 55344. It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;

2. You will hold it and treat it in the strictest of confidence; and

3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum. OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY

Walgreens ™ 8250 Flying Cloud Dr, Eden Prairie MN 55344