JEWEL-OSCO (Albertsons | Chicago MSA) 20 S Weber Road Romeoville, Illinois TABLE of CONTENTS

NET LEASE INVESTMENT OFFERING

JEWEL-OSCO (Albertsons | Chicago MSA) 20 S Weber Road Romeoville, Illinois TABLE OF CONTENTS

TABLE OF CONTENTS

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

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 net SUMMARY: leased Jewel-Osco grocery store located within the Chicago MSA in Romeoville, Illinois. The property is strategically located along a primary north-south thoroughfare (27,200 VPD). Jewel-Osco is committed to this location as evidenced by their long operating history at this location (since 2002) and recently executed 20-year lease, which expires June 30, 2039. The lease is enhanced by a guaranty from Albertsons Companies, Inc. and features low rent per square foot ($15.50), rental escalations and eight 5-year renewal option periods. This is a high performing location with above average sales per square foot. Jewel-Osco is a supermarket chain with more than 187 stores throughout the Chicagoland area, Indiana and Iowa. Jewel-Osco is a wholly owned subsidiary of Albertsons Companies, Inc., the second largest traditional grocer in the United States.

The 67,507 square foot building sits on a 7.56-acre parcel along the primary thoroughfare of Romeoville, Illinois. There are approximately 140,000 people living within a five mile radius of the property with average annual household income of $93,903 per year The Jewel-Osco property is located near other retailers including Walmart, Blain’s Farm & Fleet, Chase, TJMaxx, AT&T, Fifth Third Bank, Kohl’s, Bank of America and ALDI. Additionally, the property is located in close proximity to Romeoville High School (1,890 students) and Lewis University (6,800 students), which drives continual traffic to the corridor. The property is also located near numerous large logistics and distribution centers including Home Depot Distribution Center, PACTIV, FedEx and Neovia Logistics. The property was recently renovated in 2016 and features a drive-thru pharmacy.

There are 20 years remaining on the corporate guaranteed lease, which expires June 30, 2039. The absolute triple net lease features rental escalations throughout the term as seen on the ‘Rent Schedule’ (Page 5). Jewel-Osco, which is part of Albertsons Companies (2,300+ stores and approximately 173,000 employees nationwide), is the leading grocer by market share in the Chicago MSA.

-1-

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT Investment Opportunity to Acquire a Grocery Store Leased to Illinois’ Premier Grocer HIGHLIGHTS: • Jewel-Osco is the leading grocer by market share in the Chicago MSA • Jewel-Osco operates more than 187 stores throughout the Chicagoland area, Indiana and Iowa • Jewel-Osco was acquired in 2013 by Albertsons Companies, Inc., the second largest supermarket chain in the United States

Corporate Guarantee from Albertsons Companies, Inc., The Second Largest Traditional Grocer in the United States • Largest privately held and second largest traditional grocer in the United States • Approximately 34 million customers per week • Operates stores across 35 states and the District of Columbia under 20 well-known banners • Over 2,300 stores and approximately 173,000 employees nationwide

Long Operating History • 17 year operating history at this location with an established customer base • Recently executed a new long-term lease (20 years) showing commitment to the location • Above average store sales

Attractive Lease Structure • Long term lease with approximately 20 years remaining • Absolute triple net lease with no landlord responsibilities • Rental escalations in the primary term and each renewal option period • Corporate guaranty (Albertsons Companies, Inc.) -2- INVESTMENT HIGHLIGHTS

INVESTMENT Modern Grocery Store Format HIGHLIGHTS: • Renovated in 2016 • Abundant parking with 362 parking spaces • Drive-thru pharmacy • Exceptional visibility and easy access

Strategic Location • Located within the Chicago MSA • Positioned along a primary north-south thoroughfare (27,200 VPD) • Attractive demographics • Approximately 140,000 people living within a five mile radius of the property with average annual household income of $93,903 per year • Retailers located in the immediate area include Walmart, Blain’s Farm & Fleet, Chase, TJMaxx, AT&T, Fifth Third Bank, Kohl’s, Bank of America and ALDI • Located in close proximity to Romeoville High School (1,890 students) and Lewis University (6,800 students) which drives continual traffic to the corridor

Desirable Market • Chicago is the most populous metropolitan area in the Midwestern United States • The area is one of the world’s largest and most diversified economies, with more than four million employees and generating an annual gross regional product of over $561 billion. • The region hosts more than 400 major corporate headquarters, including 31 in the Fortune 500

-3-

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $19,199,248 OVERVIEW: Cap Rate: 5.45%

Net Operating Income: $1,046,359

Rental Escalations: (See ‘Rent Schedule’ on Next Page)

Renewal Options: Eight 5-Year (See ‘Rent Schedule’ on Next Page)

Lease Commencement Date: June 28, 2019

Lease Expiration Date: June 30, 2039

Tenant: New Albertson’s, LP d/b/a Jewel-Osco

Guaranty: Albertsons Companies, Inc.

Year Built / Renovated: 2002/2016

Lease Type: Absolute NNN - No Landlord Responsibilities

Parking: 362 spaces

Building Size: 67,507 SF

Land Size: 329,372 SF

-4-

NET LEASE INVESTMENT OFFERING RENT SCHEDULE

Current Monthly Yearly Tenant Term Increase (%) Rent Rent Rent Jewel-Osco (Albertsons) 67,507 SF Current - June 30, 2020 $87,197 $1,046,359 July 1, 2020 - June 30, 2021 $88,505 $1,062,054 1.50% July 1, 2021 - June 30, 2022 $89,832 $1,077,985 1.50% July 1, 2022 - June 30, 2023 $91,180 $1,094,155 1.50% July 1, 2023 - June 30, 2024 $92,547 $1,110,567 1.50% July 1, 2024 - June 30, 2025 $92,547 $1,110,567 - July 1, 2025 - June 30, 2026 $92,547 $1,110,567 - July 1, 2026 - June 30, 2027 $92,547 $1,110,567 - July 1, 2027 - June 30, 2028 $92,547 $1,110,567 - July 1, 2028 - June 30, 2029 $92,547 $1,110,567 - July 1, 2029 - June 30, 2030 $99,488 $1,193,860 7.50% July 1, 2030 - June 30, 2031 $99,488 $1,193,860 - July 1, 2031 - June 30, 2032 $99,488 $1,193,860 - July 1, 2032 - June 30, 2033 $99,488 $1,193,860 - July 1, 2033 - June 30, 2034 $99,488 $1,193,860 - July 1, 2034 - June 30, 2035 $106,950 $1,283,399 7.50% July 1, 2035 - June 30, 2036 $106,950 $1,283,399 - July 1, 2036 - June 30, 2037 $106,950 $1,283,399 - July 1, 2037 - June 30, 2038 $106,950 $1,283,399 - July 1, 2038 - June 30, 2039 $106,950 $1,283,399 - Options Option 1 July 1, 2039 - June 30, 2044 $114,971 $1,379,654 7.50% Option 2 July 1, 2044 - June 30, 2049 $123,594 $1,483,128 7.50% Option 3 July 1, 2049 - June 30, 2054 $132,864 $1,594,363 7.50% Option 4 July 1, 2054 - June 30, 2059 $142,828 $1,713,940 7.50% Option 5 July 1, 2059 - June 30, 2064 $153,541 $1,842,486 7.50% Option 6 July 1, 2064 - June 30, 2069 FMV* FMV* FMV Option 7 July 1, 2069 - June 30, 2074 FMV* FMV* FMV Option 8 July 1, 2074 - June 30, 2079 FMV* FMV* FMV*

-5- * Tenant shall pay equal to the greater of the rent of the proceeding lease year or fair market value.

NET LEASE INVESTMENT OFFERING PHOTOGRAPHS

-6-

NET LEASE INVESTMENT OFFERING PHOTOGRAPHS

Taylor Road

Weber Road (27,200 VPD)

-7- SUBJECT OFFERING

NET LEASE INVESTMENT OFFERING AERIAL

-8-

NET LEASE INVESTMENT OFFERING SITE PLAN

-9-

NET LEASE INVESTMENT OFFERING MAP

Lake Michigan

-10-

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 1-Mile 3-Mile 5-Mile REPORT: Total Population 9,888 60,356 139,860 Total Households 3,421 19,578 45,347

Income 1-Mile 3-Mile 5-Mile

Average Household Income $78,192 $83,424 $93,903

-11-

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Romeoville, Illinois OVERVIEW: Romeoville is a village in Will County, Illinois, United States. The village is located 26 miles southwest of Chicago and is a Chicago Suburb. The population was 39,793 based on US Census Bureau 2015 projections. It is located in the southwest suburban area of Chicago near (I-55) and I-355.

Romeoville is home to over 600 businesses. In 2013, the village won a Gold Medal from the International Economic Development Council and Atlas Integrated in the High Performance Economic Development category. They earned the award by creating 1,560 jobs during 2012/2013, which was the most for a town with a population between 25,001 & 100,000.

-12-

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Chicago, Illinois OVERVIEW: Chicago is the most populous city in the Midwestern United States and the third most populous city in the United States with 2,700,000 residents. Chicago is the county seat of Cook County, the second largest county in the United States. The Chicago MSA is the third most populated metropolitan area in the United States with 9,580,567 residents. The MSA covers over 1,300 square miles and six counties. Chicago has many nicknames, the best-known being the Windy City.

The Chicago metropolitan area is home to the corporate headquarters of 66 Fortune 1000 companies, including Boeing, McDonald’s, Motorola, Discover Financial Services and United Airlines. Chicago is a major hub for industry, telecommunications and infrastructure and O’Hare International Airport is the second busiest airport in the world in terms of traffic movement.

The metro is a major financial center in North America, and is home to the largest futures exchange in the United States, the CME Group. Chicago is third in the world on the Global Financial Centers Index, which ranks the competitiveness of financial centers based on people, business environment, market access, infrastructure and general competitiveness. As of 2016, Chicago had the third largest gross metropolitan product in the United States at $640 billion.

The city of Chicago also hosts 12 Fortune Global 500 companies and 17 Financial Times 500 companies. The city claims two Dow 30 companies: aerospace giant Boeing, which moved its headquarters from Seattle to the Chicago Loop in 2001 and McDonald’s, who’s has moved their headquarters from the Chicago suburbs to the Chicago West Loop. Additionally, Kraft Foods is in downtown Chicago and Sears Holdings Corporation and the technology spin-offs of Motorola are located in the Chicago suburbs. The headquarters of United Continental Holdings are in the United Building and its operations center and its United Airlines subsidiary are in the Willis Tower in Chicago.

Chicago attracts over 50 million domestic leisure travelers, 11 million domestic business travelers and 1.5 million overseas visitors. These visitors contributed more than $14 billion to Chicago’s economy. Upscale shopping along the Magnificent Mile and State Street, thousands of restaurants, as well as Chicago’s eminent architecture, continue to draw tourists. The city is the United States’ third-largest convention destination. A 2017 study by Walk Score ranked Chicago the sixth most walkable of the fifty largest cities in the United States.

www.cityofchicago.org

-13-

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

TENANT Jewel-Osco OVERVIEW: Jewel-Osco is a supermarket chain headquartered in Itasca, Illinois, a Chicago suburb. Jewel-Osco has 187 stores across northern, central, and western Illinois; eastern Iowa; and portions of northwest Indiana. Jewel-Osco and Jewel are currently wholly owned subsidiaries of Albertsons. The company original started as a door-to-door coffee delivery service before it expanded into delivering non-perishable groceries and later into grocery stores, and supermarkets. Prior to its 1984 acquisition by American Stores, Jewel evolved into a large multi-state holding company that operated several supermarket chains and other non-food retail chain stores located from coast to coast and had operated under several different brand names.

Website: www.jewelosco.com Founded: 1899 Number of Locations: 187 Headquarters: Itasca, Illinois

-14-

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

COMPANY fact sheet

from coast to coast Albertsons Companies is one of the largest food and drug retailers in the United States, with both a strong local presence and national scale. Albertsons Companies is committed to helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. In 2018 alone, along with the Albertsons Companies Foundation, the company gave more than $262 million in food and ﬁnancial support. These efforts helped millions of people in the areas of hunger relief, education, cancer research and treatment, programs for people with disabilities and veterans outreach.

One of the largest retail 2,269 34 million employers, providing Home delivery in $60.5 billion customers approximately 11 of top 15 retail stores annual sales per week 270,000 jobs U.S. markets

Approximately 397 fuel 1,739 in-store 5.5 million 23 distribution 20 food and stations pharmacies patients centers beverage plants

All Own Brands packaging We operate in 1,100 Four exclusive will be recyclable, reusable, With our Foundation, in new items billion-dollar or compostable by 2018 we donated more than 34 states launched in 2018 brands 2025 $262 million and the District of Columbia

Leadership COMPANY BANNERS Vivek Sankaran President & CEO Jim Donald Co-Chairman Bob Miller Chairman Emeritus Corporate locations Boise - (208) 395-6200

250 Parkcenter Blvd., Boise, ID 83706 ® Pleasanton - (877) 723-3929 -15- 11555 Dublin Canyon Rd., Pleasanton, CA 94588 Deer Valley - (623) 869-6100 20427 N. 27th Ave., Phoenix, AZ 85027

All stats as of the company’s ﬁscal year end 2/23/19 TENANT OVERVIEW

Albertsons Companies, Inc. Competitive Landscape

Albertsons Companies, Inc. is one of the largest food retailers and the second largest traditional grocer in the United States.

TOP 10 US FOOD RETAILERS: STORE COUNT 5,000 4,672 4,000 2,800 3,000 2,324 2,076 1,802 2,000 1,146 756 1,000 508 370 229 0

TOP 10 U.S. FOOD RETAILERS: GROCERY SALES ($ BILLIONS) $200 $169 $150 $98 $100 $56 $49 $48 $50 $32 $31 $23 $16 $12 $0

Notes: - Store counts based on publically available information - Walmart, Costco, and Target grocery sales based on a percentage of total sales as of the latest fiscal year. - Kroger and Albertsons sales exclude fuel sales of ~$14 billion and ~$3 billion, respectively

-16- Competitive Landscape 3 Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

3520 Lake Avenue, Suite 203 Wilmette, IL 60091