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600 Shawnee Mall Drive – Shawnee, Oklahoma 74804

OFFERING MEMORANDUM Table of Contents

Financial Overview Investment Highlights & Overview Lease Summary Concept Overview

Location Overview Location Highlights & Overview Surrounding Aerial Map Property Photos Surrounding Area Photos

Demographics Population Income Employment FINANCIAL OVERVIEW 600 Shawnee Mall Drive – Shawnee, Oklahoma 74804 PRICE: $3,671,736 | 6.05% CAP | RENT: $222,140

PROPERTY DESCRIPTION Property Walgreens HIGHLIGHTS Property Address 600 Shawnee Mall Drive  Over 16+ Years Remaining on an Original 25-Year Triple-Net (NNN) City, State, ZIP Shawnee, Oklahoma 74804  Investment Grade Credit | “BBB” Rating by Standard & Poor’s Year Built 2009 Building Size (SF) 13,360  Corporate Guarantee (NYSE: WBA) Lot Size (Acres) 1.34 Acres  Fifty, One-Year Tenant Renewal Options Type of Ownership Free Simple  Located in Close Proximity to The Black Hawk Casino THE OFFERING Price $3,671,736 CAP Rate 6.05% Annual Rent $222,140 Rent / SF $16.62 Price / SF $274

LEASE SUMMARY Property Name Walgreens Property Type Net Leased Drug Store Ownership Public : WBA Tenant / Guarantor Walgreen Co. Lease Term 25 Years Lease Commencement November 5th, 2009 Lease Expiration November 5th, 2034 Lease Term Remaining 16+ Years Lease Type Triple-Net (NNN) Roof & Structure Tenant Responsible Options to Renew Fifty, One-Year Tenant Options Rental Increases N/A

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 Walgreensservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 33 FINANCIAL OVERVIEW 600 Shawnee Mall Drive – Shawnee, Oklahoma 74804 PRICE: $3,671,736 | 6.05% CAP | RENT: $222,140

INVESTMENT SUMMARY ANNUALIZED OPERATING DATA Marcus & Millichap is pleased to present the exclusive listing for a Walgreens Lease Year Annual Rent Monthly Rent property located at 600 Shawnee Mall Drive in Shawnee, Oklahoma. Built in Years 1-25 $222,140 $18,512 2009, this property consists of approximately 13,360 square feet of building space and sits on 1.34 acres of land. Option Periods Years 26-60 $222,140 $18,512 This Walgreens property has approximately 16 years remaining on an original 25-year absolute triple-net (NNN) lease, which commenced on November CAP Rate 6.05% 5th, 2009 with an annual rent of $222,140. The lease contains fifty, one-year Purchase Price $3,671,736 tenant renewal options.

**Property is located on former American Indian land – may qualify for accelerated depreciation – please contact your tax expert to discuss this information

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 Walgreensservice mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap 44 TENANTDemographics OVERVIEW Walgreens Alliance, Inc.

www.fdreports.com | www.creditntell.com | August 31, 2016 CREDIT RATING: B1

General Information Key Personnel 108 Wilmot Rd , Deerfield, , 60015, United Chairman & Chief Executive Officer Address States Executive Vice President Alex Gourlay Chief Financial Officer & Executive Vice Phone (847) 315-2500 George Fairweather President Website www.walgreens.com Chairman James A Skinner

Store Base Financial Markets Store Count 8,184 Stock Ticker WBA TTM Sales $117,351,000,000 Current Price $87.61 as of 2/25/17 52 Week High/Low $102.82 / $71.50

Walgreens Boots Alliance (Nasdaq: WBA) is the first global -led, health largest purchasers of prescription drugs and many other health and wellbeing and wellbeing enterprise. products. The company's portfolio of and business brands includes Walgreens, Duane The company was created through the combination of Walgreens and Alliance Reade, Boots and , as well as increasingly global health and Boots in December 2014, bringing together two leading companies with iconic beauty product brands, such as No7, Botanics, Liz Earle and Soap & Glory. brands, complementary geographic footprints, shared values and a heritage of trusted health care services through pharmaceutical wholesaling and community In October 2016 received the United Nations pharmacy care, dating back more than 100 years. Foundation Global Leadership Award for its commitment to the UN's Sustainable Development Goals. Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination across the USA and Europe. Walgreens Boots Alliance and the More company information is available at www.walgreensbootsalliance.com. companies in which it has equity method investments together have a presence in * As of 31 August 2016, using publicly available information for more than 25* countries and employ more than 400,000* people. The company is AmerisourceBergen. a global leader in pharmacy-led, health and wellbeing retail and, together with the ** For 12 months ending 31 August 2016, using publicly available information for companies in which it has equity method investments, has over 13,200* stores in AmerisourceBergen. 11* countries as well as one of the largest global pharmaceutical wholesale and distribution networks, with over 390* distribution centers delivering to more than 230,000** , doctors, health centers and hospitals each year in more than 20* countries. In addition, Walgreens Boots Alliance is one of the world's

Walgreens 5 TENANTDemographics OVERVIEW Walgreens Boots Alliance, Inc. Overview of First Quarter Results Fiscal 2017 first quarter net earnings attributable to Walgreens Boots Alliance determined in accordance with GAAP decreased 5.0 percent to $1.1 billion compared with the same quarter a year ago, while GAAP diluted net earnings per share decreased 4.0 percent to $0.97 compared with the same quarter a year ago. The decreases in GAAP net earnings and GAAP net earnings per share primarily reflect a lower impact of UK tax rate reductions. Adjusted fiscal 2017 first quarter net earnings attributable to Walgreens Boots Alliance1 increased Financial Markets 6.1 percent to $1.2 billion, up 8.2 percent on a constant currency basis, compared with the same quarter a year ago. Adjusted diluted net earnings per share for the quarter increased 6.8 percent to Stock Ticker WBA $1.10, up 9.7 percent on a constant currency basis, compared with the same quarter a year ago. Current Price $87.61 as of 2/25/17 Sales in the first quarter were $28.5 billion, a decrease of 1.8 percent from the year-ago quarter, 52 Week High/Low $102.82 / $71.50 and an increase of 1.1 percent on a constant currency basis. GAAP operating income in the first quarter was $1.4 billion, a decrease of 1.4 percent from the same quarter a year ago. Adjusted operating income in the first quarter was $1.7 billion, an increase of 0.4 Company Outlook The company raised the lower end of its guidance for fiscal year percent from the same quarter a year ago, and an increase of 2.8 percent on a constant currency 2017 by 5 cents per share and now anticipates adjusted diluted basis. net earnings per share of $4.90 to $5.20. GAAP net cash provided by operating activities was $525 million and free cash flow was $147 million in the first quarter. This guidance assumes accretion of $0.05 to $0.12 from and is based on the above disclosure regarding expected Rite Aid Acquisition store divestitures and timing of closing. Additionally, this Walgreens Boots Alliance is actively engaged in discussions with the (FTC) guidance assumes current exchange rates for the rest of the regarding its pending acquisition of Rite Aid Corporation, which was announced 27 October 2015. fiscal year and continuation of its normal anti-dilutive share The company is working toward a close of the acquisition in the early part of this calendar year. The buyback program. transaction is subject to the expiration or termination of applicable waiting periods under the Hart- Scott-Rodino Antitrust Improvements Act of 1976, as amended, and other customary closing conditions. As announced 20 December 2016, Walgreens Boots Alliance and Rite Aid have entered into an agreement to sell 865 Rite Aid stores and certain assets related to store operations to Fred's, Inc. for $950 million in an all-cash transaction. The divestiture transaction is subject to FTC approval, the approval and completion of the pending acquisition of Rite Aid by Walgreens Boots Alliance and other customary closing conditions. Taking into account the expected divestitures, Walgreens Boots Alliance continues to expect that the acquisition will be accretive to its adjusted diluted net earnings per share in the first full year after closing of the transaction. The company also continues to expect that it will realize synergies from the acquisition in excess of $1 billion, to be fully realized within three to four years of closing of the merger. These synergies have been updated where practicable and, as previously disclosed, are expected to be derived primarily from procurement, cost savings and other operational matters. http://investor.walgreensbootsalliance.com/releasedetail.cfm?ReleaseID=1006570

Walgreens 6 600 Shawnee Mall Drive – Shawnee, Oklahoma 74804 AERIAL

Walgreens

McDonalds

Burger King

Walgreens 7 LOCATION OVERVIEW

HIGHLIGHTS

 Outparcel to Shawnee Mall – Anchored by JCPenney, Dillard’s, Kohl’s, Ross  Strategically Position Off of U.S. Interstate 40 – Traffic Counts Over 31,200 Vehicles Per Day  Close Proximity to Black Hawk Casino – Popular Tourist Attraction  Drive-Thru Pharmacy  Property is Surrounded by a Dense Mix of National Retailers

MAJOR EMPLOYERS ADTC 31,200 EMPLOYER # OF EMPLOYEES * Wolverine Tube Inc 776 Unity Health Center 540 Mobil Chemical-Films Dept 500 Hydraulics Operations Plant 400 Dept of Navy 350 Walmart 300 Unity Health Center-South 260 City Clerk Office 256 Medical Properties Co 230 Finley & Cook PLLC 200 Tdk Ferrites Corporation 200 Stanthony Physicians Shawnee 160 Shawnee, Oklahoma

Walgreens 8 This Walgreens property is located at 600 Shawnee Mall Drive in Shawnee, Oklahoma. LOCATION OVERVIEW Shawnee is part of the Oklahoma City-Shawnee Combined Statistical Area and is the seat of Pottawatomie County. It is located 45 minutes east of the attractions in downtown Oklahoma City.

Surrounding Retail and Points of Interest The subject property is an outparcel of Shawnee Mall. The mall is anchored by JC Penney, Ross, Kohl’s, and Dillard’s, and has a total of 57 tenants comprising a total of approximately 455,420 square feet of gross leasable retail space. Other notable tenants within the mall include Bed Bath & Beyond, Aeropostale, Footlocker, Jo-Ann Fabric's, Claire's, Lids, American Eagle Outfitters, and Zales. In addition to being an pout parcel to Shawnee Mall, the subject property is also in proximity to an excellent mix of national tenants including: Denny’s, Dollar Tree, Chili’s Grill and Bar, Red Lobster, Cracker Barrel, Lowe’s, Taco Bell, Sonic, Starbucks, CVS, Ihop, Burger King, Sonic, Popeye’s, Staples, Taco Bueno, and Whataburger. Black Hawk Casino, a popular tourist destination, is located four minutes away from the subject property. Black Hawk is a Native American Casino and is open daily 24 hours. The casino’s 35,000 square foot gaming space features 715 gaming machines and six table games. The property has two restaurants and one bar. The casino results in an array of hospitality in the area. America’s Best Value Inn, Super 8, Motel 6, Comfort Inn and Suites, La Quinta Inn & Suites, Hampton Inn, Days Inn, Holiday Inn Express, and American Inn are all in close proximity to the Walgreens and the casino. Lastly, Gordon Cooper Technology Center, a public career and technology education center serves approximately 800 students annually and an additional 4,500 individuals through short-term classes and customized training programs.

Traffic Counts and Demographics Shawnee has approximately 16,192 individuals residing within a three-mile radius of the property and more than 35,321 individuals within a five-mile radius. The subject property is located on Shawnee Mall Drive, directly off of U.S. Interstate 40. The Interstate has traffic counts in excess of 31,200 vehicles per day.

Oklahoma City, Oklahoma Oklahoma City is the capitol and largest city in the state of Oklahoma. The city ranks 27th in the nation in population, after the population increased by nearly 700,000 between 2010 and 2015. Oklahoma City features one of the largest livestock markets in the world. Oil, natural gas, petroleum products, and related industries are the largest sector of the total economy. The city is situated in the middle of an active oil field and oil derricks dot the capitol grounds. The economy of Oklahoma City, once just a regional power center of government and energy exploration, has diversified to include the sectors of information technology, services, health services, and administration. The city is headquarters to two Fortune 500 companies, Chesapeake Energy Corporation and Devon Energy Corporation. The Donald W. Reynolds Visual Arts Center is the new downtown home for the Oklahoma City Museum of Art.

Walgreens 9 MARKET OVERVIEW OKLAHOMA CITY OVERVIEW

The Oklahoma City metro is composed of seven central Oklahoma counties: Oklahoma, Grady, Canadian, Cleveland, Logan, McClain and Lincoln. It contains 1.4 million residents. Over the next five years, 62,900 METRO HIGHLIGHTS people are forecast to move to the metro, resulting in the addition of GROWING ENERGY AND ALTERNATIVE-ENERGY INDUSTRY 27,750 new households. Oklahoma City, is the capital city and is also the The region is home to two Fortune 500 companies in the energy industry and most populous city in the state with 636,000 residents. The metro is ranks among the nation’s top 10 in compressed natural gas and wind energy.

home to the Oklahoma City Thunder NBA team, as well as a number of DIVERSE EMPLOYMENT OPPORTUNITIES triple-A and semi-professional sports teams. Oklahoma City’s economic base is diversifying beyond energy. Medical, government, healthcare and information technology are generating new jobs.

POPULATION GROWTH Over the next five years, population and household growth will outpace the national rate, enhancing demand for goods and services such as healthcare and education. ECONOMY

. The energy industry is a major economic driver, with Chesapeake Energy and Devon Energy based locally. Other large regional employers in the energy sector include OGE Energy, Continental Resources and SandRidge Energy. . Major retailers with back-office operations including Hobby Lobby, AT&T, Dell, Love’s Travel Stops & Country Stores, and Williams-Sonoma. . A large number of jobs are attributed to the government segment, with employers including the state of Oklahoma, Tinker Air Force Base and the FAA Mike Monroney Aeronautical Center.

DEMOGRAPHICS

2016 2016 2016 2016 MEDIAN POPULATION: HOUSEHOLDS: MEDIAN AGE: HOUSEHOLD INCOME: 1.4M 537K 34.8 $52,600 Growth Growth U.S. Median: U.S. Median: 2016-2021*: 2016-2021*: 4.6% 5.2% 37.7 $57,200

Walgreens 10 PROPERTY PHOTO

Walgreens 11 PROPERTY PHOTO

Walgreens 12 SURROUNDING AREA PHOTOS

Walgreens 13 Demographics

5 Miles 1 Miles 3 Miles 5 Miles POPULATION 2021 Projection 903 16,192 35,713 2016 Estimate 897 15,915 35,321 2010 Census 886 15,156 33,880 3 Miles 2000 Census 867 14,250 32,689

INCOME Average $61,739 $64,124 $57,162 Median $49,247 $49,870 $44,356 Per Capita $25,519 $25,646 $22,476 1 Mile HOUSEHOLDS 2021 Projection 373 6,262 13,784 2016 Estimate 368 6,110 13,558 Walgreens 2010 Census 366 5,779 12,985 2000 Census 353 5,385 12,628

HOUSING 2016 $108,622 $112,381 $98,421

EMPLOYMENT 2016 Daytime 1,192 21,351 42,796 Population 2016 Unemployment 3.30% 4.09% 4.63% 2016 Median Time 23 20 21 Traveled

RACE & ETHNICITY White 75.37% 76.86% 72.42% Native American 0.00% 0.02% 0.05% African American 3.45% 3.51% 4.19% Asian/Pacific Islander 1.50% 1.48% 1.05%

Walgreens 14 Marcus & Millichap hereby advises all prospective purchasers be set based on a tenant’s projected sales with little or no asbestos, the compliance with State and Federal regulations, of Net Leased property as follows: record of actual performance, or comparable rents for the the physical condition of the improvements thereon, or the area. Returns are not guaranteed; the tenant and any financial condition or business prospects of any tenant, or any The information contained in this Marketing Brochure has guarantors may fail to pay the lease rent or property taxes, or tenant’s plans or intentions to continue its occupancy of the been obtained from sources we believe to be reliable. may fail to comply with other material terms of the lease; cash subject property. The information contained in this Marketing However, Marcus & Millichap has not and will not verify any of flow may be interrupted in part or in whole due to market, Brochure has been obtained from sources we believe to be this information, nor has Marcus & Millichap conducted any economic, environmental or other conditions. Regardless of reliable; however, Marcus & Millichap has not verified, and investigation regarding these matters. Marcus & Millichap tenant history and lease guarantees, Buyer is responsible for will not verify, any of the information contained herein, nor makes no guarantee, warranty or representation whatsoever conducting his/her own investigation of all matters affecting has Marcus & Millichap conducted any investigation regarding about the accuracy or completeness of any information the intrinsic value of the property and the value of any long- these matters and makes no warranty or representation provided. term lease, including the likelihood of locating a replacement whatsoever regarding the accuracy or completeness of the tenant if the current tenant should default or abandon the information provided. All potential buyers must take As the Buyer of a net leased property, it is the Buyer’s property, and the lease terms that Buyer may be able to appropriate measures to verify all of the information set forth responsibility to independently confirm the accuracy and negotiate with a potential replacement tenant considering the herein. completeness of all material information before completing location of the property, and Buyer’s legal ability to make any purchase. This Marketing Brochure is not a substitute for alternate use of the property. NON-ENDORSEMENT NOTICE your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services, Inc. obligation to conduct a due diligence examination of this Marcus & Millichap Real Estate Investment Services and hold it (“M&M”) is not affiliated with, sponsored by, or endorsed by Property for Buyer. harmless from any kind of claim, cost, expense, or liability any commercial tenant or lessee identified in this marketing arising out of your investigation and/or purchase of this net package. The presence of any corporation’s logo or name is Any projections, opinions, assumptions or estimates used in leased property. not intended to indicate or imply affiliation with, or this Marketing Brochure are for example only and do not sponsorship or endorsement by, said corporation of M&M, its represent the current or future performance of this property. CONFIDENTIALITY AND DISCLAIMER affiliates or subsidiaries, or any agent, product, service, or The value of a net leased property to you depends on factors commercial listing of M&M, and is solely included for the that should be evaluated by you and your tax, financial and The information contained in the following Marketing purpose of providing tenant lessee information about this legal advisors. Brochure is proprietary and strictly confidential. It is intended listing to prospective customers. to be reviewed only by the party receiving it from Marcus & Buyer and Buyer’s tax, financial, legal, and construction Millichap and should not be made available to any other ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. advisors should conduct a careful, independent investigation person or entity without the written consent of Marcus & PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR of any net leased property to determine to your satisfaction Millichap. This Marketing Brochure has been prepared to MORE DETAILS. with the suitability of the property for your needs. provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest Like all real estate investments, this investment carries in the subject property. The information contained herein is significant risks. Buyer and Buyer’s legal and financial advisors not a substitute for a thorough due diligence investigation. must request and carefully review all legal and financial Marcus & Millichap has not made any investigation, and documents related to the property and tenant. While the makes no warranty or representation, with respect to the tenant’s past performance at this or other locations is an income or expenses for the subject property, the future important consideration, it is not a guarantee of future projected financial performance of the property, the size and success. Similarly, the lease rate for some properties, including square footage of the property and improvements, the newly-constructed facilities or newly-acquired locations, may presence or absence of contaminating substances, PCB’s or