DERBY SHOPPING CENTER 1105 Derby Street • Pekin, IL 61554 NON - ENDORSEMENT and DISCLAIMER NOTICE

OFFERING MEMORANDUM

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Peoria, IL - 10 Miles

DERBY SHOPPING CENTER 1105 Derby Street • Pekin, IL 61554 NON - ENDORSEMENT AND DISCLAIMER NOTICE

Confidentiality and Disclaimer The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure 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. Marcus & Millichap 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, or the financial condition or business prospects of any tenant, or any tenant's plans or intentions to continue its occupancy of the subject property. The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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. Marcus & Millichap is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2016 Marcus & Millichap. All rights reserved.

Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation's logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS. DERBY SHOPPING CENTER

TABLE OF CONTENTS

Section 1 INVESTMENT OVERVIEW •

Section 2 FINANCIAL ANALYSIS •

Section 3 MARKET OVERVIEW • DERBY SHOPPING CENTER

INVESTMENT OVERVIEW

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OFFERING SUMMARY INVESTMENT OVERVIEW

INVESTMENT HIGHLIGHTS

▪ Save-A-Lot and Family Dollar Anchored Shopping Center ▪ 13 Percent or 5,496-Square Feet of Vacancy Upside ▪ 60 Percent of Current Income from National Tenants ▪ Strong Tenant Mix | Internet Resistant Neighborhood Center ▪ Dense Infill Location | Positioned Along Commuter Corridor ▪ Located 10 Miles South of Peoria | Seventh Largest City in Illinois

The Dumes Falk Group of Marcus & Millichap is pleased to bring to market Derby Shopping Center, a 43,835-square foot neighborhood center located in the county seat of Tazewell County – Pekin, IL. Derby Shopping Center is situated on approximately three-acres with ample parking, multiple points of ingress/ egress, excellent signage and visibility along a commuter corridor.

Derby Shopping Center is currently 87 percent occupied with 5,496-square feet or 13 percent of vacancy upside. Leasing up the vacant unit at market rents under a triple-net lease could potentially add more than $40,000 to the NOI. Additionally, all of the tenants are currently under gross leases except for Save-A-Lot who reimburses taxes and pays for it’s own parking lot maintenance. The tenant mix caters to the dense population which surrounds the property and meets the needs of the local residents and is home to the only discount grocery within the market. Anchored by Save-A-Lot and Family Dollar, the center is accompanied by a coffee shop, tanning salon, nail salon, tobacco shop, loan company, consignment shop, liquor store, all of which are internet resistant. The demand for the anchors is highlighted by the recent lease renewals of Save-A-Lot in 2015 and Family Dollar in 2017 who have both been at their current locations for over fifteen-years. Save-A-Lot, operated by Niemann Foods, is headquartered in Quincy and renewed it’s lease for a 10- year term in 2015. Family Dollar and Save-A-Lot make up roughly 58 percent of the GLA and 60 percent of the gross income.

The subject property is positioned along Derby Street, an east/west commuter corridor. This thoroughfare can be quickly traveled having only three points which requires traffic to stop, one located directly in front of the Derby Shopping Center. Located down the road is Pekin Park District, a new 80-acre sports complex including eight lighted baseball/ softball diamonds, ten-acres of soccer fields, four football fields and two concession buildings surrounded by a 1.6-mile walking path. There are more than 36,000 residents with average household incomes of $63,000 within three-miles of the subject property. Nearby is Pekin Community High School with over 2,000 students, Pekin Preschool and Wilson Intermediate School (812 combined students) and Pekin Hospital with over 800 employees - all located within a mile of the subject property. Nearly 10,000 employees work within one-mile of Derby Shopping Center and over 34,000 in three-miles.

Derby Shopping Center provides and incoming investor the ability to acquire a value-add grocery anchored center located off of a commuter corridor within a stabilized market. Save-A-Lot and Family Dollar as well as a prominent location within the market provides this center the ability to continue to be an integral part of the community and should continue to serve as an invaluable shopping destination for residents and travelers alike.

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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PROPERTY PHOTOS

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SITE PLAN

Stratford Avenue

B A C D E F G H

I J

Derby Street

A – The Tannery (1,800 SF) B – Vacant (5,496 SF) C – Coffee Bar (1,025 SF) D – Nail Salon (728 SF) E – Discount Tobacco (1,200 SF)

F – Nearly Nu (4,238 SF) G – Tower Loan (1.050 SF) H – Pekin Liquor (3,000 SF) I – Family Dollar (7,998 SF) J - Save-A-Lot (17,300 SF)

*Site plan is a representation of the property with the number of units, parking spots and relative size of both. It does not show the absolute exact size of the units relative to the other spaces or the exact number of parking spots.

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AERIAL PHOTO

Lick Creek Golf Course Industrial Pekin Country Club

Residential Parkview Golf Communities Course 1 Mile Median Household Income Growth of 11% Since 2000 Pekin Community 14% Projected Growth in 5 Years High School East Court Village 789,043 SF 36,679 Residents in 3 Miles 2,005 Students

Pekin Hospital 820 Employees Pekin Insurance 600 Employees

Pekin Preschool & Wilson Intermediate School Pekin Park Sports 812 Combined Students Complex – 80 acres 2013 Construction

Industrial Sunset Hills Golf Club

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REGIONAL MAP

Chicago

Fort Wayne

Peoria Bloomington Columbus Indianapolis

Cincinnati

St. Louis N Louisville

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FINANCIAL ANALYSIS

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OFFERING SUMMARY EXECUTIVE SUMMARY

MAJOR EMPLOYERS

# OF EMPLOYER EMPLOYEES Pekin Hospital 820 Farmers Automobile MGT Corp 700 Pekin Insurance 600 Farmers Automobile Insurance 560 Pekin Community High School 442 Walmart 400 County of Tazewell 345 Evonik Corporation 250 FCI Pekin 245 Click Here For Our Exclusive Video Presentation Federal Corrections Institution 245 Aventine Renewable Energy 200 https://vimeo.com/230761856/9ba1d31925 Kroger 200

THE OFFERING Property Derby Shopping Center DEMOGRAPHICS Property Address 1105 Derby Street, Pekin, IL 61554 SITE DESCRIPTION 1-Miles 3-Miles 5-Miles Built/Renovated 1966/1999 2016 Estimate Pop 11,504 36,679 45,952 Gross Leasable Area 43,835 SF 2010 Census Pop 11,449 36,433 45,606 Current Occupancy 87.46% 2016 Estimate HH 4,799 14,894 18,456 Lot Size +/- 3.12 Acre(s) 2010 Census HH 4,775 14,764 18,267 Ownership Fee Simple Average HH Income $55,024 $62,955 $64,513 Daytime Pop 9,616 34,140 41,413 MAJOR TENANTS TENANT GLA LEASE EXPIRATION LEASE TYPE Save-A-Lot 17,300 06/30/2025 N Family Dollar 7,998 12/31/2021 Gross

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FINANCIAL ANALYSIS TENANT SUMMARY

Total % Lease Dates Annual Rent Total Rent Changes Changes Lease Tenant Name Square Bldg Rent per Renewal Options Per Per Year on to Type Feet Share Comm. Exp. Sq. Ft. Month The Tannery Sun Tan Center 1,800 4.11% 04/01/2011 09/30/2020 $6.00 $900 $10,800 10/01/2020 $12,000 Gross 2 x 3 Yr Derby Coffee Bar* 1,025 2.34% COE 5 Yrs $14.05 $1,200 $14,400 TBD TBD Gross TBD Nail Salon 728 1.66% 09/01/2017 08/31/2022 $9.89 $600 $7,200 09/01/2022 $7,800 Gross 2 x 5 Yr Discount Tobacco 1,200 2.74% 06/15/2013 06/14/2018 $8.50 $850 $10,200 06/15/2018 $10,800 Gross 1 x 2 Yr Nearly Nu Shop 4,238 9.67% 08/01/2015 07/31/2018 $5.10 $1,800 $21,600 None None Gross None Tower Loan 1,050 2.40% 03/01/2013 02/28/2023 $8.00 $700 $8,400 03/01/2023 $9,600 Gross 1 x 5 Yr ACE Liquor 3,000 6.84% 08/18/2016 08/17/2021 $8.80 $2,200 $26,400 08/18/2021 $30,000 Gross 3 x 5 Yr Family Dollar 7,998 18.25% 10/26/2000 12/31/2021 $9.22 $6,147 $73,766 01/01/2022 $79,667 Gross 1 x 5 Yr Save-A-Lot (Niemann Foods) 17,300 39.47% 02/04/2000 06/30/2025 $3.29 $4,750 $57,000 None None N None Vacant 5,496 12.54%

Occupied 38,339 87.46% Vacant 5,496 12.54% Total 43,835 100.00% $19,147 $229,766

* Owner is operator of Derby Coffee Bar and will execute a new Five-Year Lease at $1,200 per month prior to closing

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PRICINGPRICING ANDAND TENANTVALUATIONVALUATIONTENANT SUMMARY SUMMARY MATRIXMATRIX

General Information

Tenant Name Save-A-Lot

Lease Commencement February 4, 2000

Lease Expiration June 30, 2025

Gross Leasable Area (GLA) 17,300

Original Term Ten Years

Option Term None

Pro Rata Share of Project 39.47%

Headquarters Quincy, IL

Website www.savealot.com

Save-A-Lot (Niemann Foods) Base Rent Lease Years Annual Rent Monthly Rent Annual Rent/SF Niemann knows its midwestern food. Niemann Foods operates more than 100 07/01/2015 – 06/30/2025 $57,000 $4,750 $3.29 supermarkets and convenience stores mostly under the Country Market, Pick A Dilly's, Cub Foods, and Save-A-Lot banners in Illinois, Iowa, and Missouri. Its Save-A-Lot stores offer a Expense Lease Summary limited assortment of groceries at discount prices while Cub Foods and Country Market are Tenant does not reimburse but pays for snow removal and 50% conventional grocery stores. The regional grocery store operator is battling for market share C.A.M. of parking lot repair expense for their section of the parking lot. in the Midwest with Hy-Vee and supercenter operator Wal-Mart Stores. The company also runs six pet stores and several Ace Hardware stores. The employee-owned, family-run firm Real Estate Tax Tenant reimburses pro-rata share of real estate tax at 38.47% was founded in 1917 by brothers Ferd and Steve Niemann and is currently run by CEO Rich Insurance Tenant does not reimburses pro-rata share of Insurance Niemann.

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PRICINGPRICING ANDAND TENANTVALUATIONVALUATIONTENANT SUMMARY SUMMARY MATRIXMATRIX

General Information

Tenant Name Family Dollar Lease Commencement October 26, 2000 Lease Expiration December, 31, 2021 Gross Leasable Area (GLA) 7,998 Original Term Five Years Option Term One, Five-Year Option Pro Rata Share of Project 18.25% Headquarters Charlotte, NC Website www.familydollar.com Family Dollar

The Company offers a range of merchandise for the whole family, ranging from Base Rent household cleaners to name brand foods, from health and beauty aids to toys, and Lease Years Annual Rent Monthly Rent Annual Rent/SF from apparel for every age to home fashions. The Company has approximately 10 10/26/2000 – 12/31/2005 $55,930 $4,661 $6.99 distribution centers for its supply chain management. The Company has over 8,000 01/01/2006 – 12/31/2010 $61,523 $5,127 $7.69 01/01/2011 – 12/31/2016 $67,675 $5,640 $8.46 stores within its approximately 50 state operating area. The Company's subsidiary, 01/01/2017 – 12/31/2021 $73,766 $6,147 $9.22 Family Dollar Trucking, Inc., services Family Dollar Stores located in southeastern states with localized operations at the corporate fleet offices. The Company offers various categories of products, such as food and beverages, household products, Option Rent family apparel, personal beauty and care, pet supplies, home decor, electronics, baby Lease Years Annual Rent Monthly Rent Annual Rent/SF care, automotive, hardware, health and wellness, mobile phones, candy, toys and 01/01/2022 – 12/31/2026 $79,667 $6,639 $9.96 outdoor. The Company's other product categories include Halloween, Game Day, Holiday, Valentine's Day and Easter. Expense Lease Summary

C.A.M. Tenant does not reimburse pro-rata share of CAM Expenses

Real Estate Tax Tenant does not reimburse pro-rata share of Real Estate Taxes

Insurance Tenant does not reimburse pro-rata share of Insurance

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FINANCIAL ANALYSIS PRICING DETAIL & OPERATING DATA

PRICING & FINANCING Operating Data Current Scheduled Base Rental Income $229,766 Price $1,660,000 Expense Reimbursement Income CAM $2,400 Cap Rate | Price/SF 9.39% | $38 Insurance $0 Net Operating Income $155,920 Real Estate Taxes $18,538 Management Fees $0 Loan Type New Total Reimbursement Income $20,938 Down Payment 25% / $415,000 Effective Gross Revenue $250,704 Less: Operating Expenses ($94,785) Loan Amount $1,245,000 Net Operating Income $155,920 Debt Service ($83,041) Interest Rate / Amortization 4.50% / 25 Years Net Cash Flow After Debt Service 17.56% $72,878 Debt Coverage Ratio 1.88 Principal Reduction $27,581 Total Return 24.21% $100,459

Operating Expenses Current Per/SF Est. CAM Expenses $19,800 $0.45 2016 Insurance Premiums $11,177 $0.25 Real Estate Taxes* $46,973 $1.07 Management Fee (5% of EGR) $12,535 $0.29 Estimated Reserves $4,300 $0.10 Total Expenses $94,785 $2.16

*Real Estate Taxes Based on Reassessment upon Sale at $1,660,000

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MARKET OVERVIEW

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MARKETINGDEMOGRAPHICS TEAM Created on October 2017

POPULATION 1 Miles 3 Miles 5 Miles HOUSEHOLDS BY EXPENDITURE 1 Miles 3 Miles 5 Miles Total Average Household Retail ▪ 2021 Projection $62,501 $65,596 $67,172 Expenditure Total Population 11,340 36,928 46,396 ▪ Consumer Expenditure Top 10 ▪ 2016 Estimate Categories Total Population 11,504 36,679 45,952 Housing $16,900 $17,662 $18,064 ▪ 2010 Census Shelter $10,442 $10,925 $11,181 Total Population 11,449 36,433 45,606 Transportation $9,254 $9,449 $9,662 ▪ 2000 Census Food $7,270 $7,398 $7,558 Total Population 12,511 36,302 45,207 Personal Insurance and Pensions $5,319 $5,858 $6,152 ▪ Current Daytime Population Health Care $4,260 $4,554 $4,646 2016 Estimate 9,616 34,140 41,413 Utilities $3,439 $3,533 $3,592 HOUSEHOLDS 1 Miles 3 Miles 5 Miles Entertainment $2,744 $2,906 $2,995 ▪ 2021 Projection Apparel $2,249 $2,247 $2,310 Total Households 4,761 15,109 18,778 Cash Contributions $1,392 $1,610 $1,620 ▪ 2016 Estimate POPULATION PROFILE 1 Miles 3 Miles 5 Miles Total Households 4,799 14,894 18,456 ▪ Population By Age Average (Mean) Household Size 2.37 2.33 2.38 2016 Estimate Total Population 11,504 36,679 45,952 ▪ 2010 Census Under 20 25.42% 23.85% 24.10% Total Households 4,775 14,764 18,267 20 to 34 Years 20.32% 20.14% 19.60% ▪ 2000 Census 35 to 39 Years 6.76% 6.63% 6.73% Total Households 5,110 14,355 17,640 40 to 49 Years 12.68% 12.52% 12.68% ▪ Occupied Units 50 to 64 Years 19.21% 19.58% 20.13% 2021 Projection 4,761 15,109 18,778 Age 65+ 15.62% 17.28% 16.78% 2016 Estimate 5,120 15,871 19,605 Median Age 38.12 39.52 39.68 HOUSEHOLDS BY INCOME 1 Miles 3 Miles 5 Miles ▪ Population 25+ by Education Level ▪ 2016 Estimate 2016 Estimate Population Age 25+ 7,832 25,632 32,091 $150,000 or More 2.15% 4.14% 4.29% Elementary (0-8) 2.56% 2.11% 2.06% $100,000 - $149,000 8.80% 10.18% 10.82% Some High School (9-11) 7.78% 8.07% 7.65% $75,000 - $99,999 10.73% 12.67% 13.44% High School Graduate (12) 41.54% 40.44% 40.58% $50,000 - $74,999 20.39% 19.78% 20.33% Some College (13-15) 23.38% 23.04% 23.48% $35,000 - $49,999 16.26% 13.72% 13.78% Associate Degree Only 10.06% 9.54% 9.64% Under $35,000 41.17% 38.58% 36.42% Bachelors Degree Only 10.71% 12.35% 12.17% Average Household Income $55,024 $62,955 $64,513 Graduate Degree 3.64% 4.09% 4.05% Median Household Income $42,774 $47,212 $49,751 Per Capita Income $23,012 $26,020 $26,451

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MARKETINGDEMOGRAPHICS TEAM

Population Race and Ethnicity In 2016, the population in your selected geography is 45,952. The The current year racial makeup of your selected area is as follows: population has changed by 1.65% since 2000. It is estimated that the 94.51% White, 2.09% Black, 0.02% Native American and 0.63% population in your area will be 46,396.00 five years from now, which Asian/Pacific Islander. Compare these to US averages which are: represents a change of 0.97% from the current year. The current 70.77% White, 12.80% Black, 0.19% Native American and 5.36% population is 49.41% male and 50.59% female. The median age of Asian/Pacific Islander. People of Hispanic origin are counted the population in your area is 39.68, compare this to the US average independently of race. which is 37.68. The population density in your area is 584.14 people per square mile. People of Hispanic origin make up 2.60% of the current year population in your selected area. Compare this to the US average of 17.65%.

Households Housing There are currently 18,456 households in your selected geography. The median housing value in your area was $105,060 in 2016, The number of households has changed by 4.63% since 2000. It is compare this to the US average of $187,181. In 2000, there were estimated that the number of households in your area will be 18,778 12,712 owner occupied housing units in your area and there were five years from now, which represents a change of 1.74% from the 4,928 renter occupied housing units in your area. The median rent at current year. The average household size in your area is 2.38 persons. the time was $362.

Income Employment In 2016, the median household income for your selected geography is In 2016, there are 15,199 employees in your selected area, this is also $49,751, compare this to the US average which is currently $54,505. known as the daytime population. The 2000 Census revealed that The median household income for your area has changed by 22.97% 53.58% of employees are employed in white-collar occupations in since 2000. It is estimated that the median household income in your this geography, and 46.39% are employed in blue-collar occupations. area will be $61,013 five years from now, which represents a change In 2016, unemployment in this area is 7.24%. In 2000, the average of 22.64% from the current year. time traveled to work was 22.00 minutes.

The current year per capita income in your area is $26,451, compare this to the US average, which is $29,962. The current year average household income in your area is $64,513, compare this to the US average which is $78,425.

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EXCLUSIVELY LISTED BY

Christopher J. Kinnard Joel M. Dumes Stan R. Falk Associate Senior Vice President Investments First Vice President Investments Associate Director - National Retail Group Senior Director – National Retail Group Senior Director - National Retail Group Cincinnati Office Cincinnati Office Cincinnati Office Tel: (513) 878-7743 Tel: (513) 878-7720 Tel: (513) 878-7721 Fax: (513) 878-7710 Fax: (513) 878-7710 Fax: (513) 878-7710 [email protected] [email protected] [email protected]

Broker of Record: Steven Weinstock