SINGLE

______TENANT INVESTMENT OPPORTUNITY

WALES WISCONSIN

ACTUAL SITE EXCLUSIVELY MARKETED BY

DAN ELLIOT | SENIOR VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606 DL: 312.279.5342 | M: 312.972.7978 [email protected] | IL License No. 475144985

SEAN LUTZ | SENIOR VICE PRESIDENT SRS NATIONAL NET LEASE GROUP 155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606 DL: 312.279.5345 | M: 312.437.8598 [email protected] | WI License No. 87393-94

ACTUAL SITE TABLE OF CONTENTS 4 INVESTMENT SUMMARY INVESTMENT HIGHLIGHTS | OFFERING HIGHLIGHTS 7 PROPERTY OVERVIEW AERIALS | SITE PLAN | LOCATION MAP 14 AREA OVERVIEW DEMOGRAPHICS 16 FINANCIALS RENT ROLL | BRAND PROFILE

ACTUAL SITE INVESTMENT SUMMARY

SRS National Net Lease Group is pleased to present the rare opportunity to acquire Pick ‘n Save, a corporately guaranteed, NN leased, investment property located in Wales, Wisconsin. The tenant, Pick ‘n Save, recently extended their lease early and currently has approximately 11 years of term remaining, followed by 3 (5-year) option periods. The lease features a 5% rental increase in 2025 and 5% increases at the beginning of each option period. The lease is corporately guaranteed by The Kroger Company, the country’s largest grocer. The lease is NN with minimal landlord responsibilities limited to roof, foundation, exterior supporting walls, canopies and facade. The store was recently remodeled including brand new signage that was installed on the building in February 2018 indicating the tenant’s long term commitment to the site. The subject site is located on the southwest corner at the intersection of W. Summit Ave/U.S. 18 and N. Wales Road (combined 33,500 VPD) which is a prominent corner in the affluent western suburbs of Milwaukee. The asset has excellent visibility & multiple points of ingress/ egress from both bordering streets. W. Summit Ave/U.S. 18 is the dominant, east-west thoroughfare running out of downtown Milwaukee, WI, and is easily accessible via both Wales Road and I-94. Pick ‘n Save is located across from a newly developed Walgreens as well as Kettle Moraine High School, and enjoys limited local competition. The 5-mile trade area is supported by a strong local population of approximately 29,500 with an affluent average household income of $123,766.

4 | INVESTMENT SUMMARY | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE OFFERING HIGHLIGHTS

OFFERING

PRICING: $10,511,330 NET OPERATING INCOME: $656,958 CAP RATE: 6.25% GUARANTY: The Kroger Company LEASE TYPE: NN LANDLORD RESPONSIBILITIES: Roof, Foundation, Exterior Supporting Walls, Canopies and Facade

PROPERTY SPECIFICATIONS

RENTABLE AREA: 60,912 SF LAND AREA: ±7.64 Acres PROPERTY ADDRESS: 405 N.Wales Road, Wales, WI 53183 YEAR BUILT / RENOVATED: 1997 / 2018 PARCEL NUMBER: WLSV-1457-989-004 OWNERSHIP: Fee Simple (Land and Building)

5 | OFFERING HIGHLIGHTS | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE INVESTMENT HIGHLIGHTS

KROGER COMPANY GUARANTEE | RENTAL INCREASES | 3 (5-YEAR) OPTIONS IRREPLACEABLE CORNER LOCATION | LIMITED LOCAL COMPETITION • The Kroger Company corporate guaranteed lease PROMINENT INTERSECTION (33,500 VPD) • Recently extended lease, 11 years of lease term remaining • The subject site is located on the southwest corner intersection of W. Summit Ave/ • 3 (5-Year) option periods US 18 and N. Wales Road (combined 33,500 VPD) which is a prominent corner in • 5% rental increase in 2025 and at the beginning of each option period the affluent western suburbs of Milwaukee • Dominant regional grocery brand • Pick ‘n Save is located across from a newly developed Walgreens as well as Kettle NN LEASE | FEE SIMPLE OWNERSHIP | MINIMAL LANDLORD RESPONSIBILITIES Moraine High School, and enjoys limited local competition • Tenant pays for CAM, insurance, and taxes STRONG DEMOGRAPHICS IN AFFLUENT 5-MILE TRADE AREA | MILWAUKEE MSA • Ideal, low-management investment for an out-of-state, passive investor • Approximately 29,500 residents and nearly 13,000 employees support the trade • Landlord responsibile for roof, foundation, exterior supporting walls, area canopies and facade • $123,766 average household income RECENT STORE REMODEL • Located in Milwaukee MSA • Pick ‘n Save store has recently been remodeled including new signage that was AVAILABLE INDIVIDUALLY OR AS A PORTFOLIO added to the building in February of 2018 • 1010 N. Rochester Street, Mukwonago, WI • Indicates tenant’s commitment to the site • S74 W17005 Janesville Road, Muskego, WI • 36903 E. Wisconsin Avenue, Oconomowoc, WI • 405 N. Wales Road, Wales, WI

6 | INVESTMENT HIGHLIGHTS | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE PROPERTY OVERVIEW

U.S. Highway 18:...... 1 Access Point Blackwood Drive:...... 2 Access Points ACCESS

N. Wales Road/ State Highway 83:...... 19,800 U.S. Highway 18:...... 13,700 TRAFFIC COUNTS

There is approximately 60,912 SF of existing building area. Age of Roof:...... 21 Years IMPROVEMENTS Landlord is responsible for all structural components of the premises including: foundation, exterior supporting walls, roof, canopies and facades

There are approximately 313 parking spaces on the owned parcel. The parking ratio is approximately 5.14 stalls per 1,000 SF of leasable area. PARKING

PARCEL MAP 1997 Renovated - 2018 YEAR BUILT

Parcel Number: WLSV-1457-989-004 Acres: ±7.64 Square Feet: 332,798 SF PARCEL

Commercial ZONING

7 | PROPERTY OVERVIEW | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE 18 U.S. Highway

83 State Highway State 83 13,700 CARS PER DAY

Kettle Moraine High School

18 U.S. Highway 19,800

CARS PER DAY N. Wales Road/ 83 State Highway State 83 Road/ Wales N.

Cymric City Kettle Moraine School District 83 State Highway

18 U.S. Highway

13,700 CARS PER DAY 18 U.S. Highway

Kettle Moraine High School

Wales Elementary School

Criglas Road 19,800

CARS PER DAY Highway State 83 Road/ Wales N. N. Wales Road/ 83 State Highway 19,800 CARS PER DAY 13,700 CARS PER DAY 18 U.S. Highway

7,900 CARS PER DAY

83 State Highway 18 U.S. Highway

Wales Elementary School Kettle Moraine High School 10,700 CARS PER DAY 19,800 CARS PER DAY N. Wales Road/ 83 State Highway 83 State Highway 7,900 CARS PER DAY

13,700 CARS PER DAY

18 U.S. Highway

Glacial Drumlin State Trail 13,700 VPD

BLACKWOOD DR.

N. WALES RD. - 19,800 VPD

GLACIAL DRUMLIN STATE TRAIL 2017 ESTIMATED POPULATION 1 Mile...... 2,008 3 Mile...... 9,979 5 Mile...... 29,510 2017 AVERAGE HOUSEHOLD INCOME 1 Mile...... $118,667 3 Mile...... $124,405 5 Mile...... $123,766 2017 ESTIMATED TOTAL EMPLOYEES 1 Mile...... 565 3 Mile...... 3,324 5 Mile...... 12,818

31 Minutes | 28 Miles To Milwaukee MILWAUKEE WALES AREA OVERVIEW

Wales, Wisconsin Wales is a village in Waukesha County, Wisconsin, United States, first settled by Welsh immigrants. The Village of Wales area is a quaint community steeped in tradition, yet brimming with modern- day commercial growth. The village is rich in history, recreation and pure enjoyment all set in the beautiful landscape of the lower Lake Country area. The Village of Wales had a population of 2,692 as of July 1, 2017. According to the United States Census Bureau, the village has a total area of 3.29 square miles. Today, the Village of Wales area thrives with economic growth and commercial development. High visibility storefronts and professional office buildings draw new and relocating businesses to the area. The Village proximity to the interstate and two major thoroughfares support the expanding community by bringing daily commerce opportunities to local Wales businesses. Proposed upscale road improvements and the new Tenby shopping area will continue to draw more attention and visitors to the area. Wales’s area commerce continues on the upswing with easy highway access and increasing traffic through the area, as well as continued movement of residential growth from Waukesha and Delafield. With close to 100 businesses or available space, as well as multiple undeveloped commercial properties, Wales has significant room for continued growth. Wales is easy to get to, just 25 miles from downtown Milwaukee, three miles south of I-94 and situated around two major county highways, Hwy 83 and 18. Today, the Village of Wales covers 1,443 acres and has 2,570 residents (year 2014) and nearly 100 businesses. Bordering communities such as Genesee Depot, Dousman and Delafield also offer an abundance of recreation choices and attractions. Nestled in the Kettle Moraine, Wales is surrounded by rolling hills, woodland areas and multiple lakes including the nearby beautiful Lapham Peak Park and Upper and Lower Nabobin Lakes. The Hwy 83 corridor between I-43 at Mukwonago and WIS 16 at Hartland has had steady increases in traffic volume from area residential growth and commuters, bringing increased commerce and recognition to the area.

14 | AREA OVERVIEW | SRS NATIONAL NET LEASE GROUP . AREA DEMOGRAPHICS

DEMOGRAPHICS 1 MILE 3 MILES 5 MILES

2017 Estimated Population 2,008 9,979 29,510 2022 Projected Population 2,064 10,163 30,186 2010 Census Population 1,933 9,797 28,818

2017 Estimated Households 772 3,559 10,974 2022 Projected Households 796 3,640 11,274 2010 Census Households 737 3,458 10,593

2017 Estimated White 96.90% 95.30% 94.90% 2017 Estimated Black or African American 0.70% 2.10% 1.50% 2017 Estimated Asian or Pacific Islander 0.60% 0.80% 1.70% 2017 Estimated American Indian or Native Alaskan 0.10% 0.30% 0.30% 2017 Estimated Other Races 0.40% 0.40% 0.40% 2017 Estimated Hispanic 2.50% 2.70% 3.10%

2017 Estimated Average Household Income $118,667 $124,405 $123,766 2017 Estimated Median Household Income $94,996 $98,329 $96,665 2017 Estimated Per Capita Income $42,807 $45,662 $46,159

2017 Estimated Total Businesses 72 267 1,044 2017 Estimated Total Employees 565 3,324 12,818

15 | AREA DEMOGRAPHICS | SRS NATIONAL NET LEASE GROUP . RENT ROLL

LEASE TERM RENTAL RATES TENANT NAME SQUARE FEET LEASE START LEASE END BEGIN INCREASE MONTHLY PSF ANNUALLY PSF RECOVERY TYPE OPTIONS Pick ‘n Save 60,912 Sep. 27, 2004 Dec. 31, 2029 Current - $54,747 $0.90 $656,958 $10.79 NN 3 (5-Year) Guarantor - Kroger 1/1/2025 5% $57,484 $0.94 $689,806 $11.32 5% Increase at the Beginning of Each

FINANCIAL INFORMATION PROPERTY SPECIFICATIONS

Price:...... $10,511,330 Year Built:...... 1997 Net Operating Income:...... $656,958 Rentable Area:...... 60,912 SF Cap Rate:...... 6.25% Land Area:...... ±7.64 Acres Lease Type:...... NN Address:...... 405 N.Wales Road, Wales, WI 53183

16 | RENT ROLL | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE BRAND PROFILE

PICK ‘N SAVE Pick ‘n Save operates as a chain in Wisconsin. The Company Company Type: ...... Subsidiary offers fresh products, restaurant quality prepared foods, full service Parent:...... Roundy’s , Inc. counters, meal ideas, food, and beverage pairings. Pick ‘n Save was founded in March of 1975 when it’s first store was opened in Milwaukee. Today the Parent of Parent:...... The Kroger Company company has 100+ stores that serve communities across Wisconsin with 2017 Employees: ...... 443,000 approximately 10,000 employees. Pick ‘n Save is a subsidiary of Roundy’s 2017 Revenue: ...... $115.34 Billion Supermarkets, Inc. Roundy’s is a leading grocer in the Midwest and 2017 Net Income:...... $1.98 Billion operates under the banners of Pick ‘n Save, Metro Market, and Mariano’s 2017 Assets: ...... $36.51 Billion Fresh Market. Founded in Milwaukee in 1872, Roundy’s operates 166 retail 2017 Equity: ...... $6.70 Billion grocery stores and 99 pharmacies in Wisconsin and Illinois. In 2002, Robert Anthony “Bob” Mariano was named the CEO of Roundy’s. Mariano initiated Ranking:...... #18 in FORTUNE 500 the creation of Chicago-based supermarket division called Mariano’s; the first Mariano’s branded store opened in Arlington Heights, IL in July 2010. In November of 2015, Kroger and Roundy’s announced a merger that was valued at $800 million including debt. In December of 2015, Roundy’s Supermarkets became a wholly-owned subsidiary of the Kroger Company. THE KROGER COMPANY Kroger is the largest supermarket chain in the U.S. by revenue, the second-largest general retailer (behind ), and the eighteenth largest company in the U.S. It employs over 443,000 associates who serve customers in 2,790 supermarkets and multi-department stores in 35 states and the District of Columbia under two dozen local banner names including Kroger, Fry’s, Pick ‘n Save, Mariano’s, , Metro Market and several more. The company also operates 783 convenience stores under six banners in 19 states, 306 fine jewelry stores, 1,480 supermarket fuel centers and 38 food production or manufacturing facilities.

17 | BRAND PROFILE | SRS NATIONAL NET LEASE GROUP .

ACTUAL SITE SRS GLOBAL STATS

800+ 600+ $2.6B* 20+ 250+ #1 PROPERTIES CURRENTLY CLIENTS REPRESENTED TRANSACTION VALUE OFFICES BROKERS, LARGEST REAL ESTATE FIRM REPRESENTED IN 2016 PROFESSIONALS, EXCLUSIVELY DEDICATED TO AND STAFF RETAIL SERVICES IN NORTH AMERICA *STATISTICS ARE FOR 2016.

This Offering Memorandum has been prepared by SRS National Net Lease Group (SRS) and has been approved for distribution by the owner. Although effort has been made to provide accurate information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The projected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the market and the surrounding competitive environment.

ACTUAL SITE