WALGREENS Rock Island, IL

OFFICE DEPOT | ANNAPOLIS, MD TABLE OFOFFERING CONTENTS MEMORANDUM

WALGREENS FEE SIMPLE NN Rock Island, IL

Representative Photo

Richard Murphy, Senior Vice President Andrew Wilmoth Chicago, IL License U.S. Capital Markets Net Lease Group Senior Associate James Hanson, Principal 571.449.8234 U.S. Capital Markets Net Lease Group License # 475.171248 [email protected] 865.474.8786 | [email protected] Avison Young – Chicago LLC - 477.012861 WALGREENS Rock Island, IL

3 Financial Summary 4 Tenant Summary 5 Surrounding Retail 6 Maps 8 Demographics WALGREENS FINANCIAL SUMMARY Rock Island, IL

Asking Price Cap Rate Annual Rent Lease Type $3,148,148 6.75% $212,500 NN

Asset Summary NOI $212,500 3100 11th Street | Rock Island, IL 61201 Rent/Month $17,708 Investment Highlights

Rent/SF $15.28 » Low rent/SF Walgreens with 7 years remaining

Rentable Square Feet 13,905+/- SF » Low price point for fee simple Walgreens

Land Area 1.53+/- Acres » Hard corner signalized intersection with 20,400K+ VPD

Tenant Walgreens » Excellent ingress and egress onto busy 31st Avenue and 11th Street

Ownership Type Fee Simple » COVID-19 resistant tenant Guarantor Corporate » Located less than a mile from Trinity Hospital and Medical Center Lease Type NN Landlord Responsibilities Roof & Structure Rent Schedule Store Opened 1997 Term Increases Annual Rent Rent/SF

Lease Term Remaining 37 Years 1/31/2057 - $212,500 $15.28

First Right To Terminate January 31, 2027

Lease Commencement January 10, 1997

Lease End Date January 31, 2057

Options Eight (8), Five (5) Year

Avison Young | 3 WALGREENS TENANT SUMMARY Rock Island, IL

About Walgreens About Walgreens Boots Alliance Founded in 1901, Walgreens is one of the largest pharmaceutical Walgreens Boots Alliance (Nasdaq: WBA) is the first global drug retailers in the United States. Headquarter outside of Chicago pharmacy-led, health and wellbeing enterprise. The Company’s in Deerfield, Illinois, Walgreens is comprised of three major divisions heritage of trusted health care services through community including, Retail Pharmacy USA; Retail Pharmacy International; and pharmacy care and pharmaceutical wholesaling dates back more than 100 years. Pharmaceutical Wholesale. After the company agreed to purchase Switzerland-based Alliance Boots in 2014, the two companies merged Walgreens Boots Alliance is the largest retail pharmacy, health and daily living destination to form Walgreens Boots Alliance Inc. Walgreens operates as a across the U.S. and Europe. Walgreens Boots Alliance and the companies in which it has subsidiary of the holding company, which trades on the Nasdaq under WBA. equity method investments together have a presence in more than 25 countries and employ more than 415,000 people. The Company is a global leader in pharmacy-led, health For 119 years, Walgreens has seen steady growth. In February of 2010, Walgreens and wellbeing retail and, together with its equity method investments, has more than announced plans to acquire New York City-area chain Duane Reade, in which it now 18,500 stores in 11 countries as well as one of the largest global pharmaceutical wholesale operates in the New York City Area. In 2017, Walgreens purchased half of Rite Aid’s stores, and distribution networks, with more than 390 distribution centers delivering to more adding 1,932 stores to its portfolio. As of 2019, Walgreens Boots Alliance has more than than 230,000 pharmacies, doctors, health centers and hospitals each year in more than 18,750 stores in 11 countries. 20 countries. In addition, Walgreens Boots Alliance is one of the world’s largest purchasers of prescription drugs and many other health and wellbeing products. The Company’s The Retail Pharmacy division which includes both Walgreens and Duane Reade sells both size, scale, and expertise will help to expand the supply of, and address the rising cost prescription and over-the-counter medicine, in addition to general health and wellness of, prescription drugs in the U.S. and worldwide. Walgreens Boots Alliance is included in products. Currently, the corporation operates 9,277 retail stores located in all 50 states in Fortune magazine’s 2019 list of the World’s Most Admired Companies and ranked first in addition to the District of Colombia, Puerto Rico, and the U.S. Virgin Islands. The company the food and drugstore category. This is the 26th consecutive year that Walgreens Boots is publicly traded and considered an investment grade tenant with its long-term debt Alliance or its predecessor company, Walgreen Co., has been named to the list. rated BBB by Standard & Poors and Baa2 by Moody’s, making it among the most desirable retailers for investors.

Founded Revenue Locations S&P 1901 $136.8B 9,277 BBB out of reported in stores credit rating Deerfield, IL 2019 worldwide

Avison Young | 4 WALGREENS SURROUNDING RETAIL Rock Island, IL

WALREENS Rock Island, IL Noteworthy Neighbors

McDonald’s Rock Island Fire Station Dollar General Unity Point Health Trinity Hospital O’Reilly Auto Parts

Avison Young | 5 WALGREENS GEOGRAPHIC LOCATION Rock Island, IL

3100 11th Street Rock Island, IL

Milwaukee, WI 219 Miles

Des Moines, IA Rock Island, IL Chicago, IL 172 Miles 177 Miles

Fort Wayne, IN Subject Site 310 Miles Pittsburg, PA 609 Miles Indianapolis, IL 310 Miles

St. Louis, MO 44 Miles

Avison Young | 6 WALGREENS RETAIL MAP Rock Island, IL

Rock Island High School

12,300 VPD

11th Street

31st Ave 8,100 VPD

Subject Site Calvary Cemetery

Location High Traffic 20,400 VPD Corner Location Pass the Site Location Highlights Avison Young | 7 WALGREENS DEMOGRAPHICS Rock Island, IL 1 Mile 3 Miles 5 Miles Population 2019 Population 7,821 45,482 126,948 2024 Population 7,662 44,440 126,035 2019 Median Age 44.8 39.4 38.0 Households 2019 Total Households 3,492 19,099 51,776 2024 Total Households 3,425 18,682 51,392 1 Mile Median Household Income 2019 Median HH Income $43,410 $46,558 $48,988 3 Miles 2024 Median HH Income $47,286 $50,562 $53,112 5 Miles Average Household Income 2019 Average HH Income $59,752 $60,669 $63,011 2024 Average HH Income $65,917 $67,091 $71,606

Rock Island, IL Rock Island is a city in and the county seat of Rock Island County, Illinois, United States. The original Rock Island, from which the city name is derived, is the largest island on the Mississippi River. It is now called Arsenal Island. The population was 39,018 at the 2010 census. Located on the Mississippi River, it is one of the Quad Cities, along with neighboring Moline, East Moline, and the Iowa cities of Davenport and Bettendorf. The Quad Cities has a population of about 380,000. The city is home to Rock Island Arsenal, the largest government-owned weapons manufacturing arsenal in the US, which employs 6,000 people.

There is a wide variety of housing available in Rock Island, including historic homes, new downtown condos, new construction in the heart of the city, and wooded retreats. The Rock Island-Milan School District, Rockridge School District (southwest portion of city) along with private schools, serve the city. The District (Downtown Rock Island) has art galleries and theaters, nightclubs and coffee shops, and restaurants of all flavors. Golf courses, parks, a casino, botanical center, marina, historic tours, bike paths, and festivals offer entertainment opportunities.

Avison Young | 8 WALGREENS Rock Island, IL $25 BILLION OPTIMIZE YOUR INVESTMENT SALES VOLUME BROKERED REAL ESTATE TRANSACTIONS $10 BILLION AND HOLDINGS FINANCING TRANSACTION VOLUME BROKERED 90 YEARS COMBINED INDUSTRY EXPERIENCE

Avison Young’s Capital Markets group offers comprehensive real estate transaction services • Creative deal structuring and sales strategies to a global client base. A trusted advisor to real estate owners and operators for more than • Strong buyer and lender relationships 30 years, Avison Young sources investment opportunities and provides investment sales • Principals’ established market credibility execution for clients throughout Canada, the U.S., Europe and Asia. • Extensive past and active leasing assignments Our capital markets experts are senior professionals who work seamlessly cross-border to in the submarket deliver real estate solutions. Our expertise has expanded organically in all asset classes, • Experienced, knowledgeable, creative and including office, industrial, retail, multi-family, hospitality, leisure, land development. We responsive support have a proven track record in representing an international range of buyers and sellers, including REITS, pension funds, insurance companies, private equity firms, opportunity and hedge funds, and both public and private companies. Our success is measured by our clients’ results, with more than US $5 billion in transactions annually. MARKET KNOWLEDGE, GLOBAL RELATIONSHIPS WE’RE GLOBAL We combine Avison Young’s local, national and international experience with our CANADA, GERMANY, IRELAND, MEXICO, POLAND, research tools and teams to gain exceptional access to both domestic and international ROMANIA, SOUTH KOREA, UNITED KINGDOM, buyers seeking investment and development opportunities. We have also built valuable UNITED STATES | AVISONYOUNG.COM relationships bringing off-market investment and sales transactions to private and institutional clients.

Avison Young | 9 Richard Murphy, CCIM Andrew Wilmoth Chicago, IL License Senior Vice President Senior Associate James Hanson, Principal US Capital Markets Net Lease Group U.S. Capital Markets Net Lease Group License # 475.171248 avisonyoung.com 571.449.8234 | [email protected] 865.474.8786 | [email protected] Avison Young – Chicago LLC - 477.012861

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