15-Year Nnn Lease $17000000 30 Daily

Sale / leaseback with 15-YEAR NNN LEASE 265,000 SQ. FT. on 22.35 AC.

McClatchy publishes $17,000,000 30 DAILY NEWSPAPERS in 29 U.S. markets 9.49% capitalization rate Offering Memorandum Central Business District (7 minutes away)

University of South Carolina

State Fairgrounds

USC Football Stadium

Estes Express Lines Velvetex Carolina Eastern G&E Appliance Parts Center RR Donnelley

SCDOT

Shealy Leasing McCLATCHY COLUMBIA, SOUTH CAROLINA

INVESTMENT CONTACT LOCAL MARKET CONTACTS Randy Getz Ben Brantley, SIOR Executive Vice President Vice President T +1 916 446 8287 T +1 803 744 6855 [email protected] benjamin.brantley@cbre com

500 Capitol Mall Martin Moore, SIOR, CCIM Suite 2400 Senior Vice President Sacramento, CA 95814 T +1 803 744 6842 martin [email protected]

1333 Main Street Suite 210 Columbia, SC 29201

columbia, south carolina

Ex ecuti v e Sum m a ry THE STATE (COLUMBIA, SC)

THE OFFERING CBRE, Inc., as exclusive advisor, is pleased to offer for sale a 265,000 square foot building on 22 acres which houses the administrative and production facilities of The State newspaper in Columbia, South Carolina.

The property is owned by a wholly-owned subsidiary of The McClatchy Company (NYSE American: MNI), a media company that operates 30 daily newspapers in 29 markets and numerous digital media entities including websites, mobile apps, mobile news and advertising services, niche publications, direct marketing and direct mail services, and non-daily community newspapers. McClatchy was founded in 1857 and is headquartered in Sacramento, California. The State property is priced at $17,000,000 which represents an initial capitalization rate of 9.49%. Concurrently with closing, The McClatchy Company will execute a 15-year absolute NNN lease, the details of which are described elsewhere in this offering. .

Offering Summary LOCATION LAND AREA SF BUILDINGS ANNUAL NNN RENT FIRM TERM CAP RATE PRICE Columbia, SC 22.35 Ac. 265,000 $1,613,750 15 Years 9.49% $17,000,000

INVESTMENT HIGHLIGHTS ›› Following sale the Property will be leased back by The McClatchy ›› McClatchy is among the largest newspaper publishers in the United States and has Company for an initial term of 15 years with no early termination been an industry leader in expanding beyond print into digital media. provision and multiple options to extend. ›› Columbia’s MSA is a growth market and The State is the leading daily newspaper in ›› Lease will feature regularly scheduled rent increases. its market. ›› Lease will be absolutely net to the landlord, without exceptions.

6 THE STATE (COLUMBIA, SC)

SHOP ROAD

Parcel lines are approximate and for illustrative purposes only.

THE STATE (COLUMBIA, SC)

Columbia Summary

PARCEL NUMBER R11209-02-12 ADDRESS 1401 Shop Road, Columbia, SC 29201 IMPROVEMENTS Three-story office: basement, production, and parking SQUARE FOOTAGE ±265,000 ACREAGE ±22.35 Office - ±130,000 sf $8.00 MARKET RENT PSF/ Production - ±135,000 sf $4.25 ANNUALLY (NNN) Blended total - ±265,000 sf $6.09 LEASE TYPE NNN ANNUAL RENT / NOI $1,613,750 CAP RATE 9.49% PRICE $17,000,000

10 THE STATE (COLUMBIA, SC)

Central Business District (7 minutes away)

USC Baseball Stadium South Carolina State House

University of South Carolina

USC Football State Fairgrounds ROSEWOOD DR Stadium

Gamecock Park

University Oaks Apts. SC Army National Guard

KEY RD R.R. Donnelley Stadium Suites Apts. Piedmont Plastics SHOP RD

SCDOT CSX Railroad

BLUFF RD Jim Hamilton- L.B. Owens Airport

11 THE STATE (COLUMBIA, SC)

PROPERTY DESCRIPTION The State is published by The State Media Company additional production space is needed, given the Sun News (Myrtle Beach, SC) and The Daily Gamecock in a 265,000 square foot building situated on 22.35 production of other publications at this facility. They (University of South Carolina in Columbia). tree-shaded acres approximately seven minutes south recently enclosed the dock area and have now leased In addition to printing, The State is the regional of downtown Columbia. It was built in 1986 and is well additional space in a building across the street to hub for packaging, inserting preprints in all of the maintained. Approximately 130,000 square feet is assist with distribution of finished newspapers. There aforementioned papers plus the Charlotte Observer. devoted to office uses on three floors and there is also is enough excess acreage to expand the building This annual volume of preprint insertions is 980 million. a basement that contains a cafeteria and fitness center. should that ultimately prove necessary. The facility is Some office space is leased to third party tenants. At approximately seven minutes from downtown Columbia. The Property is located in the oldest and largest industrial submarket in Columbia – one which close of escrow these tenants will become subtenants Printing capacity exceeds what is needed to produce as McClatchy’s lease will include the entire premises. enjoys consistently low vacancy rates. The area has The State. The Company generates annual income been undergoing a recent resurgence, thanks to The remaining ±135,000 square feet is devoted to from “in-sourcing” print jobs from other third-party new development associated with the University of production, storage, and distribution operations. The or McClatchy publications including USA Today, The South Carolina which is just north of Subject. Recent production area is climate controlled and in very Herald (Rock Hill, SC), The Island Packet (Hilton Head university-related construction created new student good condition, but per the local operations manager Island, SC), The Beaufort Gazette (Beaufort, SC), The housing and expanded the athletic facilities.

12 THE STATE (COLUMBIA, SC)

Property Summary

YEAR BUILT 1986 TYPE OF CONSTRUCTION Block/steel/stucco WALLS Masonry block and stucco ROOF TPO, 60 mil FOUNDATION Concrete HVAC SYSTEM Chillers for cooling; boilers for heat FIRE/LIFE/SAFETY Access cards; Simplex fire panel for sprinklers; CO2 press area ELEVATORS Three passenger; one freight (hydraulic) LOADING PROVISIONS Seven truck-high loading docks POWER 480v / 3-phase; 777 lighting; emergency generator COMMUNICATIONS FEATURES Fiber optic to servers and switches

Proposed lease At close of escrow The McClatchy Company will execute a 15-year lease for the entire Columbia premises described above. The lease will include the following provisions.

1. Initial annual net rent for the Columbia premises shall be $1,613,750, payable monthly. 2. Rent shall be increased 10% every five years throughout the initial term of the lease. 3. Lease shall be absolutely NNN to Landlord who shall not be responsible for any costs or expenses. 4. Options for three 5-year extensions, each commencing at fair market rent, but not less than the rent paid at the end of the previous term, with 2% annual increases. 5. No option for early termination during the original term or any extension.

13 THE STATE (COLUMBIA, SC)

The region features an array of transportation options including: three interstate freeways (I-20, I-26 and I-77) that converge in Columbia; passenger and freight rail service provided by CSX and Norfolk Southern; passenger and air cargo facilities at Columbia Metropolitan Airport. The Port of Charleston is 110 miles away.

14 THE STATE (COLUMBIA, SC)

COLUMBIA, SOUTH CAROLINA OVERVIEW Population and growth trends The Columbia MSA consist of six counties: Richland (of which Columbia is the county seat), Calhoun, Fairfield, Kershaw, Lexington and Saluda. The 6,775-square-mile region contains a population of over 800,000 and is rich in history and cultural amenities. Columbia, with 133,000 residents, is the state capital and the largest city in South Carolina. Columbia is also home to the Gamecocks of the University of South Carolina. With an enrollment of nearly 33,000 students it is the state’s largest institution of higher learning and offers more than 300 degree options. Columbia is often recognized in national surveys for its outstanding quality of life, low cost of living, and abundant supply of skilled labor.

Demographics The population of Columbia has surpassed 130,000 people and is projected to exceed 135,000 by 2020. Since 1990 Columbia has grown by 35.8%, making it one of the fastest growing metropolitan centers in the Southeast.

1990 2000 2010 2015 2020 PROJECTED COLUMBIA POPULATION 98,062 123,529 129,753 133,167 137,552 GROWTH % n/a 26.0% 5.0% 2.6% 3.3% SOUTH CAROLINA POPULATION 3,486,703 4,011,983 4,625,364 4,847,878 5,090,061 GROWTH % n/a 15.1% 15.3% 4.8% 5.0%

15 THE STATE (COLUMBIA, SC)

KEY REGIONAL ECONOMIC DRIVERS

›› The University of South Carolina and the Army’s Fort Jackson both have a significant economic impact on the Columbia area. The main campus of USC covers 350 acres and has an enrollment of almost 33,000 students. At 52,000 acres, Fort Jackson is the largest, not to mention the most active, Initial Entry Training Center in the U.S. Army. Approximately 3,000 soldiers go through basic and advanced training each year. ›› The federal government, Palmetto Health, Lexington Medical Center, and Providence Hospitals are growing and expanding their facilities in Columbia. ›› Major manufacturers include Michelin, Westinghouse Electric and International Paper. ›› Major service providers include Blue Cross/Blue Shield, United Parcel Service, AT&T, Aflac, and Computer Sciences Corporation. The University of South Carolina campus ›› The Columbia MSA offers businesses a labor force of 368,600 people, aggressive incentives, and the lowest corporate income tax rate in the Southeast. ›› SCANA Corporation (#523 in the Fortune 1000) is an energy- ›› The region features an array of transportation based holding company located in Lexington County. options including: three interstate freeways (I- 20, I-26 and I-77) that converge in Columbia; ›› Following four consecutive years of growth Columbia Metropolitan passenger and freight rail service provided by CSX Airport is investing $22 million in capital improvements. The airport and Norfolk Southern; and passenger and air cargo itself creates 7,000 jobs and 95% of its estimated $1.2 billion annual facilities at Columbia Metropolitan Airport. economic impact is concentrated in the Columbia metro area. ›› Columbia is approximately 110 miles from the ›› Companies such as Amazon, Akebono Brake Corporation, and Nephron Port of Charleston, the nation’s fourth largest. Pharmaceuticals are expanding their operations and plan to add more Columbia’s freeways allow quick and easy access to than 1,300 jobs in the Columbia MSA over the next decade. Atlanta (3.5 hours), Charleston (2 hours), Charlotte ›› There are 30 companies within Columbia that have international ties to 13 (1.5 hours) and Myrtle Beach (2.5 hours). countries across the globe. These companies all appreciate Columbia’s efficient transportation network and the high quality of life available.

16 THE STATE (COLUMBIA, SC)

17 THE STATE (COLUMBIA, SC)

18 THE STATE (COLUMBIA, SC)

Major employers (1,000 or more employees)

EMPLOYER INDUSTRY LOCAL EMPLOYEES STATE OF SOUTH CAROLINA Government 24,791 PALMETTO HEALTH Healthcare 9,000 BLUE CROSS BLUE SHIELD OF SC Insurance 6,459 UNIVERSITY OF SOUTH CAROLINA Education 5,997 S.C. DEPARTMENT OF TRANSPORTATION Government 4,418 RICHLAND COUNTY SCHOOL DISTRICT 1 Education 4,036 S.C. DEPARTMENT OF MENTAL HEALTH Healthcare 3,798 RICHLAND COUNTY SCHOOL DISTRICT 2 Education 3,300 S.C. DEPARTMENT OF HEALTH AND ENVIRONMENTAL CONTROL Government 3,096 AT&T Call Centers, Cust/Shared Serv. 2,400 CITY OF COLUMBIA Government 2,150 HUMANA/TRICARE Insurance 2,100 PROVIDENCE HOSPITALS Healthcare 2,075 PALMETTO GBA Insurance 1,900 RICHLAND COUNTY Government 1,708 MIDLANDS TECHNICAL COLLEGE Education 1,600 DORN VA MEDICAL HOSPITAL Healthcare 1,457 FIRST CITIZENS BANK Financial Services 1,250 COLONIAL LIFE Insurance 1,032 DOCTOR’S CARE/UCI MEDICAL AFFILIATES INC Healthcare 1,000 *Source: Central SC

19 THE STATE (COLUMBIA, SC)

Anchor Industries Inc. FedEx Shop Grove

Hammond Columbia Industrial Park 77

Sea Hunt/Pro Owen Steel 77

CSX Terminal

Jim Hamilton-LB Owens Airport

BLUFF RD SHOP RD

CSX Railroad

Stadium Suites

Central Pet

SC Army National Guard

20 THE STATE (COLUMBIA, SC)

21 THE STATE (COLUMBIA, SC)

COMMERCIAL DISTRICTS

There is a lot going on in Columbia. Main Street. Unique shops, stylish residences, hotels and bold office towers line Main and its side streets where you will find upscale men’s clothing, fine jewelry, The Vista is Columbia’s Arts, Entertainment, and Convention District. Once a ladies’ boutiques, trendy accessories, children’s clothing, dining and much bustling cotton warehouse district and commercial railroad terminal, the Vista more. Main Street is the site of Columbia’s Famously Hot New Year’s Eve, Latin area of downtown Columbia had declined severely in the late 1970s. Today the Festival, Greek Festival, Power of Pride Parade and one of the largest Veteran’s Vista has been rejuvenated with over 45 restaurants and bars, more than 60 art Day parades in the nation. Arts venues abound including the Columbia galleries and specialty shops, five hotels with two underway, and two museums. Museum of Art, Tapp’s Art Center and the Nickelodeon Theatre. The Publix Market, located in the historic South Carolina State Dispensary warehouse, has created a new style of urban residential development previously Both student and traditional apartment housing are experiencing a renaissance unavailable in Columbia. Recent tenants in the Vista include Old Chicago Pizza, with the 2014 redevelopment of the 21-story Palmetto Center into Hub at Hickory Tavern, Grill Marks, Tin Lizzy’s Cantina, Urban Outfitters, Newk’s Eatery Columbia, an 850-bed student housing building, along with existing historic and Panera Bread. urban apartments and condominiums nearing 100% occupancy. Additionally, the Owen Building at 1321 Lady Street is undergoing a $22 million conversion Five Points. From ox carts to streetcars to modern modes of transportation, into 130 luxury apartments. The Arcade, the first shopping mall in Columbia, this bustling area has never lost its charm and appeal. Five Points has been a has a $2 million renovation underway. Main Street is also the home to Soda City, commercial destination for more than 75 years and buzzes daily with foot traffic a weekly market featuring dozens of local and regional foods, craft vendors, as business professionals enjoy an open-air lunch, artists paint scenes and sell artists and farmers alike. their wares in unique galleries, and shoppers young and old look for the perfect outfit or special gift. Five Points is adjacent to the University of South Carolina and surrounded by some of the city’s finest neighborhoods.

22 THE STATE (COLUMBIA, SC)

Retail & Mixed Use Currently in Development Devine Street. Columbia’s Devine Street retail district is located downtown in Bull Street Common is a 165-acre mixed-use development in the heart of downtown the heart of the historic Shandon area. Devine Street offers a variety of upscale Columbia. The former health facility will feature an 8,000-seat minor league baseball specialty shopping, dining, entertainment, and service/commercial businesses in a stadium opening in April 2016. The development plan includes 403,500 square feet of neighborhood environment. retail, 3,500 residential units, 140 hotel rooms and 1.3 million square feet of office space. Rosewood. One of the city’s up-and-coming commercial corridors, Rosewood Drive Another project underway is the 6.5-acre urban development at Kline City Center. Located offers dining, shopping and service businesses serving both the Shandon and in the Vista, the former Kline Iron and Steel Company plans four buildings consisting of a Rosewood neighborhoods and USC. New and remodeled homes, new condominiums hotel, retail/restaurant space, office space, and residential units. and many renovated shops are re-defining Rosewood Drive. Rosewood Crossing, at Across the river in West Columbia is Brookland, a proposed 4-acre development at the the intersection of Devine Street, Fort Jackson Blvd and Rosewood Drive, is a newly- corner of State and Meeting Streets. While the property is currently used as overflow redeveloped shopping center anchored by Michael’s, PetSmart, Marshall’s and Bottles parking for the Riverwalk, plans have been proposed to redevelop the property into retail, in the former Kmart center. restaurant, office and residential units. Millwood Avenue is lined with professional and personal services such as law offices, Currently most construction in the area consists of renovations of existing properties. This advertising firms, landscape architects, automotive care, artist galleries, veterinary offices, includes the 30,000 square foot redevelopment at 711 Gervais Street which features hair salons, a yoga studio, a pottery shop and florists. If you enjoy healthy living you a Grill Marks restaurant, a coffee shop, and is slated to include a brewery. At 1556 probably frequent some of the like-minded shops on Millwood Avenue. Main Street a 30,000 square foot, three-story building is undergoing renovation with a restaurant on the ground floor. The former City of Columbia fire station at 1001 Senate Innovation & Industrial Street is to be renovated with 17,000 square feet of retail on the ground floor. Owens Field is home to the Columbia Owens Downtown Airport and a light industrial area Devine Street retail district that features everything you need to buy, build, or decorate a home. Contractors, cabinet makers, rug dealers, artists and realtors populate this neighborhood. The airport has meeting rooms, a 5,000- foot runway, and hangars for secure airplane storage. Innovista. The University of South Carolina is working to develop public and private research facilities, classrooms, residences, and service businesses in an area near the school. With a focus on emerging energy technologies such as hydrogen fuel cell research, the University is attempting to reinvent the concept of how and where researchers live and work. Waterfront District. Columbia’s Waterfront District bordering the Congaree River will redevelop 500 acres as the Innovista Waterfront District. A waterfront park, development sites, the USC Baseball Stadium and new residential communities are in place or planned.

23 THE STATE (COLUMBIA, SC)

Vacancy/Net Absorption Absorption Vacancy 18.00% 200,000

150,000 16.00%

100,000 Industrial 14.00% INVENTORY 50,000

0 44,964,739 SF 12.00% AVG. MARKET RENT & TREND (50,000)

$3.97 per SF/rising (100,000) 10.00% Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015

Absorption Vacancy 2,500,000 10.00%

2,000,000 COMMERCIAL REAL ESTATE 9.00% Industrial Sector 1,500,000 The Columbia industrial market is relatively small and,1,000,000 unlike Newer, high quality industrial space will be difficult for new 8.00% many markets in the Southeast, has seen only modest activity tenants to locate, while buildings with functional challenges 500,000 in the last couple of years. Vacancy rates are relatively low and are readily available. Recent speculative developments at 7.00% asking rents are rising, but it is important to understand that0 Shop Grove Commerce Park and Saxe Gotha Industrial Park existing industrial properties in Columbia fall into two classes: leased very quickly, but while some speculative development functional and functionally obsolete. Tenants are demonstrating(500,000) may occur it will be limited by market rents that continue to 6.00% a clear preference for sprinkler systems, generous clear heightsQ2 Q3 lagQ4 constructionQ1 Q2 Q3 costs, Q4 makingQ1 Q2 newQ3 constructionQ4 Q1 Q2 economicallyQ3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015 and dock door ratios, and outside storage. Competition among infeasible. Until that equation changes we expect most new older properties that lack these features is suppressing overall industrial will be built-to-suit. rent statistics.

24 Absorption Vacancy 18.00% 200,000

150,000 16.00%

100,000

14.00% 50,000

0 12.00% (50,000) THE STATE (COLUMBIA, SC) (100,000) 10.00% Q2 2011 Q4 2011 Q2 2012 Q4 2012 Q2 2013 Q4 2013 Q2 2014 Q4 2014 Q2 2015 Q4 2015

Vacancy/Net Absorption Absorption Vacancy 2,500,000 10.00%

2,000,000 9.00% 1,500,000 Office INVENTORY 1,000,000 8.00% 13,638,680 SF 500,000 7.00% AVG. MARKET RENT & TREND 0

$15.95 SF/rising (500,000) 6.00% Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2014 2015

Office Sector The Columbia office market is moving in the landlord’s favor. Asking rental As a state capital, Columbia’s office market is dominated by governmental rates are increasing, concessions are dwindling, and developers are building interests, in the form of government agencies themselves, trade associations, speculative office space for the first time since 2004. Of the 195,000 sq. lobbyists, as well as by a disproportionately large legal sector. The large ft. under construction downtown, 125,000 sq. ft. of it is speculative. government presence serves as an economic anchor, with office assets Existing and new tenants are driving activity throughout the market. The generally viewed as being more stable than in other markets in the state. most active segments include engineering and back-office operations, with The downtown market –which is a vibrant place to live, work and engineering-firm activity driven in large part by a recently passed penny play – is being leveraged by employers throughout Columbia to sales tax which is stimulating public sector construction projects. Columbia attract and retain talent. As a result, the willingness of tenants to has for some time attracted attention from large back office operations but pay more for downtown space is pushing rent growth. until now has had little available space to accommodate those users.

columbia, south carolina

The McCl atch y Story THE STATE (COLUMBIA, SC)

EARLY HISTORY SINCE 2000 McClatchy is a leading news and information provider which dates to the In 2006, McClatchy acquired Knight-Ridder, Inc., making it the second-largest California Gold Rush era in 1857 when James McClatchy founded The Daily newspaper publisher in the United States at that time. With the Knight Ridder Bee in Sacramento, California. Coverage of California’s Central Valley expanded acquisition McClatchy also picked up dozens of non-daily newspapers, added a with the founding of The Fresno Bee in 1922 and purchase of The Modesto number of digital assets and employees, significantly expanded its Washington, Bee in 1927. In 1979 McClatchy entered the Northwest with the purchase D.C. news bureau, and attained an international presence with the addition of of the Anchorage Daily News and Tri-City Herald in Kennewick, Washington, multiple foreign news bureaus. Following the 2007 sale of its largest newspaper, followed in 1986 by The News Tribune in Tacoma, Washington. the Star Tribune, McClatchy ranked as the third-largest newspaper publisher in East Coast publishing was launched in 1990 with the purchase of three daily the United States at that time based on daily circulation. Purchaase of the Herald- newspapers in South Carolina before entering North Carolina in 1995 with the Sun in Durham, North Carolina in 2016 brought McClatchy to its current size with acquisition of The News & Observer in Raleigh, and several affiliated non-dailies. The 30 daily newspapers in 29 U.S. markets, each of which is growing faster than Star Tribune, which serves the Twin Cities of Minneapolis and St. Paul, was acquired in the U.S. average. In each of its daily newspaper markets McClatchy operates a 1998 which positioned the company nationally in four distinct, fast-growing regions. leading local media company, offering a wide array of print and digital products.

28 THE STATE (COLUMBIA, SC)

Tacoma, WA The News Tribune In each of its daily newspaper markets Bellingham, WA The Bellingham Herald McClatchy operates a leading local media company, offering a wide array of print and digital products

Kennewick, WA Tri-City Herald Olympia, WA The Olympian

Boise, ID Idaho Statesman Sacramento, CA The Sacramento Bee State College, PA Centre Daily Times Modesto, CA Belleville, IL The Modesto Bee Belleville News-Democrat Lexington, KY Lexington Herald Leader Merced, CA Kansas City, MO Merced Sun-Star Durham, NC The Kansas City Star The Herald-Sun Raleigh, NC Fresno, CA The News & Observer The Fresno Bee Charlotte, NC The Charlotte Observer Wichita, KS Rock Hill, SC San Luis Obispo, CA The Wichita Eagle The Herald Myrtle Beach, SC The Tribune The Sun News

Columbia, SC The State Fort Worth, TX Columbus, GA Star-Telegram Ledger-Enquirer Beaufort, SC The Beaufort Gazette

Biloxi, MS Macon, GA Hilton Head, SC Sun Herald The Telegraph The Island Packet

Bradenton, FL Bradenton Herald

Miami, FL Miami Herald el Nuevo Herald

29 THE STATE (COLUMBIA, SC)

In recent years the newspaper industry has seen print products and other electronic media; and third, to extend McClatchy has reduced its debt load from approximately advertising revenues slip and readership numbers fall these franchises by supplementing the reach of the $4 billion in 2007 to $805 million as of September 20, as younger consumers, raised in the digital age, rely less newspaper and digital businesses with direct marketing. 2017. Standard & Poor’s rates McClatchy B-, Stable. on print to stay informed and connected. McClatchy To assist with these strategies, McClatchy has Dun & Bradstreet rates McClatchy “5A” for financial has responded to these new trends by ramping up its continually reengineered its operations to reduce strength – its highest rating. They also rated McClatchy digital presence and ownership of electronic media, legacy costs and strengthen areas driving performance “1” for viability – again, D&B’s highest rating. particularly in business segments where advertising in news, audience, advertising and digital growth McClatchy’s most recent Annual Report to Shareholders revenues are migrating rapidly away from print. As and to reduce its debt with its ample cash flow. is available at: www.mcclatchy.com/annual_report early as 1998 McClatchy acquired a stake in Cars.com and Apartments.com through its ownership interest in Classified Ventures LLC (CV), which was sold in 2014. In the Knight-Ridder acquisition McClatchy increased its stake in CV and acquired a 15.0% interest in CareerBuilder, LLC, which was sold in 2017. As electronic real estate advertising platforms began attracting users the Company purchased a 33.3% stake in HomeFinder, LLC, owner of the real estate website HomeFinder.com, which was sold in early 2016 for a stake in Placester, owner of Placester.com, a similar real estate website. McClatchy is pursuing a three pronged strategy to grow its businesses and total revenues: first, to maintain its position as the leading local media company in each market by providing high-quality journalism and advertising information to audiences throughout the day on digital platforms and in its printed newspapers; second, to grow non-traditional revenues with a focus on digital revenues including operating the leading local digital business in each of its markets, including websites, mobile apps, e-mail products, mobile services, video

30 THE STATE (COLUMBIA, SC)

McClatchy operates 30 daily newspapers in 29 markets and numerous digital media entities including websites, mobile apps, mobile news and advertising services.

31 Affiliated Business Disclosure Confidentiality Agreement of whatever nature independently disclose this Memorandum or any of its and not rely on the contents of this contents to any other entity without the CBRE, Inc. operates within a global This is a confidential Memorandum Memorandum in any manner. prior written authorization of the Owner family of companies with many intended solely for your limited use or CBRE, Inc. You also agree that you will subsidiaries and/or related entities and benefit in determining whether Neither the Owner or CBRE, Inc, not use this Memorandum or any of its (each an “Affiliate”) engaging in a you desire to express further interest nor any of their respective directors, contents in any manner detrimental to broad range of commercial real estate in the acquisition of the Property. officers, Affiliates or representatives make any representation or warranty, the interest of the Owner or CBRE, Inc. businesses including, but not limited to, This Memorandum contains selected expressed or implied, as to the If after reviewing this Memorandum, brokerage services, property and facilities information pertaining to the Property accuracy or completeness of this you have no further interest in management, valuation, investment and does not purport to be a Memorandum or any of its contents, purchasing the Property, kindly return fund management and development. At representation of the state of affairs of the and no legal commitment or obligation this Memorandum to CBRE, Inc. times different Affiliates may represent Property or the owner of the Property (the shall arise by reason of your receipt various clients with competing interests “Owner”), to be all-inclusive or to contain of this Memorandum or use of its in the same transaction. For example, all or part of the information which contents; and you are to rely solely on Disclaimer this Memorandum may be received by prospective investors may require to your investigations and inspections of © 2017 CBRE, Inc. The information our Affiliates, including CBRE Investors, evaluate a purchase of real property. All the Property in evaluating a possible contained in this document has been Inc. or Trammell Crow Company. Those, financial projections and information are purchase of the real property. obtained from sources believed reliable. or other, Affiliates may express an provided for general reference purposes While CBRE, Inc. does not doubt its interest in the property described in only and are based on assumptions The Owner expressly reserved the accuracy, CBRE, Inc. has not verified this Memorandum (the “Property”) may relating to the general economy, market right, at its sole discretion, to reject any it and makes no guarantee, warranty submit an offer to purchase the Property conditions, competition and other factors or all expressions of interest or offers or representation about it. It is your and may be the successful bidder for beyond the control of the Owner and to purchase the Property, and/or to responsibility to independently confirm the Property. You hereby acknowledge CBRE, Inc. Therefore, all projections, terminate discussions with any entity at its accuracy and completeness. Any that possibility and agree that neither assumptions and other information any time with or without notice which projections, opinions, assumptions or CBRE, Inc. nor any involved Affiliate provided and made herein are subject may arise as a result of review of this estimates used are for example only will have any obligation to disclose to to material variation. All references to Memorandum. The Owner shall have no and do not represent the current or you the involvement of any Affiliate in acreages, square footages, and other legal commitment or obligation to any future performance of the property. the sale or purchase of the Property. In measurements are approximations. entity reviewing this Memorandum or The value of this transaction to you all instances, however, CBRE, Inc. will Additional information and an making an offer to purchase the Property depends on tax and other factors act in the best interest of the client(s) it opportunity to inspect the Property will unless and until written agreement(s) which should be evaluated by your tax, represents in the transaction described be made available to interested and for the purchase of the Property financial and legal advisors. You and in this Memorandum and will not act qualified prospective purchasers. In have been fully executed, delivered your advisors should conduct a careful, in concert with or otherwise conduct this Memorandum, certain documents, and approved by the Owner and any independent investigation of the property its business in a way that benefits including leases and other materials, conditions to the Owner’s obligations to determine to your satisfaction the any Affiliate to the detriment of any are described in summary form. These therein have been satisfied or waived. other offeror or prospective offeror, suitability of the property for your needs. summaries do not purport to be complete By receipt of this Memorandum, you but rather will conduct its business nor necessarily accurate descriptions agree that this Memorandum and its in a manner consistent with the law of the full agreements referenced. contents are of a confidential nature, and any fiduciary duties owed to the Interested parties are expected to review that you will hold and treat it in the client(s) it represents in the transaction all such summaries and other documents strictest confidence and that you will not described in this Memorandum.

McCLATCHY COLUMBIA, SOUTH CAROLINA

INVESTMENT CONTACT LOCAL MARKET CONTACTS Randy Getz Ben Brantley, SIOR Executive Vice President Vice President T +1 916 446 8287 T +1 803 744 6855 [email protected] [email protected]

500 Capitol Mall Martin Moore, SIOR, CCIM Suite 2400 Senior Vice President Sacramento, CA 95814 T +1 803 744 6842 martin [email protected]

1333 Main Street Suite 210 Columbia, SC 29201

© 2017 CBRE, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. 50920170-155718