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Subject Property

Offering Memorandum Former and Safeway Gas Pad (Eagle Bend Marketplace) 22675 & 22771 East Aurora Parkway | Aurora, CO 80016

Denver MSA | 11+ Years of Guaranteed Cash Flow | Value-Add Opportunity Corporately Guaranteed Lease | Absolute NNN Lease | Highly Visible Location Confidentiality and Restricted Use Agreement

This Confidential Offering Memorandum (“COM”) is provided by Stan Johnson Company (“SJC”), solely for your consideration of the opportunity to acquire the commercial property described herein (the “Property”). This COM may be used only as stated herein and shall not be used for any other purpose, or in any other manner, without prior written authorization and consent of SJC.

Offered Exclusively by This COM does not constitute or pertain to an offer of a security or an offer of any investment contract. This COM contains descriptive materials, financial information and other data compiled by SJC for the convenience of parties who may be interested in the Property. Such information is not all inclusive and is not represented to include all information that may be material to an evaluation of the acquisition opportunity presented. SJC has not independently verified any of the information contained herein and makes no representations or warranties of any kind concerning the accuracy or completeness thereof. All summaries and discussions of documentation and/or financial information contained herein are qualified in their entirety by reference to the actual documents Toby Scrivner and/or financial statements, which upon request may be made available. An interested party must conduct its Senior Director own independent investigation and verification of any information the party deems material to consideration of [email protected] the opportunity, or otherwise appropriate, without reliance upon SJC. CO Lic. # ER1000499399

The Property may be financed or withdrawn from the market without notice, and its owner(s) reserve(s) the right to negotiate with any number of interested parties at any time. The Property is offered and sold by its owner(s) as is, where is, and with all faults, without representation or warranty of any kind except for any customary warranties of title.

Stan Johnson Company BY ACCEPTING THIS COM, YOU AGREE THAT: (1) all information contained herein, and all other information you have received or may hereafter receive from SJC relating to the Property, whether oral, written or in any other 6120 South Avenue | Suite 300 form (collectively, the “Information”), is strictly confidential; (2) you will not copy or reproduce, and claim as your Tulsa, OK 74136 own without attribution to SJC, all or any part of this COM or the Information; (3) upon request by SJC at any P: +1 918.494.2690 | F: +1 918.494.2692 time, you will return and/or certify your complete destruction of all copies of this COM and the Information; (4) for yourself and all your affiliates, officers, employees, representatives, agents and principals, you hereby release stanjohnsonco.com and agree to indemnify and hold harmless SJC all of its affiliates, officers, employees, representatives, agents and principals, from and with respect to any and all claims and liabilities arising from or related to the receipt or use of this COM and/or any other Information concerning the Property; (5) you will not provide this COM or any of the Information to any other party unless you first obtain such party’s acceptance and approval of all terms, conditions, limitations and agreements set forth herein, as being applicable to such party as well as to you; and (6) monetary damages alone will not be an adequate remedy for a violation of these terms and that SJC shall be entitled to equitable relief, including, but not limited to, injunctive relief and specific performance, in connection with such a violation and shall not be required to post a bond when obtaining such relief. Table of Contents

Section I - About the Investment

The Offering...... 5

Investment Highlights...... 6

Section II - Property & Tenant Overview

“Big Box” Facility Description...... 8

Strip Map...... 9

Site Plan...... 10

Lease Abstract “Big Box”...... 11

Lease Abstract Gas Pad...... 12

Tenant Overview...... 13

Section III - Market & Location Overview

Regional Map...... 15

Location Overview...... 16

Subject Property Photos...... 17

Surrounding Retail Photos...... 18

Demographics...... 19 Section I: About the Investment

SE Section I • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 4 The Offering

Stan Johnson Company is pleased to exclusively offer for sale to qualified investors, the opportunity to purchase a former Safeway and a Safeway gas pad ground lease located at 22675 and 22771 East Aurora Parkway in Aurora, CO (the “Properties”). The Properties are situated within Eagle Bend Marketplace, a roughly 100,000 SF development that serves as a primary retail destination for dense surrounding residential neighborhoods. Located less than 20 miles southeast of downtown Denver, the Properties are strategically positioned on Aurora Parkway and adjacent to E-470, the southern bypass around Denver, with daily surrounding traffic counts totaling 67,915VPD.

Located in one of Denver’s larger suburban cities, the Properties are within an area that features exceptional demographics with a population in excess of 141,900 and average household income of over $120,000 within a five mile radius. These attributes are very attractive for re- tenanting purposes whereby investors have the potential opportunity to garner more rent per square foot than Safeway’s current rent. This value- add offering has limited downside risk given today’s in-place, 11-year cash flow stream from Safeway.

Both the former Safeway “big box” lease and the Safeway gas pad ground lease are corporately guaranteed by Safeway Inc. (S&P: B+/Positive). Safeway, while no longer operating within the facilities, is obligated to fulfill lease responsibilities through June 2027, providing over eleven years of consistent and dependable cash flow. The Safeway “big box” lease is absolute NNN and the Safeway gas pad is an absolute NNN ground lease; both feature no Landlord responsibilities for management, maintenance or repair throughout the base lease term. Typically, in situations with a “dark” asset, the Landlord would inherit the responsibility to manage the common area maintenance. However, in this case, the CAM management has been assigned to a third-party, leaving this a truly passive investment.

Safeway Inc., which operates Safeway, , , , Tom Thumb, and Carrs stores, is a Fortune 100 company and a food and drug retailer in the United States with sales of $36.3 billion in 2014 and a net worth of $5.5 billion. In January 2015, Cerberus Capital Management, L.P. SW (parent company of ), acquired Safeway, completing a merger that created one of the largest food and drug retailers in the country. The new merged company, which includes the Albertsons chain, has more than 2,200 stores and over 265,000 employees.

Subject Property Photo

Section I • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 5 Investment Highlights

11+ Years of Guaranteed Base Term Remaining Safeway Inc. (S&P: B+/Positive) guarantees all obligations of each lease through June 2027, providing over eleven years of consistent and dependable cash flow. Absolute NNN Lease Structures Properties offer investors a passive investment with no Landlord responsibilities for management, maintenance or repair throughout the base lease term. Premier Demographics Properties benefit from a population in excess of 141,900 and average household income of over $120k within a 5-mile radius. Value-Add Opportunity Properties offer investors the potential opportunity to re-tenant the Premises with the possibility of garnering more rent per square foot than Safeway’s current rent. Subject Property Photo This value-add offering has limited downside risk given today’s in-place, 11-year cash flow stream from Safeway. Proximity to Super Target-Anchored Shopping Center Property Summary Properties are 0.5 miles from Saddle Rock Village, a 302,353 SF shopping center Location: 22675 & 22771 East Aurora Parkway | Aurora, CO 80016 anchored by Super Target, ACE Hardware, Anytime Fitness, Jo-Ann Fabrics and Property Description: Former Safeway & Former Safeway Gas Pad Ground Lease PetsMart driving excellent traffic to the Subject Properties. Square Footage: +/- 58,407 SF (Big Box) Eagle Bend Marketplace Land Area: 6.78 Acres Properties are situated within Eagle Bend Marketplace, a roughly 100,000 SF Year Built: 2002 development that serves as a primary retail destination for dense surrounding residential neighborhoods. Ownership Interest: Fee Simple & Fee Simple Interest in Ground Highly Visible, Easily Accessible Location Encumbrances: None, Delivered Free & Clear Properties are adjacent to E-470, the southern bypass around Denver, offering combined daily traffic counts of over 60,344 VPD. Pricing Summary

Two-Property Investment Opportunity Offering Price: $9,921,029 Transaction includes both a “big box” retail facility, as well as a ground lease outparcel Offering Cap Rate: 7.00% currently utilized as a fuel center. Net Operating Income: $694,472

Demographics Tenant Summary

Tenant: Safeway Stores 46, Inc. 3-Mile 5-Miles 10-Miles Guarantor: Safeway, Inc. 2015 Population: 5,925 44,202 141,987 Parent: Cerberus Capital Management, L.P. Safeway & the Albertsons supermarket chain operate a combined Total Locations: 2015 Average HH Income: $122,562 $130,873 $120,702 2,200 stores

Section I • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 6 Section II: Property & Tenant Overview Former Safeway “Big Box” Facility Description

LOCATION OWNERSHIP INTEREST & LEASE TYPE Former Safeway located at 22675 East Aurora Park- Fee Simple Ownership Interest & Absolute NNN Lease way in the city of Aurora in the county of Arapahoe with no Landlord responsibilities for management, and the state of Colorado. maintenance or repair throughout the term

SHOPPING CENTER PARKING Eagle Bend Marketplace – Lot 2 (Anchor) Standard Spaces: 258 Total Spaces: 267

PRO RATA SHARE FOR CAM* ADA Spaces: 6 Parking Ratio: 4.6 per 1,000 SF Approximately 38.55% Spaces Used as Cart Corrals: 3

ZONING ACCESS PD (Planned Commercial Development) Property will have three points of access – S. Gartell Road on the east and two points of access off of E. PROPERTY PARCEL ID Aurora Parkway on the Arapahoe County: 2073-36-1-06-003 UTILITIES & SERVICES YEAR BUILT 2002 Water: Arapahoe County Water and Waste- water Authority BUILDING SIZE Sewer: Arapahoe County Water and Waste- +/- 58,407 SF water Authority Electricity: Intermountain Rural Electric Associa- LAND AREA tion (IREA) +/- 5.882 Acres Gas: Xcel Energy IMPROVEMENTS Asphalt parking lot, concrete curbs and sidewalks, HVAC landscaping, parking lot lighting and concrete pads in New RTU unit in September 2011 some dock areas Roof-mounted forced air package units

ROOF TRAFFIC COUNTS TABLE Flat, built-up tar and gravel cover over corrugated Thoroughfare Vehicles Per Day steel E Aurora Parkway: 31,563 VPD EXTERIOR WALLS S. Gartrell Road: 7,571 VPD Concrete tilt-wall w/ brick and stucco exterior E-470: 28,781 VPD

INTERIOR FINISH Total 67,915 VPD Open w/ supporting steel web trusses and painted gypsum wallboard and vinyl tile flooring

*CAM includes 10% maximum service fee, exclusive of utility costs, insurance premiums and any cost that exceeds $10,000 for one single item during any one month Subject Property Photos

Section II • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 8 E. SMOKY HILL ROAD

SADDLE ROCK GOLF CLUB

E. ARAPAHOE ROAD

S. AURORA PARK CHEROKEE TRAIL WAY HIGH

SCHOOL E-470 (28,781 VPD) (28,781 E-470

GOLDEN EAGLE - PARK

S GARTRELL RD (7,571 VPD)

LIBERTY MIDDLE SCHOOL

E AURORA RD (31,563 VPD) SE

HERITAGE EAGLE BEND GOLF CLUB

Section II • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 9 Site Plan

E-470 (28,781 VPD)

S Gartrell Rd (7,571 VPD)

E Aurora Pkwy (31,563 VPD)

= Former Safeway “Big Box” N = Former Safeway Gas Pad

Section II • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 10 Lease Abstract - Former Safeway “Big Box”

Former Safeway “Big Box” Lease Abstract

Tenant: Safeway Stores 46, Inc.

Tenant Trade Name: Safeway

Guarantor: Safeway, Inc.

Address: 22675 E Aurora Pkwy, Aurora, CO 80016

Lease/Rent July 2002 Commencement:

Lease/Rent Expiration: June 2027

Base Lease Term: 25 Years

Base Lease Term Approx. 11.25 Years Remaining:

Annual Base Rent: $621,472

Annual Base Rent PSF: $10.64 PSF

Rental Increases: None

Renewal Options: 10, 5-Year Options

Renewal Notice: 180 Days

Option Increases: 10% increases at start of each option

Lease Type: Absolute NNN

Any capitalizable improvements or additions to Landlord Responsibilities: common area Ownership Interest: Fee Simple Interest SW

Encumbrances: None, Delivered Free & Clear

Property Parcel ID: 2073-36-1-06-003 Subject Property Photo

Section II • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 11 Lease Abstract - Gas Pad

Safeway Gas Pad Lease Abstract

Tenant: Safeway Stores 46, Inc.

Tenant Trade Name: Safeway

Guarantor: Safeway, Inc.

Address: 22771 E Aurora Pkwy, Aurora, CO 80016

Lease/Rent June 2002 Commencement:

Lease/Rent Expiration: June 2027

Base Lease Term: 25 Years

Base Lease Term Approx. 11.25 Years Remaining:

Annual Base Rent: $73,000

Rental Increases: None

Renewal Options: 10, 5-Year Options

Renewal Notice: 180 Days

Option Increases: 10% increases at start of each option

Lease Type: Absolute NNN

Landlord Responsibilities: None

Ownership Interest: Fee Simple Interest in Ground SW

Encumbrances: None, Delivered Free & Clear

Property Parcel ID: 2073-36-1-06-006

Subject Property Photo

Section II • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 12 Tenant Overview

Safeway Inc. operates as a food and drug retailer About Albertsons - Established in 2006, AB in the United States. The company’s stores offer Acquisition LLC (“Albertsons”), which operates a selection of food and general merchandise and ACME, Albertsons, -Osco, Lucky, Shaw’s, feature various specialty departments, such as Star Market and Super Saver, and stores under bakery, delicatessen, floral, seafood, and pharmacy, the United Family of stores, Amigos, Market Street as well as Starbucks coffee shops and adjacent and United , is working to become fuel centers. It also owns and operates online the favorite food and drug retailer in every market grocery channels, including Safeway.com and it serves. The company is privately owned by Vons.com, manufactures and processes private- Cerberus Capital Management, Kimco Realty label merchandise, and gift cards, prepaid telecom Corporation, Klaff Realty, Lubert-Adler Partners, products and prepaid financial service products. and Schottenstein Stores Corporation. For more information, please visit www.Albertsons.com. In January 2015, AB Acquisition LLC, controlled by Cerberus Capital Management, L.P. (the owner of Albertsons LLC and New Albertsons, Inc.), and Safeway completed a merger that created one of the largest food and drug retailers in the country, TENANT PROFILE with over 2,200 stores in 33 states and the District Tenant Trade Name: Safeway of Columbia, and employing approximately 265,000 people. With Safeway stores in 19 states, the Ownership Private

Safeway teams are proud to carry on the tradition 2014 Sales Revenue $36.3 Billion that M.B. Skaggs began nearly 100 years ago in that $5.5 Billion small Idaho town. Safeway is now a privately held 2014 Net Worth company owned by Cerberus Capital Management, Credit Rating B+/Stable L.P. and is no longer listed on the New York Stock Rating Agency Standard & Poor’s Exchange. Number of Locations 2,200+ About Safeway Inc. - Safeway Inc., which operates Safeway, Vons, Pavilions, Randalls, Tom Thumb, and Headquarters Pleasanton, CA

Carrs stores, is a Fortune 100 company and one of Website www.safeway.com the largest food and drug retailers in the United States with sales of $36.3 billion in 2014 and net worth of $5.5 billion. The company’s common stock previously traded on the New York Stock Exchange (NYSE) under the symbol SWY, but is now delisted from the NYSE as a result of the closing of the merger. For more information, please visit www. Safeway Representative Photos Safeway.com.

Section II • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 13 Section III: Market & Location Overview

SE

Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 14 SE

Section III • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 15 Location Overview

Denver and Aurora are the principal cities of the Denver Metropolitan Area, which on on July 1, 2012 had an estimated population of 2,645,209 (the 21st most populous MSA in the U.S.). However, Denver and Aurora combined make up less than half of the Metro Denver Area’s population and Aurora has approximately half the population of Denver. The estimated population of Denver-Aurora, CO Combined Statistical Area was 3,214,218 on July 1, 2012 (16th most populous CSA). Aurora, Colorado The city of Aurora manages more than 1,800 acres of developed park land, more than 6,000 acres of open space and natural areas, and seven award-winning municipal golf courses. Aurora also is home to several privately owned golf courses. Star K Ranch, home to Aurora’s Morrison Nature Center, provides important habitat for wildlife. It has several trails for nature exploration, including access to the Sand Creek Greenway Trail.

Denver is the capital and most populous municipality in the state of Colorado. 300 days of sunshine, a thriving cultural scene, diverse neighborhoods, and natural beauty combine for the world’s most spectacular playground. A young, active city at the base of the Colorado Rocky Mountains, Denver’s stunning architecture, award- winning dining and unparalleled views are all within the walking distance from the 16th Street pedestrian mall. Upscale shopping Denver, Colorado awaits in Cherry Creek, while Denver’s seven professional sports teams entertain year-round.

Downtown Aurora, Colorado

Section III • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 16 Subject Property Photos

Section III • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 17 Surrounding Retail Photos

Section III • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 18 Demographics

22675 & 22771 East Aurora Parkway | Aurora, CO 80016 0 - 1 mi. 0 - 3 mi. 0 - 5 mi.

Population

2015 Population 5,925 44,202 141,987

2020 Population 6,604 50,589 155,950

2000-2010 Annual Rate 32.36% 11.45% 6.62%

2010-2015 Annual Rate 2.46% 2.92% 1.81%

2015-2020 Annual Rate 2.19% 2.74% 1.89%

2015 Median Age 55.4 37.8 35.7

Households

2015 Total Households 2,671 15,860 49,372

2020 Total Households 2,965 18,136 54,377

2000-2010 Annual Rate 38.40% 13.00% 7.52%

2010-2015 Annual Rate 2.29% 2.88% 1.84%

2015-2020 Annual Rate 2.11% 2.72% 1.95%

2015 Average Household Income $122,562 $130,873 $120,702

N

Section III • Safeway & Safeway Gas Pad (Eagle Bend Marketplace) • Aurora, CO • 19 going beyond

Offered Exclusively by

Toby Scrivner Senior Director [email protected] CO Lic. # ER1000499399

Stan Johnson Company 6120 South Yale Avenue | Suite 300 Tulsa, OK 74136 Ph: 918-494-2690 | Fax: 918-494-2692 stanjohnsonco.com

The information contained herein was obtained from sources believed reliable, however, Stan Johnson Company makes no guaranties, warranties or representations as to the completeness thereof. The presentation of this property for sale, rent or exchange is submitted subject to errors, omissions, change of price or conditions, or withdrawal without notices.