SINGLE TENANT SUPERMARKET | NNN OPPORTUNITY BAKER CITY, OR | 2ND LARGEST SUPERMARKET CHAIN IN THE U.S. ($60.5 BILLION IN REVENUE) | ±16 YEARS REMAINING TERM | | ABSOLUTE NNN WITH 2.0% ANNUAL RENT ESCALATIONS | RENT IS WELL BELOW MARKET | NICK KASSAB, A LICENSED REAL ESTATE BROKER IN THE STATE OF OREGON, ALONG WITH HOLLIDAY FENOGLIO FOWLER, L.P. (COLLECTIVELY "HFF"). 1120 CAMPBELL STREET BAKER CITY, OREGON EXECUTIVE SUMMARY OFFERING SUMMARY 1120 Campbell Street HFF is pleased to exclusively present an outstanding opportunity to purchase the fee simple interest in a PROPERTY Baker City, OR recently leased 48,239 square-foot Albertsons. Albertsons is one of the largest food and drug retailers in the ± 2 Miles to Downtown Baker City U.S. The Property is located in the northeast corner of Oregon in Baker City and benefits from its proximity to Interstate 84 and the Union Pacific Railroad mainline. Many national brand retailers, such as US Bank, NOI (AS OF JUNE 2019) $378,563 ($7.85 PSF) McDonald’s, Pizza Hut, Shell Gas, and Best Western are in close proximity to this location. LAND AREA ±4.07 Acres The entity on the lease is Safeway, Inc., a wholly owned subsidiary of Albertsons Companies, Inc. The tenant has executed a 20-year Absolute NNN lease through February 2035 with 2% annual rent escalations. This BUILDING AREA rare investment opportunity provides long term, passive cash flow with no landlord responsibilities. 48,239 SF YEAR BUILT 2001 PRICE $6,641,000 ($138 PSF) TYPE OF OWNERSHIP Fee Simple Albertsons CAP RATE 5.70% TENANT (Safeway, Inc. is Lease Entity) LEASE TYPE Absolute NNN • THE 3RD LARGEST PRIVATE COMPANY (FORBES) AND 2ND LARGEST SUPERMARKET CHAIN IN THE NATION WITH $60.5B IN REVENUE AND OVER 2,200 LOCATIONS RENT COMMENCEMENT May-15 • ABSOLUTE NNN LEASE STRUCTURE, OFFERING TRUE PASSIVE OWNERSHIP WITH NO LEASE EXPIRATION DATE Feb-35 LANDLORD RESPONSIBILITIES REMAINING LEASE TERM ±16 Years • ±16 YEARS OF ORIGINAL LEASE TERM REMAINING WITH 2.0% ANNUAL RENT INCREASES • RENT IS WELL BELOW MARKET. MOST RECENT GROCERY LEASE COMPARABLE IN BAKER CITY OPTIONS Six (6), Five-Year Options WAS $18.61 PSF ANNUALLY COMPARED TO THE SUBJECT LEASE RATE OF $7.85 PSF None | Available for New Market DEBT Rate Financings • DESIRABLE LOCATION: PROPERTY IS LOCATED ON ONE OF THE MAIN COMMERCIAL CORRIDORS IN THE AREA RENT ESCALATIONS 2.0% Annual (Through Options) 2 1120 CAMPBELL STREET BAKER CITY, OREGON 3 1120 CAMPBELL STREET BAKER CITY, OREGON TENANT OVERVIEW ABOUT ALBERTSONS (OCCUPYING TENANT) ALBERTSONS COMPANIES, INC (PARENT) TYPE Private Albertsons Companies is a leading food and drug retailer in the United States. As of February 23, INDUSTRY Retail 2019, the Company operated 2,269 retail stores with 1,739 pharmacies, 397 associated fuel centers, 23 dedicated distribution centers, six Plated fulfillment centers and 20 manufacturing facilities. The FOUNDED 1939 Company's stores predominantly operate under the banners Albertsons, Safeway, Vons, Jewel-Osco, FOUNDER Joe Albertson Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Market Street, Pavilions, Star Market, Carrs and Haggen, as well as meal kit company Plated. Albertsons Companies is committed to HEADQUARTERS Boise, Idaho, U.S. helping people across the country live better lives by making a meaningful difference, neighborhood by neighborhood. During fiscal 2018, Albertsons Companies donated more than $262 million in NUMBER OF LOCATIONS Over 2,200 support to food banks and other hunger relief agencies and supported more than 2,000 organizations Bakery, dairy, deli, frozen foods, general through foundation grants. PRODUCTS grocery, meat, pharmacy, produce, seafood, snacks, liquor FOURTH QUARTER AND FISCAL 2018 HIGHLIGHTS REVENUE (2018) $60.5B • Identical sales increased 1.1% during the fourth quarter and increased 1.0% for the full year • Gross profit margin increased to 29.0% during the fourth quarter of fiscal 2018 NUMBER OF EMPLOYEES Over 250,000 • Adjusted EBITDA of $727 million in the fourth quarter and $2,741 million during the full year WEBSITE albertsons.com representing over 14% growth in fiscal 2018 • eCommerce sales growth of 52% and 83% during the fourth quarter and full year, respectively ABOUT SAFEWAY, INC. (LEASE ENTITY) • Continued strong Own Brands sales penetration of 25.2% in the fourth quarter ENTITY ON THE LEASE Safeway, Inc. • Total net debt to Adjusted EBITDA ratio reduced to 3.5x at the end of fiscal 2018 S&P CREDIT RATING B REVENUE (2015) (1) $36.3 Billion POPULAR ALBERTSONS BRANDS (THROUGH MERGER) Safeway, Carrs, Randall's Food Markets, SAFEWAY, INC. BRANDS Casa Ley (Mexico) NUMBER OF LOCATIONS Over 1,300 (1) Since the merger with Albertsons Companies, Inc, financial results specific to Safeway, Inc. are not disclosed. 4 1120 CAMPBELL STREET BAKER CITY, OREGON PROPERTY AERIAL BIRCH STREETBIRCH CAMPBELL STREET • Albertsons is one of only two traditional supermarkets in Baker City, providing a captive audience 5 ATLANTA AUSTIN BOSTON CAROLINAS CHICAGO DALLAS DENVER INVESTMENT ADVISOR HOUSTON NICK FOSTER (949) 798-4135 INDIANAPOLIS [email protected] LAS VEGAS LOS ANGELES BAKER CITY, OR MIAMI FOR UNDERWRITING NEW JERSEY CONOR QUINN (949) 527-4993 NEW YORK CITY [email protected] ORANGE COUNTY ORLANDO PHILADELPHIA BROKER OF RECORD PHOENIX NICK KASSAB (503) 265-5083 PITTSBURGH [email protected] PORTLAND OR Lic. #200702090 SAN DIEGO SAN FRANCISCO SEATTLE TAMPA WASHINGTON, D.C. LONDON ©2019 Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF. HFF has been engaged by the owner of the property to market it for sale. Information concerning the property described herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, express or implied, as to the accuracy or completeness of such information. Any and all reference to age, square footage, income, expenses and any other property specific information are approximate. Any opinions, assumptions, or estimates contained herein are projections only and used for illustrative purposes and may be based on assumptions or due diligence criteria different from that used by a purchaser, and HFF, its partners, officers, employees and agents disclaim any liability that may be based upon or related to the information contained herein. Prospective purchasers should conduct their own independent investigation and rely on those results. The information contained herein is subject to change. hfflp.com.