Madison, WI | 2 EXECUTIVE SUMMARY SHOPKO

INVESTMENT OPPORTUNITY SHOPKO CENTER ADJACENT TO EAST TOWN MALL

MADISON,ST. PAUL, MNWI MIDDLETON • MADISON CONCRETE PIPE MADISON • STEARNS PACKAGING WAREHOUSE • QUICK FUEL COVANCE LABORATORIES WISCONSIN NAT’L GUARD • LINCOLN CONTRACTOR SUPPLY • J&M MACHINING • • Lake Mendota ALFALIGHT STEPHEN & BRADY • SUNDBERG AMERICA • AMERICAN MINI WAREHOUSE • • Lake Monona PENSKE TRUCK RENTAL TRUAX HEALTH • A+ STORAGE • DALTILE SALES • • BELL LABORATORIES RODELL AUTO • BADGER SELF STORAGE • KRIETE LEASING & RENTAL WISCONSIN DEPT • • FEDEX AMERICAN FREIGHT • SMITH’S SERVICE CENTER • MCGANN CONSTRUCTION OF CORRECTIONS • • SILLIKER LABORATORIES WISCONSIN DEPT OF MILITARY • MADTOWN TWISTERS GYMNASTICS 151 • • 51 30 • MENASHA CORPORATION AFFAIRS STONEWOOD VILLAGE APARTMENTS 30 GOODWILL OF DANE COUNTY 30 51 REGIONAL AIRPORT SOUTH CENTRAL 51 WISCONSIN NORTHWOODS MADISON AREA LYCON EAST TOWNE APARTMENTS TECHNICAL COLLEGE SYCAMORE PARK STORAGE CENTER 51

EAGAN RD

LIEN RD E T 151 OW N EAST TOWNE MALL E

V STONEBRIDGE D CONDOMINIUMS 46,000 CARS PER DAY

ZEIER RD (11,000 CPD)

E T O W E SPRINGS DR N E

BL VD

151

OFFERED AT: $10,793,000 | 6.50% CAP EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

TABLE OF CONTENTS

EXECUTIVE SUMMARY 4 Offering Summary 5 Investment Highlights 6 Lease Summary & Rent Overview

PROPERTY INFORMATION 8 Location Maps 9 Site Plan 10 Property Photos 12 Neighboring Tenants 16 Aerials

TENANT OVERVIEWS 22 About Shopko

AREA OVERVIEW 24 Madison Overview 25 Demographics

Confidentiality Agreement & Disclosures

EXCLUSIVELY REPRESENTED BY

RYAN BARR RYAN BENNETT Principal Principal 760.448.2446 760.448.2449 [email protected] [email protected]

Color Scheme

RGB R:145 / G:0 / B:40 CMYK C:0 / M:100 / Y:65 / K:47

RGB R:119 / G:120 / B:123 CMYK C:0 / M:0 / Y:0 / K65

Fonts GOTHAM/ BLACK GOTHAM/ MEDIUM GOTHAM/ LIGHT

BROKER OF RECORD: Lee & Associatesf Madison LLC WI Brokers Lic#701361-91

SHOPKO | Madison, WI | 2 EXECUTIVE SUMMARY SHOPKO | MADISON, WI

MIDDLETON • MADISON CONCRETE PIPE MADISON • STEARNS PACKAGING WAREHOUSE • QUICK FUEL COVANCE LABORATORIES WISCONSIN NAT’L GUARD • LINCOLN CONTRACTOR SUPPLY • J&M MACHINING • • Lake Mendota ALFALIGHT STEPHEN & BRADY • SUNDBERG AMERICA • AMERICAN MINI WAREHOUSE • • Lake Monona PENSKE TRUCK RENTAL TRUAX HEALTH • A+ STORAGE • DALTILE SALES • • BELL LABORATORIES RODELL AUTO • BADGER SELF STORAGE • KRIETE LEASING & RENTAL WISCONSIN DEPT • • FEDEX AMERICAN FREIGHT • SMITH’S SERVICE CENTER • MCGANN CONSTRUCTION OF CORRECTIONS • • SILLIKER LABORATORIES WISCONSIN DEPT OF MILITARY • MADTOWN TWISTERS GYMNASTICS 151 • • 51 30 • MENASHA CORPORATION AFFAIRS STONEWOOD VILLAGE APARTMENTS 30 GOODWILL OF DANE COUNTY 30 51 REGIONAL AIRPORT SOUTH CENTRAL 51 WISCONSIN NORTHWOODS MADISON AREA LYCON EAST TOWNE APARTMENTS TECHNICAL COLLEGE SYCAMORE PARK STORAGE CENTER 51

EAGAN RD

LIEN RD E TO 151 W EAST TOWNE MALL N E

V STONEBRIDGE D CONDOMINIUMS 46,000 CARS PER DAY

ZEIER RD (11,000 CPD)

N E B L V E SPRINGS DR D (7 ,0 00 C PD )

151 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Offering Summary • Investment Highlights Lease Summary & Rent Overview

-- OFFERING SUMMARY --

INVESTMENT HIGHLIGHTS Offering Price: $10,793,000 151 Net Operating Income: $701,521 Cap Rate: 6.50% Price/SF: $114 PROPERTY OVERVIEW EAST TOWNE MALL 2201 Zeier Rd Address: Madison, WI 53704 Property Size: Approx 94,120 sq ft Land Size: 7.20 Acres Ownership: Fee Simple Year Built: 1987 / Renovated 2004 Parking Spaces: 440 151

Lee & Associates is pleased to exclusively offer for sale to qualified investors the opportunity to purchase a 100% fee-simple interest in a Shopko property located at 2201 Zeier Rd in Madison, WI (the “Property”). Constructed in 1988, the Property consists of a 94,120-square foot building that sits on an approximately 7.20 acre parcel. The subject property is leased to Shopko, a chain of retail stores with over 350 locations throughout the country. Shopko has been operating successfully at this location since 1987. Shopko has 11+ years remaining on its 15 year lease, which features (2) 10-year options to renew. The lease features strong rent growth with rent increases every three years in the Primary Term and Option Periods. In addition, the Absolute Triple-net (NNN) lease provides an investor with limited landlord responsibilities. This location benefits from a below market rent of $7.45 per square foot which provides an investor with future value when you consider the strong demand for retail real estate in the West Madison submarket. Market rent is closer to $14.00 per square foot making the current rent replaceable in event the tenant was to ever vacate. This location is a top performing store, reporting roughly $11,800,000 in sales annually. Shopko is situated in a dense retail trade area, providing for outstanding synergy. Adjacent co-tenants include Ulta, DSW Shoes, Babies R’ Us, Party City, Kirkland’s, Marshall’s, Burlington, and Staples. Directly behind the Shopko is a Kohl’s anchored center with co-tenants PetSmart, Best Buy, Old Navy, and Ashley Home Store, as well as Menard’s, Goodwill, and Home Depot close by. Located across the street from Shopko, the East Towne Mall is a 787,000 square foot center with notable retailers including Boston Store, JC Penney, Barnes and Noble, and Dick’s Sporting Goods. In mid-2016, officials announced that the East Towne Mall will undergo a multimillion- dollar renovation that will include new flooring, lighting, seating areas, color schemes, and new furniture in the food court. The subject property is located on Zeier Rd, which is a main access road into the East Towne Mall. The property is only a 1/4 mile from the on/off ramp to Interstate 90 from Hwy 151, providing shoppers and nearby residents quick access to downtown Madison.

The subject property is only 7 miles northeast of downtown Madison, the the capital and second-largest city in the State of Wisconsin and the county seat of Dane County. As the urban center of the region, Dane County is home to the state’s capital in the City of Madison, the University of Wisconsin flagship campus, the world-class Overture Center for the Arts, and an abundance of parks, lakes, and unique neighborhoods. Home to the fastest growing population of any county in Wisconsin, Dane County boasts a highly educated workforce to power its diverse and innovative industries. With assets in information technology, life sciences, and agriculture, Madison and Dane County consistently rank among the top communities for work and play.

SHOPKO | Madison, WI | 4 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary • Investment Highlights • Lease Summary & Rent Overview

-- INVESTMENT HIGHLIGHTS --

SHOPKO: $3B RETAILER WITH 360 STORES IN 24 STATES • CORPORATE LEASE GUARANTY • SUCCESSFUL 30+ YEAR OPERATING HISTORY The property is leased to Shopko, a chain of retail stores headquartered in Green Bay, Wisconsin. Shopko is a privately held $3 billion retailer that operates over 360 stores in 24 states throughout the Midwest, Mountain, North Central and Pacific Northwest regions. The lease has a corporate guaranty from Specialty Retail Shops Holding Corp. Shopko has been operating successfully at this location since 1987.

BELOW MARKET RENT ($7.45 PSF) • TOP PERFORMING STORE • $11,800,000 REPORTED ANNUAL SALES This location benefits from a below market rent of $7.45 per square foot which provides an investor with future value when you consider the strong demand for retail real estate in the West Madison submarket. Market rent is closer to $14.00 per square foot making the current rent replaceable in the event the tenant ever vacates. This location is a top performing store, reporting roughly $11,800,000 in sales annually.

A+ REAL ESTATE LOCATION • ACROSS FROM EAST TOWNE MALL (787,000 SF) • HIGHLY DESIRABLE DENSE NORTHEAST MADISON RETAIL TRADE AREA • OUTSTANDING CUSTOMER DRAW TO SITE Shopko is located in the dense northeast Madison retail trade area across from the 787,000 SF East Towne Mall, providing for outstanding synergy with co-tenants including Ulta, DSW, Marshall’s, Kirkland’s, Party City, and Burlington, as well as adjacent national retailers such as Menard’s, Kohl’s, Old Navy, Ashley Home Store, Home Depot, and Goodwill. The East Towne Mall is undergoing a multimillion-dollar renovation currently.

LONG TERM ABSOLUTE NNN LEASE • ZERO LANDLORD RESPONSIBILITIES • PARKING LOT RECENTLY REPLACED Shopko has 11+ years remaining on its current 15 year lease, which features (2) 10-year options to renew. The lease features strong rent growth with rent increases every three years in the Primary Term and Option Periods. In addition, the Absolute Triple-net (NNN) lease provides an investor with limited landlord responsibilities. Tenant recently replaced the parking lot at their expense.

LOCATED ALONG MAJOR RETAIL/COMMUTER CORRIDOR • EXCELLENT VISIBILITY & ACCESS The subject property benefits from outstanding visibility with its location on Zeier Rd (11,000 CPD), which is a main access road into the East Towne Mall, and intersects directly onto Hwy 151 (46,000 CPD) to Interstate 90 (89,000 CPD), providing shoppers and nearby residents easy acces in/out of the center, and offering quick access to downtown Madison.

LOCATED IN THE DESIRABLE CAPITAL CITY OF MADISON • HOME TO THE UNIVERSITY OF WI • ONE OF THE FASTEST GROWING COMMUNITIES IN WISCONSIN The subject property is located in Madison, Wisconsin. Madison is the second-largest city in Wisconsin and the county seat of Dane County. The area has a strong, diverse economy based on healthcare, education, insurance, and hi-tech businesses. It is one of the fastest growing communities in Wisconsin and has won numerous awards including “Healthiest City”, “Best Places to Live”, “Best Cities for Young Professionals”, and “Best City for Families”. The Wisconsin state government and the University of Wisconsin–Madison remain the top two dominant economic influences within the city. However, Madison’s economy today is evolving from a government-based economy to a consumer services and high-tech base, particularly in the health, biotech and advertising sectors. Many businesses are attracted to Madison’s skill base, taking advantage of the area’s high level of education. Over 48% of Madison’s population over the age of 25 holds at least a bachelor’s degree.

SHOPKO | Madison, WI | 5 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Offering Summary Investment Highlights • Lease Summary & Rent Overview •

-- LEASE SUMMARY -- -- RENT OVERVIEW --

INVESTMENT SUMMARY RENT SCHEDULE - PRIMARY TERM Tenant: Shopko Stores Operating Co, LLC dba Shopko Start Date End Date NOI/Yr NOI/Mo NOI/SF/Yr NOI/SF/Mo Guarantor: Specialty Retail Shops Holding Corp. (Corporate) 6/1/2017 5/31/2020 $701,521.92 $58,460.16 $7.45 $0.62 Building Size: 94,120 SF 6/1/2020 5/31/2023 $727,829.00 $60,652.42 $7.73 $0.64 Lot Size: 7.20 Acres 6/1/2023 5/31/2026 $755,122.58 $62,926.88 $8.02 $0.67 Ownership: Fee Simple 6/1/2026 5/31/2029 $783,439.67 $65,286.64 $8.32 $0.69 Year Built: 1988 / Renovated 2004 6/1/2029 11/30/2029 $812,818.65 $67,734.89 $8.64 $0.72 TERMS, BASE RENT & OPTIONS RENT SCHEDULE - (2) 10-YEAR OPTIONS Annual Base Rent: $701,521 Start Date End Date NOI/Yr NOI/Mo NOI/SF/Yr NOI/SF/Mo Lease Commencement: June 1, 2006 Option 1 12/1/2029 5/31/2032 $843,299.35 $70,274.94 $8.96 $0.75 Lease Expiration: November 30, 2029 6/1/2032 5/31/2035 $874,923.07 $72,910.25 $9.30 $0.77 Lease Term: 15 Years 6/1/2035 5/31/2038 $907,732.68 $75,644.39 $9.64 $0.80 Term Remaining: 11+ Years Option 2 6/1/2038 5/31/2041 $941,772.65 $78,481.05 $10.00 $0.83 Options to Renew: (2) 10 Year Options 6/1/2041 5/31/2044 $977,089.12 $81,424.09 $10.38 $0.86 Rent Increases: See Increase Formulation 6/1/2044 5/31/2047 $1,013,729.96 $84,477.50 $10.77 $0.90 Lease Type: Absolute Triple-Net (NNN) 6/1/2047 11/30/2049 $1,051,744.83 $87,645.40 $11.17 $0.93 Landlord Responsibilities: None INCREASE FORMULATION

* Rental increases assume a CPI increases of 3% every 3 years. ** Rental increases calculated by the lesser of: 1) 1.25 multiplied yb the product of a) base rent in effect prior to increase and b) CPI increase OR 2) 6% of the base rent in effect prior to the increase date.

SHOPKO | Madison, WI | 6 PROPERTY INFORMATION SHOPKO | MADISON, WI

EAGAN RD

LIEN RD E TO 151 W N EAST TOWNE MALL E

V STONEBRIDGE D CONDOMINIUMS 46,000 CARS PER DAY

ZEIER RD (11,000 CPD)

N E B L V E SPRINGS DR D (7 ,0 00 C PD )

151 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Location Maps • Site Plan Property Photos Neighboring Tenants Aerials

-- LOCATION MAPS --

FOND DU LAC

MADISON MILWAUKEE 151

DUBUQUE

151 Pacific Ocean ROCKFORD

CHICAGO

151

MADISON MOLINE

18 PEORIA 18

SHOPKO | Madison, WI | 8 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps • Site Plan • Property Photos Neighboring Tenants Aerials

-- SITE PLAN --

Garden Center

E TOWNE BLVD

ZEIER RD

SHOPKO | Madison, WI | 9 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Property Photos • Neighboring Tenants Aerials

-- PROPERTY PHOTOS --

SHOPKO | Madison, WI | 10 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan • Property Photos • Neighboring Tenants Aerials

-- PROPERTY PHOTOS --

SHOPKO | Madison, WI | 11 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Property Photos • Neighboring Tenants • Aerials

-- NEIGHBORING TENANTS -- ULTA & DSW Stores Adjacent to Shopko

SHOPKO | Madison, WI | 12 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Property Photos • Neighboring Tenants • Aerials

-- NEIGHBORING TENANTS -- Multi-Tenant Center Next to Shopko

SHOPKO | Madison, WI | 13 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Property Photos • Neighboring Tenants • Aerials

-- NEIGHBORING TENANTS -- Marshalls, Kirkland’s Locaated Next Door

Party City Located Next Door Signage Along Zeier Rd (11,000 cars per day) Burlington, Sally Beauty, Jo-Ann Fabrics

SHOPKO | Madison, WI | 14 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Property Photos • Neighboring Tenants • Aerials

-- NEIGHBORING TENANTS -- East Towne Mall Located Across from Shopko

SHOPKO | Madison, WI | 15 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Property Photos Neighboring Tenants • Aerials •

-- OVERHEAD VIEW --

) D P C 0 0 ,0 7 ( D LV B E N W O T E.

ZEIER RD (11,000 CPD)

SHOPKO | Madison, WI | 16 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Property Photos Neighboring Tenants • Aerials •

-- LOOKING NORTHEAST --

BARRINGTON PLACE APARTMENTS 151 METRO KIA/FORD THE MADISON APARTMENTS ZIMBRICK GMC/NISSAN STONERIDGE POINT DON MILLER SUBARU EAST CONDOMINIUMS HOLBORN VILLAGE CAMDEN COURT APARTMENTS EAST MADISON TOYOTA APARTMENTSHANOVER SQUARE 151 RUSS DARROW APARTMENTS CHRYSLER JEEP DODGE CHERRY TREE CROSSING APARTMENTS 89,000 CARS PER DAY

E SPRINGS DR

151

) D P C 0 0 46,000 CARS PER DAY ,0 151 (7 VD BL E N W O . T E

151 E SPRINGS DR ZEIER RD (11,000 CPD)

E TOWNE BLVD

SHOPKO | Madison, WI | 17 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Property Photos Neighboring Tenants • Aerials •

30 -- LOOKING SOUTHEAST --

PRENTICE PARK LIEN RD APARTMENTS

SYCAMORE PARK

AUTUMN CREEK APARTMENTS

89,000 CARS PER DAY E SPRINGS DR LIEN RD

ZEIER RD (11,000 CPD)

EAST TOWNE MALL E SPRINGS DR

LVD HIGH CROSSING B

E TOWNE BLVD (7,000 CPD) E TOWNE BLVD (7,000 CPD)

151 151 151 46,000 CARS PER DAY

SHOPKO | Madison, WI | 18 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Property Photos Neighboring Tenants • Aerials •

-- LOOKING SOUTHWEST -- MIDDLETON • MADISON CONCRETE PIPE MADISON • STEARNS PACKAGING WAREHOUSE • QUICK FUEL COVANCE LABORATORIES WISCONSIN NAT’L GUARD • LINCOLN CONTRACTOR SUPPLY • J&M MACHINING • • Lake Mendota ALFALIGHT STEPHEN & BRADY • SUNDBERG AMERICA • AMERICAN MINI WAREHOUSE • • Lake Monona PENSKE TRUCK RENTAL TRUAX HEALTH • A+ STORAGE • DALTILE SALES • • BELL LABORATORIES RODELL AUTO • BADGER SELF STORAGE • KRIETE LEASING & RENTAL WISCONSIN DEPT • • FEDEX AMERICAN FREIGHT • SMITH’S SERVICE CENTER • MCGANN CONSTRUCTION OF CORRECTIONS • • SILLIKER LABORATORIES WISCONSIN DEPT OF MILITARY • MADTOWN TWISTERS GYMNASTICS 151 • • 51 30 • MENASHA CORPORATION AFFAIRS STONEWOOD VILLAGE APARTMENTS 30 GOODWILL OF DANE COUNTY 30 51 REGIONAL AIRPORT SOUTH CENTRAL 51 WISCONSIN NORTHWOODS MADISON AREA LYCON EAST TOWNE APARTMENTS TECHNICAL COLLEGE SYCAMORE PARK STORAGE CENTER 51

EAGAN RD

LIEN RD E TO 151 W EAST TOWNE MALL N E

V STONEBRIDGE D CONDOMINIUMS 46,000 CARS PER DAY

ZEIER RD (11,000 CPD)

N E B L V E SPRINGS DR D (7 ,0 00 C PD )

151

SHOPKO | Madison, WI | 19 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

Location Maps Site Plan Property Photos Neighboring Tenants • Aerials •

51 -- LOOKING NORTHWEST -- 51 DANE COUNTY REGIONAL AIRPORT

51 51 VILLAGE GREEN SANDBURG APARTMENTS ELEMENTARY SCHOOL

FOREST RUN APARTMENTS STONEBRIDGE CONDOMINIUMS

151 151 46,000 CARS PER DAY 151

E TOWNE BLVD (7,000 CPD) E TOWNE BLVD

SSING BLVD CRO HIGH E SPRINGS DR

EAST TOWNE MALL

ZEIER RD (11,000 CPD)

E SPRINGS DR

SHOPKO | Madison, WI | 20 TENANT OVERVIEW SHOPKO | MADISON, WI

EAGAN RD

LIEN RD E TO 151 W EAST TOWNE MALL N E

V STONEBRIDGE D CONDOMINIUMS 46,000 CARS PER DAY

ZEIER RD (11,000 CPD)

N E B L V E SPRINGS DR D (7 ,0 00 C PD )

151 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• About Shopko •

-- ABOUT SHOPKO --

Shopko is a chain of retail stores based in Ashwaubenon, Wisconsin. Shopko was founded in 1962 by pharmacist James Ruben. When Ruben opened the first Shopko store in Green Bay in 1962, he envisioned a company focused on quality, convenience and value. He saw the opportunity to combine health care services with a large discount store, and in 1971 Shopko became one of the first mass retailers to feature a pharmacy in its stores. In another innovative step, Shopko added optical care centers to its stores in 1978. Today Shopko is known for its excellence in optical care and its best in class pharmacy services.

In 1991, Shopko Stores, Inc. became a publicly-held, independent company with stock traded on the New York Stock Exchange under the symbol “SKO”. In December of 2005, Shopko Stores, Inc. was purchased by an affiliate of Sun Capital Partners, Inc., a leading private investment firm, and is no longer a publicly owned corporation.

In 2010, Shopko introduced a new retail concept to augment Shopko’s larger store format: Shopko Hometown. The Shopko Hometown retail format offers a differentiated and financially successful merchandising strategy. Shopko Hometown combines pharmacy services and a comprehensive HBA, household goods and dry grocery assortment with a broad and dynamic offering of strong national brands and high-value private label brands of apparel, home goods, toys, consumer electronics, seasonal items, and lawn and garden products – all in attractive, well laid out, easy-to-shop store format that range in size from 15,000 – 35,000 square feet.

Following its merger with Pamida in early 2012, Shopko acquired and converted over 170 stores and pharmacies to the Shopko brand.

Shopko stores deliver a great customer experience. Clean, spacious and well-lit, the easy to shop stores offer friendly service and on-trend, quality merchandise. Shopko carries name brands such as Nike, Adidas, New Balance, Kitchen Aid, Fisher-Price, Gloria Vanderbilt and Sony. Shopko’s popular private label brands include Willow Bay, Bailey’s Point, NorthCrest, Energy Zone, Soft Sensations, Peanut & Ollie and Green Soda.

Headquartered in Green Bay, Wisconsin, Shopko Stores Operating Co., LLC is now a $3 billion retailer that operates over 330 stores in 21 states throughout the Midwest, Mountain, North Central and Pacific Northwest regions. Retail formats include 134 Shopko stores, providing quality name-brand merchandise, great values, pharmacy and optical services in small to mid-sized cities; 176 Shopko Hometown locations, a smaller concept store developed to meet the needs of smaller communities; 5 Shopko Express Rx stores, a convenient neighborhood drugstore concept; and 18 Shopko Pharmacy locations.

-- ABOUT SUN CAPITAL PARTNERS, INC. --

Sun Capital Partners, Inc. is a leading private investment firm focused on leveraged buyouts, private equity, debt and other investments in market-leading companies that can benefit from the financial investor’s in-house professionals and operating experience. Sun Capital affiliates invest in companies which typically have the number one or two market position in their industry, long-term competitive advantages and significant barriers to entry. Sun Capital has offices located in Boca Raton, Los Angeles and New York and affiliates in London, Frankfurt, Paris, Luxembourg, Shanghai and Shenzhen.

Sun Capital affiliates have invested in more than 285 companies worldwide since Sun Capital’s inception in 1995, with combined sales in excess of $45 billion and more than 200,000 employees. On a consolidated basis, Sun Capital’s affiliated portfolio companies would rank in the top 100 of Fortune Magazine’s listing of the 500 largest companies in the United States.

SHOPKO | Madison, WI | 22 AREA OVERVIEW SHOPKO | MADISON, WI

EAGAN RD

LIEN RD E TO 151 W EAST TOWNE MALL N E

V STONEBRIDGE D CONDOMINIUMS 46,000 CARS PER DAY

ZEIER RD (11,000 CPD)

N E B L V E SPRINGS DR D (7 ,0 00 C PD )

151 EXECUTIVE SUMMARY PROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW

• Madison Overview • Demographics

-- MADISON OVERVIEW --

Madison is the capital of the State of Wisconsin and the county seat of Dane County. As the urban center of the region, Dane County is home to the state’s capital in the City of Madison, the University of Wisconsin flagship campus, the world-class Overture Center for the Arts, and an abundance of parks, lakes, and unique neighborhoods. Home to the fastest growing population of any county in Wisconsin, Dane County boasts a highly educated workforce to power its diverse and innovative industries. With assets in information technology, life sciences, and agriculture, Madison and Dane County consistently rank among the top communities for work and play. Madison is the second largest city in Wisconsin, after Milwaukee, and the 83rd largest in the United States. The main downtown thoroughfare is State Street, a cultural focal point of the city, which links the University of Wisconsin campus with the State Capitol Square, and is lined with restaurants, espresso cafes and shops. Madison is also home to a number of historical sites and popular festivals, including the Rhythm and Booms celebration, the largest fireworks display in the Midwest as well as the Great Taste of the Midwest craft beer festival, the second longest running such event in North America. In winter months, sports enthusiasts enjoy ice boating, ice skating, ice fishing, cross-country skiing, ice hockey and snow-kiting. Madison offers visitors a vibrant city that enjoys outdoor activities, diverse cultural events, tasty eats, and spirited sports enthusiasts. Its been ranked as a “Best Place to Live” by Livability.com and a top “U.S. City Perfect for a Weekend Getaway” by BuzzFeed. The Wall Street Journal named it a prominent city for “Good Eats”, and Yahoo.com voted Madison the “Best City on Earth for Biking” for its 200 miles of biking trails and bike share program. An estimated 14 million people visit Greater Madison on an annual basis for events such as the Rhythm and Booms celebration, the largest fireworks display in the Midwest as well as the Great Taste of the Midwest craft beer festival, the second longest running such event in North America. In 2014, visitors contributed $1.9 billion dollars in total business spending, which supported more than 20,405 full-time equivalent jobs in Dane County. In addition, the Greater Madison Convention & Visitors Bureau (GMCVB) has booked nearly 200 conventions, conferences and sporting events that will take place in future years, which will result in more than $54.9 million in future spending in Dane County.

The Wisconsin state government and the University of Wisconsin-Madison remain the top two dominant economic influences within the city. However, Madison’s economy today is evolving from a government- based economy to a consumer services and high-tech base, particularly in the health, biotech and advertising sectors. Many businesses are attracted to Madison’s competent skilled workforce, taking advantage of the area’s high level of education. Over 48% of Madison’s population over the age of 25 holds at least a bachelor’s degree.

SHOPKO | Madison, WI | 24 SUMMARY PROFILE 2000-2010 Census, 2017 Estimates with 2022 Projections Calculated using Weighted Block Centroid from Block Groups

Lat/Lon: 43.1291/-89.3021 RS1 2201 Zeier Rd 1 mi radius 3 mi radius 5 mi radius Madison, WI 53704 EXECUTIVE SUMMARYSUMMARY PROFILEPROPERTY INFORMATION TENANT OVERVIEW AREA OVERVIEW 2000-20120170 Ce Estimatednsus, 2017 Population Estimates with 2022 Projections 6,640 42,207 114,309 Calculated using Weighted Block Centroid from MadisonBlock Groups Overview 2022 Projected Population 7,238• Demographics 45,840 •124,001 N O

I 2010 Census Population 6,402 39,550 105,647 T

Lat/LA on: 200043.12 Census91/-89.3 Population021 5,765 34,412 92,945 -- DEMOGRAPHICS -- L RS1 U

P Projected Annual Growth 2017 to 2022 1.8% 1.7% 1.7% 220O 1 Zeier Rd P Historical Annual Growth 2000 to 2017 1 mi rad0.9%ius 3 mi rad1.3%ius 5 mi rad1.4%ius Madison, WI 53704 1 Mile 3 Miles 5 Miles 2017 Median Age 32.2 34.7 36 2017 Estimated Population 6,640 42,207 114,309 2017 Estimated Households 2,946 18,690 50,903 2022 Projected Population 7,238 45,840 124,001 S N

D 2022 Projected Households 3,169 20,076 54,623 O L

I 2010 Census Population 6,402 39,550 105,647 O T 2010 Census Households 2,854 17,470 47,053 A H 2000 Census Population 5,765 34,412 92,945 L E U

S 2000 Census Households 2,567 15,103 40,827 P U Projected Annual Growth 2017 to 2022 1.8% 1.7% 1.7% O O

P Projected Annual Growth 2017 to 2022 1.5% 1.5% 1.5% H

POPULATION Historical Annual Growth 2000 to 2017 0.9% 1.3% 1.4% Historical Annual Growth 2000 to 2017 0.9% 1.4% 1.5% 2017 Median Age 32.2 34.7 36 2017 Estimated White 68.8% 73.9% 79.8% 2017 Estimated Households 2,946 18,690 50,903 2017 Estimated Black or African American 10.6% 10.6% 8.3% D S Y N T D 2022 Projected Households 3,169 20,076 54,623 I

L 2017 Estimated Asian or Pacific Islander 9.3% 6.4% 4.9% A C I O E 2010 Census Households 2,854 17,470 47,053 N H C 2017 Estimated American Indian or Native Alaskan 0.6% 0.5% 0.4% H E A T

S 2000 Census Households 2,567 15,103 40,827 R

E 2017 Estimated Other Races 10.8% 8.6% 6.5% U

O Projected Annual Growth 2017 to 2022 1.5% 1.5% 1.5% H 2017 Estimated Hispanic 12.7% 10.0% 7.4% HOUSEHOLDS Historical Annual Growth 2000 to 2017 0.9% 1.4% 1.5%

E 2017 Estimated Average Household Income $79,085 $71,257 $80,232 M 2017 Estimated White 68.8% 73.9% 79.8% O 2017 Estimated Median Household Income $60,411 $58,875 $65,307 C

N 2017 Estimated Black or African American 10.6% 10.6% 8.3% D I Y 2017 Estimated Per Capita Income $35,137 $31,663 $35,820 N T I 2017 Estimated Asian or Pacific Islander 9.3% 6.4% 4.9% A C I E

N 2017 Estimated Elementary (Grade Level 0 to 8) 3.5% 3.3% 2.1% C 2017 Estimated American Indian or Native Alaskan 0.6% 0.5% 0.4% H A

T 2017 Estimated Some High School (Grade Level 9 to 11) 3.3% 3.5% 3.2% R

E 2017 Estimated Other Races 10.8% 8.6% 6.5% N ) This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O

I 2017 Estimated High School Graduate 19.9% 21.0% 19.0% 5 T 2

RACE & ETHNICITYRACE 2017 Estimated Hispanic 12.7% 10.0% 7.4%

E 2017 Estimated Some College 20.3% 21.5% 20.4% C G U E

A 2017 Estimated Average Household Income $79,085 $71,257 $80,232

D 2017 Estimated Associates Degree Only 11.6% 11.2% 10.6% ( M E O 2017 Estimated BachelorsMedian Household Degree Only Income $60,41129.3% $58,875 26.3% $65,30727.9% C N I 2017 Estimated GraduatePer Capita Degree Income $35,13712.0% $31,66313.2% $35,82016.8% INCOME

S 2017 Estimated TotalElementary Businesses (Grade Level 0 to 8) 3.5%654 2,390 3.3% 5,0192.1% S

E 2017 Estimated TotalSome Employees High School (Grade Level 9 to 11) 9,6323.3% 47,543 3.5% 83,1283.2% N N ) I This report was produced using data from private and government sources deemed to be reliable. The information herein is provided without representation or warranty. representation herein is provided without information The be reliable. sources deemed to and government private from was produced using data report This + O S I 2017 Estimated High School Graduate 19.9% 21.0% 19.0% 5 2017 Estimated Employee Population per Business 14.7 19.9 16.6 U T 2

B A BUSINESS E 2017 Estimated Some College 20.3% 21.5% 20.4%

C 2017 Estimated Residential Population per Business 10.2 17.7 22.8 G U A

D 2017 Estimated Associates Degree Only 11.6% 11.2% 10.6% ( E 2017 Estimated Bachelors Degree Only 29.3% 26.3% 27.9% ©2018, Sites USA, Chandler, Arizona, 480-491-1112 page 1 of 1 Demographic Source: Applied Geographic Solutions 10/2017, TIGER Geography 2017 Estimated Graduate Degree 12.0% 13.2% 16.8%

S 2017 Estimated Total Businesses 654 2,390 5,019 SHOPKO | Madison, WI | 25 S

E 2017 Estimated Total Employees 9,632 47,543 83,128 N I

S 2017 Estimated Employee Population per Business 14.7 19.9 16.6 U B 2017 Estimated Residential Population per Business 10.2 17.7 22.8

RYAN BARR RYAN BENNETT Principal Principal BARR&BENNETT NETLEASEDINVESTMENTS 760.448.2446 760.448.2449 A Lee & Associates Team [email protected] [email protected]

Lee & Associates hereby advises all prospective purchasers of Net-Leased Invesment property as follows:

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Lee & Associates has not and will not verify any of this information, nor has Lee & Associates conducted any investigation regarding these matters. Lee & Associates makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of an investment property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase.This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Lee & Associates expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of an investment property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any investment property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

By accepting this Marketing Brochure you agree to release Lee & Associates and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this investment property.

BROKER OF RECORD: Lee & Associatesf Madison LLC WI Brokers Lic#701361-91

No warranty or representation is made as to the accuracy of the foregoing information. Terms of sale, lease, and availability are subject to change or withdrawal without notice.