SHOPKO HOMETOWN 702 Westview Lane Stanley, ND 58784 TABLE of CONTENTS

NET LEASE INVESTMENT OFFERING

SHOPKO HOMETOWN 702 Westview Lane Stanley, ND 58784 TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Photographs Demographic Report Investment Highlights Aerial Market Overview Property Overview Site Plan Tenant Overview Maps

NET LEASE INVESTMENT OFFERING DISCLAIMER STATEMENT

DISCLAIMER The information contained in the following Offering Memorandum is proprietary and strictly confidential. STATEMENT: It is intended to be reviewed only by the party receiving it from The Boulder Group and should not be made available to any other person or entity without the written consent of The Boulder Group.

This Offering Memorandum has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. The Boulder Group has not made any investigation, and makes no warranty or representation.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, The Boulder Group has not verified, and will not verify, any of the information contained herein, nor has The Boulder Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NET LEASE INVESTMENT OFFERING EXECUTIVE SUMMARY

EXECUTIVE The Boulder Group is pleased to exclusively market for sale a single tenant net leased Shopko Hometown property SUMMARY: located in Stanley, North Dakota. There are over 13 years remaining on the Shopko lease that expires in November 2030. The lease features 3% rental escalations every five years and four 5-year renewal option periods. Shopko is a privately owned retailer with more than 360 stores in 24 states.

The 26,004 square foot Shopko Hometown property is strategically located along Westview Lane with excellent visibility from U.S. Highway 2. U.S. Highway 2 is the primary east-west thoroughfare in the area. Shopko Hometown serves as the primary shopping destination for residents in the area with limited competition. The subject property is located within close proximity to multiple residential communities, local businesses, and schools. Retailers in the immediate area include Tractor Supply Co., O’Reilly Auto Parts, NAPA Auto Parts, Cash Wise Foods and Holiday Gas. The average annual household income within a three mile radius of the property is in excess of $89,000.

The Shopko Hometown retail format offers a differentiated and financially successful merchandising strategy. Shopko Hometown offers 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.

There are over 13 years remaining on the Shopko Hometown lease that expires November 30, 2030. The lease features 3% rental escalations every five years and four 5-year renewal option periods. Shopko operates more than 360 stores in 24 states throughout the Central, Western and Pacific Northwest regions. The company was founded in 1962 and is headquartered in Green Bay, Wisconsin.

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT • Tenant is a privately held $3 billion retailer that operates over 360 locations in 24 states HIGHLIGHTS: • Rental escalation in the primary term and in each renewal option period

• 15 year corporate lease with over 13 years remaining

• 3% rental escalation in 2020

• Excellent visibility along the region’s primary thoroughfare

• Limited competition in the area

• Closest Walmart is located over 55 miles away in Minot, North Dakota

• Average household income of approximately $89,000 annually within 3 miles of the property

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $5,164,900 OVERVIEW: Cap Rate: 8.00%

Net Operating Income: $413,192

Rental Escalations: 3% Every 5-Years

Lease Commencement Date: November 19, 2015

Lease Expiration Date: November 30, 2030

Renewal Options: Four 5-Year

Tenant: Shopko Hometown

Year Built: 2015

Lease Type: NN*

Rentable Square Feet: 26,004 SF

Lot Size: 2.5 Acres

*Tenant is responsible for all maintenance, repairs and replacements of the HVAC system subject to a maximum of $5,000 per calendar year.

**Replacement of all or any portion of the Parking Lot required during the first 9 years of the lease term is the landlord’s responsibility.

NET LEASE INVESTMENT OFFERING PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING AERIAL

NET LEASE INVESTMENT OFFERING SITE PLAN

NET LEASE INVESTMENT OFFERING MAP

STANLEY MUNICIPAL AIRPORT

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 1-Mile 3-Mile 5-Mile REPORT: Total Population 4,448 13,334 19,805 Total Households 1,729 4,985 7,465

Income 1-Mile 3-Mile 5-Mile

Median Household Income $63,106 $66,535 $63,567 Average Household Income $73,269 $74,795 $72,840

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Stanley, North Dakota OVERVIEW: Stanley is a city in Mountrail County, North Dakota. It is the county seat of Mountrail County. Stanley has a population of over 1,500 people making it the eighteenth largest city in the state. Stanley was founded in 1902.

Stanley is situated on the Bakken Formation, which encompasses northwestern North Dakota, northeastern Montana, and southern Saskatchewan, Canada. The formation is a rich source of oil, first discovered in the 1950s. With new technologies in oilfield production and the rising price of oil, the field has now become economically viable. The field may be the largest producing onshore field in the Continental United States outside of Texas and California.

Amtrak, the national passenger rail system, serves a station in Stanley via its Empire Builder, a daily train in each direction between Portland, Oregon/Seattle, Washington and Chicago. The closest airport is Minot International Airport, roughly 55 miles East of Stanley. Minot International currently handles between ten and fifteen commercial flights a day from four airlines, as well as various charters and general aviation traffic.

Stanley is a wonderful community with a charm that intertwines the traditions of past with the progress of the future.

www.stanleynd.com

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

TENANT Shopko Hometown OVERVIEW: Shopko Stores Operating Co., LLC operates a chain of general merchandise stores in the United States. Its stores comprise jewelry and watches, home, kitchen and dining, furniture, electronics, toys, sports and team shop, health and beauty, and patio and seasonal departments; clothing and accessories for men, women, kids, and babies, as well as nursery furniture. The company’s stores also include in-store pharmacies and optical centers. It also serves customers online. Shopko Stores Operating Co., LLC was formerly known as ShopKo Stores, Inc. The company was founded in 1962 and is headquartered in Green Bay, Wisconsin. It has distribution centers in DePere, Wisconsin; Boise, Idaho; Omaha, Nebraska; and Lebanon, Indiana.

Shopko operates more than 360 stores in 24 states throughout the Central, Western and Pacific Northwest regions. Retail formats include more than 130 Shopko stores, providing quality name-brand merchandise, great values, pharmacy and optical services in small to mid-sized cities; 5 Shopko Express Rx stores, a convenient neighborhood drugstore concept; 5 Shopko Pharmacy locations; and more than 220 Shopko Hometown stores, a smaller concept store developed to meet the needs of smaller communities.

Shopko Stores Operating Co., LLC is an affiliate of Sun Capital Partners, Inc., a leading private investment firm focused on leverage buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 340 companies worldwide. Sun Capital has offices in Boca Raton, Los Angeles, and New York, and affiliates with offices in London, Tokyo, and Shenzhen, China.

Website: www.shopko.com Founded: 1962 Number of Locations: 360+ Number of Employees: 16,900+ Headquarters: Green Bay, Wisconsin Parent Company: Sun Capital Partners, Inc.

NET LEASE INVESTMENT OFFERING Randy Blankstein President 847.562.0003 [email protected]

Jimmy Goodman Partner 847.562.8500 [email protected]

666 Dundee Road, Suite 1801 Northbrook, IL 60062