REGAL CINEMAS 110 New River Road Christiansburg, VA 24073 TABLE of CONTENTS

NET LEASE INVESTMENT OFFERING

REGAL CINEMAS 110 New River Road Christiansburg, VA 24073 TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Building Photographs Proforma Analysis Investment Highlights Drone Photographs Remodel Description Property Overview Aerial Demographic Report Site Plan Market Overview Map Tenant Overview

NET LEASE INVESTMENT OFFERING DISCLAIMER STATEMENT

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

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 and Lee & Associates 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 and Lee & Associates have not verified, and will not verify, any of the information contained herein, nor has The Boulder Group or Lee & Associates 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 and Lee & Associates are pleased to exclusively market for sale a single tenant Regal Cinemas SUMMARY: property located in Christiansburg, Virginia. The property is an outparcel to New River Valley Mall, a 464,000 square foot property featuring retailers such as Kohl’s, Dick’s Sporting Goods, Planet Fitness and Belk. The Regal Cinemas lease has approximately 12 years remaining in the primary term. Regal Cinemas is committed to this location as evidenced by their recently executed renewal option and $4 million renovation to be completed by summer 2018. Regal Cinemas is one of the leading theatre companies in the United States, consisting of 7,315 screens in 561 theatres in 43 states.

The 54,062 square foot building sits on a 3.85 acre lot in the primary retail corridor in the area. The property is an outparcel to New River Valley Mall, a mall with over 50 stores. Retailers located within the mall include Kohl’s, Dick’s Sporting Goods, Planet Fitness, Belk, The Children’s Place, Bath & Body and Victoria’s Secret to name a few. An old JCPenney anchor store in the mall is currently being redeveloped for three national tenants to be announced in 2018. Additional retailers in the immediate area include Walmart Supercenter, Target, Lowe’s Home Improvement, The Home Depot, Best Buy and TJ Maxx. Immediately east of the Regal Cinemas is a new strip-center development to be completed in 2018.

There are over 46,000 college students within a fifteen minute drive of the Regal Cinema highlighted by Virginia Tech and Radford University. A satellite campus for New River Community College recently opened in New River Valley Mall. Enrollment has more than doubled since opening the location where almost 1,500 students attend each week. New River Community College has expanded to nearly 32,000 square feet due to its success at the location. To further contribute to the properties location, the regional bus system provides easy access from Virginia Tech Campus, Radford University and downtown Christiansburg to the New River Valley Mall which is the number one destination on the mass transportation system. There are 57,687 people living within a five-mile radius of the property.

There are approximately 12 years remaining on the Regal Cinemas lease which expires April 30, 2030. The lease features rental escalations and two 5-year renewal options. Regal Cinemas’ $4 million renovation includes a full gut renovation of all fourteen auditoriums, upgrade to lighting, signage, and the concession area. Regal Entertainment Group is an American movie theater chain headquartered in Halls Crossroads, just north of Knoxville, Tennessee. Regal operates the second-largest theater circuit in the United States. In February 2018, Cineworld Group plc, the second largest cinema operator in Europe, completed its acquisition of Regal Entertainment Group for $3.6 billion.

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT • Long term 12 year corporate lease HIGHLIGHTS: • Recently extended lease showing commitment to the location

• Rental escalations in the primary term and two 5-year renewal option periods

• Abundant parking (631 Spaces)

• Located in the primary retail corridor in the area

• Outparcel to New River Valley Mall, a 464,000 square foot mall featuring retailers such as Kohl’s, Dick’s Sporting Goods, Planet Fitness, Belk, The Children’s Place, Bath & Body and Victoria’s Secret

• Additional retailers in the immediate area include Walmart Supercenter, Target, Lowe’s Home Improvement, The Home Depot, Best Buy and TJ Maxx

• Over 46,000 college students within a fifteen minute drive of the theatre

• Over 57,685 people living within a five mile radius of the property

• Regional bus system provides easy access from Virginia Tech Campus, Radford University and downtown Christiansburg to the New River Valley Mall, the number one destination on the mass transportation system.

• $4 million renovation to be completed by summer 2018

• Tenant operates one of the leading theatre circuits in the United States, consisting of 7,315 screens in 561 theatres

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $13,420,000 OVERVIEW: Cap Rate: 7.75% Net Operating Income: $1,039,748 (Refer to Pro-forma on Next Page) Renewal Options: Two 5-Year Lease Commencement Date: May 1, 2007 Lease Expiration Date: April 30, 2030 Tenant: Regal Cinemas, Inc. Year Built / Renovated: 2006 / 2018 Lease Type: NN (Roof & Structure)* Parking: 169 Spaces w/ 462 Space Easement = 631 Total Spaces Building Size: 54,062 SF Land Size: 3.85 Acres Property Address: 110 New River Road, Christiansburg, VA 24073

* Tenant is responsible for HVAC. Mall owner is responsible for parking lot replacement/maintenance.

NET LEASE INVESTMENT OFFERING PRO FORMA ANALYSIS

PRO FORMA Income ANALYSIS: Rental Income Base Rent $1,055,000 CAM 80,025 Real Estate Taxes / Insurance 62,482 Total Rental Income $1,197,507

Expenses CAM $- Insurance (10,000) Real Estate Taxes (139,650) Building Reserve ($0.15 PSF) (8,109) Total Expense $(157,759)

Net Operating Income $1,039,748

Footnotes: CAM Charges - Tenant shall pay to Landlord as Additional Rent a fixed amount equal to$1.48 multiplied by the gross leasable area (54,062 SF) for CAM in 2018. CAM shall increase by 4% annually. - CAM will be handled and paid for by the New River Valley Mall owner. Landlord is entitled to collect the ‘CAM Charge’ without offset from the tenant.

Insurance & Real Estate Taxes - Estimated Expenses. - Real estate tax expense based on a 1.05% millage rate. - Tenant shall pay to Landlord the lesser of (i) actual real estate tax expense or (ii) 104% of the prior year's real estate tax charge. - Tenants Real Estate Tax responsibility cannot increase by more than 4% over the prior year. - The 2017 Real Estate charge for the Tenant was $60,079.

NET LEASE INVESTMENT OFFERING REMODEL DESCRIPTION

REMODEL • Estimated cost in excess of $4 million. DESCRIPTION: • Regal estimates a 25% - 30% increase in sales from the remodel.

• All 14 auditoriums are/will be a complete with the new luxury recliners, new hand rail system installed, new lights, doors, and flooring (carpet), as well as walls color and material.

• Auditorium 7: is the RPX auditorium, Regal Cinemas’ version of the IMAX experience.

• The current red LED boards to show movie listings in particular auditoriums are being replaced with SLCD, which are the TV screen type units that show a picture of the Movie.

• Full service Bar and Food upgrade to the current concession area. New appliances, fixtures and additional seating.

• The employee break room: replacing flooring, cabinets, and tables and chairs.

NET LEASE INVESTMENT OFFERING BUILDING PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING DRONE PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING AERIAL

NET LEASE INVESTMENT OFFERING SITE PLAN

NET LEASE INVESTMENT OFFERING MAP

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 3-Mile 5-Mile 7-Mile REPORT: Total Population 20,136 57,687 87,561 Total Households 8,696 21,103 33,199

Income 3-Mile 5-Mile 7-Mile

Median Household Income $51,508 $44,699 $41,660 Average Household Income $62,691 $59,982 $59,377

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Christiansburg, Virginia OVERVIEW: Christiansburg is tucked between the slopes of the Blue Ridge Mountains and the winding path of the New River in southwest Virginia. Formerly Hans Meadows, Christiansburg has a population of over 21,500 people. It is the county seat of Montgomery County and retail hub. Originally a concentration of taverns and rest stops along the Great Wilderness Road (now U.S. Route 11), the 1.1 square mile town was established in 1792 and later incorporated in 1833. Christiansburg is now 14 square miles and is the fourth largest town in Virginia.

Christiansburg, Blacksburg, and Radford are the three principal municipalities of the Blacksburg-Christiansburg-Radford Metropolitan Statistical Area which encompasses those municipalities and all of Montgomery County. The MSA is dominated by the presence of Virginia Tech and Radford University. The area, known as the New River Valley (or NRV), has experienced tremendous growth in the last twenty years and continues to be among the fastest growing areas in Virginia.

www.christiansburg.org

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

TENANT Regal Cinemas OVERVIEW: Regal Entertainment Group (NYSE: RGC) operates one of the leading and most geographically diverse theatre circuits in the United States, consisting of 7,315 screens in 561 theatres in 43 states along with Guam, Saipan, American Samoa and the District of Columbia as of September 30, 2017, with approximately 211 million attendees for the year ended December 31, 2016. Regal’s geographically diverse circuit includes theatres in 48 of the top 50 U.S. designated market areas. Regal operate multi-screen theatres and, as of September 30, 2017, had an average of 13.0 screens per location, which is well above the North American motion picture exhibition industry average. Regal develop, acquire and operate multi-screen theatres primarily in mid-sized metropolitan markets and suburban growth areas of larger metropolitan markets throughout the United States.

In February 2018, Cineworld Group plc, the second largest cinema operator in Europe, completed its acquisition of Regal Entertainment Group for $3.6 billion. Cineworld Group was founded in 1995 and is now one of the leading cinema groups in Europe. Originally a private company, it re-registered as a public company and listed on the London Stock Exchange in May 2007 using the symbol “GBX”. Currently, Cineworld Group is the only quoted UK cinema business. It operates 2,227 screens at 232 sites in Europe and Israel. Together with its new subsidiary Regal Entertainment Group, Cineworld operates over 9,500 screens at 793 sites.

www.regmovies.com Our Theatres Around the Country

Regal is one of the Largest U.S. Motion Picture Exhibitors

National Footprint Geographic Diversification Modern

• Theatres: 561 • States: 43 + D.C & 3 U.S. Asset Base • Screens: 7,315 territories • 13.0 screens per theatre avg. • Markets: 48 out of Top 50 • Sony 4K Digital Projection • ~ 68% feature premium amenities

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

John Feeney Vice President 847.562.9280 [email protected]

3520 Lake Avenue, Suite 203 Wilmette, IL 60091

www.bouldergroup.com

Daniel Barnes Principal 314.400.4004 [email protected]

1986 Innerbelt Business Center Drive St. Louis, MO 63114