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WALGREENS 615 W Main St | Norman, OK 80013 OFFERING MEMORANDUM LISTED BY Conrad Sarreal Associate Vice President

DIRECT +1 (214) 692-2847 MOBILE +1 (626) 230-1006 [email protected] License No. 01982875 (CA) Kyle Matthews Broker of Record License No. 180759 (OK) TABLE OF CONTENTS

7 EXECUTIVE OVERVIEW 8 FINANCIAL OVERVIEW

10 TENANT OVERVIEW 11 AREA OVERVIEW

615 W Main St | Norman, OK OFFERING MEMORANDUM EXECUTIVE OVERVIEW

INVESTMENT HIGHLIGHTS

• Booming University Town – Subject property sits on a signalized corner that is less than a mile from the University of (30,000+ students). OU is one of the most popular sports-driven universities as it continually earns top national rankings across numerous sports. In particular, the Sooners football program has earned 7 national championships and produced 7 Heisman Trophy winners among many other NFL greats. The program generates around $160 Million annually, making them the 7th highest producing football program in the country. Gaylord Family- Oklahoma Memorial Stadium seats 86,000+ fans and hosts some of the most-watched games of the season, facing off against universities such as Texas, Texas Tech, TCU, UCLA, Florida, LSU, and Alabama.

• Top Tier Performer – This store has reported consistent sales significantly above the reported national average. These sales make the store likely one of the strongest performers on the market. This store is open 24 hours, so OU students and the nearly 92,000 residents within 3 miles can take advantage of Walgreens’ retail component, including alcohol.

• Attractive Real Estate – The 30,000+ OU students and visiting sports fans from across the country generate a high amount traffic in the area. Real estate within close proximity to such universities typically drives up the demand among retailers, allowing landlords to more easily re-lease or repurpose them in the future.

• Essential Retailer and E-Commerce Resistant Tenant - As an e-commerce resistant concept and essential retailer, Walgreens is an ideal tenant to own in through all cycles of the economy. The government deemed Walgreens an essential business in March when countless other retailers were ordered to shut their doors. Walgreens experienced a 26% surge in sales in March 2020 and continues to exceed expectations.

• Favorably Large Lot Size – Subject property sits on a large 2+ acre signalized corner lot, offering plenty of land to re-purpose in the future. Since many single tenant retailers occupy less than an acre of land, 2+ acres has even has room for possibly 2 tenants.

• Freeway Accessible – The I-35 which services an average of 90,000 cars per day and connects Oklahoma City to Dallas-Fort Worth is less than 2 miles from the subject property.

4 | OFFERING MEMORANDUM ANDREWS PARK NEIGHBORHOOD PARK WITH A PLAYGROUND, SPLASH PAD, SKATE AREA, PAVED PATHS & AN AMPHITHEATER.

N. FLOOD AVE ± 12,400 VPD

W. MAIN ST ± 21,400 VPD

W. GRAY ST ± 10,000 VPD

WALGREENS | 5 SOONER MALL SHOPPING MALL

INTERSTATE 35

± 90,000 VPD

N. FLOOD AVE ± 12,400 VPD

W. GRAY ST ± 10,000 VPD

W. MAIN ST ± 21,400 VPD

6 | OFFERING MEMORANDUM WALGREENS | 7 FINANCIAL OVERVIEW

$5,658,000 $331,000 5.85% LIST PRICE NOI CAP RATE

BUILDING INFO

615 W Main St Address Norman, OK

APN NC29BIRAD 6 1002

Year Built 2001

GLA ±14,987 SF

Lot Size ±91,912 SF (±2.11 AC)

8 | DISPOSITIONOFFERING MEMORANDUM PROPOSAL TENANT SUMMARY ANNUALIZED OPERATING DATA

Date Monthly Rent Annual Rent Annual Rent/SF Cap Rate Tenant Name Walgreens Current $27,583 $331,000 $22.09 5.85% Type of Ownership Fee Simple Options 1 - 7 $27,583 $331,000 $22.09 5.85% Lessee Entity Corporate Lease Type NN Roof and Structure Landlord Responsible DEBT QUOTE Term Remaining ±6 years LTV: 65.00%

Lease Commencement Date 10/1/2001 Loan quote provided by Matthews™ based RATE: 3.850% on market conditions at this time. Actual : 30 Lease Expiration Date 2/28/2027 rates and terms will vary based on market AMORTIZATION conditions at closing. Options 7,5-year options JESSE LILLARD (956) 564-2922 ROFR 45 Days [email protected]

WALGREENS | 9 TENANT OVERVIEW

TENANT OVERVIEW COMPANY NAME The nation’s #1 drugstore chain, Walgreens, operates close to 9,200 stores in all 50 US states, the District of Columbia, the Walgreens Virgin Islands and Puerto Rico. Prescription drugs are the focus of the company as they account for close to two-thirds of OWNERSHIP sales; the rest comes from general merchandise, over-the-counter medications, cosmetics and groceries. Most locations offer Public drive-through pharmacies and one-hour photo processing, which separates them from competition. Recently, Walgreen Co. fully acquired Alliance Boots, Europe’s leading drug wholesaler, to create Walgreens Boots Alliance, of which it is a subsidiary. YEAR FOUNDED 1901 WALGREENS HEALTH FOCUS Walgreens’ overall value proposition differentiates it from competitors in valuable ways. Specifically, a focus on health gives INDUSTRY Walgreens a competitive advantage over other pharmacies. By putting health at the forefront of all aspect of the business and Drug Store reducing customers’ shopping time, Walgreens has achieved placement in a league of its own as competition aims their focus on things such as convenience, design, or low prices. HEADQUARTERS Deerfield, IL MARKETING STRATEGY Walgreens focuses on customer need and satisfaction. For example, the curbside pick-up service stemmed from the needs of NO. OF EMPLOYEES working mothers who don’t have the time to go into the store and shop. Creating loyalty amongst patrons is a priority for the ±253,400 company as it keeps them coming back and spending money. AREA OVERVIEW

DEMOGRAPHICS

POPULATION 1-MILE 3-MILE 5-MILE 2025 Projection 13,269 92,201 123,627 NORMAN, OK 2020 Estimate 12,235 86,942 116,728 2010 Census 12,178 81,101 101,645 Norman is a city in Oklahoma located 20 miles south of downtown Oklahoma City. As the county seat of Cleveland County and a part of Growth 2020-2025 8.46% 6.05% 5.91% the Oklahoma City metropolitan area, its population makes it the third- Growth 2010-2020 0.47% 7.20% 14.84% largest city in Oklahoma. HOUSEHOLD 1-MILE 3-MILE 5-MILE Economically the city has prominent higher education and related 2025 Projection 6,179 39,695 52,337 research industries, as it is home to the . The 2020 Estimate 5,625 36,988 48,901 university is well known for its sporting events by teams under the banner of the nickname “Sooners”. The university is home to several 2010 Census 5,421 33,330 41,178 museums, including the Fred Jones Jr. Museum of Art, which contains Growth 2020-2025 9.86% 7.32% 7.03% the largest collection of French Impressionist art ever given to an Growth 2010-2020 3.76% 10.98% 18.76% American university, as well as the Sam Noble Oklahoma Museum of Natural History. INCOME 1-MILE 3-MILE 5-MILE 2020 Avg $60,617 $65,563 $75,113 Household Income WALGREENS | 11 LESS THAN A MILE FROM THE S UNIVERSITY OF OKLAHOMA

±0.9 MILES

ECONOMY

The University of Oklahoma employs over 10,700 personnel across three campuses, making it a significant driver of Norman’s economy. The campus is a center for scientific and technological research, having contributed over $277 million to such programs.

Norman is also home of the National Weather Center, a cooperative research effort between the University of Oklahoma and the National Oceanic and Atmospheric Administration that houses a number of weather- and climate-related organizations; the city is also the proposed location of a future National Weather Museum. As a result of this on-going academic and public weather research, several private meteorological businesses are present in the city, including Weathernews Americas, Inc.; Vieux and Associates, Inc.; Weather Decision Technologies; WeatherBank, Inc.; and Computational Geosciences, Inc.

In addition to weather, Norman is a center for other scientific ventures – public and private. The Oklahoma Geological Survey, which conducts geological research, and the Oklahoma Renewable Energy Council, which is a public-private alliance that fosters renewable energy technology with the aim of establishing more viable applications, make the city their home. SouthWest NanoTechnologies is a producer of single-walled carbon nanotubes. Bergey Windpower is a supplier of small wind turbines. Other major employers in the city include Norman Regional Health System, Norman Public Schools, Johnson Controls, Griffin Memorial Hospital, Hitachi, Astellas Pharma Technologies, Albon Engineering, Xyant Technology, MSCI, Office Max National Sales Center, SITEL, the United States Postal Service National Center for Employee Development, Sysco Corporation, and AT&T.

CNN’S MONEY MAGAZINE RANKED NORMAN AS THE SIXTH BEST SMALL CITY WITHIN THE UNITED STATES TO LIVE IN, THE HIGHEST RANKING OF ANY CITY IN OKLAHOMA. THE UNIVERSITY OF OKLAHOMA The University of Oklahoma is the largest university in the state of Oklahoma, with approximately 30,000 students enrolled. The university was founded in 1890, prior to Oklahoma statehood. The university includes both Norman and Oklahoma City campuses with the main campus located in Norman. The Princeton Review named the University of Oklahoma one of its “BEST VALUE” COLLEGES. The school is ranked first per capita among public universities in enrollment of National Merit Scholars and has seen 28 Rhodes Scholars graduate since the program’s inception in 1902. PC Magazine and the Princeton Review rated it one of the “20 MOST WIRED COLLEGES” while the Carnegie Foundation classifies it as a research university with“HIGHEST RESEARCH ACTIVITY.”

The University of Oklahoma sponsors many collegiate sporting events in Norman. The school is well known for its football program, having won seven NCAA Division I National Football Championships. In addition, it has the best winning percentage of any Division I FBS team since the introduction of the AP Poll in 1936 and has played in four BCS National Championship Games since 1998.

During football season, the football program contributes significantly to Norman’s economy. During game day weekends, Norman sees an influx out of town traffic from all over the country with over 85,000 people routinely attending football games. Norman’s local businesses, especially areas around campus and , benefit greatly from the game day traffic alone. The program ranks in theTOP 10 OF ESPN’S TOP COLLEGE FOOTBALL MONEY-MAKERS with home games generating revenues at approximately $59 MILLION AND GAME DAY OPERATING EXPENSES AT ABOUT $6.1 MILLION.

10,700 85,000 30,000 $277M EMPLOYEES FOOTBALL GAME ATENDEES STUDENTS IN RESEARCH FUNDING WALGREENS | 13 CONFIDENTIALITY AGREEMENT & DISCLAIMER

This Offering Memorandum contains select information pertaining to the business and affairs ofWalgreens located at 615 W Main St, Norman, OK 80013 (“Property”). The Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material and information in the Offering Memorandum is unverified. Matthews Real Estate Investment Services has not made any investigation, and makes no warranty or representation, with respect to square footage, income and expenses, the future financial performance of the property, future rent, and real estate value market conditions, the condition or financial prospects of any tenant, or the tenants’ plans or intentions to continue to occupy space at the property. All prospective purchasers should conduct their own thorough due diligence investigation of each of these areas with the assistance of their accounting, construction, and legal professionals, and seek expert opinions regarding volatile market conditions given the unpredictable changes resulting from the continuing COVID-19 pandemic. The information is based in part upon information supplied by the Owner and in part upon financial information obtained from sources the Owner deems reliable. Owner, nor their officers, employees, or real estate agents make any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum, or any of its content, and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller.

Matthews Real Estate Investment Services is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee in the Offering Memorandum. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Matthews Real Estate Investment Services.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

14 | OFFERING MEMORANDUM WALGREENS ™ 615 W Main St | Norman, OK OFFERING MEMORANDUM

LISTED BY Conrad Sarreal Associate Vice President

DIRECT +1 (214) 692-2847 MOBILE +1 (626) 230-1006 [email protected] License No. 01982875 (CA) Kyle Matthews Broker of Record License No. 180759 (OK)