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Gerbes Super Markets & American Freight 2900 Paris Road Columbia, MO 65202 2 GERBES SURPER MARKETS & AMERICAN FREIGHT MARKETED BY:

TODD LEWIS MATSON KANE ELAN SIEDER Lic. # 703013 Lic. # 695584 Lic. # 678407

512.957.0597 | DIRECT 512.861.1889 | DIRECT 512.649.5185 | DIRECT [email protected] [email protected] [email protected]

MAX FREEDMAN JOHN THOMAS Lic. # 644481 Lic. # 434628

512.766.2711 | DIRECT 214.360.7725 | DIRECT [email protected] [email protected]

305 Camp Craft Rd, Suite 550 Westlake Hills, TX 78746 844.4.SIG.NNN www.SIGnnn.com In Cooperation With Sands Investment Group Missouri, LLC BoR: Kaveh Ebrahimi - Lic. # 2019044754 3 GERBES SURPER MARKETS & AMERICAN FREIGHT TABLE OF CONTENTS

04 06 10 14 16

INVESTMENT OVERVIEW LEASE ABSTRACT PROPERTY OVERVIEW AREA OVERVIEW TENANT OVERVIEW Investment Summary Lease Summaries Location, Aerial City Overview Tenant Profiles Investment Highlights Rent Roll & Expenses & Retail Maps Demographics

© 2020 Sands Investment Group (SIG). The information contained in this ‘Offering Memorandum’, has been obtained from sources believed to be reliable. Sands Investment Group does not doubt its accuracy; however, Sands Investment Group makes no guarantee, representation or warranty about the accuracy contained herein. It is the responsibility of each individual to conduct thorough due diligence on any and all information that is passed on about the property to determine its accuracy and completeness. Any and all projections, market assumptions and cash flow analysis are used to help determine a potential overview on the property, however there is no guarantee or assurance these projections, market assumptions and cash flow analysis are subject to change with property and market conditions. Sands Investment Group encourages all potential interested buyers to seek advice from your tax, financial and legal advisors before making any real estate purchase and transaction. INVESTMENT 4 SUMMARY

We Are Pleased to Offer For Sale the 88,421 SF Grocery Anchored Gerbes Super Markets and American Freight Located at 2900 Paris Road in Columbia, MO. This Opportunity Includes a Two High- Quality Tenants, Gerbes is a Subsidiary of Kroger and American Freight Recently Combined With Sears Outlet Under the Brand American Freight Furniture Mattress Appliance.

OFFERING SUMMARY

PRICE $6,245,015

CAP 6.50%

NOI $405,926

PRICE PER SF $70.63

PROPERTY SUMMARY

ADDRESS 2900 Paris Road Columbia, MO 65202 COUNTY Boone BUILDING AREA 88,421 SF LAND AREA 7.59 AC

BUILT 1977 ACTUAL PROPERTY IMAGE 5 GERBES SURPER MARKETS & AMERICAN FREIGHT HIGHLIGHTS

§ Gerbes Super Markets is a Subsidiary of Kroger § Located 1-Mile From Interstate 70 Which Sees Over With Over 4 Years Remaining on the Lease 76,783 VPD

§ Grocery Store Includes Fuel Station Facilities § Strategically Located on Paris Road, a Strong Retail Corridor For the Area, Which Sees Over 16,907 Vehicles Per Day § American Freight Combined With Sears Outlet to Create American Freight Furniture Mattress Appliance With ~8 Years Remaining on the Lease § Columbia is Missouri's Fourth Most Populous City, and it is Home to Columbia College, and the Which Has § American Freight Operates Over 300 Stores in 40 Approximately 30,000 Students States Across the United States and Puerto Rico

§ The Play Football at Faurot Field § Excellent Demographics With the Population Over and Basketball at the Mizzou Arena, Which Are Both 50,708 Residents Making an Average Household Located in Columbia Income of $57,819 Within a 3-Mile Radius

§ Neighboring Tenants Include: Bass Pro Shops, § Population Jumps to Over 162,937 Residents Within Menards, Home Depot, Orscheln Farm & Home, a 10-Mile Radius From the Property Subway, Burger King, Dollar General and More LEASE SUMMARY6

Dillon Companies, Inc. TENANT (Kroger Subsidiary)

PREMISES Premise of Approximately 53,221 SF

LEASE COMMENCEMENT January 24, 1996

LEASE EXPIRATION November 24, 2024

LEASE TERM 4+ Years Remaining

RENEWAL OPTIONS 3 x 5 Years

RENT INCREASES 9.73% on November 25, 2024

LEASE TYPE Double Net (NN)

PERMITTED USE Grocery

PROPERTY TAXES Tenant’s Responsibility

INSURANCE Tenant’s Responsibility

COMMON AREA Tenant’s Responsibility

ROOF & STRUCTURE Landlord’s Responsibility

REPAIRS & MAINTENANCE Tenant’s Responsibility

HVAC Tenant’s Responsibility

UTILITIES Tenant’s Responsibility

RIGHT OF FIRST REFUSAL No

ACTUAL PROPERTY IMAGE GUARANTOR Corporate LEASE SUMMARY7

TENANT American Freight, Inc.

PREMISES Premise of Approximately 35,200 SF

LEASE COMMENCEMENT October 13, 2018

LEASE EXPIRATION October 31, 2028

LEASE TERM ~8 Years Remaining

RENEWAL OPTIONS 2 x 5 Years

RENT INCREASES Fixed Increases Every 5 Years

LEASE TYPE Double Net (NN)

PERMITTED USE Retail

PROPERTY TAXES Tenant’s Responsibility

INSURANCE Tenant’s Responsibility

COMMON AREA Tenant’s Responsibility

ROOF & STRUCTURE Landlord’s Responsibility

REPAIRS & MAINTENANCE Tenant’s Responsibility

HVAC Tenant’s Responsibility

UTILITIES Tenant’s Responsibility

RIGHT OF FIRST REFUSAL No

ACTUAL PROPERTY IMAGE GUARANTOR Corporate GERBES SURPER MARKETS & AMERICAN FREIGHT 8 RENT ROLL

ACTUAL PROPERTY IMAGES

LEASE TERM AMOUNT % OF TENANT NAME SF TOTAL BEGIN END OPTIONS BEGIN PSF ANNUAL

Dillon Companies, Inc. 53,221 SF 60.19% 01/24/1996 11/24/2024 3 x 5 Years Current $5.31 $282,732 (Kroger Subsidiary) Option I $5.83 $310,236 Option II $5.83 $310,236 Option III $5.83 $310,236

American Freight, Inc. 35,200 SF 39.81% 10/13/2018 10/31/2028 2 x 5 Years Current $3.50 $123,200 11/01/2023 $3.75 $132,000 Option I $3.79 $133,408 Option II $3.83 $134,186

TOTAL 88,421 SF 100.0% GERBES SURPER MARKETS & AMERICAN FREIGHT 9 INCOME & EXPENSES

INCOME

Base Rent $405,926

CAM, Tax & Insurance $178,602

EFFECTIVE GROSS INCOME $584,528

OPERATING EXPENSES

Taxes ($113,740)

Insurance ($12,962)

Repairs & Maintenance ($9,800)

Utilities ($7,100)

Trash Removal & Landscaping ($14,600)

Snow Removal & Parking Lot ($18,400)

Miscellaneous ($2,000)

TOTAL EXPENSES ($178,602)

NET OPERATING INCOME $405,926 ACTUAL PROPERTY IMAGE 10 11

Paris Road 12

Jackson Dr

Paris Road 13

Paris Road COLUMBIA | BOONE COUNTY | MISSOURI 14 Columbia is a city in the U.S. state of Missouri. It is the county seat of Boone County and home to the University of Missouri. Founded in 1821, it is the principal city of the five- county Columbia metropolitan area. It is Missouri's fourth most-populous and fastest growing city, with an estimated 123,180 residents in 2018. As a Midwestern college town, Columbia has a reputation for progressive politics, persuasive journalism, and public art. The tripartite establishment of Stephens College (1833), the University of Missouri (1839), and Columbia College (1851), which surround the city's Downtown to the east, south, and north, has made the city a center of learning. The city rests upon the forested hills and rolling prairies of Mid-Missouri, near the Missouri River valley, where the Ozark Mountains begin to transform into plains and savanna.

Columbia's economy has been historically dominated by education, healthcare, and insurance. Jobs in government are also abundant, both in Columbia and in Jefferson City, Missouri’s capital city, located just a half-hour south. The Columbia Regional Airport and the Missouri River Port of Rocheport connect the region with trade and transportation. With a Gross Metropolitan Product of $9.6 billion in 2018, Columbia's economy makes up 3% of the Gross State Product of Missouri. Insurance corporations headquartered in Columbia include Shelter Insurance and the Columbia Insurance Group. Other organizations include Veterans United Home Loans, MFA Incorporated, the Missouri State High School Activities Association, and MFA Oil. Companies such as Socket, Slackers CDs and Games, Carfax, and MBS Textbook Exchange were all founded in Columbia.

The Missouri Theatre Center for the Arts and Jesse Auditorium are Columbia's largest fine arts venues. Ragtag Cinema annually hosts the True/False Film Festival, which brings in over 30,000 people each year for a weekend of art, film, and music. Part of the University of Missouri, the Museum of Art and Archaeology exhibits European paintings and ancient Greek and Roman art. At the center of the university’s main campus, Francis Quadrangle comprises lawns, 6 stone columns, many landmark buildings and Mizzou Botanic Garden flowerbeds. To the east, Stephens Lake Park has trails, picnic shelters, a beach and a boardwalk.

COLUMBIA, MO UNIVERSITY OF MISSOURI BOONE COUNTY COURTHOUSE 3 MILES 5 MILES 10 MILES 15

POPULATION 50,708 100,103 162,937

AVERAGE HH $57,819 $61,673 $75,916 INCOME

(37,808 VPD)

(76,783 VPD) Paris Road (16,907 VPD) 16 GERBES SUPER MARKET TENANT PROFILE

Gerbes Super Market is a subsidiary of Kroger. Kroger operates 2,758 grocery retail stores under a variety of banner names. Food stores are the company’s primary business and account for approximately 94% of total company sales. With nearly 2,800 stores in 35 states under two dozen banners and annual sales of more than $121.1 billion, Kroger today ranks as one of the world’s largest retailers. Kroger’s format includes supermarkets, seamless digital shopping options, price- impact warehouse stores, and multi- department stores, which are similar to supercenters, but offer an expanded variety of national brand apparel and general merchandise.

Kroger is the only major U.S. supermarket company to operate an economical three- tier distribution system. The company also operates 35 food production or manufacturing facilities producing high quality private- label products that provide value for customers and enhanced margins for Kroger. Kroger operates 1,560 supermarket fuel centers, which are a natural addition to the one- stop- shopping strategy. Kroger’s 2,268 pharmacies, located in the combination food and drug stores, provide high quality services at everyday low prices. From one tiny grocery store in Cincinnati more than a century ago, the company is now the foundation for what today ranks as one of the largest companies in America.

COMPANY TYPE FOUNDED # OF LOCATIONS HEADQUARTERS WEBSITE Subsidiary 1883 2,758+ Cincinnati, OH gerbes.com 17 AMERICAN FREIGHT TENANT PROFILE

Since 1994, American Freight has been helping customers save money on quality furniture and mattresses. In February 2020, American Freight combined with Sears Outlet, a leading national discount retailer of home appliances, to create American Freight Furniture Mattress Appliance. The enhanced American Freight launched in June 2020, leverages the strong legacies of the founding organizations to deliver consumers a one- stop- shop for quality furniture, mattresses and appliances at everyday low prices! With over 4 million satisfied customers, American Freight will continue to grow while its mission remains the same: sell the best for less every day while delivering exceptional customer service. American Freight will continue to deliver on its commitment of take it home today with same day delivery available for all in- stock items, including appliances, with payment plan options for every customer, including no credit required and other credit options with low, easy payments. American Freight operates over 300 stores in 40 states across the United States and Puerto Rico.

February 14, 2020: Franchise Group, Inc acquires American Freight Group, Inc. Franchise Group, Inc. (NASDAQ: FRG) is an operator of franchised and franchisable businesses and uses its operating expertise to drive cost efficiencies and grow its brands. Franchise Group’s business lines include Liberty Tax Service, Buddy’s Home Furnishings, Sears Outlet, American Freight and The Vitamin Shoppe. On a combined basis, Franchise Group currently operates over 4 , 400 locations predominantly located in the U . S . and Canada that are either Company- run or operated pursuant to franchising agreements.

COMPANY TYPE FOUNDED # OF LOCATIONS HEADQUARTERS WEBSITE Subsidairy 1994 300+ Deleware, OH americanfreight.com GERBES SURPER MARKET & AMERICAN FREIGHT 18 CONFIDENTIALITY AGREEMENT The information contained in the following Offering Memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Sands Investment Group and should not be made available to any other person or entity without the written consent of Sands Investment 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, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property.

The information contained in this Offering Memorandum has been obtained from sources we believe to be reliable; however, Sands Investment Group has not verified, and will not verify, any of the information contained herein, nor has Sands Investment 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.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose its contents in any manner detrimental to the interest of the Owner. You also agree that by accepting this Memorandum you agree to release Sands Investment Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this property. ACTUAL PROPERTY IMAGE MARKETED BY: 19 TODD LEWIS MATSON KANE ELAN SIEDER Lic. # 703013 Lic. # 695584 Lic. # 678407

512.957.0597 | DIRECT 512.861.1889 | DIRECT 512.649.5185 | DIRECT [email protected] [email protected] [email protected]

In Cooperation With Sands Investment Group Missouri, LLC MAX FREEDMAN JOHN THOMAS BoR: Kaveh Ebrahimi - Lic. # 2019044754 Lic. # 644481 Lic. # 434628

512.766.2711 | DIRECT 214.360.7725 | DIRECT [email protected] [email protected]

Gerbes Super Markets & American Freight 2900 Paris Road Columbia, MO 65202