Walgreens, 347 Independence Blvd, Romeoville, IL 60446

OFFERING MEMORANDUM WALGREENS

347 Independence blvd | romeoville, IL 60446

1 | TABLE OF CONTENTS 03 05 09 11 EXECUTIVE FINANCIAL TENANT AREA OVERVIEW OVERVIEW OVERVIEW OVERVIEW

LISTED BY CONRAD SARREAL CHAD KURZ Senior Associate SVP & National Director

DIRECT 310.919.5760 DIRECT 214.692.2927 MOBILE 626.230.1006 MOBILE 562.480.2937 [email protected] [email protected] LIC # 01982875 (CA) LIC # 01911198 (CA)

BROKER OF RECORD PAT WEIBEL LIC # 471018266 (IL) Executive Overview WALGREENS

INVESTMENT HIGHLIGHTS

»» Long-term, Investment: There are still 14.5+ years remaining on a corporate lease with Walgreens who boasts strong investment grade credit (S&P: BBB).

»» Busiest Intersection in Romeoville: Independence Blvd. (Highway 53) and Romeo Rd forms the busiest intersection in Romeoville with an astounding ±57,500 VPD, and subject property sits on a large ±2.24-acre lot with excellent accessibility/visibility. Each direction at the intersection has a left turn lane allowing cars to easily access the property’s driveways on both Independence Blvd and Romeo Rd.

»» Completely Passive Investment: This deal offers buyers a bond-like investment because Walgreens is responsible for taxes, insurance, utilities, and all maintenance – zero landlord responsibilities.

»» Top 3 MSA: The Chicago MSA is the 3rd largest in the country with a population of about ±9.5 million, which fuels Romeoville’s strong demographics. There are nearly 150,000 residents within a 5-mile radius with an average household income of ±$95,000.

»» Consistent Performer: This store has consistently performed well over the last few years likely because Walgreens controls the Romeoville market. There are no CVS stores in Romeoville, and the closest one is 8+ miles away in Lemont, IL.

»» Growing Economy: According to Bugle Newspaper, [in 2018] Romoeville’s economy has been steadily growing with 103 new business licenses issued and over 1,000 new jobs. The workforce has more than doubled, the village’s crime rate is down 8%, and the expanding industrial sector is fueling tax revenue. Most relevant, the Independence Blvd and Romeo Rd intersection recently added an express car wash, Thorton’s gas station, and potential Checkers restaurant this year.

3 | | 4 Financial Overview WALGREENS

Investment Summary

347 Independence Blvd »» ADDRESS »» YEAR BUILT 2008 Romeoville, IL 60446

»» LIST PRICE $6,000,000 »» NO. OF STORIES One

»» CAP RATE 5.92% »» LANDSCAPING Professional

»» GLA ± 14,820 SF »» TOPOGRAPHY Generally Level

»» LOT SIZE ± 2.24 AC (97,574 SF)

5 | Annualized Operating Data

Monthly Annual Annual Cap Rent Rent Rent/PSF Rate Current - 1/1/2033 $29,583.33 $355,000 $23.95 5.92%

Tenant Summary

Tenant Name Walgreens Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Term Remaining ± 14.5 Years Original Lease Term 25 Years Lease Commencement Date 2/1/2008 Lease Expiration Date 1/31/2033 Options 50, 1-Year

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7 | | 8 Tenant Overview WALGREENS

Tenant Overview

»» Company NamE »» Industry Walgreen Co. Drug Store »» Ownership »» Headquarters Public Deerfield, IL »» Year Founded »» Website 1901 www.walgreens.com

The nation’s #1 drugstore chain, Walgreens, operates close to 8,300 stores in all 50 US states, the District of Columbia, the Virgin Islands and Puerto Rico. Prescription drugs are the focus of the company as they account for close to two-thirds of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics and groceries. Most locations offer 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. WALGREENS HEALTH FOCUS Walgreens’ overall value proposition differentiates it from competitors in valuable ways. Specifically, a focus on health gives Walgreens a competitive advantage over other pharmacies. By putting health at the forefront of all aspect of the business and 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. MARKETING STRATEGY Walgreens focuses on customer need and satisfaction. For example, the curbside pick-up service stemmed from the needs of working mothers who don’t have the time to go into the store and shop. Creating loyalty amongst patrons is a priority for the company as it keeps them coming back and spending money.

9 | SURROUNDING TENANTS

HISTORIC US 66 ± 102,000 VPD

| 10 Area Overview WALGREENS

ROMEOVILLE, IL

Romeoville is a village in Will County, Illinois and is located 26 miles southwest of Chicago. It is located near the newly constructed I-355 extension south from the Stevenson Expressway (I-55) to I-80. It is the state’s 19th largest village.

In the early 19th century, Romeoville’s economy was originally based in stone quarrying. The bustling industry supplied the basic materials from early road construction and buildings in such quantities that Romeoville acquired the distinction as the “Stone City”. However, the rise of concrete as a building material spelled the decline of quarrying and Romeoville’s importance was greatly diminished, for stone was their most famous export.

In the early 1900’s, Romeoville again became important when it became the distributing point for pulverized limestone as farmers purchased the stone to combat alkali spots on their lands.

In the mid-1900’s Romeoville entered a new era Demographics in its history when over one thousand acres of POPULATION 1 - MILE 3 - MILE 5 - MILE farm land on the west bank of the Des Plaines River on Illinois highway 66A was allotted for new 2010 Census 8,146 29,050 149,105 developments These allotments, in addition to other 2018 Estimate 7,486 28,792 152,256 small parcels of annexed land, greatly increased the 2023 Projection 7,269 28,819 154,262 Village’s population. HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE 2010 Census 2,514 9,485 47,452 Today, Romeoville is home to over 600 businesses, 2018 Estimate 2,350 9,392 48,011 and has received an award for most jobs created for any organization of its size, by adding 1,560 new 2023 Projection 2,296 9,387 48,522 jobs between 2012-2013. INCOME 1 - MILE 3 - MILE 5 - MILE Average Household Income $77,673.13 $83,470.13 $95,007.96

11 | POINTS OF INTEREST The Isle a la Cache Museum – 1 mile 1 The Isle a la Cache Museum is a free-standing museum operated by the Forest 347 Independence blvd 1 Preserve District of Will County on Isle a la Cache, an island in the Des Plaines romeoville, IL 60446 River. Located in Romeoville, Illinois, the museum and island are served by Illinois Route 53 and by the Centennial Trail/I&M Canal Trail. The museum's mission is to educate all visitors, especially children, about the fur-trading heritage of Chicago metropolitan area and Will County in particular.

Lewis University Airport – 5 miles 2 Lewis University Airport is a public airport located 20 miles southwest of Chicago, 2 in the village of Romeoville. Lewis University Airport covers an area of 1,000 acres which contains two runways. For 12-month period ending 31 December 2005 the airport had 104,000 aircraft operations, an average of 284 per day, and there are 203 aircraft based at this airport.

Harrah’s Joliet Casino & Hotel – 8 miles 3 Harrah's Joliet is a riverboat casino in Joliet, IL, outside Chicago, operated by Caesars Entertainment. It has 1,138 slot machines, 204 hotel rooms, and 4 restaurants.

Rialto Square Theatre – 9 miles 4 The Rialto Square Theatre is a theater in Joliet, IL. Opening in 1926, it was originally designed and operated as a vaudeville movie palace, but it now houses mainly musicals, plays, concerts, and standup comedy. It is also available for public and private functions. Designed in the Neo-Baroque style, it is considered one of "150 great places in Illinois" by the American Institute of Architects. 34 Hollywood Casino Joliet – 13 miles 5 Set 6 miles from the Rialto Square Theater, this straightforward hotel and casino overlooking the Des Plaines River is also 7 miles from Chicagoland Speedway, a NASCAR racing track. The Hollywood has over 50,000 square feet of gaming, dining and entertainment. It has 1,000 slot machines, four dining outlets and weekend entertainment.

Chicagoland Speedway - 15 Miles 6 Chicagoland Speedway in Joliet, IL, is a $130 million, 1.5-mile, D-shaped, tri- oval speedway that annually hosts the NASCAR Sprint Cup Series, NASCAR Nationwide Series, NASCAR Camping World Truck Series and ARCA Racing 5 Series presented by Menards. Chicagoland Speedway sits on 930 acres of land, 6 which is large enough to accommodate 42 United Centers (home of the Chicago Bulls and Blackhawks). Chicagoland Speedway provides 500 acres of free parking for more than 50,000 vehicles.

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CHICAGO, IL Situated on the southwestern shore of Lake Michigan, the City of Chicago covers an area of 60,000 hectares and sits 176 meters above sea level. Chicagoland is an informal name for the metropolitan area associated with the city of Chicago and its suburbs and has no official definition. The region is often considered to include areas beyond its corresponding MSA, as well as portions of the greater CSA.

Chicago has one of the world’s largest and most diversified economies, with more than four million employees and generating an annual gross regional product (GRP) of over $575 billion, which is more than countries like Sweden and Norway. Having been listed as an alpha global city by the Global Cities Index, it is a key player in every sector from risk management innovation and information technology to manufacturing and health services.

The city is an efficient economic powerhouse, home to more than 400 major corporate headquarters, including 31 in the Fortune 500. Boeing, United Continental Holdings, Inc., Exelon Corporation, R. R. Donnelley & Songs Company, and Archer Daniels Midland are just a few of the Fortune 500 companies based in the area. Motorola Solutions, Inc. intends to move their headquarters from Schaumburg, IL to Chicago in the coming future. McDonald’s has become the latest Fortune 500 company to establish its presence in Chicago as it is preparing to move its headquarters from Oak Brook, IL to the windy city by early 2018.

As a multicultural city that thrives on the harmony and diversity of its neighborhoods, Chicago embodies the values of America’s heartland integrity. It is this level of diversification that has resulted in Chicago being rated as having the most balanced economy in the United States. Additionally, its central location allows Chicago to be at the center of global trade, transit and data networks.

13 | Confidentiality Agreement & Disclaimer

This Offering Memorandum contains select information pertaining to the business and affairs ofWalgreens located at 347 Independence Blvd, Romeoville, IL 60446 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This 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 is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents 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 and conduct their own due diligence.

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 detrimentalto the interest of the Seller.

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. WALGREENS

347 Independence blvd | romeoville, IL 60446 OFFERING MEMORANDUM

EXCLUSIVELY LISTED BY

CONRAD SARREAL CHAD KURZ Senior Associate SVP & National Director

DIRECT 310.919.5760 DIRECT 214.692.2927 MOBILE 626.230.1006 MOBILE 562.480.2937 [email protected] [email protected] LIC # 01982875 (CA) LIC # 01911198 (CA)

BROKER OF RECORD PAT WEIBEL LIC # 471018266 (IL)

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