NET LEASE INVESTMENT OFFERING

WALGREENS 5320 Clinton Highway Knoxville, TN 37912 TABLE OF CONTENTS

TABLE OF CONTENTS

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

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 Walgreens property located SUMMARY: in Knoxville, . The property is positioned on a hard, signalized corner of a heavily trafficked intersection. Walgreens has successfully operated at this location since 2000 and has more than 9 years remaining on their lease that features eight 5-year renewal option periods and a drive-thru. Walgreens is the largest drug retailing chain in the United States with more than 8,175 locations in the United States.

The 14,112 square foot Walgreens is strategically positioned on the northeast corner of Clinton Highway and Merchant Drive. This intersection experiences traffic counts in excess of 51,565 vehicles per day. The property is located one-mile from (81,300 VPD), Interstate 275 (61,490 VPD) and Interstate 640 (81,410 VPD) with full access along both Clinton Highway and Merchant Drive. National retailers located in close proximity include Walmart Supercenter, Target, Kroger, Lowe’s Home Improvement and a number of quick service restaurants. Knoxville is the third largest city in the state with an estimated population of more than 185,300 people. There are approximately 57,800 people living within a three mile radius of the property.

Walgreens has over 9 years remaining on their lease which expires December 31, 2026 and features eight 5-year renewal option periods. Walgreens is publicly traded on the Nasdaq Stock Market (symbol: WBA) with a market capitalization in excess of $88 billion. Both Walgreen Co. and Walgreens Boots Alliance, Inc. are investment grade rated each with a Standard & Poor’s rating of BBB.

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT • Investment grade tenant (S&P: BBB) HIGHLIGHTS: • Long term lease with over 9 years remaining

• Long operating history at this location (since 2000) with an established customer base

• Positioned at the hard corner of a signalized intersection (51,565 VPD)

• Easy access to Interstate 75, Interstate 275 and Interstate 640

• Retailers located within close proximity include Walmart, Target, Lowe’s Home Improvement and a number of national quick serve restaurants.

• More than 57,800 people live within three miles of the property

• Drive-thru pharmacy

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $8,138,462 OVERVIEW: Cap Rate: 6.50%

Net Operating Income: $529,000

Renewal Options: Eight 5-Year

Lease Commencement Date: December 30, 2000

Lease Expiration Date: December 31, 2026

Tenant: Walgreens

Year Built: 2000

Lease Type: NN (Roof, Structure & Parking Lot Replacement)

Parking: 30 Spaces

Building Size: 14,112 SF

Land Size: 1.52 Acres

NET LEASE INVESTMENT OFFERING PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING AERIAL

NET LEASE INVESTMENT OFFERING AERIAL

NET LEASE INVESTMENT OFFERING SITE PLAN

NET LEASE INVESTMENT OFFERING MAP

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 1-Mile 3-Mile 5-Mile REPORT: Total Population 7,500 57,801 154,975 Total Households 3,170 24,656 64,222

Income 1-Mile 3-Mile 5-Mile

Median Household Income $37,806 $36,686 $37,803 Average Household Income $50,315 $47,754 $53,088

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Knoxville, Tennessee OVERVIEW: Knoxville is a city in Tennessee and the county seat of Knox County. The city had an estimated population of more than 185,300 people making it the state’s third largest city. Knoxville is the principal city of the Knoxville Metropolitan Statistical Area which has an estimated population of approximately 852,750 people.

First settled in 1786, Knoxville was the first capital of Tennessee. Knoxville is the home of the flagship campus of the University of Tennessee, whose sports teams, called the “Volunteers” or “Vols”, are extremely popular in the surrounding area. Knoxville is also home to the Tennessee Supreme Court’s courthouse for and the corporate headquarters of several national and regional companies. As one of the largest cities in the Appalachian region, Knoxville has positioned itself in recent years as a repository of Appalachian culture and is one of the gateways to the Great Smoky Mountains National Park.

The Tennessee Valley Authority (TVA), the nation’s largest public power provider, is a federally owned corporation headquartered in Knoxville. The largest publicly traded company based in Knoxville (in terms of revenue) is movie theater chain Regal En- tertainment Group. Regal is the only Knoxville-based company listed in the Fortune 1000 (#724). The second largest publicly traded company in Knoxville is Scripps Networks Interactive, followed by the health care-staffing firm TeamHealth. The largest privately held company based in Knoxville is Pilot Flying J, the nation’s largest truck stop chain and sixth largest private company. Knoxville is also home to the nation’s fourth largest wholesale grocer, The H. T. Hackney Company and one of the nation’s largest digital-centric advertising firms, Tombras Group.

The two principal interstate highways serving Knoxville are , which connects the city to Asheville (directly) and Bristol (via I-81) to the east and Nashville to the west, and Interstate 75, which connects the city to Chattanooga to the south and Lexington to the north. Public transportation is provided by Knoxville Area Transit (KAT), which operates over 80 buses, road trolleys, and paratransit vehicles, and transports more than 3.6 million passengers per year. Knoxville is served by McGhee Tyson Airport. McGhee Tyson offers 8 major airlines serving 19 non-stop destinations, and averages 120 arrivals and departures per day.

www.knoxvilletn.gov

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

TENANT Walgreens OVERVIEW: Walgreens Boots Alliance, Inc. operates as a pharmacy-led health and wellbeing company. The company operates through three segments: Retail Pharmacy USA, Retail Pharmacy International, and Pharmaceutical Wholesale. The Retail Pharmacy USA segment sells prescription drugs and an assortment of general merchandise, including non-prescription drugs, beauty products, photo finishing, seasonal merchandise, greeting cards, and convenience foods through its retail drugstores and convenient care clinics. It also provides specialty pharmacy services; and manages in-store clinics under the brand Healthcare Clinic. As of January 31, 2017, this segment operated 8,175 retail stores under the Walgreens and Duane Reade brands in the United States; and 7 specialty pharmacy locations, as well as managed approximately 400 Healthcare Clinics. Walgreens Boots Alliance, Inc. was founded in 1901 and is based in Deerfield, Illinois.

The Walgreen Company is the largest drug retailing chain in the United States. The company is publicly traded on the NASDAQ (Symbol: WBA) with a market capitalization in excess of $88 billion. Both Walgreen Co. and Walgreens Boots Alliance, Inc. are investment grade rated each with a Standard & Poor’s rating of BBB. In October 2016 Walgreens Boots Alliance received the United Nations Foundation Global Leadership Award for its commitment to the UN’s Sustainable Development Goals.

Website: www.walgreens.com Number of Locations: 8,175 Stock Symbol: WBA (NASDAQ) Standard & Poor’s Rating: BBB Market Capitalization: $88 Billion

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

Jimmy Goodman Partner 847.562.8500 [email protected]

3520 Lake Avenue, Suite 203 Wilmette, IL 60091

www.bouldergroup.com