NET LEASE INVESTMENT OFFERING

SHOPKO HOMETOWN 1005 W Coulter Avenue Powell, 82435 TABLE OF CONTENTS

TABLE OF CONTENTS

I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Photographs Demographic Report Investment Highlights Aerial 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 the fee simple interest in a single tenant absolute triple SUMMARY: net leased Hometown property located in Powell, Wyoming. The property is strategically located along a primary north-south thoroughfare. Shopko is committed to this location as evidenced by their long operating history at this location (since 1985). There are approximately 13 years remaining on the Shopko lease that features a low rent per square foot ($7.20), significant rental escalations and two 10-year renewal option periods. This is a high performing location with above average sales per square foot.

The 28,500 square foot building is well located within the regional trade area. The Shopko Hometown is the only national within 23 miles. The property is strategically located along a primary north-south thoroughfare and near other retailers including McDonald’s, O’Reilly Auto Parts, Verizon and John Deere. Just north of the property is Powell Valley Healthcare, a large 100 bed hospital. Additionally, the Shopko Hometown is near Southside Elementary School, Westside Elementary, Parkside Elementary School, Powell Middle School, Powell High School and Northwest College which drives additional traffic to the property.

There are approximately 13 years remaining on the lease that expires May 31, 2031. The triple net lease features rental escalations every three years and two 10-year renewal option periods. Shopko operates more than 360 stores in 24 states throughout the Central, Western and Pacific Northwest regions. The company was founded in 1962 and is headquartered in Green Bay, .

NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS

INVESTMENT • Long term lease with approximately 13 years remaining HIGHLIGHTS: • Absolute triple net lease with no landlord responsibilities

• Significant rental escalations in primary term and renewal option periods

• Strong location with favorable unit level performance

• 33 year operating history at this location

• Only national pharmacy within 23 miles

• Low rent per square foot ($7.20)

• Located just north of Powell Valley Healthcare, a large 100 bed hospital

• Retailers in the immediate area including McDonald’s, O’Reilly Auto Parts, Verizon and John Deere

• Located near Southside Elementary School, Westside Elementary, Parkside Elementary School, Powell Middle School, Powell High School and Northwest College which drives additional traffic to the property

• Tenant is a privately held $3 billion retailer that operates over 360 locations in 24 states

NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW

PROPERTY Price: $2,457,916 OVERVIEW: Cap Rate: 8.35% Net Operating Income: $205,236 Rental Escalations: Every 3 Years* Renewal Options: Two 10-Year Lease Expiration Date: May 31, 2031 Tenant: Specialty Shops Holding Co. – d.b.a. Shopko Hometown Lease Type: Absolute Triple-Net (NNN) Rentable Square Feet 28,500 SF Lot Size: 4 Acres

* The Base Rent increases by the lesser of: (i) 1.25 multiplied by the product of (A) the Base Rent in effect and (B) the CPI Increase or (ii) 6% of the Base Rent. (Most recent escalation occurred on 6/1/2018).

NET LEASE INVESTMENT OFFERING PHOTOGRAPHS

NET LEASE INVESTMENT OFFERING AERIAL

NET LEASE INVESTMENT OFFERING SITE PLAN

NET LEASE INVESTMENT OFFERING MAP

NET LEASE INVESTMENT OFFERING MAP

NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT

DEMOGRAPHIC Population 3-Mile 5-Mile 10-Mile REPORT: Total Population 8,187 9,918 10,938 Total Households 3,220 3,888 4,288

Income 3-Mile 5-Mile 10-Mile

Average Household Income $66,517 $69,980 $71,741

NET LEASE INVESTMENT OFFERING MARKET OVERVIEW

MARKET Powell, Wyoming OVERVIEW: Powell is a city in Park County, Wyoming, . The population was 6,314 at the 2010 census. Powell is an All-America City and home to Northwest College. The All-America City Award, given by the National Civic League, is the oldest community recognition program in the nation. The Award, bestowed yearly on 10 communities recognizes the work of communities in using inclusive civic engagement to address critical issues and create stronger connections among residents, businesses and nonprofit and government leaders. Once called the “Nobel Prize for constructive citizenship”.

The City of Powell is a community located in the northwest corner of Wyoming, 75 miles east of Yellowstone National Park and 98 miles south of Billings, . Lying between the Big Horn Mountains on the east and the Absaroka Range on the west, clear blue skies, clean air, a temperate climate, and loads of sunshine make the Powell Valley a wonderfully refreshing place to live.

Powell has a diverse commercial, industrial, educational, historical museum and agricultural/ ranching based economy with dedicated, hard-working people with strong work ethics. Superior educational opportunities abound with excellent schools and an outstanding two-year college. Excellent health care facilities, recreational opportunities, retirement living, cultural events, shopping, fine dining, and modern community and public services all provide for a high quality of life for our residents.

NET LEASE INVESTMENT OFFERING TENANT OVERVIEW

TENANT Shopko OVERVIEW: Shopko Stores Operating Co., LLC operates a chain of general merchandise stores in the United States. Its stores comprise jewelry and watches, home, kitchen and dining, furniture, electronics, toys, sports and team shop, health and beauty, and patio and seasonal departments; clothing and accessories for men, women, kids, and babies, as well as nursery furniture. The company’s stores also include in-store and optical centers. It also serves customers online. Shopko Stores Operating Co., LLC was formerly known as ShopKo Stores, Inc. The company was founded in 1962 and is headquartered in Green Bay, Wisconsin. It has distribution centers in DePere, Wisconsin; Boise, ; Omaha, ; and Lebanon, .

Shopko operates more than 360 stores in 24 states throughout the Central, Western and Pacific Northwest regions. Retail formats include more than 130 Shopko stores, providing quality name-brand merchandise, great values, pharmacy and optical services in small to mid-sized cities; 5 Shopko Express Rx stores, a convenient neighborhood drugstore concept; 5 Shopko Pharmacy locations; and more than 220 Shopko Hometown stores, a smaller concept store developed to meet the needs of smaller communities.

Shopko Stores Operating Co., LLC is an affiliate of , Inc., a leading private investment firm focused on leverage buyouts, equity, debt, and other investments in market-leading companies that can benefit from its in-house operating professionals and experience. Sun Capital affiliates have invested in and managed more than 340 companies worldwide. Sun Capital has offices in Boca Raton, Los Angeles, and New York, and affiliates with offices in London, Tokyo, and Shenzhen, China.

Website: www.shopko.com Founded: 1962 Number of Locations: 360+ Number of Employees: 16,900+ Headquarters: Green Bay, Wisconsin Parent Company: Sun Capital Partners, Inc.

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