Retail Capital Markets Report Saint Louis - MO PREPARED BY Hal Ball Senior VP/Principal Saint Louis Retail RETAIL CAPITAL MARKETS REPORT - MARKET Capital Markets Overview 2 Market Pricing 7 Buying & Selling By Owner Type 9 Investment Trends By Buyer & Seller Origin 10 Submarket Sales Trends 11 Recent Significant Sales 12 Players 16 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Capital Markets Overview Saint Louis Retail Asset Value 12 Mo Sales Volume Market Cap Rate 12 Mo Mkt Sale Price/SF Chg $23.6B $428.9M 8.3% 3.3% 12 MO SALES VOLUME Total Lowest Highest 12 MO SALES PRICE Average Lowest Highest Market Transactions 634 - - Cap Rate 7.6% 4.4% 16.0% 8.3% Sales Volume $428.9M $37K $20.8M Sale Price/SF $112 $4 $1.7K $135 Properties Sold 596 - - Average Sale Price $1.6M $37K $20.8M - Transacted SF 8.1M 182 1.3M Sale vs Asking Price -7.7% -55.6% 9.1% - Average SF 12.8K 182 1.3M % Leased at Sale 96.2% 0% 100% - KEY PERFORMANCE INDICATORS SUMMARY Investors have been active in St. Louis retail, with Investment firms had been selling retail properties in the roughly $1 billion trading from early 2018-20. Pricing metro faster than they have been acquiring them. The was elevated and total investment was near the previous largest deal of the past four quarters was an example of year's level in 19Q4. Cap rates were above 7.5% as the this: the 3 Star, roughly 205,000-SF Ballwin Plaza sold year came to a close, having compressed from the for $20.9 million ($101.78/SF) in September 2019. previous year's rate near 8.2%. At the start of 2020, National developer and owner Select Strategies Realty nearly $10 million had changed hands across 15 deals, purchased the community center from fellow Ohio-based averaging a 9.7% cap rate. However, investment volume investment firm Viking Partners. The property was nearly should weaken this year, with the economic crisis taking 95% leased at the time of sale and yielded a 7.75% cap center stage. 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 2 Capital Markets Overview Saint Louis Retail rate. The closest deal by volume to Ballwin Plaza neighborhood center from Select Strategies Realty. The happened in December 2018 when Florrisant property was completely occupied at the time of sale, Marketplace sold for $16.6 million ($113/SF). Polimeni yielding an 8.7% cap rate. International purchased the nearly 150,000-SF 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 3 Capital Markets Overview Saint Louis Retail MARKET SALE PRICE & ACTUAL SALE PRICE PER SF MARKET CAP RATE & ACTUAL CAP RATE SALES VOLUME BY TRANSACTION TYPE 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 4 Capital Markets Overview Saint Louis Retail SALE PRICE PER SF DISTRIBUTION PAST 12 MONTHS CAP RATE DISTRIBUTION PAST 12 MONTHS SALE PRICE PER SF BY TRANSACTION TYPE CAP RATE BY TRANSACTION TYPE CUMULATIVE SALES VOLUME BY YEAR SOLD SF AS % OF TOTAL SF 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 5 Capital Markets Overview Saint Louis Retail SALES VOLUME BY BUYER TYPE PAST 12 MONTHS ASSET VALUE BY OWNER TYPE SALE TO ASKING PRICE DIFFERENTIAL OCCUPANCY AT SALE MONTHS TO SALE PROBABILITY OF SELLING IN MONTHS 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 6 Market Pricing Saint Louis Retail MARKET SALE PRICE PER SF BY LOCATION TYPE MARKET CAP RATE BY LOCATION TYPE MARKET SALE PRICE PER SF BY STAR RATING MARKET CAP RATE BY STAR RATING MARKET SALE PRICE PER SF DISTRIBUTION MARKET CAP RATE DISTRIBUTION 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 7 Market Pricing Saint Louis Retail 4-5 STAR MARKET SALE PRICE PER SF DISTRIBUTION 4-5 STAR MARKET CAP RATE DISTRIBUTION 3 STAR MARKET SALE PRICE PER SF DISTRIBUTION 3 STAR MARKET CAP RATE DISTRIBUTION 1-2 STAR MARKET SALE PRICE PER SF DISTRIBUTION 1-2 STAR MARKET CAP RATE DISTRIBUTION 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 8 Buying & Selling By Owner Type Saint Louis Retail SALES VOLUME BY BUYER TYPE SALES VOLUME BY SELLER TYPE NET BUYING & SELLING BY OWNER TYPE 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 9 Investment Trends By Buyer & Seller Origin Saint Louis Retail SALES VOLUME BY BUYER ORIGIN PAST 12 MONTHS SALES VOLUME BY BUYER ORIGIN PAST 12 MONTHS SALES VOLUME BY OWNER ORIGIN Total Local National Foreign Year Sales Volume Bought Sold Net Trans Bought Sold Net Trans Bought Sold Net Trans YTD $61.5M $26.2M $25.2M $1M $14.6M $29.8M ($15.2M) $480K $408.3K $71.7K 2019 $493.8M $141.7M $179.2M ($37.5M) $291M $273.9M $17.2M $3M $7M ($4M) 2018 $503.5M $140.2M $168.9M ($28.7M) $278M $259.9M $18.2M $1.9M $309K $1.6M 2017 $350.4M $93.1M $129.4M ($36.2M) $179.2M $163.6M $15.6M $2M $2.1M ($187.5K) 2016 $455.8M $131.4M $201.1M ($69.7M) $249.1M $172.8M $76.3M $1.3M $7.4M ($6.1M) 2015 $465.3M $126.1M $186.6M ($60.5M) $303.8M $234M $69.8M $14.2M $7.6M $6.6M 2014 $387.6M $123M $135.3M ($12.2M) $232.8M $229.3M $3.5M $4.5M $3.6M $909.5K 2013 $365.9M $78.8M $134.2M ($55.4M) $232.2M $182.6M $49.5M $8.4M $21.7M ($13.3M) 2012 $372.5M $127.5M $159.1M ($31.6M) $182.6M $160.2M $22.4M $4.8M $6.3M ($1.5M) 2011 $566.3M $69.1M $161.8M ($92.7M) $364.4M $323.2M $41.2M $88.2M $41.4M $46.8M 2010 $227.8M $45.1M $102M ($57M) $135.3M $83.3M $52M $1.3M $1.3M ($38.2K) SALE PRICE PER SF BY BUYER ORIGIN CAP RATE BY BUYER ORIGIN 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 10 Submarket Sales Trends Saint Louis Retail SUBMARKET SALES TRANSACTIONS PAST 12 MONTHS Submarket Name Sales Volume Transactions Transacted SF Avg SF Mkt Cap Rate Mkt Sale Price/SF St Charles Region $49,918,410 47 637,164 13,557 8.1% $130 Metro East Illinois $49,831,242 47 474,676 10,099 8.4% $129 Northwest County $45,974,052 75 769,916 10,266 8.4% $126 NE Metro Illinois $43,270,008 55 497,428 9,044 8.3% $114 West County $42,493,124 26 512,441 19,709 8.0% $145 South County $42,305,242 34 445,543 13,104 8.1% $144 St Charles County $26,782,986 22 301,354 13,698 8.1% $154 Mid County $21,074,593 47 366,784 7,804 8.1% $160 North County $20,357,320 34 437,292 12,862 8.6% $124 Chesterfield Region $16,565,000 20 1,528,007 76,400 8.1% $150 St Louis City North $12,095,000 39 381,671 9,786 8.5% $121 St Louis City South $10,930,800 55 281,960 5,127 8.8% $109 SE Metro Illinois $9,524,911 19 200,860 10,572 8.0% $145 Outer Metro Illinois $9,351,000 7 36,623 5,232 8.2% $126 Southwest County $5,542,000 20 310,803 15,540 8.0% $157 Lincoln County $5,004,492 6 113,984 18,997 8.3% $140 Outer Jefferson Cnty $3,122,001 10 141,848 14,185 8.3% $120 Macoupin County $2,897,000 9 56,934 6,326 8.7% $125 Franklin County $2,378,400 25 201,705 8,068 8.4% $125 Clinton County $2,313,500 5 55,564 11,113 8.5% $149 Jefferson County $1,745,000 13 101,067 7,774 8.2% $126 Outer St Charles Cnty $1,590,000 7 51,360 7,337 8.1% $150 Bond County $1,282,075 2 4,124 2,062 8.3% $167 Crawford County $1,092,500 6 140,190 23,365 8.2% $143 Warren County $925,000 1 59,290 59,290 8.2% $129 Outer St Louis County $349,999 4 33,172 8,293 8.1% $153 Jersey County $200,000 1 3,574 3,574 8.4% $154 5/5/2020 Copyrighted report licensed to Hilliker Corporation - 546805 Page 11 Recent Significant Sales Saint Louis Retail 15401-15425 Manchester Rd • Ballwin Plaza Ballwin Plaza • West County Submarket • Ballwin, MO 63011 Sale Date Sep 2019 Buyer Select Strategies Realty (USA) Sale Price $20.8M ($101/SF) Seller Viking Partners (USA) Cap Rate 7.8% (Actual) Broker Mid-America Real Estate Corp. Leased 93% Sale Type Investment Hold Period 58 Months RBA 204,859 SF Year Built 1960 (Renov 1987) 1315-1381 Bass Pro Dr • Mark Twain Village - Bldg II Mark Twain Village • St Charles Region Submarket • Saint Charles, MO 63301 Sale Date May 2019 Buyer First National Realty Partn… (USA) Sale Price $13.2M ($97/SF) Seller Cohen Real Estate (USA) +1 Leased 100% Broker Cushman & Wakefield Hold Period 96 Months Sale Type Investment RBA 135,572 SF Year Built 1969 (Renov 2003) 1287 Central Park Dr • At Home Central Park Plaza • Metro East Illinois Submarket • O'Fallon, IL 62269 Sale Date Jul 2019 Buyer National Retail Properties,… (USA) Sale Price $10.7M ($76/SF) Seller VEREIT, Inc. (USA) Leased 100% Sale Type Investment Hold Period 34 Months Sale Cond Bulk/Portfolio Sale, Investment Triple Net RBA 141,280 SF Year Built 1998 7363-7421 Watson Rd • The Center at Kenrick Plaza Kenrick Plaza • South County Submarket • Saint Louis, MO 63119 Sale Date Nov 2019 Buyer Sandeep Bhalla (USA) Sale Price $10.1M ($126/SF) Seller Daniel L.