NET LEASE INVESTMENT OFFERING JEWEL-OSCO (Albertsons | Chicago MSA) 4650 W 103rd Street Oak Lawn, Illinois 60453 TABLE OF CONTENTS TABLE OF CONTENTS I. Executive Profile II. Location Overview III. Market & Tenant Overview Executive Summary Photographs Demographic Report Investment Highlights Drone Photographs Market Overview Property Overview Aerial Tenant Overview Rent Schedule Site Plan 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 net SUMMARY: leased Jewel-Osco grocery store located within the Chicago MSA in Oak Lawn, Illinois. The property is strategically located at a signalized intersection in an affluent area. Jewel-Osco is committed to this location as evidenced by their long operating history at this location (since 1965) and recently executed 20 year lease which expires in October 2037. The lease is enhanced by a guaranty from Albertsons Companies, LLC, rental escalations and eight 5-year renewal option periods. This is a high performing location with above average sales per square foot. Jewel-Osco is a supermarket chain with more than 185 stores throughout the Chicagoland area, Indiana and Iowa. Jewel-Osco is a wholly owned subsidiary of Albertsons Companies, LLC, the second largest traditional grocer in the United States. The 47,370 square foot building sits on a 3.65 acre parcel in a densely populated residential area of Chicago. The property is located immediately off of the signalized intersection of 103rd Street and Cicero Avenue which experiences a combined traffic count of 66,200 vehicles per day. The property has excellent visibility and easy interchangeable access along 103rd Street. Retailers located in the immediate area include Marshalls, Planet Fitness, Walgreens, Chase Bank, Firestone Auto Care, AutoZone, Starbucks and McDonald’s. In addition, Advocate Christ Medical Center, a 749 bed hospital that sees over 100,000 patients annually and is part of the largest health system in Illinois, is located roughly one-mile from the property. There are over 168,400 people living within a three mile radius of the property with average annual household incomes in excess of $80,500 per year. There are 20 years remaining on the corporate guaranteed lease which expires October 31, 2037. The absolute triple net lease features rental escalations throughout the term as seen on the ‘Rent Schedule’ (Page 5). Jewel-Osco, which is part of Albertsons Companies (2,300+ stores and approximately 173,000 employees nationwide), is the leading grocer by market share in the Chicago MSA. -1- NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS INVESTMENT Investment Opportunity to Acquire a Grocery Store Leased to Illinois’ Premier Grocer HIGHLIGHTS: • Jewel-Osco is is the leading grocer by market share in the Chicago MSA • Jewel-Osco operates more than 185 stores throughout the Chicagoland area, Indiana and Iowa • Jewel-Osco was acquired in 2013 by Albertsons Companies, LLC, the second largest supermarket chain in the United States Corporate Guarantee from Albertsons Companies, LLC, Second Largest Traditional Grocer in the United States • Largest privately held and second largest traditional grocer in the United States • Approximately 34 million customers per week • Operates stores across 35 states and the District of Columbia under 20 well-known banners • Over 2,300 stores and approximately 173,000 employees nationwide Long Operating History • 48 year operating history at this location with an established customer base • Recently executed a new long-term lease (20 years) showing commitment to the location • Above average store sales Attractive Lease Structure • Long term lease with 20 years remaining • Rental escalations in the primary term and each renewal option period • Corporate guaranty (Albertsons Companies, LLC) • No landlord responsibilities -2- NET LEASE INVESTMENT OFFERING INVESTMENT HIGHLIGHTS INVESTMENT Modern Grocery Store Format HIGHLIGHTS: • Renovated in 2014 • 190 parking spaces • Exceptional visibility and easy access Strategic Location • Located within the Chicago MSA • Over 168,400 people living within a three mile radius with average annual household incomes in excess of $80,500 per year • Retailers located in the immediate area include Marshalls, Planet Fitness, Walgreens, Chase Bank, Firestone Auto Care, AutoZone, Starbucks and McDonald’s • Located roughly one-mile from Advocate Christ Medical Center (749 beds) which sees over 100,000 patients annually Desirable Market • Chicago is the most populous metropolitan area in the Midwestern United States • The area is one of the world’s largest and most diversified economies, with more than four million employees and generating an annual gross regional product of over $561 billion. • The region hosts more than 400 major corporate headquarters, including 31 in the Fortune 500 -3- NET LEASE INVESTMENT OFFERING PROPERTY OVERVIEW PROPERTY Price: $16,575,089 OVERVIEW: Cap Rate: 5.60% Net Operating Income: $928,205 Rental Escalations: (See ‘Rent Schedule’ on Next Page) Renewal Options: Eight 5-Year (See ‘Rent Schedule’ on Next Page) Lease Commencement Date: November 1, 2017 Lease Expiration Date: October 31, 2037 Tenant: New Albertson’s, Inc. d/b/a Jewel-Osco Guaranty: Albertsons Companies, LLC Year Built / Renovated: 1965/2014 Lease Type: Absolute NNN - No Landlord Responsibilities Parking: 190 Spaces Building Size: 47,370 SF Land Size: 3.65 Acres -4- NET LEASE INVESTMENT OFFERING RENT SCHEDULE Current Monthly Yearly Increase Tenant Square Feet Term Rent Rent Rent (%) Jewel-Osco 47,370 SF November 1, 2018 - October 31, 2019 $928,205 $77,350 $928,205 1.50% November 1, 2019 - October 31, 2020 $78,511 $942,128 1.50% November 1, 2020 - October 31, 2021 $79,688 $956,260 1.50% November 1, 2021 - October 31, 2022 $80,884 $970,604 1.50% November 1, 2022 - October 31, 2023 $80,884 $970,604 -- November 1, 2023 - October 31, 2024 $80,884 $970,604 -- November 1, 2024 - October 31, 2025 $80,884 $970,604 -- November 1, 2025 - October 31, 2026 $80,884 $970,604 -- November 1, 2026 - October 31, 2027 $80,884 $970,604 -- November 1, 2027 - October 31, 2028 $86,950 $1,043,399 7.50% November 1, 2028 - October 31, 2029 $86,950 $1,043,399 -- November 1, 2029 - October 31, 2030 $86,950 $1,043,399 -- November 1, 2030 - October 31, 2031 $86,950 $1,043,399 -- November 1, 2031 - October 31, 2032 $86,950 $1,043,399 -- November 1, 2032 - October 31, 2033 $93,471 $1,121,654 7.50% November 1, 2033 - October 31, 2034 $93,471 $1,121,654 -- November 1, 2034 - October 31, 2035 $93,471 $1,121,654 -- November 1, 2035 - October 31, 2036 $93,471 $1,121,654 -- November 1, 2036 - October 31, 2037 $93,471 $1,121,654 Option 1 November 1, 2037 - October 31, 2042 $100,481 $1,205,778 7.50% Options Option 2 November 1, 2042 - October 31, 2047 $108,018 $1,296,211 7.50% Option 3 November 1, 2047 - October 31, 2052 $116,119 $1,393,427 7.50% Option 4 November 1, 2052 - October 31, 2057 $124,828 $1,497,934 7.50% Option 5 November 1, 2057 - October 31, 2062 $134,190 $1,610,279 7.50% Option 6 November 1, 2062 - October 31, 2067 FMV* FMV* FMV* Option 7 November 1, 2067 - October 31, 2072 FMV* FMV* FMV* Option 8 November 1, 2072 - October 31, 2077 FMV* FMV* FMV* -5- * Tenant shall pay equal to the greater of the rent of the proceeding lease year or fair market value. PHOTOGRAPHS -6- NET LEASE INVESTMENT OFFERING DRONE PHOTOGRAPHS -7- NET LEASE INVESTMENT OFFERING AERIAL -8- NET LEASE INVESTMENT OFFERING AERIAL -9- NET LEASE INVESTMENT OFFERING SITE PLAN -10- NET LEASE INVESTMENT OFFERING MAP -11- NET LEASE INVESTMENT OFFERING MAP Lake Michigan -12- NET LEASE INVESTMENT OFFERING DEMOGRAPHIC REPORT DEMOGRAPHIC Population 1-Mile 3-Mile 5-Mile REPORT: Total Population 22,638 168,404 442,956 Total Households 9,431 62,760 157,821 Income 1-Mile 3-Mile 5-Mile Median Household Income $63,435 $63,588 $57,163 Average Household Income $84,828 $80,562 $74,992 -13- NET LEASE INVESTMENT OFFERING MARKET OVERVIEW MARKET Oak Lawn, Illinois OVERVIEW: Oak Lawn is a village in Cook County, Illinois, roughly 5 miles south of Midway International Airport and 15 miles southwest of downtown Chicago. The village was incorporated in 1909 and, today, has a population of over 57,000 residents. Oak Lawn has wonderful neighborhoods, community services, and a diverse mix of businesses and retailers. Oak Lawn is known for its community hospital, which serves the residents of Chicago and the southwestern suburbs. Advocate Christ Medical Center was built in 1960 and currently accommodates 749 beds and 1,300 affiliated physicians.