The Kase Group Net Leased Portfolio CVS Distribution Center in Fredericksburg, VA and Albertsons in Napa, CA $35,850,000 | 5.86% CAP Available as a Package or Individually Irreplaceable Napa and Washington DC MSA Locations $2,100,000 Combined Annual Net Income Absolutely Zero Landlord Responsibilities Presented By: Kase Abusharkh 252 Abigail Circle Danville, CA 94506 (925)348-1844 The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Table of Contents 1 Albertsons Financial Analysis 2 Albertsons Property Summary 3 Albertsons Company Profile 4 Napa Demographics Summary 5 Albertsons Additional Site Information 6 Albertsons Property Photos 7 CVS Financial Analysis 8 CVS Corp. Stock Information 9 CVS Company Growth Profile 10 Fredericksburg Demographics Summary 11 CVS Additional Site Information 12 CVS Property Photos The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Highlights Napa Valley Albertsons 2355 California Boulevard Napa, CA 94559 Scheduled Increases, Next Increase December 2007 100% Fee Simple Interest in the Land Irreplaceable Napa Valley Location Long Term NNN Ground Lease with Options - Zero Landlord Responsibilities The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 1. Albertsons Financial Analysis Executive Summary Napa Valley Albertsons 2355 California Boulevard Napa, CA 94559 GLA 65,413 Building S.F. 65,413 Percent Occupied 100.00 % Land Acres 6.11 Absolute NNN Ground Lease - Zero Landlord Responsibilities Cross Street Lincoln Tax Parcel Number 00201106 Market Northern California Sub Market Napa County Year Built 1997 Building Class A Location Class A No. of Buildings 1 HVAC Yes Street Frontage 584 Feet Corner Yes Zoning Type Commercial Parking Ratio 4/1000 Property Descriptions Construction 1997 Class 'A' Construction Parking The property's 6.11 acre lot offers abundant parking. Traffic Counts 21,400 ADT on Lincoln Avenue and 16,465 ADT on California Boulevard Ingress/Egress The property’s main drive entrance is a signalized intersection on California Boulevard. Major Tenants The tenants, Albertsons and Sav-On, were recently acquired by Supervalu, Inc. (NYSE: SVU). Supervalu, Inc. has a Standard & Poors rating of BB-/Stable and a Value Line Financial Strength of B++. Supervalu, Inc. is also ranked #113 on the Fortune 500 and is a member of the S & P 500. The subject store is not on the 'Albertsons Closure List'. Area Irreplaceable Napa Valley Location: This asset is well located in one of America’s most sought after markets in an rreplaceable location on California Boulevard with highway visibility and access. The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Investment Information Napa Valley Albertsons 2355 California Boulevard Napa, CA 94559 GLA 65,413 Building S.F. 65,413 Percent Occupied 100.00 % Land Acres 6.11 Loan Amount 70% Down Payment 30% Loan Description 30% down, interest only for 5-years, up to 15-years upon review of the lease. Financing quote provide by Barry Slatt Motgage, Los Angeles Office: 310.954.8200 Estimated Annualized Operating Data Actual 2017 2027 2032 Scheduled Income $550,000 $605,000 $665,500 $698,775 Absolute NNN Lease, All Expenses Paid by Tenant Net Operating Income $550,000 $605,000 $665,500 $698,775 Highlights Scheduled Increases, Next Increase December 2007 100% Fee Simple Interest in the Land Irreplaceable Napa Valley Location Long Term NNN Ground Lease with Options The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. Financial Summary Estimated Annualized Operating Data Actual 2017 2027 2032 Scheduled Income $550,000 $605,000 $665,500 $698,775 Absolute NNN Lease, All Expenses Paid by Tenant Net Operating Income $550,000 $605,000 $665,500 $698,775 The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. www.svn.com Rent Roll Summary Space Tenant Name Start Date End Date Occupied Annual Occupied % of Escalations / Options / Comments Number S.F. Rent S.F. Rent Total 2355 Albertsons 3/1/1997 3/31/2027 65,413 $8.41 $550,000 100.0 % 10% Increases every 10 years California Nine(9)-(5)five year options with 5% increases each five (5) year option period. Current rent is $495,000. In 2007 rent will increase to $550,000. Seller will credit difference at COE. Total 65,413 $550,000 100.0 % The information listed above has been obtained from sources we believe to be reliable, however, we accept no responsibility for its correctness. 2. Albertsons Property Summary www.svn.com Property Summary Sperry Van Ness | The Kase Group has been retained by the Owner as Exclusive Agent and Advisor for the disposition of its 100% Fee Simple Interest of an Albertsons Absolute NNN Ground Lease in Napa, California. This Class A asset is located in the Heart of Napa Valley Wine Country, in one California’s most sought after and affluent communities. The Property is conveniently located at the intersection of California Boulevard and Lincoln Avenue. This Albertsons enjoys excellent freeway visibility, and convenient access to Downtown Napa. The 65,413 square foot Albertsons anchor space is situated on approximately 6.11 acres of land and was constructed at the sole cost of Albertsons. The subject property was completed in 1997 and is subject to a Long Term (20+ Years Remaining on an Initial 30 Year Term) Absolute NNN Lease with Albertsons. With limited competition, exceptional demographics, strong residential housing growth, newer construction and significant barriers to entry and scheduled increases, an investor will enjoy stable cash flows, and the ability to take advantage of today’s long term fixed debt rates. Fee Simple Interest Ground Lease: Seller is offering for sale the 100% fee simple interest in the land beneath an Albertsons store. This is an absolute NNN ground lease with zero landlord responsibilities. Albertsons built the store at their sole cost and is currently leasing the underlining land (6.11 acres) from the ownership. This is a highly sought after ground lease interest. Long-Term Ground Lease: There are 20+ years remaining on an initial 30 year term with Albertsons. The lease calls for Nine (9) successive Five (5) year options. Scheduled Increases: The current rent is under-market, which offers upside potential. The underlining ground lease calls for generous scheduled increases during the initial term and throughout all the successive option periods. Absolutely Zero Landlord Responsibilities: Due to the irreplaceable location and significant barriers to entry, the ownership was able to negotiate an Absolute NNN Ground Lease with Zero Landlord Responsibilities. Each and every cost associated with the subject asset is the sole cost and expense of Albertsons. Class ‘A’ Construction and Location: An investor will enjoy the Class ‘A’ 1997 Pride of Ownership Construction. Albertsons has taken the initiative to maintain this store in pristine condition to cater to the high income demographic that shop at this location. No Existing Debt: The Subject Property is being offered ‘free and clear’ of any existing debt. The property consists of 6.11 acres on which Albertsons has built a Class A 65,413+/- square- foot building. There are inline shops (NAP) north-east of the property occupied by Great Clips, Blockbuster Video, and Little Caesar’s Pizza which provides excellent synergy with Albertson and draws even more customers Sperry Van Ness is a registered trademark of Sperry Van Ness International Corporation. Some locations independently owned and operated. www.svn.com This location was not a part of the Albertsons Closure List exhibiting that is a strong and well- operating store The large land area (6.11 acres) offers abundant parking for this established and busy Albertsons. Rare Opportunity to own in the Heart of Napa Wine Country with Significant Barriers to Entry. This offering will provide any investor the confidence of owning in one of the most affluent, desirable and famous communities in the world. Investment opportunities such as this rarely become available anywhere in Northern California. Residential Development and Growth: Just off to the south of the subject property is a newly completed residential development. And on the other side of California Boulevard, directly across from the Albertsons is a residential town home development that is just in its beginning stages. Napa is a highly attractive place to live and desirable for residential developers as a sought-after place to construct housing. The area shows strong growth demographics which will necessitate the major grocery anchor that this site provides. Background on Napa: Napa is the county seat of Napa County, California. It is the principal city of the Napa County Metropolitan Statistical Area, which encompasses Napa County. As of the 2000 census, the city had a total population of 72,585. The area was settled in the 1830s. It was incorporated as a city in 1872. Napa is a 45 minute drive from San Francisco. Sperry Van Ness is a registered trademark of Sperry Van Ness International Corporation. Some locations independently owned and operated. 3. Albertsons Company Profile www.svn.com Company Profile Albertsons (officially New Albertson's, Inc.), a wholly owned subsidiary of Eden Prairie, Minnesota-based Supervalu, is a supermarket retailer that, at its peak, operated more than 2,500 grocery stores and 700 drug stores under several names in 37 U.S. states with approximately 230,000 associates. Supervalu granted Cerberus a license to continue to operate Cerberus-owned stores under the Albertsons banner.