NET LEASE INVESTMENT OFFERING Walgreens (Dollar Tree Sublease) – Lake Worth, FL Walgreens – Colorado Springs, CO Walgreens (Harley Davidson Sublease) – Staten Island, NY Walgreens – Three Property Leasehold Portfolio (Zero Cash Flow) TABLE OF CONTENTS TABLE OF I. Portfolio Summary CONTENTS: Portfolio Summary .................................................................... 1 Portfolio Highlights ................................................................... 2 Paydown / Pay-up Features ...................................................... 3 List of Properties ....................................................................... 4 Portfolio Map ............................................................................. 5 II. Colorado Springs, CO ...................................................... 6 Executive Summary Map Demographics Property Overview Aerial Site Plan III. Lake Worth, FL ................................................................ 10 Executive Summary Map Demographics Property Overview Aerial Site Plan IV. Staten Island, NY .............................................................. 14 Executive Summary Map Demographics Property Overview Aerial Site Plan -2--i- 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 properties. 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. -3--ii- NET LEASE INVESTMENT OFFERING PORTFOLIO OVERVIEW PORTFOLIO OVERVIEW: Price: $9,387,245 Loan Balance: $8,127,485 (As of June 2018) Equity Requirement: $1,259,760 % Over Debt: 15.50% Net Operating Income: $637,925 Lease Expiration Date: 4/30/2039 Tenant: Walgreens Lease Type: NNN – Leasehold Interest Total Building Square Footage: 37,527 SF -1- NET LEASE INVESTMENT OFFERING PORTFOLIO HIGHLIGHTS PORTFOLIO • Zero landlord responsibilities HIGHLIGHTS: • Properties are located at the corner of a signalized intersection • Walgreens is an investment grade tenant (S&P: BBB) • Located in strong markets with thriving demographics • Fully assumable, self-amortizing, zero cash flow debt in-place • 100% depreciable as leasehold interest • Pay-down/re-advance feature allowing 1031 investor to exchange into these properties at a lower leverage and pull out significant cash • Long term leases with approximately 21 years remaining -2- NET LEASE INVESTMENT OFFERING PAYDOWN / PAY-UP FEATURES PAYDOWN / Ability to pull out equity for the investor by reducing the outstanding loan balance as closing (pay down) and PAY-UP FEATURE: pulling cash back out within 30 days post closing (pay-up). 1031 Example Walgreens ZCF Portfolio Requirement: $10,000,000 (100%) Requirement: $10,000,000 (100%) Equity: $5,000,000 (50%) Equity: $1,300,000 (13%) Debt: $5,000,000 (50%) Debt: $8,700,000 (87%) Investor Cashout: $3,700,000 of Sale Proceeds from pay-up feature post-closing. *This is a basic example and we are not certified public accountants. Please contact your advisor for details. -3- NET LEASE INVESTMENT OFFERING LIST OF PROPERTIES LIST OF PROPERTIES: Tenant Address Building Loan Balance Loan Interest Leasehold Lease Size (June 2018) Maturity Rate NOI Expiration 4470 Royal Pine Drive Walgreens Colorado Springs, CO 14,431 SF $2,966,188 4/25/2039 5.15% $232,783 4/30/2039 Walgreen 8955 Lantana Road 14,797 SF $2,271,240 4/25/2039 5.15% $178,325 4/30/2039 (Dollar Tree Sublease) Lake Worth, FL Walgreens 1973 Forest Avenue 8,299 SF $2,890,057 4/25/2039 5.15% $226,817 4/30/2039 (Harley-Davidson Sublease) Staten Island, NY Total: 37,527 SF $8,127,485 $637,925 -4- NET LEASE INVESTMENT OFFERING PORTFOLIO MAP PORTFOLIO MAP: -5- NET LEASE INVESTMENT OFFERING WALGREENS | COLORADO SPRINGS, CO 6 COLORADO SPRINGS, CO EXECUTIVE SUMMARY: The 14,431 square foot property is strategically positioned at the corner of a signalized intersection just off of Colorado State Highway 21 which experiences traffic counts of 40,417 vehicles per day. The property is benefited by its location within a thriving medical corridor near ER Specialists Urgency Center, UCHealth (413 Beds), Children’s Hospital Colorado, Kaiser Permanente and Alliance Urgent Care. The Walgreens property is also an out parcel to Life Time Fitness and near Lowe’s and Target. Additionally, the property is located directly across from the brand new La Bella Vita which has 278 apartments. There are 65,302 people living within a three mile radius of the property earning an average household income of more than $120,000 per year. PROPERTY DEMOGRAPHIC OVERVIEW: REPORT: Lease Expiration: 4/30/2039 Population 1-Mile 3-Mile 5-Mile NOI: $232,783 Total Population 9,056 65,302 157,702 Building Size: 14,431 SF Total Households 2,906 22,632 57,337 Year Built: 2011 Address: 4470 Royal Pine Drive Income 1-Mile 3-Mile 5-Mile Colorado Springs, CO Median Household Income $126,937 $102,292 $84,200 Average Household Income $148,828 $121,206 $104,440 -7- NET LEASE INVESTMENT OFFERING COLORADO SPRINGS, CO AERIAL: -8- NET LEASE INVESTMENT OFFERING COLORADO SPRINGS, CO SITE PLAN: -9- NET LEASE INVESTMENT OFFERING WALGREENS (DOLLAR TREE SUBLEASE) | LAKE WORTH, FL 10 LAKE WORTH, FL EXECUTIVE SUMMARY: The 14,797 square foot property is strategically positioned at the corner of a signalized intersection along a primary east-west thoroughfare. The property is benefited by its location near numerous residential communities and golf courses. Retailers in the immediate area include CVS, LA Fitness, Circle K, Target and Sherwin Williams. There are 65,384 people living within a three mile radius of the property earning an average household income of $98,904 per year. PROPERTY DEMOGRAPHIC OVERVIEW: REPORT: Population 1-Mile 3-Mile 5-Mile Lease Expiration: 4/30/2039 NOI: $178,325 Total Population 4,857 65,384 186,694 Total Households 1,955 25,832 70,196 Building Size: 14,797 SF Year Built: 2010 Income 1-Mile 3-Mile 5-Mile Address: 8955 Lantana Road Lake Worth, FL Median Household Income $77,453 $72,460 $61,391 Average Household Income $113,241 $98,904 $86,905 -11- NET LEASE INVESTMENT OFFERING LAKE WORTH, FL AERIAL: -12- NET LEASE INVESTMENT OFFERING LAKE WORTH, FL SITE PLAN: -13- NET LEASE INVESTMENT OFFERING WALGREENS (HARLEY DAVIDSON SUBLEASE) | STATEN ISLAND, NY 14 STATEN ISLAND, NY EXECUTIVE SUMMARY: The 8,299 square foot property is strategically positioned on the northwest corner of Forest Avenue and Van Name Avenue. The intersection experiences traffic counts of 20,794 vehicles per day. The property is benefited by its location within a densely populated area and strong regional trade area that features a number of national retailers including The Home Depot, Lowe’s Home Improvement, Kohl’s, TJ Maxx, LA Fitness, Regal Cinemas, HomeGoods, Michaels and a number of quick service restaurants, auto part stores and banks. There are 208,475 people living within a three mile radius of the property earning an average household income of more than $90,000 per year. PROPERTY DEMOGRAPHIC OVERVIEW: REPORT: Lease Expiration: 4/30/2039 Population 1-Mile 3-Mile 5-Mile NOI: $226,817 Total Population 43,148 208,475 564,460 Building Size: 8,299 SF Total Households 13,900 70,889 197,262 Year Built: 2008 Address: 1973 Forest Avenue Income 1-Mile 3-Mile 5-Mile Staten Island, NY Median Household Income $68,785 $70,262 $61,774 Average Household Income $83,686 $90,090 $84,238 -15- NET LEASE INVESTMENT OFFERING AERIAL: New York City Police Department VAN NAME AVENUE Public School 22 FOREST AVENUE (20,794 VPD) STATEN ISLAND, NY NET LEASE INVESTMENT OFFERING -16- BAYONNE BRIDGE (27,400 VPD) P D ) 2 0 V 2 7 , 9 Y ( W A S S R E X P R E D R N G J . M A R T I N L U T H E R K I STATEN ISLAND, NY SITE PLAN: -17- 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