BED BATH & BEYOND AND MICHAELS LEASEHOLD FOR SALE. 100% Occupied by Two High Credit National Brands. 24 Years Remain on Leased Interest

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1 BED BATH & BEYOND AND MICHAELS LEASEHOLD FOR SALE 100% Occupied by Two High Credit National Brands 24 Years Remain on Leased Interest Subject is Part of 280,000 SF Cortez Plaza, a DDR Property Below Market Rents Boost Renewal Likelihood Asset is Fully Depreciable Cortez Road W., Bradenton, FL STUART SCHEINHOLTZ Vice President (415) stuart@batterycommercial.com DRE License # Price: $899,000 Cap Rate: 11%

2 INVESTMENT SUMMARY Price: $899,000 NOI: $99,178 (year 2) Cap Rate: 11% Grand Lease Commencement: September 13, 1998 Ground Lease Expiration: February 28, 2019 Renewal Options: Four 5-year options Building Size: 53,638 SF Lot Size: 1.23 ac. Year Built: 1966 Financing: Property is debt free

3 Master Lease Summary Base Term: Expires 2/28/2019 Current Rent: $230,000 ($4.29/SF) Options: Four 5-year options as follows: Option #1: 3/1/2019 at $255,000 ($4.75/SF) Option #2: 3/1/2024 at $280,000 ($5.22/SF) Option #3: 3/1/2029 at $305,000 ($5.69/SF) Option #4: 3/1/2034 at $340,000 ($6.34/SF) Option Term Exp.: 2/28/2039 Percentage Rent: None NNN Charges: Pro rata share

4 Michaels Lease Summary Bed Bath & Beyond Lease Summary GLA: 28,243 SF GLA: 25,395 SF Base Term: Expires 2/29/2024 Base Term: Expires 1/31/2018 Current Rent: $183,579 ($6.50 SF) Current Rent: $147,291 ($5.80/SF) Options: Three 5-year options as follows: Option #1: 3/1/2024 at $211,822 ($7.50/SF) Option #2: 3/1/2029 at $240,065 ($8.50/SF) Option #3: 3/1/2034 at $268,308 ($9.50/SF) Options: Three 5-year options as follows: Option #1: 2/1/2018 at $165,067 ($6.50/SF) Option #2: 2/1/2023 at $177,765 ($7.00/SF) Option #3: 2/1/2028 at $190,462 ($7.50/SF) Option Term Exp.: 2/28/2039 Option Term Exp.: 1/31/2033 CAM Reimb.: Pro rata share CAM Reimb.: Pro rata share Taxes & Ins.: Pro rata share Taxes & Ins.: Pro rata share

5 ABOUT THE TENANTS Bed Bath & Beyond Bed$Bath$&$Beyond$Inc.$operates$a$chain$of$retail$stores$selling$a$range$of$domestic$ merchandise,$including$bed$linens$and$related$items,$bath$items,$and$kitchen$textiles;$and$ home$furnishings,$such$as$kitchen$and$tabletop$items$and$basic$housewares.$$the$ company$also$offers$health$and$beauty$care$items,$and$giftware$and$household$items,$as$ well$as$infant$and$toddler$merchandise.$$bed$bath$&$beyond$inc.$operates$stores$under$the$ names$of$bed$bath$&$beyond$as$well$as$world$market,$cost$plus$world$market$and$cost$ Plus.$$In$addition,$it$provides$various$textile$products,$amenities,$and$other$goods$to$ institutional$customers$in$the$hospitality,$cruise$line,$food$service,$healthcare$and$other$ industries.$$as$of$february$28,$2015,$the$company$had$a$total$of$1,513$stores,$including$ 1,019$Bed$Bath$&$Beyond$stores$in$the$U.S.$$Bed$Bath$&$Beyond$Inc.$was$founded$in$1971$ and$is$headquartered$in$union,$new$jersey.$$the$company$is$publicly$traded$on$nasdaq$ ( BBBY )$and$has$a$market$capitalization$of$about$$12.9$billion.$$bed$bath$&$beyond$has$ an$s&p$rating$of$ BBB+.

6 ABOUT THE TENANTS Michaels The$Michaels$Companies,$Inc.$owns$and$operates$a$chain$of$arts$and$crafts$ specialty$retail$stores$under$the$michaels$and$aaron$brothers$names$in$north$ America.$$The$company s$michaels$stores$offer$a$vast$supply$of$arts,$crafts,$ framing,$^loral,$home$décor$and$seasonal,$scrapbooking,$and$seasonal$ merchandise.$$its$aaron$brothers$stores$offer$photo$frames,$a$line$of$ready` made$frames,$art$prints,$framed$art,$art$supplies,$and$custom$framing$services.$$ As$of$January$31,$2015,$the$company$owned$and$operated$1,168$Michaels$ stores$in$49$states$and$canada;$and$120$aaron$brothers$stores$in$nine$states.$$ The$Michaels$Companies,$Inc.$was$founded$in$2013$and$is$headquartered$in$ Irving,$Texas.$$The$company$is$publicly$traded$on$NASDAQ$( MIK )$and$has$a$ market$capitalization$of$about$$5.6$billion.$$michaels$has$an$s&p$rating$of$ B.

7 BRADENTON, FLORIDA Bradenton$is$located$on$US$41$between$Tampa$and$Sarasota.$$The$ area$is$surrounded$by$waterways,$both$fresh$and$saltwater.$$ Sarasota$bene^its$from$over$20$miles$of$beaches$along$the$Gulf$of$ Mexico$and$into$Tampa$Bay.$$Bradenton$is$the$county$seat$and$ largest$principal$city$of$the$bradenton`sarasota`venice$ Metropolitan$Statistical$Area.$$This$MSA s$population$was$recently$ estimated$to$be$over$682,000$residents.$$bradenton$is$known$as$ the$home$of$juice$production$for$tropicana$(once$headquartered$ there)$and$as$the$spring$season$home$of$the$pittsburgh$pirates.$$ The$city$is$the$headquarters$for$Champs$Sports,$a$nationwide$ sports`apparel$chain,$as$well$as$department$store$chain$bealls. ABOUT THE AREA The$subject$property$is$part$of$Cortez$Plaza,$a$280,000$SF$center$ anchored$by$petsmart,$burlington$coat$factory$and$la$fitness,$as$well$ as$bed$bath$&$beyond$and$michaels.$$the$subject$is$located$at$the$ intersection$of$cortez$road$and$us$41.$$this$intersection$has$an$ extremely$high$traf^ic$count,$with$nearly$74,000$vehicles/day.$cortez$ Plaza$is$also$proximate$to$two$other$major$retail$centers$including$ DeSoto$Square$Mall$and$Center$Pointe$Commons.$$National$tenants$in$ and$around$this$corridor$include$lowe s,$best$buy,$dick s$sporting$ Goods$and$Home$Depot.

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9 DEMOGRAPHIC SUMMARY Population Average Household Income 1 Mile 3 Mile 5 Mile 16, , ,330 $36,790 $46,707 $51,553

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