N Pi n a l Ave, C a s a Gra n d e, A Z

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1 OFFERING MEMORANDUM Charlotte, NC WA LG R E E NS N Pi n a l Ave, C a s a Gra n d e, A Z Exclusive Listing Agents MAXX BAUMAN CHAD KURZ ASSOCIATE SVP & NATIONAL DIRECTOR DIRECT MOBILE maxx.bauman@matthews.com LIC # (CA) DIRECT MOBILE chad.kurz@matthews.com LIC # (CA) BROKER OF RECORD Don Mortensen LIC # LC (AZ) 1

2 WALGREENS Highlights Proven Location Historically Successful Investment - Walgreens extended out the lease early for 10 years in 2015 without a rent concession demonstrating their profitability at this location Extremely Low Occupancy Cost - Average rent for Walgreens across the country is ±$375K this location only pays $260K High 6.25% return for West Coast Walgreens located in a booming market Significant Market Growth Confidence has been placed in the Casa Grande market through massive real estate developments which are projected to create over 30,000 jobs and represent $5B in capital investment over the next 10 years (see page 3) Casa Grande, AZ ranks among the top 10 fastest growing cities in Arizona The 1-mile population grew by over 18% over the previous 5 years and is projected to grow an additional 9% over the next 5 years Large Consumer Population the property serves over 20,000 households and over 58,000 residents in a 3-mile radius Growing Trade Area - Over 950 tract homes planned within a 2-mile radius of the subject property Strong Corporate Backing Walgreens ranks among the top 20 of Fortune 500 Companies Investment Grade Credit Tenant, S&P Rated BBB Walgreens will replace General Electric and become one of the 30 companies which make up the 122-year-old Down Jones Industrial Average

3 Casa Grande s Booming Economic Development Lucid Motors Casa Grande beat out 60 other potential sites across 13 states to secure this 500 acre, $700MM, luxury electric vehicle manufacturer Attesa Motorsports This 2,360-acre motorsports complex is projected to create 10,000 jobs and create $1.8 Billion of economic activity following its completion Dreamport Villages Described as the next Disney World, Dreamport Villages is a $4 Billion, 1,500 acre amusement park is expected to generate up to 15,000 jobs with an annual visitor count of 15 million PhoenixMart This project has been described as the most complete Business to Business global product marketplace. PhoenixMart is a 585 acre master planned development which will consist of showrooms, office space, condos, five-star resort and spa 3

4 Family Life in Casa Grande Dave White Municipal Golf Course The Dave White Golf Course is open year round for great golfing in Casa Grande. Beautiful mountain views and mature trees line the course making for a wonderful golfing experience Community Recreation Center This $16MM, 50,000 SF project was recently approved by city council and is currently under construction. The state of the art facility will include a gym, walking track, fitness loft, teen area, offices, and activity/class rooms. Recreational Parks The City of Casa Grande is home to 19 parks, 17 miles of trails, and many sports fields which provide the community with access to a number of year round outdoor recreational opportunities 4 Grande Sports World This is a world class 58,000 SF performance facility, equipped with 4 stadium quality locker rooms, strength and conditioning equipment, a large players lounge, 8 professional grade soccer fields and much more. Grande Sports World is utilized by teams like LA Galaxy, Real Salt Lake, New York Red Bulls, and FC Barcelona

5 Financial Charlotte, Overview NC Investment Summary»» LIST PRICE $4,169,712»» NOI $260,607»» CAP RATE 6.25%»» TOTAL BUILDING AREA ± 15,125 SF»» TOTAL LAND AREA ± 1.83 Acres Annualized Operating Data Monthly Rent Annual Rent Rent/SF Cap Rate 4/08/2001-3/31/2026 $21,717 $260,607 $ % 10, 5 Year Options: $21,717 $260,607 $ % Tenant Summary Tenant Trade Name Type of Ownership Lease Guarantor Lease Type Term Remaining on Lease Original Lease Term Walgreens Fee Simple Corporate NNN ± 8 Years 20 Years Lease Commencement Date 4/12/2001 Lease Expiration Date 3/31/2026 Options Site Description Address 10, 5-Year Options 2021 N Pinal Ave Casa Grande, AZ Year Built 2000 Type of Ownership Landscaping Topography Fee Simple Professional Generally Level 5

6 Tenant Overview TENANT OVERVIEW WALGREENS HEALTH FOCUS MARKETING STRATEGY The nation s #1 drugstore chain, Walgreens, operates close to 8,300 stores in all 50 US states, the District of Columbia, the Virgin Islands and Puerto Rico. Prescription drugs are the focus of the company as they account for close to two-thirds of sales; the rest comes from general merchandise, over-the-counter medications, cosmetics and groceries. Most locations offer drive-through pharmacies and one-hour photo processing, which separates them from the competition. Walgreens overall value proposition differentiates it from competitors in valuable ways. Specifically, a focus on health gives Walgreens a competitive advantage over other pharmacies. By putting health at the forefront of all aspect of the business and reducing customers shopping time, Walgreens has achieved placement in a league of its own as the competition aims their focus on things such as convenience, design, or low prices. Walgreens focuses on customer need and satisfaction. For example, the curbside pick-up service stemmed from the needs of working mothers who don t have the time to go into the store and shop. Creating loyalty amongst patrons is a priority for the company as it keeps them coming back and spending money. Company Name Parent Company Trade Name Ownership Revenue Net Income Walgreen Co. Walgreens Boots Alliance, Inc. (NASDAQ: WBA) Public $76.39B $1.93B No. of Locations ± 8,300 No. of Employees ± 253,400 Headquartered Deerfield, Illinois Website Year Founded

7 Casa Grande Area Overview Casa Grande, AZ Casa Grande is one of the fastest growing cities in Pinal County, approximately halfway between Phoenix and Tucson and part of the Phoenix Metropolitan Statistical Area. Casa Grande is currently the largest city in Pinal County and is continuing to grow. The city offers a broad range of facilities and activities for residents of all ages that are available year-round. A thriving Historic Downtown boasts an array of locally owner businesses, restaurants, and community events. Casa Grande is also home to an impressive lineup of industrial tenants because of its close proximity to both Phoenix and Tucson which include Abbot Nutrition ($20.5B Annual Sales), Frio Lay ($11.2B Annual Sales), Wal- Mart ($485.2B Annual Sales), and Monsanto Research Center ($14.4B Annual Sales) Demographics POPULATION 1 - MILE 3 - MILE 5 - MILE 2023 Projection 8,428 49,551 63, Estimate 7,701 46,075 58, Census 6,521 40,896 51,411 Growth % 7.54% 7.87% Growth % 12.66% 13.75% HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE 2023 Projection 3,194 17,084 22, Estimate 2,948 15,941 20, Census 2,567 14,298 18,463 Growth % 7.17% 7.55% Growth % 11.49% 12.65% INCOME 1 - MILE 3 - MILE 5 - MILE 2018 Est. Average Household Income $64,165 $62,694 $61,541 7

8 Phoenix, AZ Phoenix MSA Phoenix is located in the heart of the fastest growing and most dynamic metropolitan area in the country with a population of over 4 million people. Phoenix has a population of 1.6 million and is the fifth largest city in the United States, forecast to be at least #4 by Adjacent cities include Scottsdale, Mesa, Chandler, and Glendale, and other nearby cities include Tucson, Yuma, and Flagstaff. The Phoenix-Casa Grande-Tucson corridor has been and is expected to be one of the fastest growing areas in the U.S. in the next decades. The U.S. Census Bureau estimates that by 2030 the population of Phoenix will grow to 2.2 million, and the population of the metro area will reach 6.3 million. Arizona shares a vibrant border with Mexico that facilitates trade between the U.S. and Latin America. This timeless Southwestern backdrop is the perfect setting for family vacations, weekend adventures or romantic getaways. Each year, 16 million leisure visitors travel to Greater Phoenix. 8

9 Confidentiality Agreement & Disclaimer This Offering Memorandum contains select information pertaining to the business and affairs of Walgreens located at 2021 N Pinal Ave, Casa Grande, AZ ( Property ). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence. By acknowledging your receipt of this Offering Memorandum for the Property, you agree: 1. The Offering Memorandum and its contents are confidential; 2. You will hold it and treat it in the strictest of confidence; and 3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Seller. Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered. If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum. A prospective purchaser s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property. This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

10 Executive Overview Exclusive Listing Agents MAXX BAUMAN ASSOCIATE DIRECT MOBILE LIC # (CA) CHAD KURZ SVP & NATIONAL DIRECTOR DIRECT MOBILE chad.kurz@matthews.com LIC # (CA) BROKER OF RECORD Don Mortensen LIC # LC (AZ) 10 WALGREENS 2021 N Pinal Ave, Casa Grande, AZ 85122