WEST BEND SALE LEASEBACK OPPORTUNITY

WEST BEND SALE LEASEBACK OPPORTUNITY 3.65 ACRE PARCEL OF CONTIGUOUS VACANT LAND AVAILABLE OFFERING MEMORANDUM 3014-3020 E Progress Dr West Bend, WI 53095

West Bend Sale Leaseback Opportunity CONTENTS 01 Executive Summary Executive Summary Location Summary 04 Financial Analysis 5 6 Income & Expense Analysis Multiyear Cash Flow Assumptions Vacant Space/Second Gen Leasing Cash Flow Analysis Disposition Sensitivity Analysis 02 Property Description Property Features Aerial Map Close-up Aerial 8 9 10 05 Demographics 03 Rent Roll Rent Roll Details Lease Expiration Tenant Profile 16 17 18 19 21 12 13 14 Brian Parrish, MBA President & CEO brian@paradigmre.com Jake Nicholson Real Estate Advisor jake@paradigmre.com 262-717-5151 paradigmre.com Demographics Demographic Charts 23 24 11801 W. Silver Spring Dr. Suite 100 Milwaukee, WI 53225 We obtained the following information above from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawal without notice. We include projections, opinions, assumptions or estimates for example only, and they may not represent the current or future performance of the property. You and your tax and legal advisors should conduct your own investigation of the property and transaction.

West Bend Sale Leaseback Opportunity Executive Summary 01... Executive Summary Offering Summary Location Summary WEST BEND SALE LEASEBACK OPPORTUNITY

West Bend Sale Leaseback Opportunity Executive Summary 05 OFFERING SUMMARY ADDRESS COUNTY BUILDING SF TOTAL AVAILABLE 3014-3020 E Progress Dr West Bend, WI 53095 Washington 22,417 SF 8,961 SF YEAR BUILT 1993-1996 MAX. CONTIGUOUS MAJOR TENANT/S OWNERSHIP TYPE 5,974 SF EPIC Creative and Productive Products Fee Simple FINANCIAL SUMMARY OFFERING PRICE $1,599,000 PRICE PSF $71.33/SF CAP RATE (CURRENT) 6.98 % NOI (CURRENT) $111,625 PROPOSED FINANCING LOAN TYPE Fully Amortized DOWN PAYMENT $399,750 LOAN AMOUNT $1,199,250 INTEREST RATE 5.00 % ANNUAL DEBT SERVICE $84,134 LOAN TO VALUE 75 % Excellent addition to your portfolio. Multi-tenant sale leaseback investment opportunity awaits. The property consists of (8) eight industrial units approximately 3,000 square feet each with office and warehouse space in each unit. EPIC Creative will master lease at least one vacant unit for a period of 12-24 months to minimize risk to an investor. Please discuss the leaseback terms with the Listing Broker. Cash Flows well upon acquisition! In Place Cap Rate: 6.98% Pro Forma ROI: 14.0% Pro Forma Cap Rate: 9.0% DEMOGRAPHICS 1 MILE 3 MILE 5 MILE 2017 Population 3,438 21,647 48,207 2017 Median HH Income $64,748 $59,221 $60,793 2017 Average HH Income $83,889 $79,863 $78,116

West Bend Sale Leaseback Opportunity Location Summary 06 DEMOGRAPHICS Washington County: In Washington County, the current year population is 135,837. In 2010, the Census count in the area was 131,887. The rate of change since 2010 was 0.41% annually. The five-year projection for the population in Washington County is 138,997 representing a change of 0.46% annually from 2017 to 2022. The household count in Washington County has changed from 51,605 in 2010 to 53,556 in 2017, a change of 0.51%. The five-year projection of households is 54,992, a change of 0.53% annually from the 2017 total. Regional Map Current median household income is $70,885 in Washington County, compared to $56,124 for all U.S. households. Median household income is projected to be $79,445 in five years, compared to $62,316 for all U.S. households. Current average household income is $87,980 in Washington County, compared to $80,675 for all U.S. households. Average household income is projected to be $99,644 in five years, compared to $91,585 for all U.S. households. Locator Map City of West Bend: In the City of West Bend, the current year population is 32,016. In 2010, the Census count in the area was 31,150. The rate of change since 2010 was 0.38% annually. The five-year projection in the area is 32,706 representing a change of 0.43% annually from 2017 to 2022. The household count in West Bend has changed from 12,793 in 2010 to 13,260 in 2017, a change of 0.50%. The five-year projection of households is 13,601, a change of 0.51% annually from the 2017 total. Current median household income is $57,135 in West Bend, compared to $56,124 for all U.S. households. Median household income is projected to be $65,765 in five years, compared to $62,316 for all U.S. households. Current average household income is $73,419 in West Bend, compared to $80,675 for all U.S. households. Average household income is projected to be $84,902 in five years, compared to $91,585 for all U.S. households.

West Bend Sale Leaseback Opportunity Property Description 02... Property Description Property Features Aerial Map Parcel Map Additional Maps Property Images WEST BEND SALE LEASEBACK OPPORTUNITY

West Bend Sale Leaseback Opportunity Property Features 08 Site Description NUMBER OF UNITS 8 BUILDING SF 22,417 TOTAL AVAILABLE 8,961 SF LAND ACRES 2.00 YEAR BUILT 1993-1996 MAX. CONTIGUOUS MIN. DIVISIBLE 5,974 SF 2,987 SF ZONING TYPE Industrial M-3 POWER ADA COMPLIAT NUMBER OF PARKING SPACES TBV Yes (TBV) CLEAR HEIGHT 16'4" - 19' LOADING INTERNET MEZZANINE PROPERTY TAXES $23,991 OFFICE SF 10,178 Ample, Asphalt lot - 50+ spaces Large 12'x14' drive-in door in most units, exterior loading dock with leveler High speed - fiber served Second level office and storage TENANT INFORMATION MAJOR TENANT/S LEASE TYPE EPIC Creative and Productive Products (NNN) Triple Net MECHANICAL HVAC FIRE SPRINKLERS Central air - office, modines and partial air - warehouse None CONSTRUCTION FOUNDATION Masonry and Metal ROOF Metal - pitched (resealed 2013)

West Bend Sale Leaseback Opportunity Aerial Map 09

West Bend Sale Leaseback Opportunity Close-up Aerial 10 Adjacent Lot for Sale

West Bend Sale Leaseback Opportunity Rent Roll 01... Rent Roll Rent Roll Details Lease Expiration Summary Tenant Profile WEST BEND SALE LEASEBACK OPPORTUNITY

West Bend Sale Leaseback Opportunity Rent Roll Details 12 Lease Term Rental Rates Suite Tenant Name Square Feet % of NRA Lease Start Lease End Begin Date Monthly Base Rent Monthly PSF Annual Base Rent Annual PSF Lease Type 1 - Available 2,987 33.33% 05/01/19 01/01/00 FUTURE NNN 3020 05/01/2020 Options/Notes 2-3020 3-3018 Productive Products 2,987 33.33% 09/01/18 08/31/19 FUTURE $1,749 $0.59 $20,990 $7.03 NNN 08/31/2019 $1,802 $0.60 $21,620 Available 2,987 33.33% 07/01/19 01/01/00 FUTURE NNN 07/01/2020 4-3018 5-3016 Epic (Master Lease) 2,987 33.33% 09/01/18 08/31/20 FUTURE $1,693 $0.57 $20,315 $6.80 NNN Master lease to Buyer until vacant space is rented Epic 1,508 16.83% 09/01/18 08/31/28 FUTURE $785 $0.52 $9,425 $6.25 NNN 09/01/2019 $801 $0.53 $9,613 6-3016 7 & 8-3014 Epic 2,987 33.33% 09/01/18 08/31/20 FUTURE $2,248 $0.75 $26,970 $9.03 NNN 09/01/2019 $2,292 $0.77 $27,509 Epic 5,974 66.67% 09/01/18 08/31/28 FUTURE $4,263 $0.71 $51,156 $8.56 NNN 09/01/2019 $4,348 $0.73 $52,179 Totals 22,417 $10,738 $128,856

West Bend Sale Leaseback Opportunity Lease Expiration 13

West Bend Sale Leaseback Opportunity Tenant Profile 14 Trade Name EPIC CREATIVE Headquartered West Bend, Wisconsin Website http://www.epiccreative.com # of Locations 2 Description Epic Creative is a company specializing in branding, social media, photography, web, apps, public relations, design, ads, video and campaigns. Epic is purchasing their new headquarters in Downtown West Bend where they will relocate a majority of their workforce. After the sale of the building, Epic will lease back 4 of the units from the Buyer, on a long term mutually acceptable lease. These units are critical to the operations of Epic Creative and the Buyer will benefit from a long-term lease with a credit-worthy tenant who values their space. Trade Name Productive Products, Inc. Headquartered West Bend, Wisconsin Website http://www.productiveproducts.com # of Locations 1 Description Productive Products Inc. is an industrial supplier and long term tenant (condo owner) of the building. The company is able to service common applications or customized items with its broad array of products and services including tools, tool accessories, torque auditing, assembly equipment, material handling, ergonomic products, repair and calibration.

West Bend Sale Leaseback Opportunity Financial Analysis 04... Financial Analysis Income & Expense Multiyear Cash Flow Assumptions Vacant Space/2nd Gen Leasing Multiyear Cash Flow Projections Disposition Sensitivity Analysis WEST BEND SALE LEASEBACK OPPORTUNITY

West Bend Sale Leaseback Opportunity Income & Expense Analysis 16 INCOME CURRENT YEAR 2 Gross Potential Rent $130,541 $160,614 Gross Potential Income $130,541 $160,614 Less: General Vacancy $8,031 Effective Gross Income $130,541 $152,583 Less: Expenses $18,916 $14,577 Net Operating Income $111,625 $138,006 Annual Debt Service $84,134 $84,134 Debt Coverage Ratio 1.33 1.64 Cash Flow After Debt Service $17,490 $43,872 Principal Reduction $24,173 $24,173 Total Return 10.4 % $41,663 17.0 % $68,044 REVENUE ALLOCATION EXPENSES CURRENT YEAR 2 Common Area Maintenance (CAM) $10,000 $5,000 Management Fee $3,916 $4,577 Total Operating Expense $18,916 $14,577 Reserves $5,000 $5,000 Total Leasing & Capital Costs $5,000 $5,000 Expense / SF $2.11 $1.62 % of EGI 14.49 % 9.55 % DISTRIBUTION OF EXPENSES

West Bend Sale Leaseback Opportunity Multiyear Cash Flow Assumptions 17 GLOBAL Analysis Period 10 year(s) Commencement Date Sep. 1, 2018 Consumer Price Index (growth rate) 2.00 % EXIT CAP RATE 9.00 % EXPENSE GROWTH RATES Common Area Maintenance (CAM) 2.00 % PROPOSED FINANCING Loan Type Fully Amortized Down Payment $399,750 Loan Amount $1,199,250 Interest Rate 5.00 % Annual Debt Service $84,134 Loan to Value 75 %

West Bend Sale Leaseback Opportunity Vacant Space/Second Gen Leasing 18 VACANT SPACE LEASING AVAILABLE SPACE RSF LEASE START LEASE TERM FREE RENT (Months) TENANT IMPROVEMENTS START RATE PSF (Annual) 1-3020 2,987 12/01/2018 5 $6.77 3-3018 2,987 07/01/2019 5 $7.16 SECOND GENERATION LEASING TENANT SUITE RSF LEASE TERM (years) ANNUAL RENTAL INCREASES CURRENT RENTAL RATE PSF/ANNUAL Available 1-3020 2,987 3.00% $0 75% Productive Products 2-3020 2,987 1 3.00% $0 75% Available 3-3018 2,987 3.00% $0 75% Epic (Master Lease) 4-3018 2,987 2 3.00% $0 100% Epic 5-3016 1,508 10 3.00% $0 75% Epic 6-3016 2,987 2 3.00% $0 75% Epic 7 & 8-3014 5,974 10 3.00% $0 75% RETENTION RATIO TENANT IMPROVEMENTS PSF (NEW)

West Bend Sale Leaseback Opportunity Cash Flow Analysis 19 Includes CASH FLOW Calendar Year Actual Year1 Master Lease Year 2 Proforma Year 3 Proforma Year 4 Proforma Year 5 Proforma Year 6 Proforma Year 7 Proforma Year 8 Proforma Year 9 Proforma Year 10 Gross Potential Revenue Gross Rental Income $130,541 $160,614 $173,783 $175,886 $179,008 $181,239 $183,537 $186,803 $190,952 $194,827 Gross Potential Income $130,541 $160,614 $173,783 $175,886 $179,008 $181,239 $183,537 $186,803 $190,952 $194,827 General Vacancy $0 $8,031 $8,689 $8,794 $8,950 $9,062 $9,177 $9,340 $9,548 $9,741 Effective Gross Income $130,541 $152,583 $165,094 $167,092 $170,058 $172,177 $174,360 $177,463 $181,404 $185,086 Operating Expenses Common Area Maintenance (CAM) $10,000 $5,000 $5,100 $5,202 $5,306 $5,412 $5,520 $5,631 $5,743 $5,858 Management Fee $3,916 $4,577 $4,953 $5,013 $5,102 $5,165 $5,231 $5,324 $5,442 $5,553 Total Operating Expense $18,916 $14,577 $15,053 $15,215 $15,408 $15,577 $15,751 $15,955 $16,186 $16,411 Net Operating Income $111,625 $138,006 $150,041 $151,877 $154,650 $156,600 $158,609 $161,508 $165,219 $168,675 Reserves $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Total Leasing & Capital Costs $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 $5,000 Annual Debt Service $84,134 $84,134 $84,134 $84,134 $84,134 $84,134 $84,134 $84,134 $84,134 $84,134 Cash Flow $17,490 $43,872 $55,907 $57,743 $60,516 $62,465 $64,475 $67,374 $71,085 $74,541 Effective Gross Income vs Operating Expenses Cash Flow

West Bend Sale Leaseback Opportunity Cash Flow Analysis 20 Actual Includes Master Lease Proforma Proforma Proforma Proforma Proforma Proforma Proforma Proforma Calendar Year Year1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Financial Metrics Cash on Cash Return b/t 4.38 % 10.97 % 13.99 % 14.44 % 15.14 % 15.63 % 16.13 % 16.85 % 17.78 % 18.65 % CAP Rate 6.98 % 8.63 % 9.38 % 9.50 % 9.67 % 9.79 % 9.92 % 10.10 % 10.33 % 10.55 % Debt Coverage Ratio 1.33 1.64 1.78 1.81 1.84 1.86 1.89 1.92 1.96 2.00 Operating Expense Ratio 14.49 % 9.55 % 9.11 % 9.10 % 9.06 % 9.04 % 9.03 % 8.99 % 8.92 % 8.86 % Loan to Value 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % 75.00 % Breakeven Ratio 78.94 % 64.69 % 60.08 % 59.46 % 58.53 % 57.91 % 57.29 % 56.40 % 55.30 % 54.32 % Price / SF $71.33 $71.33 $71.33 $71.33 $71.33 $71.33 $71.33 $71.33 $71.33 $71.33 Expense / SF $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 Income / SF $15 $17 $18 $19 $19 $19 $19 $20 $20 $21

West Bend Sale Leaseback Opportunity Disposition Sensitivity Analysis 21 SENSITIVITY ANALYSIS 5 YEARS EXIT CAP RATE PROJECTED SALES SALES PRICE PSF PROCEEDS AFTER IRR PRICE LOAN PAYOFF 8.00% $1,933,123 $86 $848,900 24.47% 8.25% $1,874,543 $84 $790,320 23.07% 8.50% $1,819,410 $81 $735,187 21.68% 8.75% $1,767,427 $79 $683,203 20.30% 9.00% $1,718,331 $77 $634,108 18.93% 9.25% $1,671,890 $75 $587,667 17.57% 9.50% $1,627,893 $73 $543,670 16.22% 9.75% $1,586,152 $71 $501,929 14.87% 10.00% $1,546,498 $69 $462,275 13.52% SENSITIVITY ANALYSIS 10 YEARS EXIT CAP RATE PROJECTED SALES SALES PRICE PSF PROCEEDS AFTER IRR PRICE LOAN PAYOFF 8.00% $2,108,435 $94 $1,128,206 19.68% 8.25% $2,044,543 $91 $1,064,314 19.24% 8.50% $1,984,409 $89 $1,004,180 18.81% 8.75% $1,927,712 $86 $947,483 18.38% 9.00% $1,874,164 $84 $893,935 17.97% 9.25% $1,823,511 $81 $843,282 17.56% 9.50% $1,775,524 $79 $795,295 17.16% 9.75% $1,729,998 $77 $749,769 16.76% 10.00% $1,686,748 $75 $706,519 16.38%

West Bend Sale Leaseback Opportunity Demographics 02... Demographics Demographic Details Demographic Charts WEST BEND SALE LEASEBACK OPPORTUNITY

West Bend Sale Leaseback Opportunity Demographics 23 POPULATION 1 MILE 3 MILE 5 MILE HOUSEHOLDS 1 MILE 3 MILE 5 MILE 2000 Population 3,078 19,063 42,058 2000 Total Housing 1,346 7,805 17,294 2010 Population 3,398 20,765 46,781 2010 Total Households 1,426 8,311 18,878 2017 Population 3,438 21,647 48,207 2017 Total Households 1,449 8,744 19,637 2022 Population 3,485 22,275 49,356 2022 Total Households 1,471 9,032 20,188 2017 African American 57 285 557 2017 Average Household Size 2.37 2.44 2.41 2017 American Indian 16 91 186 2000 Owner Occupied Housing 712 4,870 11,224 2017 Asian 36 188 411 2000 Renter Occupied Housing 579 2,576 5,071 2017 Hispanic 190 910 1,954 2017 Owner Occupied Housing 853 5,736 13,475 2017 White 3,184 20,391 45,509 2017 Renter Occupied Housing 596 3,007 6,162 2017 Other Race 49 260 645 2017 Vacant Housing 79 503 1,429 2017 Multiracial 95 428 887 2017 Total Housing 1,528 9,247 21,066 2017-2022: Population: Growth Rate 1.35 % 2.85 % 2.35 % 2022 Owner Occupied Housing 866 5,903 13,824 2022 Renter Occupied Housing 604 3,129 6,364 2017 HOUSEHOLD INCOME 1 MILE 3 MILE 5 MILE 2022 Vacant Housing 83 551 1,552 less than $15,000 79 637 1,218 2022 Total Housing 1,554 9,583 21,740 $15,000-$24,999 148 909 1,872 2017-2022: Households: Growth Rate 1.50 % 3.25 % 2.75 % $25,000-$34,999 121 932 2,030 $35,000-$49,999 191 1,055 2,508 $50,000-$74,999 275 1,789 4,102 $75,000-$99,999 211 1,258 3,158 $100,000-$149,999 263 1,274 3,014 $150,000-$199,999 83 396 927 $200,000 or greater 80 494 809 Median HH Income $64,748 $59,221 $60,793 Average HH Income $83,889 $79,863 $78,116

West Bend Sale Leaseback Opportunity Demographic Charts 24 2017 Household Income 1 Mile Radius 3 Mile Radius 5 Mile Radius

West Bend Sale Leaseback Opportunity Demographic Charts 25 2017 Household Occupancy - 1 Mile Radius 2017 Household Income Average and Median Average Income Median Income

West Bend Sale Leaseback Opportunity Brian Parrish, MBA President & CEO brian@paradigmre.com Jake Nicholson Real Estate Advisor jake@paradigmre.com 262-717-5151 paradigmre.com 11801 W. Silver Spring Dr. Suite 100 Milwaukee, WI 53225