Staples ALBANY, OREGON

20-YEAR HISTORICAL OCCUPANCY WITH NEWLY-EXECUTED FIVE-YEAR EXTENSION

Overview Staples 2000 SANTIAM HWY SE, ALBANY, OR 97322

PAGE 5 Investment Summary LEASEABLE SF 24,500 SF LAND AREA 2 Acres LEASE TYPE NNN PRICE PER SF $141 YEAR BUILT 1997 *Tenant benefits from 9 additional parking stalls via cross-easement agreement with neighboring parcel. PARKING 101 Spaces; 4.1/1,000 SF* $3,460,000 PRICE 8.50% CAP THE OFFERING provides a standalone Staples highly dedicated to the site with a 20-year historical tenancy and brand new five-year extension executed in 2017. Recent capital improvements include a brand-new roof by Seller and full exterior repaint by Tenant in 2017. Staples benefits from frontage on Santiam Highway in a tight junior box retail market, with daily needs draw provided by the many neighboring national retailers in the trade area and proximity to Interstate-5. Staples is provided stability by Sycamore Partners, the new private ownership of Staples Inc. as of September 2017, a leading national private equity investment firm overseeing a $3.5B portfolio of national retailers. Overview

Investment Highlights The highlights QUALITY CONSTRUCTION WITH BRAND NEW ROOF AND EXTERIOR RE-PAINT. SUPERB ACCESS CONNECTING DIRECTLY TO INTERSTATE-5 WITH FRONTAGE ON PROMINENT DAILY-NEEDS RETAIL AND COMMUTER CORRIDOR. NNN LEASE STRUCTURE SHIELDS LANDLORD FROM INCREASING OPERATING COSTS. MINIMAL BOX VACANCIES WITH 0% SUBMARKET VACANCY FOR SPACE BETWEEN 10,000-30,000 SF. ALBANY OUT-POSITIONS THE HISTORICALLY-LARGER CITY OF CORVALLIS DUE TO FREEWAY PROXIMITY AND GROWTH. INCREASED DRAW PROVIDED BY LINN BENTON COMMUNITY COLLEGE, OREGON STATE UNIVERSITY (OREGON S LARGEST UNIVERSITY-ENROLLMENT 27,000) AND DENSE NATIONAL RETAILERS.

PAGE 7 STAPLES IS NEWLY-ACQUIRED BY SYCAMORE PARTNERS, A LEADING NATIONAL PRIVATE EQUITY FIRM About Tenant Staples was purchased for $6.9B in 2017 by Sycamore Partners Inc. Sycamore Partners is a leading private equity investment firm based out of New York, overseeing a $3.5B portfolio of committed capital. Sycamore Partners focuses on acquisition where they will serve as a value-add partner. Upon news of the purchase, Staples shares climbed by 2%. FOR MORE INFO $6.9B PURCHASE PRICE IN 2017 BY SYCAMORE PARTNERS INC. 2% INCREASE IN PRICE OF SHARES UPON NEWS OF PURCHASE Investment Highlights

Site 23,989 VPD 99E STAPLES SANTIAM HWY SE 22,768 VPD 10,939 VPD SE GEARY SST HERITAGE MALL

PAGE 9 TWENTY-MINUTES FROM THE STATE S LARGEST INSTITUTION FOR HIGHER EDUCATION, OREGON STATE UNIVERSITY Site

Surrounding Retail Business summary TOTAL 1-MILE 3-MILES 5-MILES Businesses 722 1,962 2,206 Employees 7,642 24,547 29,459 Population 13,290 48,486 59,888 KEY 1-MILE 3-MILES 5-MILES MAJOR RETAIL Aaron s Applebee s Arby s Autozone Big 5 Sporting Goods Big Lots Burger King Costco Dollar Tree Dutch Bros. HERITAGE MALL Bath & Body Works Cricket Wireless Gamestop GNC Fred Meyer Goodwill Grocery Outlet Harbor Freight Home Depot Jack in the Box Kohl s Lowe s Marshall s Mattress Firm McDonald s Hobby Lobby Maurices Old Navy Pizza Hut Red Robin Ross Petco Regal Cinemas Rite Aid Safeway Starbucks Subway Taco Bell Verizon Walmart Supercenter Walgreens Winco Sally Beauty Target Zumiez

5 PAGE 11 STAPLES 22,768 VPD SANTIAM HWY SE HERITAGE MALL 99E 23,989 VPD OREGON STATE UNIVERSITY 10-MILES SOUTHWEST TARGET DISTRIBUTION CENTER Largest Albany area employer with 500 employees and 1.5 million SF, tripling in size since construction in 1996. The distribution center is the largest taxpayer in the city and has helped provide a historically stable economy. Surrounding Retail

Site Plan 10,939 VPD 22,768 VPD SANTIAM HWY SE GEARY ST SE HERITAGE MALL 24,500 LEASEABLE SF 2 ACRES 101 SPACES; 4.1/1,000 SF

PAGE 13 Q&A Q: WHAT ARE THE TERMS OF THE DECLARATION OF RESTRICTIONS AND GRANT OF EASEMENTS BETWEEN STAPLES AND THE PARCEL IMMEDIATELY SOUTH? A: There are non-exclusive easements for ingress/egress to, from and over the parcel Staples is situated on and the parcel immediately south, including the use of additional parking. The terms expire 65 years following its 1997 execution, and will automatically extend for successive 65-year periods unless mutually terminated. Q: HAS THERE BEEN ANY ENVIRONMENTAL ASSESSMENTS AT THE PROPERTY? A: Yes, a Phase I Environmental Site Assessment (ESA) was performed by ATC Associates, Inc. in November 1997, and no further investigation was recommended. PYLON SIGN SITE PLAN NOT TO SCALE Site Plan

Construction Details

PAGE 15 Construction Details TYPE: CMU Block BUILDING EXTERIOR: Split-face concrete block painted white with red metal paneling around perimeter of top half; exterior fully repainted in 2017. FOUNDATION: ROOF: PARKING: LANDSCAPING: HVAC: Concrete slab on grade. Flat, asphaltic shingled roof; replaced in 2017 with five-year warranty. 101 spaces or 4.1/1,000 SF* * Tenant benefits from estimated 9 additional parking stalls via cross-easement agreement with neighboring parcel. Attractive, low-maintenance trees and shrubs line the parking lot and property border. Individual roof-mounted units. Construction Details

Box Vacancies FORMER RAY S NORTH ALBANY VILLAGE 43,565 SF Backfilled by Ace Hardware and IGA Supermarket 99E FORMER SAFEWAY 29,000 SF

PAGE 17 Submarket demand STAPLES THE TRADE AREA PROVIDES THREE BOX VACANCIES close to or above 30,000 SF. Overall, the tight junior box vacancy and recent big box leasing activity speaks to the strong submarket demand. The former Ray s located at North Albany Village was back-filled by Ace Hardware and IGA Supermarket set to open early 2018, and the former Safeway was recently removed from all leasing websites, signifying a near-term change. FORMER RAY S AT NORTH ALBANY VILLAGE 621 NW HICKORY ST BACKFILLED BY ACE HARDWARE AND IGA SUPERMARKET FORMER ALBERTSON S AT ALBANY PLAZA 1319 SE WAVERLY DR FORMER ALBERTSON S AT ALBANY PLAZA 30,998 SF FORMER SAFEWAY 6335 SW PACIFIC BLVD FOR-LEASE LISTING REMOVED FROM WEBSITES; BELIEVE SPACE IS CURRENTLY UNDER LEASE NEGOTIATION. Box Vacancies

Void Analysis An inventory of retail exceeding 10,000 square feet provides a glimpse of growing national retailers missing from the trade area landscape, highlighting higher-probability backfill tenants. Growing trends include newer fitness and retail concepts that occupy less square footage than they have traditionally, such as expanding gym brands like Crunch, Planet Fitness, MUV, as well as growth of discount retailers, such as Dollar Tree and TJX (parent company of Sierra Trading Post, Home Goods, and TJ Maxx). TENANTS EXCEEDING 10,000 SF 1. Assurant 2. At Home Furniture & Mattress Superstore 3. Bi-Mart 4. Big 5 Sporting Goods 5. Big Lots 6. Coastal Farm and Ranch 7. Costco 8. Dollar Tree 9. Fred Meyer 10. Goodwill 11. Grocery Outlet 12. Harbor Freight Tools 13. Hobby Lobby 14. Home Depot 15. IGA/Ace Hardware - (Opening early 2018) 16. Jo Ann Fabrics 17. Kohl s 18. Marshall s 19. Petco 20. Regal Cinemas 21. Rite Aid 22. Ross 23. Safeway 24. Sportsman s Warehouse 25. Target 26. Walgreens 27. Wal-Mart 28. Winco

PAGE 19 15 10 2 26 19 4 12 25 3 2213 25 111 5 9 20 24 28 17 7 14 27 6 26 19 12 4 16 3 13 22 25 9 20 8 21 24 1 11 23 5 18 Void Analysis

Financial Summary PRICE $3,460,000 CAPITALIZATION RATE 8.50% PRICE PER FOOT $141 CASH FLOW SUMMARY SCHEDULED INCOME PER SF Base Rent for the Period of: 8/1/2018-7/31/2019 $12.00 $294,000 Total Effective Gross Income (EGI) $12.00 $294,000 OPERATING EXPENSES Per SF CAMS NNN Property Taxes NNN Insurance NNN Total Operating Expenses NNN - NET OPERATING INCOME $294,000 NNN LEASE STRUCTURE SHIELDS LANDLORD FROM INCREASING OPERATING COSTS This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

PAGE 21 STAPLES Lease Term: Size (SF): 8/2/1997-8/31/2022 24,500 RENT SUMMARY DATE MONTHLY BASE RENT % INCREASE ANNUAL RENT PSF CAP RATE 9/1/2017 $24,500 $294,000 $12.00 8.50% OPTIONS 2, 5-YEAR OPTIONS 180 Day's Notice 1 9/1/2022 $26,950 10% $323,400 $13.20 9.35% 2 9/1/2027 $29,645 10% $355,740 $14.52 10.28% CURRENT $24,500 $294,000 $12.00 8.50% COMMENTS: NNN LEASE. TENANT IS RESPONSIBLE FOR ALL INTERIOR AND EXTERIOR MAINTENANCE AND REPAIR (EXCLUDING BUILDING STRUCTURE, FOUNDATION, AND ROOF), AS WELL AS 100% OF PROPERTY TAXES, EXTERIOR PAINTING, UTILITIES, AND MAINTAINS THEIR OWN PROPERTY INSURANCE POLICY. LANDLORD RESPONSIBILITIES ARE LIMITED TO THE BUILDING S ROOF AND STRUCTURE. TENANT TO PROVIDE ANNU- AL FINANCIAL STATEMENTS TO LANDLORD WITHIN 30 DAYS OF REQUEST. Financial Summary

Lease Abstract Premise & Term TENANT Staples Inc. BUILDING SF 24,500 SF LEASE TYPE NNN; Corporate Lease LEASE COMMENCEMENT August 2, 1997 EXPIRATION August 31, 2022 OPTIONS 2, 5-Yr; 180 Day s Notice Rent BASE RENT DATE RANGE MONTHLY RENT ANNUAL RENT 9/1/2017-8/31/2022 $24,500 $294,000 OPTION RENTS (ESTIMATED) 2, 5-YR OPTIONS 10% INCREASE EVERY 5 YEARS DATE RANGE MONTHLY RENT ANNUAL RENT #1. 9/1/2022-8/31/2027 $26,950 $323,400 #2. 9/1/2027-8/31/2032 $29,645 $355,740

Expenses TAXES Tenant reimburses 100% of property taxes to Landlord. INSURANCE Tenant maintains their own general liability and property insurance policies at 100% replacement cost basis. UTILITIES Tenant is responsible for direct payment of utilities to billing authority. TENANT S OBLIGATIONS Tenant agrees to maintain the Premises (interior and exterior) in good order and repair, including repainting all exterior painted portions of the Building, and HVAC preventive maintenance contract. LANDLORD S OBLIGATIONS PAGE 23 Maintain the exterior and structural portions of the Building in good order and repair, including the foundation, floor slabs, structural supports, roof (including maintaining the roof in a watertight condition upon notice from Tenant), exterior walls, repairs and replacements of driveways, sidewalks, parking/service facilities, signage, and HVAC repairs and replacement not covered by Tenant s preventive maintenance contract. Lease provisions TENANT FINANCIALS Tenant must provide a copy of their audited financial statement within 30 days of request from Seller. EXCLUSIVE USE Landlord may not lease neighboring land directly or indirectly managed by Landlord to another office supply store within a one-mile radius, excluding any future tenants from selling and/or leasing office equipment and supplies occupying less than 2,000 SF. Lease Abstract

Location Albany, Oregon ALBANY is the 11th largest city in the State of Oregon and has a population of approximately 57,765. Albany is located in the heart of the Willamette Valley, and Albany offers direct travel to all areas of the state with I-5 dissecting the city.

PAGE 25 Economic drivers ALBANY S ECONOMIC CENTER IS LOCATED IN ONE OF THE 10 MOST PRODUCTIVE AGRICULTURAL AREAS OF THE WORLD. Agriculture, pulp and paper production, distribution centers, and proximity to Oregon s largest university, Oregon State University (enrollment: 27,000), and Linn Benton Community College drive the local economy. ALBANY HAS SURPASSED CORVALLIS IN TERMS OF POPULATION DUE TO LOCATION ALONGSIDE INTERSTATE-5, SHOWING ROUGHLY 40% GROWTH IN THE LAST 20 YEARS. Attractions SEVERAL SHOPPING AREAS AND A REGIONAL MALL ATTRACT RETAIL DOLLARS from throughout Linn and Benton counties. The Linn County Fair and Expo Center, local attractions and recreational opportunities help make tourism an important contributor to the area s economic health. Location

Demographics KEY 5 MINS 10 MINS 15 MINS Distance to Salem, Oregon Portland, Oregon 25 MILES 31 MINS 70 MILES 1 HRS 12 MINS

PAGE 27 Drive time POPULATION 5 MINS 10 MINS 15 MINS 2010 19.292 47,846 61,578 2017 20,152 50,171 65,435 2022 28,808 51,920 68,211 2017 HH INCOME 5 MINS 10 MINS 15 MINS Average $52,966 $63,261 $67,831 Median $48,114 $58,333 $62,159 120,547 LINN COUNTY POPULATION (ESTIMATED) Demographics

We d love to hear from you. KEVIN ADATTO kadatto@capitalpacific.com PH: 503.675.7726 MICHAEL HORWITZ mhorwitz@capitalpacific.com PH: 503.675.8381 SCOTT FRANK sfrank@capitalpacific.com PH: 503.675.8383 SEAN MACK smack@capitalpacific.com PH: 503.675.8378 PETER DUNN pdunn@capitalpacific.com PH: 503.607.0197 SEAN TUFTS stufts@capitalpacific.com PH: 206.693.3352 DAVID GELLNER dgellner@capitalpacific.com PH: 206.693.3349 NATE FLIFLET nfliflet@capitalpacific.com PH: 206.457.8613 The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC. Contact Us