Shopko Hometown OROFINO, ID

NEW SINGLE TENANT NATIONAL RETAILER STRONG STORE SALES WITH LIMITED COMPETITION 13 YEARS REMAINING ON THEIR LEASE TERM

Overview Shopko Hometown 429 MICHIGAN AVE OROFINO, ID 83544

PAGE 5 Investment Summary LEASEABLE SF 25,860 SF LAND AREA 72,179 SF LEASE TYPE NN* PRICE PER SF $152 YEAR BUILT 2016 *Tenant maintains their own Property insurance and pays Property Taxes directly, while Landlord is responsible for the parking lot replacement, roof, and structure. PARKING 71 Spaces; 2.75/1,000 SF $3,940,000 PRICE 8.25% CAP THE OFFERING provides the opportunity to acquire a brand new net-leased Shopko Hometown with 13 years remaining on their primary term. The Property is prominently located with frontage on the main daily-needs retail and commuter corridor and benefits from extremely limited competition as only one of two national box retailers in the trade area. The lease provides rental income via scheduled 3% rent bumps every five years for the remainder of the term with 5% increases at the start of all four, five-year options. Overview

Investment Highlights SHOPKO HOMETOWN IS A SMALLER FORMAT SHOPKO OPERATING IN PRIMARILY UNDER-SERVED RURAL MARKETS. 13 YEARS REMAINING ON PRIMARY TERM. BUILT-TO-SUIT, HIGH QUALITY CONSTRUCTION. RENTAL UPSIDE VIA 3% RENT BUMPS EVERY FIVE YEARS, JUMPING TO 5% AT THE START OF ALL 4, 5-YR OPTIONS. ZERO COMPETITION; NEAREST NATIONAL BOX RETAILER IS 30 MILES WEST. REPORTEDLY A HIGH-PERFORMING STORE WITH STRONG ANNUAL SALES. SHOPKO IS PROVIDED STABILITY VIA SUN CAPITAL PARTNERS, AN INTERNATIONAL PRIVATE INVESTMENT FIRM.

PAGE 7 About Shopko SHOPKO is a national private retailer with approximately 363 stores throughout 24 states, of which 222 are Shopko Hometown stores, Shopko s smaller footprint store operating in niche markets. Shopko Hometown operates in roughly onethird the size of a traditional box store at around 25,000-35,000 SF (compared to 100,000 SF), and are located in primarily rural, smaller markets traditionally under-served by national retailers. Shopko Hometown stores include in-store pharmacies and are seen as mini department stores. Investment Highlights

Surrounding Amenities Business Summary TOTAL 1-MILE 3-MILES 5-MILES Businesses 167 241 312 Employees 1,245 2,050 2,676 Population 1,902 3,519 5,328 KEY 1-MILE 3-MILES 5-MILES Orofino, ID OROFINO is the county seat of Clearwater County in eastern Idaho, and borders the Nez Perce Indian Reservation to the north. Orofino is also home to state institutions: Idaho State Hospital North and the Idaho Correctional Institution - Orofino. CLEARWATER COUNTY TOP EMPLOYERS Clearwater County Clearwater Valley Hospital & Clinic Idaho Correctional Institution Nightforce Optics (manufacturer) Orofino Joint School District 171 State Hospital North Tri-Pro Forest Products U.S. Forest Service Church Facilities Repair Services Automobile Service/Repair/Rental/Sales

PAGE 9 OROFINO HIGH SCHOOL IDAHO CORRECTIONAL INSTITUTION & IDAHO STATE HOSPITAL OROFINO AIRPORT CLEARWATER VALLEY HOSPITAL & CLINICS IDAHO DEPARTMENT OF LANDS OROFINO ELEMENTARY SCHOOL OROFINO MARKETPLACE 12 RIVERSIDE AVE 7 U.S. POST OFFICE CLEARWATER COUNTY COURT SHOPKO HOMETOWN OROFINO POLICE DEPARTMENT MICHIGAN AVE OROFINO SCHOOL DISTRICT SATELLITE OFFICE OROFINO SCHOOL DISTRICT Surrounding Amenities

Area Competition FAMILY DOLLAR 3.8 MILES NW CLEARWATER VALLEY HOSPITAL & CLINICS OROFINO MARKETPLACE SHOPKO HOMETOWN SHOPKO IS ONE OF ONLY TWO NATIONAL BOX RETAILERS, OF WHICH THE OTHER IS A NON-COMPETING FAMILY DOLLAR.

SHOPKO COMPETITION PAGE 11 The trade area lacks significant competition with only one other box retailer in the city, a Family Dollar roughly 3.8 miles NW of the Property, and not considered a common Shopko competitor as Shopko Hometowns typically carry more items. Shopko Hometowns include a pharmacy, which is one of only three in the city, increasing the daily draw to Shopko for retail and pharmacy needs. PHARMACY COMPETITION CLEARWATER VALLEY HOSPITAL & CLINICS OROFINO MARKETPLACE Area Competition

Site Plan 25,860 LEASEABLE SF MICHIGAN AVE OROFINO SCHOOL DISTRICT SATELLITE OFFICE 1.65 ACRES 71 SPACES; 2.75/1,000 SF

PAGE 13 OROFINO SCHOOL DISTRICT SATELLITE OFFICE SITE PLAN NOT TO SCALE Site Plan

Financial Summary PRICE $3,940,000 CAPITALIZATION RATE 8.25% PRICE PER FOOT $152 CASH FLOW SUMMARY SCHEDULED INCOME PER SF Base Rent for the Period of: 2/1/2019-1/31/2020 $12.57 $325,000 Total Effective Gross Income (EGI) $12.57 $325,000 OPERATING EXPENSES Per SF CAMS Property Taxes Insurance Total Operating Expenses NNN NNN NNN NNN NET OPERATING INCOME $325,000 SCHEDULED RENT INCREASES PROVIDE RENTAL UPSIDE 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 15 Rent Roll SHOPKO HOMETOWN Lease Term: Size (SF): 10/2/2016-10/31/2031 25,860 RENT SUMMARY DATE MONTHLY BASE RENT % INCREASE ANNUAL RENT PSF CAP RATE 10/2/2016 $27,083 $325,000 $12.57 8.25% 11/15/2021 $27,896 3.0% $334,750 $12.94 8.50% 11/15/2026 $28,733 3.0% $344,793 $13.33 8.75% OPTIONS 1 11/15/2031 $30,169 5.0% $362,032 $14.00 9.19% 2 11/15/2036 $31,678 5.0% $380,134 $14.70 9.65% 3 11/15/2041 $33,262 5.0% $399,140 $15.43 10.13% 4 11/15/2046 $34,925 5.0% $419,097 $16.21 10.64% CURRENT $27,083 $325,000 $12.57 8.25% Lease Notes Corporate NN Lease. Tenant maintains their own Property Insurance and pays Property Taxes directly, while Landlord is responsible for the building roof, structure, HVAC maintenance, repair, and replacement up to the last two years of the term, and parking lot replacement. Tenant has 4, 5-year Options with 270-day prior notice with a 5% rent bump every five years. Financial Summary

Lease Abstract Premise & Term TENANT Shopko Stores Operating Co., LLC BUILDING SF 25,860 SF LEASE TYPE NN* RENT COMMENCEMENT October 2, 2016 EXPIRATION October 31, 2031 OPTIONS 4, 5-Yr. Options; 270-Day Notice *Details on the adjacent page, yet Landlord is responsible for the building roof, structure, and parking lot replacement.

Expenses TAXES Tenant pays taxes directly to the taxing authority. PAGE 17 INSURANCE Tenant maintains all risk property insurance insuring the Building and Property, and both Tenant and Landlord carry general liability insurance. TENANT S OBLIGATIONS Tenant is responsible for all interior and exterior maintenance and repair, including snow and ice removal, landscaping, and all mechanical systems. Tenant maintains an HVAC preventive maintenance plan and is only responsible for the cost of HVAC replacement the last two years of the term and last option. Tenant is not responsible for parking lot replacement yet is responsible for parking lot maintenance and repair. LANDLORD S OBLIGATIONS Landlord is responsible for the building roof and structure, as well as the parking lot replacement, and the maintenance, repair, and replacement of the HVAC equipment, except during the last two years of the term, or last option. Lease Provisions CAM Tenant is responsible for direct payment of all maintenance and repair, including utilities and trash. RADIUS USE RESTRICTION Landlord may not lease or sell property to a competing business within a five-mile radius. RIGHT TO GO DARK Tenant may discontinue use and vacate the Premises at any time, yet if Shopko goes dark for a period of 270 consecutive days, Landlord may terminate the lease with notice provided within 60 days of the last day of the Dark Period and the lease shall terminate 60 days thereafter. Lease Abstract

We d love to hear From you. PETER DUNN pdunn@capitalpacific.com PH: 503.607.0197 SEAN MACK smack@capitalpacific.com PH: 503.675.8378 KEVIN ADATTO kadatto@capitalpacific.com PH: 503.675.7726 MICHAEL HORWITZ mhorwitz@capitalpacific.com PH: 503.675.8381 SEAN TUFTS stufts@capitalpacific.com PH: 206.693.3352 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