Andrew Barnes, Managing Director of National NNN is pleased to exclusively offer for sale: NNN Investment Property Walgreens 11.60% Cap Rate NN Lease (Double Net) 7+ Years of Primary Lease Term Eight (5) Year Options to Renew Stable and Passive Income Solid Location High Visibility Site Dense Population 66K in 3 Miles High Traffic 21K Cars per Day Strong Rx Market in Mississippi #9 Retail Rx Drugs per Capita #3 Health Spending as % of GSP #7 Avg. Annual % Growth per Capita Industry Leading Tenant A+ S&P Credit Rating 2009 Sales of $63 Billion $14 Billion Net Worth Excellent 1031 Opportunity Offering Price: $2,975,000 Offering CAP: 11.60% Exclusively listed by: Andrew Barnes 415.599.2086 I dre 01330048 abarnes@nnninvestment.com National NNN Investment Group I 1500 Franklin Street, 3 FL I San Francisco CA I www.nnninvestment.com
Offering Summary 11.60% Cap Rate 7+ Years of Primary Lease Term Eight (5) Year Options to Renew Stable and Passive Income Solid Location High Visibility Site Dense Population 66K in 3 Miles High Traffic 21K Cars per Day Industry Leading Tenant A+ S&P Credit Rating 35 Years of Record Sales and Earnings 2009 Sales of $63 Billion / $14 B Net Worth Strong Rx Market in Mississippi #9 Retail Rx Drugs per Capita #3 Health Spending as % of GSP #7 Avg. Annual % Growth per Capita For Sale: Fee simple land and the building Location : 3835 Northbrook Drive, Jackson MS 39206 Store #4196 Southwest Corner of Northside & Northbrook Tenant : Walgreen Company, (NYSE: WAG), Standard & Poor s A+ credit rating Improvements : 13,905 SF freestanding building with a prescription drive-thru. Built in 1998. Parcel : Lease Term : Lease Type : 2.45 acres Primary lease term expires in May 2018. Walgreens has eight (5) year renewal options to renew through 2058. The annual rent stays the same throughout the primary lease term and the options. NN Lease. The lease is a Double Net Walgreens lease with Walgreens paying taxes, insurance and maintenance expenses. Walgreens self-insures the building. The landlord is responsible for roof and structure. The lease contains the standard Walgreens percentage rent clause. Annual Rent : $345,000 Offering Price : $2,975,000 Offering Cap : 11.60% Financing : Environmental: Delivered free-and-clear of existing debt. The property has no environmental issues. Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 2
About the Site: Located on the SWC of Northbrook & Northside. Signalized hard corner intersection with good visibility in a well retailed area. Northside traffic counts are 21,000 VPD and Northbrook s are 12,000 VPD. Surrounding national tenants include Advance Auto, McDonald s, Taco Bell, Wendy s, Popeyes Chicken, Church s Chicken, Rally s Burgers. (Please see Aerial) 2009 Site (3 mi radius) Population: 66,124 Ave. HH Income: $51,021 Demographics: (5 mi radius) Population: 126,878 Ave. HH Income: $52,488 About Jackson: Jackson is the capital and the most populous city of the State of Mississippi. According to July 1, 2006 estimates, the city's population was 176,614 and its five-county metropolitan area had a population of 529,456. The Jackson-Yazoo City combined statistical area, consisting of the Jackson metropolitan area and Yazoo City micropolitan area, has a population of 557,385, making it the 88thlargest metropolitan area in the United States. Jackson is the intersection for Interstates 55 and 20, and all incorporated communities in the Greater Jackson area are within 45 miles of Jackson and are traversed by major highways. The very geography of Greater Jackson helps put businesses located in the area in an excellent logistical position. Greater Jackson is strategically located in the center of the southeast United States and within 500 miles of all or part of 15 states and 76 Metropolitan areas which comprise approximately 39 percent of the nation's population and 35 percent of the total personal income. Greater Jackson draws many businesses because of its location and its transportation network. By road, rail, air, and water, the area offers a variety of economical and expeditious ways for quick and easy access to major cities throughout the world. This ability to access both foreign and domestic markets puts the world at the doorsteps of businesses located in the Greater Jackson area. Greater Jackson's access to advanced medical technology resources is unparalleled. The Greater Jackson area's health care community has made a place for itself among the leading centers for the health sciences and practice of medicine, achieving groundbreaking breakthroughs and establishing superior standards for medical care. The health care resources in Greater Jackson are clustered around 13 hospital systems which include a major teaching and research center, a state psychiatric hospital, a large Department of Veterans Affairs facility, and 10 other private non-profit and for-profit institutions, with a combined bed space of 4.458. Greater Jackson's reputation as a center for excellent health care is enhanced by the fact that medical costs are lower than those in comparable areas. Source: Greater Jackson Alliance, website: www.greaterjacksonms.com. City of Jackson website: www.jacksonms.gov Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 3
About Mississippi: Mississippi ranks in the top 10 nationwide for the following healthcare expenditures: 9 th in Retail Prescription Drugs Filled at Pharmacies (Annual per Capita) 3 rd in Total Health Care Expenditures as a Percent of Gross State (GSP) 7 th in Annual Percent Growth in Health Care Expenditures per Capita Source: www.statehealthfacts.org (The Henry J. Kaiser Family Foundation) Retail Prescription Drugs Filled at Pharmacies (Annual per Capita), 2007 Total Health Care Expenditures by State of Provider as a Percent of Gross State Product (GSP), 2004 Average Annual Percent Growth in Health Care Expenditures per Capita by State of Residence, 1991-2004 Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 4
About Walgreens: Incorporated in 1909, Walgreen Co. (NYSE: WAG) operates over 7,149 locations in 50 states. For the fiscal year ended August 30, 2009, sales were over $63.3 billion with net earnings of $2.0 billion and a net worth of $14.3 billion. Walgreens is rated A+ by Standard & Poor s, and is ranked 36 th in the 2009 Fortune 500 list of the largest companies in the United States. For additional information please see www.walgreens.com (Source: Reuters.com and Walgreens.com) About NN High Credit Tenant Walgreens had 2009 sales of $63 billion, earnings of $2.0 Walgreens: billion and a net worth of $14.3 billion. They have a Standard & Poor s rating of A+. Walgreens has been in business since 1901. Income Security Walgreens lease obligates themselves pay the rental amount every month for the entire term of the lease regardless of whether they are occupying the property or not. Prime Locations Walgreens selects what are known as Main Street & Main Street" sites for its stores. Their sites usually have the highest traffic counts and are among the most sought after locations in the subject retail areas. Passive Investment The landlord has minimal responsibilities. Walgreens maintains the property and is responsible for taxes and insurance. The Landlord has responsibility for roof & structure. Readily Financeable Walgreens leased properties are desired by lenders due to Walgreens creditworthiness and borrowers and are offered some of the most favorable terms available for commercial properties. For more information on NNN properties in general and NNN Walgreens in particular please visit our website at www.nnninvestment.com. There you can find helpful information and white papers on what to look for in an NNN property, and the basics of an NNN Walgreens transaction. [continued on the next page] Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 5
Aerial Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 6
Maps Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 7
Photos Front Front Front Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 8
East Side Rear Double Drive Through Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 9
Double Drive Through Looking East Looking North Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 10
Site Plan Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 11
Disclaimer The National NN Investment Group of KW Commercial ( National NNN ) has been engaged as the exclusive agent and representative of the owner. No contacts shall be made by any prospective purchaser or agents to the owner, its executives, personnel or related entities. This Investment Offering Brochure is a solicitation of interest only and is not an offer to sell the property. The owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest to purchase the property and expressly reserves the right, at its sole discretion, to terminate discussions with any entity at any time with or without notice. The owner shall have no legal commitment or obligation to any entity reviewing the investment offering brochure or marking an offer to purchase the property unless, and until, the owner executes and delivers a signed purchase agreement on terms acceptable to the owner, at the owner s sole discretion. By submitting an offer, a prospective purchaser will be deemed to have acknowledged the foregoing and agrees to release the owner from any liability with respect hereto. The enclosed materials are being provided solely to facilitate the prospective purchaser s own due diligence for which the purchaser shall be fully and solely responsible. Neither the National NNN, nor the owner, make any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein, and nothing contained herein shall be relied upon as a promise or representation as to the future performance of the property. This investment offering brochure may include certain statements and estimates by National NNN with respect to the projected future performance of the property. These assumptions may more may not be proven to be correct, and there can be no assurance that such estimates will be achieved. Further, National NNN and the owner disclaim any and all liability for representation or warranties, expressed or implied, contained in or omitted from this investment offering brochure, or any other written or oral communication transmitted or made available to the recipient. The recipient shall be entitled to rely solely on those representations and warranties that may be made to it in any final, fully executed and delivered purchase agreement between it and the owner. The information contained herein is subject to change without notice, and the recipient of these materials shall not look to the owner or National NNN, nor any of their officers, employees, representatives, independent contractors, or affiliates, for the accuracy or completeness thereof. Recipients of this investment offering brochure are advised and encouraged to conduct their own comprehensive review and analysis of the property. Andrew Barnes I t: 415.599.2086 I f: 415.373.9249 I abarnes@nnninvestment.com I www.nnninvestment.com 12