walgreens 1435 W TUNNEL BLVD HOUMA, LA 1 Walgreens - Houma, LA OFFERING MEMORANDUM

exclusively listed by BREANNA RUSK ASSOCIATE Breanna.Rusk@matthews.com DIR (949) 873-0508 MOB (714) 722-4110 LIC # 01962063 (CA) beau box BROKER OF RECORD DIR (225) 237-3343 LIC # 18361 (LA) BILL PEDERSeN SENIOR ASSOCIATE Bill.Pedersen@matthews.com DIR (949) 432-4501 MOB (831) 246-0646 LIC # 01975700 (CA) 2 Offering Memorandum

table of contents 04 executive summary INVESTMENT HIGHLIGHTS 06 financial overview 10 tenant overview 16 area overview 3 Walgreens - Houma, LA

INVESTMENT HIGHLIGHTS 10.5 YEARS Nationally Recognized Tenant, Investment Grade Credit Lease is fully guaranteed by Walgreens Co. (S&P s Rated BBB). Walgreens ranked #17 on the 2017 Fortune 500 list Absolute NNN Zero Landlord Responsibilities 2015 Renovation Prototype store format, with 10.5 years remaining in the initial term. The Only 24-hour drug store in Houma, LA 24 Strong Performing Store Sales well above the national store sale average Internationally Recognized Medical Center less than three miles away from Terrebonne General Medical Center, a 321-bed award winning facility with over 1,400 employees; the largest community hospital in Southeast Louisiana. Hard Corner Intersection Location S Hollywood Rd and W Tunnel Blvd (combined 71,800 VPD) with three entry points. One block from a 1,000+ student college preparatory Catholic high school. Strong Retail corridor with national tenants including Lowe s, Bed Bath & Beyond, Home Depot, Marshalls, Petco, Target, Walmart, Wells Fargo, Starbucks, and Chick fil A. Completed Rite Aid Acquisition Walgreens recently received regulatory approval to acquire 1,932 Rite Aid stores for $4.38 billion. Walgreens will gain stores located primarily in northeastern and southern US. The acquisition of the additional stores is expected to help Walgreens achieve enhanced, sustainable growth while broadening their reach and provide greater access to convenient, affordable care in more local neighborhoods across the country. 4 Offering Memorandum

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financial overview Walgreens 1435 W Tunnel Blvd Houma, LA 70360 List Price...$6,400,000 CAP Rate - Current... 6.25% Gross Leasable Area...± 14,490 SF Lot Size...± 1.40 Acres Year Built/Renovated... 2003/2015 ANNUALIZED OPERATING DATA Walgreens Monthly Rent Annual Rent Rent/SF Cap Rat Current - 6/30/2028 $33,333 $400,000 $27.61 6.25% Option 1-10 $33,333 $400,000 $27.61 6.25% TENANT SUMMARY Tenant Trade Name Walgreens Type of Ownership Fee Simple Lease Guarantor Corporate Lease Type NNN Roof and Structure Tenant Responsible Original Lease Term 25 Years Rent Commencement Date 7/1/2003 Lease Expiration Date 6/30/2028 Term Remaining on Lease ± 10.53 Years Increases Flat Options Ten, 5-Year Options 6 Offering Memorandum

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lease abstract 8 Offering Memorandum

LEASE ABSTRACT Tenant: Walgreen Louisiana Co., INC., a Louisiana Corporation Guarantor: Corporate Address: Walgreens Store Number: 7095 Walgreens Co. 200 Wilmot Rd MS #2002, Deerfield, IL 60015 Building Size: 14,490 SF Date of Lease: December 12, 2001 Occupancy Date: May 1, 2003 Rent Commencement: July 1, 2003 Lease Commencement: July 1, 2003 Lease Expiration: June 30, 2028 Original Lease Term: Twenty-Five (25) years from rent commencement Current Rent: $399,999.96 Renewal Options: Required Advance Notice of Exercise of Renewal Options: Real Estate Taxes: Insurance: Utilities: Ten (10) extension periods of five (5) years each Six (6) months prior to the date this lease shall so terminate, but no notice shall be required to terminate this lease upon the expiration of the Term. Tenant shall pay real estate taxes (including all special benefit taxes and special assignments) levied and assessed against the Leased Premises Tenant shall carry special form coverage insurance, Tenant shall also procure public liability and property damage insurance Tenant shall pay the Landlord shall be named as additional insured. Tenant to pay for all utilities Tenant Assignment and Subletting: Tenant s interest under this lease may be assigned and reassigned Right of First Refusal: Tenant has the right of first refusal and must respond in thirty (30) days 9 Walgreens - Houma, LA

tenant overview 10 Offering Memorandum

WALGREENS 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 www.walgreens.com Year Founded 1901 11 Walgreens - Houma, LA

the offering PROPERTY NAME WALGREENS Property Address 1435 W Tunnel Blvd Houma, LA 70360 Assessor s Parcel Number 15813 SITE DESCRIPTION Number of Stories One Year Built/Renovated 2003/2015 Gross Leasable Area (GLA) Lot Size Type of Ownership Parking Landscaping Topography ± 14,490 SF ± 1.40 Acres (61,019 SF) NNN ± 60 Surface Spaces Professional Generally Level 12 Offering Memorandum

S Hollywood Rd ± 25,000 ADT W Tunnel Blvd ± 46,000 ADT 13 Walgreens - Houma, LA

Vandebilt Catholic High School Subject Property Maison De Ville Nursing Home Chateau Terrebonne Health Care 14 Offering Memorandum

Maison De Ville Nursing Home Chateau Terrebonne Health Care Vandebilt Catholic High School Subject Property 15 Walgreens - Houma, LA

area overview Houma, LA Houma is a great destination to experience everything Louisiana has to offer. The residents are full of life and know how to have a good time. From live music, worldfamous cooking, and rich history; there is always something going on. Houma has miles of swamps and wetlands where people come from all over to fish, hunt, and explore. The community also puts on a two-week long Cajun Mardi Gras celebration where you can experience first-hand the amazing entertainment, flavors, and music of the south! Houma is the largest city in Terrebonne Parish and is only an hour outside of New Orleans. The most common industries in the area are in construction and mining. A majority of residents occupations are in production and sales. demographics POPULATION 1 Mile 3 Mile 5 Mile 2023 Projection 8,842 48,858 72,623 2018 Estimate 8,609 47,689 71,314 2010 Census 8,228 45,875 69,607 POPULATION GROWTH 1 Mile 3 Mile 5 Mile Growth 2018-2022 2.71% 2.45% 1.84% HOUSEHOLDS 1 Mile 3 Mile 5 Mile 2023 Projection 3,424 19,286 27,807 2018 Estimate 3,320 18,702 27,107 2010 Census 3,137 17,669 25,934 HOUSEHOLD GROWTH 1 Mile 3 Mile 5 Mile Growth 2018-2022 6.71% 5.47% 5.41% INCOME 1 Mile 3 Mile 5 Mile 2018 Est. Average Household Income $65,707.62 $69,700.70 $66,487.02 16 Offering Memorandum

New Orleans, LA Less than 40 minutes from Slidell, LA lies the city of New Orleans. For arts, culture, entertainment, music, food, history, and architecture, there is hardly a better place to live. Situated on a bend of the Mississippi River, New Orleans has been the chief city of Louisiana and the Gulf of Mexico s busiest northern port since the early 1700s. The New Orleans region also accounts for a significant portion of the nation s oil refining and petrochemical production and serves as a white-collar corporate base for onshore and offshore petroleum and natural gas production. New Orleans is a center for higher learning, with over 50,000 students enrolled in the region s eleven institutions. A top-50 research university, Tulane University, is located in New Orleans Uptown neighborhood. Metropolitan New Orleans is a major regional hub for the healthcare industry and boasts a small, globally competitive manufacturing sector. The center city possesses a rapidly growing, entrepreneurial creative industries sector, and is renowned for its cultural tourism. 1 st For food in the USA 2 nd For culture in the USA 5 th in the USA for Business 17 Walgreens - Houma, LA

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New Orleans MSA Virtually surrounded by water, the New Orleans metropolitan area is home to one of the busiest ports in the world and a center of maritime industry. The city is bordered by Lake Pontchartrain on the north, the Mississippi River along the southern edge, and bayous, lakes, and marshlands everywhere else. Greater New Orleans is centered on the city of New Orleans, which possesses a rapidly growing, entrepreneurial creative industries sector and is renowned for its cultural tourism. Greater New Orleans, Inc. (GNO, Inc.) coordinates between Louisiana s Department of Economic Development and the various parochial business development agencies regarding regional economic development. The Fortune 500 company Entergy has its headquarters in New Orleans. Other companies headquartered in the area include Globalstar, Smoothie King, and Intralox. Economic Overview The city is the home to a Fortune 500 company: Entergy, a power generation utility and nuclear power plant operations specialist. Other companies either headquartered or with significant operations in New Orleans include Pan American Life Insurance, Pool Corp, Rolls-Royce, Newpark Resources, AT&T, TurboSquid, iseatz, IBM, Navtech, Superior Energy Services, Textron Marine & Land Systems, McDermott International, Pellerin Milnor, Lockheed Martin, Imperial Trading, Laitram, Harrah s Entertainment, Stewart Enterprises and Edison Chouest Offshore. Tourism is another staple of the city s economy. Perhaps more visible than any other sector, New Orleans tourist and convention industry is a $5.5 billion juggernaut that accounts for 40 percent of New Orleans tax revenues. 19 Walgreens - Houma, LA

confidentiality disclaimer and agreement This Offering Memorandum contains select information pertaining to the business and affairs of Walgreens located at 1435 W Tunnel Blvd, Houma, LA 70360 ( 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. 20 Offering Memorandum

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