Burlington Coat Factory

Burlington Coat Factory Clackamas, or Single Tenant NNN Opportunity Portland msa 10506 SE 82nd Avenue, Clackamas, OR [ www.capitalpacific.com ]

BURLINGTON COAT FACTORY IS A SINGLE TENANT NNN PROPERTY WITH APPROXIMATELY 60,000 SF OF EXCESS LAND LOCATED IN Clackamas, OR. Investment Highlights Burlington Coat Factory recently executed a new 10 year NNN lease extension scheduled to commence February 2014 and has been a stable tenant since 1993. The Property received a brand new roof in August 2013 and the Tenant is in the process of updating their location and is investing a significant amount of capital in addition to a Landlord contribution of approximately $1.66M. Burlington Coat Factory is located off of SE 82nd Avenue or Highway 213 which is a major northsouth highway and retail thoroughfare achieving traffic counts in excess of 36,000 vehicles per day. This location benefits from nearby residential density of more than 122,000 households within a 5 mile radius and close proximity to the Clackamas Town Center Mall which is anchored by Nordstrom, Macy s, Sears, JC Penney, and Century Theaters. PRICE: $13,680,000 CAP: 7.50% Cash-on-cash*... 9.43% Current Occupancy... 100% Rentable SF... 83,260 SF Price Per Square Foot... $164 LAND AREA... 7.36 Acres Lease Type... NNN Year Built... 1969 Parking**... 227 (2.7/1,000 SF) Tenant... Burlington Coat Factory *Cash-on-cash yield is an estimate based on the debt terms provided on page 8. **Parking is approximate and based on a manual count. Approximately 2/3 of the available land area is striped for parking, and additional parking can be obtained through re-configuring current and adding spaces to the south end of the lot. Burlington coat factory 2

Core Characteristics The Top Performing Location in OR translates to Stable Tenant since 1993 Long Term National Tenant Burlington Coat Factory ( NYSE: BURL) has more than 470 store locations in 44 states and Puerto Rico and has been a stable tenant at the Property since 1993 and recently executed a new 10 year lease extension scheduled to commence February 2014. Burlington Coat Factory s stock prices rose nearly 50 percent after parent company Bain Capital returned the discount apparel retailer to the stock market with their initial public offering on October 2, 2013 (see page 11 for more information). CAPITAL IMPROVEMENTS Tenant currently investing a significant amount of capital to improve their space in addition to a brand new roof recently completed by the Landlord in August 2013. In addition, Landlord is providing a tenant improvement allowance of $1.66M (see page 10 for more information). RETAIL LOCATION Located off 82nd Avenue which is a major north-south retail corridor occupied by numerous national retailers and the Clackamas Town Center Mall with over 1.2 million SF of retail and amenities. Burlington coat factory 3

Core Characteristics Cont. High traffic counts POTENTIAL DEVELOPMENT OPPORTUNITY Approximately 60,000 SF of excess land located at the south end of the Property has the potential to accommodate an additional 21,000 SF of retail space (see page 6 for more information). CELLULAR GROUND LEASE Approximately 800 SF of land located at the southwest portion of the premises is leased to two national telecommunications companies for the use and operation of a cell tower which provides additional income and stability to the Property (see page 7 for more information). in excess of 36,000 vpd Proposed new loan The pre-taxed leveraged cash-on-cash yield is estimated at 9.43% (see page 8 for loan details). Burlington coat factory 4

Aerial Retail Location High Trafficked Location This location benefits from its nearby residential density of more than 122,000 households within a 5 mile radius and proximity to the Clackamas Town Center Mall, a 1.2 million SF mall anchored by Nordstrom, Macy s, Sears, JC Penney, and REI. Located on 82nd Avenue, a high trafficked and heavily retailed main throughway connecting southeast to northeast Portland and merging with I-205 just 2 miles south of the Property. PORTLAND 10 MILES Clackamas Town Center Burlington coat factory 205 AILY 131,900 D 82nd Avenue 36,000 DAILY Burlington Coat Factory 5

36,000 DAILY SE 82ND AVENUE Site INGRESS/EGRESS Access to SE 82nd Ave. Potential future development Approximately 165 by 365 of land located at the south end of the Property has the potential to accommodate another 21,000 SF of retail space. The Property currently sits on one tax parcel; however, it could be partitioned and sold if developed. No value has been directly attributed to this excess land in the offering price. deseret industries thrift store B&H Locksmith Service SE KING ROAD (New Roof August 2013) Cell Tower 60,000 SF of Excess Land Potential future development of up to 21,000 sf of retail (165 x 365 ) SE FULLER ROAD SE KING ROAD Burlington Coat Factory 6

SE 82ND AVENUE Site Plan Key Site Plan Parcel outline Commercial Zone (rtl) Land Area: Commercial Zone (RTL): 7.36 Acres 7.07 Acres Residential Zone (r-10) Residential Zone (R-10): 0.29 Acres nap Approx. 800 SF of land leased to two national telecommunications companies for the use and operation of a cell tower (see page 10 for more information). NAP nap Potential future development of up to 21,000 sf of retail SE KING ROAD Approx. 0.29 acres of land zoned residential (see page 10 for more information). Burlington Coat Factory 7

Financial Summary PRICE $13,680,000 Capitalization Rate: 7.50% Price Per Foot: $164 NET OPERATING INCOME SUMMARY Plus: STABILIZED INCOME Per SF Scheduled Rent: 3/1/2014 $12.42 $1,033,975 Plus: Rent Increases Through: 2/28/2015 - - Equals: Effective Gross Income $12.42 $1,033,975 Less: OPERATING EXPENSES Per SF Reserves $0.10 $8,326 Total Operating Expenses $0.10 ($8,326) Equals: NET OPERATING INCOME $1,025,649 LEVERAGED RETURN CALCULATION Proposed New Loan : 70.00% $9,576,000 Interest Rate 4.50% Amortization 25 Payment - Principal & Interest: ($638,718) Start Date Mar-14 Offered Free and clear of debt The following loan summaries are for consideration purposes only, and not a guarantee of loan terms. The rates and terms are subject to market fluctuation. Loan to value: 70% Term rate: 10 Year 4.85% Term rate: 7 Year 4.50% Amortization: 25 Years For more information please contact Farhan kabani Mark One Capital 5001 Spring Valley, Suite 100W Dallas, TX 75244 W 972-755-5301 farhan.kabani@markonecapital.com Equity Requirement: $4,104,000 Debt Coverage Ratio: 1.61 Debt Constant: 6.67% Net Operating Income: $1,025,649 Less: Total Annual Debt Service ($638,718) Equals: Pre-Tax Cash Flow $386,931 Pre-Taxed Leveraged Cash-on-Cash Return: 9.43% 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. Burlington Coat Factory 8

Rent Roll TENANT INFO LEASE TERMS CURRENT RENT RENT INCREASES OPTIONS LEASE TYPE Tenant Name Size % of SF Occupancy Lease Monthly Date of Monthly Rent/SF/YR Date Expiration Base Rent Increase Base Rent Burlington Coat Factory 83,260 100% 5/11/93 1/31/24 $83,260 $12.00 2/1/19 $91,586 Four 5 Year: NNN Term: Tenant recently executed a third amendment to further extend their second extended term for an 10% increase each additional ten (10) year period from 2/1/2014 through 1/31/2024 and perform site improvements and option renovations. Landlord Improvements: Landlord will remove and replace the existing roof and provide a Tenant Improvement Contribution in the amount of $1,665,200 to be paid upon receiving a cost certification provided by the Tenant which represents qualified costs. Qualified Tenant Improvement Costs: Construction and installation of fixtures, furnishing and equipment; re-stripe the parking lot; storefront and facade improvements into the building. Rent: Tenant is currently paying $7.50/SF and rent shall increase to $12/SF on 2/1/2014 with a 10% increases in year 6 as well as for each of the available 5yr extension options thereafter. In the event the Tenant Improvement Contribution is paid out prior to 2/1/2014, then rent shall temporarily increase to $9.50/SF ending 1/31/2014. Seller will credit the buyer an amount equal to the delta between the closing date and the scheduled rent increase on 2/1/14. Maintenance: Tenant is responsible for all maintenance and repair of the premises, and Landlord is responsible for the roof and structural parts of the exterior walls and foundation. SBA 2012 TC Assets, LLC (Formerly Nextel Communications) - - 11/1/06 10/31/16 $2,215 N/A 11/1/14 $2,288 Four 5 Year: Gross comments: Tenant leases approximately 600 SF of land located near the southwest corner of the Property 11/1/15 $2,363 Automatic for the use of a cell tower. Lease rates increase 3.3% each year. Lessee may terminate at any time with 30 days written notice. Cricket Wireless - - 10/19/06 10/31/16 $690 N/A One 5 Year: Gross comments: Tenant leases approximately 200 SF of ground space located at the base of the cell tower. Automatic Lease term will automatically renew at $793.50/mo. at the end of primary term. Totals: 83,260 100% $86,165 Burlington Bethel coat Junction factory 9

Q&A With Capital Pacific Q: Have there been any recent improvements to the Property? Are there any planned improvements to come? A: The Property received a brand new roof this August which cost approximately $430,000 and consisted of a complete tear off of existing roof material down to metal roof decking and installation of 0.60 mil thick Thermoplastic Polyolefin Roofing. Additionally, the Tenant is in the process of updating this location and has received a Landlord Contribution of approximately $1.66M in tenant improvements for qualified costs (see rent roll for qualified costs). Planned improvements include new flooring, lighting, rest rooms, break room, paint, signage, and removal of the current exterior canopy. Q: What is the Potential Development Opportunity? There is approximately 60,000 SF (165 x 365 ) of excess land located at the south end of the Property which can accommodate an estimated 21,000 SF of additional retail space. The Property currently sits on one tax parcel; however, it could be partitioned and sold if developed (see site plan on page 7 for more detail). Q: What are the criteria for a commercial retail development on the excess land located at the Property? The following criteria are excerpts pulled from the Clackamas County Zoning and Development Ordinance. Please visit the Clackamas County website for more information. Minimum Landscaping: 10% Parking: 3 Spaces per 1,000 SF Minimum Maximum Yard Setback: 15 Feet 20 Feet Minimum Side and Rear Yard Setbacks: None, except when side/rear abuts a more restrictive district, in which case the minimum shall be 15 feet. The setback shall increase 10 feet for each 10-foot increment in height over 35 feet. Q: What are RTL and R-10 zoning designations? RTL Zoning: According to the Clackamas County Zoning and Development Ordinance, RTL Zoning stands for Retail Commercial District, and it its primary uses are for office, retail, and service commercial uses. R-10 Zoning: According to the Clackamas County Zoning and Development Ordinance, R-10 Zoning stands for Urban Low Density Residential District, and its primary uses are for single-family dwelling, public parks, and recreational grounds. Q: Tell me more about the Cell Towers and their Lease Agreements on the Property. SBA 2012 TC Assets (formerly Nextel Communications) currently leases approximately 600 SF of land for the operation and use of a cell tower tucked away in a corner near the southwest portion of the premises. Additionally, Cricket Wireless leases approximately 200 SF of land adjacent to the cell tower for storage purposes and subsequently leases rights to the cell tower from SBA 2012 TC Assets. Combined, the two lease agreements provide an additional annual cash flow of approximately $35k and bares limited presence and will likely not restrict or prevent future development plans. Q: What is the zoning for the Property? The Property sits on a single tax parcel and is comprised of approximately 7.07 Acres of land zoned RTL for Retail Commercial and.29 Acres of land zoned R-10 for Low Density Residential (see site plan on page 7 for more detail). 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. Burlington coat factory 10

Burlington Coat Factory Brand new 10 year lease extension scheduled to commence February 2014 About Burlington Coat Factory Burlington Coat Factory is a leading off-price apparel and home product retailer. They operate over 470 stores in 44 states and Puerto Rico, and offer a large assortment of current, high-quality, designer and name-brand merchandise at up to 70% off department store prices. NYSE BURL 2012 REVENUE $4.1 BILLION LOCATIONS 470+ BURLINGTON STORES RETURNS TO MARKET, SHARES JUMP 50 PCT Burlington Stores Inc s (BURL.N) shares rose nearly 50 percent after Bain Capital returned the discount apparel retailer to the stock market, tapping into the appeal of cheaper clothing in a tough economy. The retailer behind the Burlington Coat Factory brand, taken private seven years ago, is the fourth company that Bain Capital has floated on the stock market this year. Burlington s shares opened at $23.50 and touched a high of $25.10 in intraday trading, valuing the company at $1.8 billion. For the full article: Reuters - October 2, 2013 http://www.reuters.com/article/2013/10/02/us-burlingtonstoresinc-ipo-idusbre99111c20131002 Burlington coat factory 11

Clackamas, or Location & Demos Clackamas/Portland Metropolitan Area Overview Clackamas is a member of the Portland, Oregon metropolitan area, bordering Portland, Happy Valley, Damascus, Pleasant Valley and Sunnyside. Portland s population of 583,776 makes it the 29th most populous city in the United States. Portland is Oregon s most populous city, and the third most populous city in the Pacific Northwest, after Seattle, Washington and Vancouver, British Columbia, Canada. Approximately 2,260,000 people live in the Portland metropolitan area (MSA), the 23rd most populous in the United States. HIGHLY SKILLED WORK FORCE URBAN GROWTH BOUNDARY (UGB) 30% of workers have a bachelor s degree. Portland constrains its development to a tight ring around Portland s center. This has led to the re-development of a Home of Intel, Nike, Adidas America, and others. large portion of downtown, a number of mid and highrise developments, and an overall increase in housing and LOW COST OF DOING BUSINESS business density. UGB s limitation to development has also led to increased property values over the years. CNBC ranked Oregon 19th for cost of doing business. Portland MSA Location portland HIGHLY DIVERSIFIED ECONOMY Portland shifted from agriculture and timber production as its leading economic driver to renewable energy, technology, health care, and professional services. High tech employment is responsible for the employment of 72,100 people (7.2% of labor force). IN-MIGRATION In-migration accounted for approximately 9.5% of Portland s population gains in 2010. Portland is ranked 13th for in-migration with an estimated 210,900 new residences expected from 2009-2014 21-34 year old population group has increased by 23% since 1990. lake oswego Clackamas Population 3-Mile 5-Mile 2010 120,191 307,680 2012 122,227 312,688 2017 127,833 327,478 Household incomes 3-Mile 5-Mile Median $49,453 $48,767 Average $62,775 $61,864 Burlington coat factory 12

A unique HUMAN RESULTS-DRIVEN client experience The capital pacific experience - our daily commitment to our clients [ www.capitalpacific.com ] Michael Horwitz mhorwitz@capitalpacific.com (503) 675-8381 Sean Mack smack@capitalpacific.com (503) 675-8378 Peter Dunn pdunn@capitalpacific.com (503) 607-0197 Kevin Adatto kadatto@capitalpacific.com (503) 675-7726 Sean Tufts stufts@capitalpacific.com (206) 743-8468 Scott Frank sfrank@capitalpacific.com (503) 675-8383 Baylor Gordon bgordon@capitalpacific.com (206) 457-8960