ASHLEY FURNITURE MOKENA, IL OFFERING MEMORANDUM

ASHLEY FURNITURE MOKENA, IL OFFERING MEMORANDUM

2 INVESTMENT OVERVIEW INVESTMENT OVERVIEW Marcus & Millichap is pleased to present this value-add, Ashley HomeStore in Mokena, Illinois, located 30 miles southwest of Chicago. The tenant has 6 months remaining on their double-net (NN) lease, and will continue to pay rent through June 30, 2018. The lease is guaranteed by Rockledge Furniture, Limited Liability Company (LLC), which is a 20-unit entity and a wholly owned subsidiary of Ashley Furniture Industries, Incorporated (Inc). This offering features more than three-acres of land in a groceryanchored shopping center on La Grange Road. Mokena Towne Square is a 134,000-square foot power center anchored by Brook Haven Market Place II and Charter Fitness, offering optimal cotenancy. Once vacated, this asset offers investor(s) significant upside through the lease up of 45,000 square feet. The subject property benefits from being located on South La Grange Road, a major north-south highway connecting the western suburbs of Chicago. More than 38,800 vehicles pass this asset daily. The asset is situated within a dense trade area. There is more than 550,000 square feet of retail within one mile. National credit anchors include: Home Depot, Aldi, and Emagine Frankfort Movie Theatre. This asset benefits from affluent demographics. There are more than 142,000 residents with an average household income greater than $109,000 within five miles. Additional tenants in the immediate vicinity include: Speedway, CVS, AutoZone, Taco Bell, O Reilly Auto Parts, Dollar Tree, Wendy s, Hertz, Chipotle, Steak n Shake, Jimmy Johns, and many more.

3 INVESTMENT OVERVIEW Value-Add Ashley HomeStore in Mokena, Illinois 30 Miles Southwest of Chicago Tenant Exercised Early Termination Option Paying Rent Through June 30, 2018 Offering Features Large Three-Acre Parcel Within Grocery-Anchored Shopping Center on South La Grange Road More 38,000 Vehicles Per Day (VPD) Mokena Towne Square is a 14-Acre Power Center With More Than 134,000 Square Feet of Retail Space Optimal Co-Tenancy Achievable With Brook Haven Market Place II and Charter Fitness Additional National Tenants Feature: Auto Advance Parts, Popeyes, and Sports Clips Significant Upside Available Through the Lease Up of 45,000 Square Feet After Tenant Vacates in June 2018 La Grange Retail Trade Area More Than 550,000 Square Feet of Retail Within One Mile Anchored by Strong National Credits Home Depot, Aldi, and Emagine Frankfort Movie Theatre Affluent Demographics More Than 142,000 Residents With an Average Household Income (AHHI) Greater Than $109,000 within Five Miles Additional Tenants in the Immediate Vicinity Include: Speedway, CVS, Dollar Tree, Wendy s, Hertz, Chipotle, Steak n Shake, Jimmy Johns, and Many More

4 FINANCIAL OVERVIEW FINANCIAL OVERVIEW PRICE $3,200,000 CAP RATE 14.06% NOI $450,000 PRICE PER SQUARE FOOT $71.11 RENT PER SQUARE FOOT $10.00 YEAR BUILT 2002 APPROXIMATE LOT SIZE +/-3.13 Acres GROSS LEASEABLE AREA 45,000 TYPE OF OWNERSHIP LEASE GUARANTOR LEASE TYPE Fee Simple Rockledge Furniture, Limited Liability Company (LLC) Double-Net (NN) ROOF AND STRUCTURE Tenant Responsible

5 LEASE SUMMARY LEASE SUMMARY LEASE COMMENCEMENT DATE 2/1/2009 LEASE EXPIRATION DATE 6/30/2018 LEASE TERM 5 Years TERM REMAINING 6 Months

6 TENANT OVERVIEW TENANT OVERVIEW - ASHLEY HOME FURNITURE Ashley Furniture Industries, Incorporated (Inc) is an American home furnishings manufacturer and retailer, headquartered in Arcadia, Wisconsin. The company is owned by father and son team Ron and Todd Wanek. Ashley Furniture manufactures and distributes home furniture products throughout the world. Ashley Furniture Industries sells home furnishings and accessories available through two distribution channels: independent furniture dealers and more than 750 Ashley Furniture HomeStores. The HomeStores are independently owned and operated by Ashely Furniture licensees in the United States, Canada, Mexico, Central America, and Japan. The company has manufacturing and distribution facilities in Wisconsin, Mississippi, Pennsylvania, North Carolina, Florida, China, and Vietnam. TENANT PROFILE TENANT TRADE NAME OWNERSHIP TENANT LEASE GUARANTOR NUMBER OF LOCATIONS HEADQUARTERED WEB SITE Ashley Furniture HomeStore Private Rockledge Furniture, Limited Liability Company (LLC) Rockledge Furniture, Limited Liability Company (LLC) 15+ Locations Arcadia, Wisconsin www.ashleyfurniturehomestore.com

7 DEMOGRAPHICS 1-Mile 3-Mile 5-Mile POPULATION 2000 Population 5,125 41,838 109,364 2010 Population 6,489 54,756 137,675 2017 Population 6,596 55,365 141,266 2022 Population 6,661 55,798 142,456 1-Mile 3-Mile 5-Mile HOUSEHOLDS 2000 Households 1,597 13,465 36,746 2010 Households 2,078 18,742 48,647 2017 Households 2,107 18,884 49,834 2022 Households 2,128 19,018 50,227 1-Mile 3-Mile 5-Mile HOUSEHOLD (HH) INCOMES 2017 Average HH Income $109,117 115,050 109,638 2017 Median HH Income $97,276 $97,327 $91,391 2017 Per Capita Income $34,856 $39,241 $38,677

8 MOKENA, ILLINOIS ABOUT MOKENA, ILLINOIS Mokena s central location and prime location make it a natural location for regional shopping, hospitality, and entertainment. Nestled between several major interstates, one of the Village s greatest advantages is the direct access to Interstate 80, with convenient access to Interstate 355, Interstate 57, and Interstate 294. The Village of Mokena is serviced by the Rock Island District of the Metra Rail Service, with two commuter rail stations. Midway International and O Hare International Airports are both less than an hour drive from Mokena. Mokena s robust demographics are strengthened by excellent schools. Both the Mokena Public School District and the Lincoln-Way High School District continue to be highly rated in the State of Illinois. Median household income is more than $100,000, with low foreclosure and crime rates. Mokena has the lowest property tax rate of 23 Will County Communities. Will County itself has experienced a 36 percent population increase from 2000 to 2016, and is number 89 of the 100 largest counties by population in the United States.

MARCUS & MILLICHAP HEREBY ADVISES ALL PROSPECTIVE PURCHASERS OF NET LEASED PROPERTY AS FOLLOWS: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a net leased property, it is the Buyer s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors. Buyer and Buyer s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer s legal and financial advisors must request and carefully review all legal and financial documents related to the property and tenant. While the tenant s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer s legal ability to make alternate use of the property. By accepting this Marketing Brochure you agree to release Marcus & Millichap Real Estate Investment Services and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

ASHLEY FURNITURE MOKENA, IL 19800 SOUTH LAGRANGE ROAD MOKENA, ILLINOIS 60448 BROKER OF RECORD: STEVEN WEINSTOCK MARCUS & MILLICHAP OAK BROOK TERRACE, IL 60181 LICENSE: 471.011175