BELMONT SQUARE GROCERY ANCHORED SHOPPING CENTER

Market Positioning and Pricing Analysis BELMONT SQUARE 2020 Main St Parsons, KS 67357 1

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TABLE OF CONTENTS SECTION THE MARCUS & MILLICHAP ADVANTAGE 01 MARKETING PLAN 02 INVESTMENT OVERVIEW 03 Property Overview Regional Map Local Map Aerial Photo FINANCIAL ANALYSIS 04 Tenant Summary Lease Expiration Chart Operating Statement Notes Pricing Detail Proposal Price STRATEGIC OWNERSHIP ANALYSIS 05 Ownership Options MARKET COMPARABLES 06 Sales Comparables MARKET OVERVIEW Demographic Analysis 07

INVESTMENT OVERVIEW 4

Regional Map 5

REGIONAL MAP 6

AERIAL PHOTO 7

BELMONT SQUARE - GROCERY ANCHORED OFFERING SUMMARY EXECUTIVE SUMMARY VITAL DATA Price $1,778,789 Loan Amount $1,245,152 Loan Type Proposed New Interest Rate / Amortization Gross Leasable Area (GLA) Price/SF Current Occupancy Year Built / Renovated Lot Size 4.50% / 25 Years CAP Rate Net Operating Income Net Cash Flow After Debt Service Total Return YEAR 1 PROFORMA 9.25% 15.63% $164,538 $278,015 14.92% / $81,486 35.70% / $194,963 19.97% / $109,070 40.99% / $223,815 116,000 SF $15.33 72.41% 1975 / 1987 9 acre(s) MAJOR TENANTS TENANT King Cash Savers Family Dollar Westco GLA LEASE EXPIRATION LEASE TYPE 60,000 1/31/2027 NNN 8,000 12/31/2019 N 16,000 5/31/2021 NNN MAJOR EMPLOYERS EMPLOYER # OF EMPLOYEES Parsons State Hosp Trining Ctr 491 Special Purpose School 467 Labette Health 459 Parsons Clinic 279 Waste Corporation America Inc 276 Flesh Company 237 Wskt 230 Labette Community College 210 Day & Zimmermann Kansas LLC 200 Dwaynes Photo Service 200 Kansas Div 200 Grandview Products Co Inc 185 DEMOGRAPHICS 3-Miles 5-Miles 10-Miles 2016 Estimate Pop 10,900 11,489 13,862 2016 Census Pop 11,346 11,946 14,294 2016 Estimate HH 4,488 4,705 5,604 2016 Census HH 4,712 4,934 5,822 Median HH Income $39,596 $39,922 $41,793 Per Capita Income $20,523 $20,531 $20,917 Average HH Income $48,715 $49,039 $50,813 #8

PROPERTY OVERVIEW PROPERTY OVERVIEW Marcus & Millichap is pleased to present for your review, Belmont Square grocery anchored shopping center located in Parsons, Kansas. The investment consist of a 72 percent occupied multi-tenant retail center. The shopping center has a total square footage of 114,000, with 32,000 square-feet currently vacant. Belmont Square is currently being leased to King Cash Savers grocery store (with additional sub-leases to Auburn Pharmacy & Subway), Family Dollar & Westco Furniture. King Cash Savers and Westco Home Furnishings are on a triple-net lease and Family Dollar is on a singlenet lease. King Cash Savers, under its parent company Pyramid Foods of Springfield, Missouri, has over 60 regional grocery stores This property has significant value-add opportunity with a 14.59 percent pro forma cap rate at list price. With leverage, the proforma cash-on-cash return is 32.3 percent. Belmont Square has excellent visibility from Main St. and connects with the thriving 92 percent occupied Main Street. Downtown, just 500 feet away. Historic Downtown Parsons was recently recognized as a National Great American Main Street Award Winner for the revitalization work that has occurred. Main Street. connects Belmont Square with local and national restaurants, Ace Hardware, Walgreen s Pharmacy, law firms, business, The Parsons Municipal Auditorium and Labette Community College (2,000 students). The City of Parsons is located 23 miles from the Southern border of Kansas and Oklahoma along Hwy 400. Parsons is the most populous city in Labette County and the second most populous city in southeast Kansas. Major employers are Labette Health, Grandview Products Co, Ruskin Manufacturing, Old Dominion Freight Line, STEINLE, Inc, Ducommun Aerostructures Inc., The Flesh Company,Power Flame Incorporated and dozens more. PROPERTY OVERVIEW Belmont Square Has Been A Grocery Shopping Center Since 1975 Largest Regional Operator Signed 10 Year Lease In January, 2017 Significant Value-Add Opportunity (14.59 Percent Proforma Cap Rate at List Price) Family Dollar With Center Since 1987 - On 5th Lease Renewal Westco Home Furnishings With Center Since 1996 & Signed a Five-Year Extension Last Summer Located On Thriving Main St - Steps Away From 92 Percent Occupied Historic Downtown Parsons 9

BELMONT SQUARE - GROCERY ANCHORED OFFERING SUMMARY PROPERTY SUMMARY THE OFFERING Property PROPOSED FINANCING Belmont Square - Grocery Anchored Price $1,935,754 Property Address Assessors Parcel Number Zoning $1,355,028 Loan Type 036-24-0-10-01-001.00-0 Interest Rate 4.50% Central Business District - 1 Amortization 25 Years Loan Term 10 Years 1 Year Built/Renovated 1975 Gross Leasable Area 116,000 Ownership Loan Amount 2020 Main St,Parsons,KS SITE DESCRIPTION Number of Stories First Trust Deed Proposed New Loan to Value 70% Debt Coverage Ratio 1.82 Fee Simple Lot Size 8.49 Parking 478 Surface Spaces Parking Ratio 4.35/1,000 SF Topography Level - 1 Access Points Three: North, South West UTILITIES Gas All Public - 1 Electric All Public - 1 Water All Public - 1 Sewer All Public - 1 Trash Private - Waste Management Service -(620) 421-1221 CONSTRUCTION Foundation Concrete Framing Wood & Metal Exterior Wood & Metal Parking Surface Asphalt Roof Single -Metal on Steel Frame MECHANICAL HVAC Fire Protection Warmed and Cooled Air Wet Sprinklers 10

Property Photos 11

City Information 12

MAJOR EMPLOYERS 13

FINANCIAL ANALYSIS 14

TENANT SUMMARY FINANCIAL ANALYSIS 15

OPERATING STATEMENT FINANCIAL ANALYSIS 16

PRICING DETAIL FINANCIAL ANALYSIS 17

TENANT PROFILES King Cash Savers General Information Pyramid Foods is a company dedicated to providing consumers the very best food and service at the very best prices. We are dedicated to our employees and customers through the programs we support in their communities. We take pride in the brands we represent. Website: https://www.pyramidfoods.net/ Tenant Name King Cash Savers Website http://www.kingcashsaver.com/ Parent Company Pyramid Foods, Inc Headquartered Springfield, Mo Rentable Square Feet 60,000 SF Percentage of RBA 51.70% Lease Commencement 1/5/2017 Lease Expiration 1/31/2027 12 18

PROPERTY GROCERY GROCERYANCHORED NAME ANCHORED SHOPPING SHOPPING CENTER CENTER NEW 10-YEAR LEASE SUMMARY TENANT SUMMARY PRICING VALUATION MATRIX PRICING AND ANDTENANT VALUATION MATRIX Family Dollar (Dollar Tree, Inc.) CREDIT RATING: 3/2017: Ba1 (Moody s) Key Personnel General Information Address 10401 Monroe Road, Matthews, North Carolina, 28105, United States Phone 704-847-6961 Website www.familydollar.com CFO & EVP Mary A. Winston Chairman & CEO Howard R. Levine Store Base Financial Markets Store Count Over 8,000 Current Price $79.42. as of 7/6/17 TTM Sales N.A. 52 Week High/Low $80.00/$75.00 Fiscal Year Ended N.A. 19 #

NEW TENANT PROFILE Westco Home Furnishings General Information Tenant Name Westco Home Furnishings Website https://westcohomefurnishings.com/index.html Parent Company Westco Home Furnishings Headquartered Oklahoma Rentable Square Feet 16,000 SF Percentage of RBA 13.80% Lease Commencement 2/9/1996 Lease Expiration 5/31/2021 No. of Locations 12 Westco was founded by Mr. Dail C West on May 15, 1944. The first small store was located on Main Street in Miami, Oklahoma and was known as Miami Sales Company. B.F. Goodrich tires and appliances were the main items sold. Furniture was added in 1955 with the opening of Commerce Sales Company in Commerce, Oklahoma and since that time has been a very important part of the business. Westco has continued to grow over the years and now has stores in Oklahoma, Kansas and Missouri. 12 20

MARKET COMPARABLES 21

8 SALES COMPARABLES MAP BEMLONT SQUARE - (SUBJECT) 1 Coffeyville Plaza 2 Chickasha Square 3 3 Broadway Place 1 2 SALES COMPARABLES 22

PROPERTY NAME GROCERY ANCHORED SHOPPING CENTER SALES COMPARABLES SALES COMPS AVG SALES COMPARABLES Average Price Per Square Foot Average Cap Rate Avg. 8.77% 9.0 $57.00 8.1 $51.30 7.2 $45.60 6.3 $39.90 5.4 $34.20 4.5 $28.50 3.6 $22.80 2.7 $17.10 1.8 $11.40 0.9 $5.70 0.0 Avg. $29.06 $0.00 Belmont Square Grocery Shopping Center Coffeyville Plaza Grocery Anchored Chickasha Square Broadway Place Belmont Square Grocery Shopping Center Coffeyville Plaza Grocery Anchored Chickasha Square Broadway Place 23

PROPERTY NAME GROCERY ANCHORED SHOPPING CENTER SALES COMPARABLES MARKETING TEAM SALES COMPARABLES 2020 Main St, Parsons, KS, 67357 1000 Hall Street, Coffeyville, KS, 67337 rentpropertyname1 Tenants Lease Type Asking Price: $1,778,789 King Cash Savers NNN Price/SF: $15.33 Family Dollar N CAP Rate: 9.25% Westco NNN Year Built: 1975 Annual Per SF $319,519 $2.75 Expenses $154,981 $1.34 NOI $164,538 $1.42 Occupancy 72.41% Income 2223 Ponderosa Dr, Chickasha, OK, 73018 22 1 rentpropertyname1 rentpropertyaddress1 CHICKASHA SQUARE COFFEYVILLE PLAZA BELMONT SQUARE GROCERY SHOPPING CENTER rentpropertyname1 Tenants Lease Type Close Of Escrow: 6/29/2015 Aaron's NN Sales Price: $940,000 Carter Health Care NN NNN Price/SF: $11.68 Checks Into Cash NN 9.00% Factory Connection NN 1987 Goodies NN Tenants Lease Type Close Of Escrow: 9/15/2016 Country Mart NNM Sales Price: Rent A Center NNN Price/SF: $2,000,000 $19.65 Checks Into Cash CAP Rate: 8.67% Hibbett Sports NNN CAP Rate: Year Built: 1974 Factory Connection NNN Year Built: ON MARKET 60 DAYS NOTES rentpropertyaddress1 58% occupied Grocery Anchored Retail Center. 101,800 Sf. Value-Add Through Leasing. 4 Offers at list Price. Sold at List Cap of 8.67% rentpropertyaddress1 NOTES 80,468 square foot retail center leased by Check into Cash, Factory Connection, Goodies, Carter Health Care LLC and Aaron's sold for $940,000 or $11.68 PSF on 6/29/2015. 24

PROPERTY NAME GROCERY ANCHORED SHOPPING CENTER SALES COMPARABLES MARKETING TEAM SALES COMPARABLES BROADWAY PLACE 701 East Broadway Boulevard, Sedalia, MO, 65301 33 rentpropertyname1 Tenants Lease Type Close Of Escrow: 6/1/2015 Woods Supermarket NNN Sales Price: $3,500,000 Dollar General NNN Price/SF: $55.84 Hardees NNN CAP Rate: 8.64% Snip & Clip NNN Year Built: 1969 Valiant Gun & Pawn NNN NOTES The 87% occupied center is anchored by a 38,068 square foot Woods Supermarket (Woods). Woods is headquartered in rentpropertyaddress1 Bolivar, Missouri and has nine stores throughout Missouri and Kansas. Woods sales are $425 PSF and their current lease term extends through February of 2028. Woods offers its customers an out-lot convenience gas station and drive-thru pharmacy. Other national tenants include Dollar General and a Hardees ground lease. rentpropertyname1 rentpropertyname1 rentpropertyaddress1 rentpropertyaddress1 25

MARKET OVERVIEW 26

PROPERTY NAME GROCERY ANCHORED SHOPPING CENTER DEMOGRAPHICS MARKETING TEAM Created on July 2017 POPULATION 2021 Projection Total Population 3 Miles 5 Miles 10 Miles 10,612 11,193 13,570 10,900 11,489 13,862 2016 Estimate Total Population 2010 Census Total Population 11,346 11,946 14,294 2000 Census Total Population 12,363 13,000 15,281 12,909 13,534 14,823 Current Daytime Population 2016 Estimate HOUSEHOLDS 2021 Projection Total Households 3 Miles 4,387 5 Miles 4,603 10 Miles 5,506 2016 Estimate Total Households Average (Mean) Household Size 4,488 4,705 5,604 2.34 2.35 2.38 4,712 4,934 5,073 5,298 2016 Estimate 4,387 4,603 5 Miles 10 Miles $52,175 $53,787 $13,896 $13,951 $14,304 Transportation $9,236 $9,275 $9,543 Shelter $7,892 $7,917 $8,097 Food $5,851 $5,872 $6,020 Personal Insurance and Pensions $3,984 $4,021 $4,287 Health Care $3,923 $3,953 $4,092 Utilities $3,290 $3,304 $3,380 Entertainment $2,228 $2,242 $2,330 Cash Contributions $1,391 $1,403 $1,467 Household Furnishings and Equipment $1,327 $1,337 $1,396 3 Miles 5 Miles 10 Miles POPULATION PROFILE Population By Age 10,900 11,489 13,862 25.93% 25.88% 20 to 34 Years 19.48% 19.22% 18.32% 35 to 39 Years 5.06% 5.05% 5.04% 40 to 49 Years 11.78% 11.82% 12.12% 50 to 64 Years 20.77% 20.94% 21.56% 5,506 Age 65+ 16.86% 17.04% 17.07% Median Age 39.41 39.80 40.70 5,822 6,166 Occupied Units 2021 Projection 3 Miles $51,937 26.06% 2000 Census Total Households Total Average Household Retail Expenditure Consumer Expenditure Top 10 Categories Housing Under 20 2010 Census Total Households HOUSEHOLDS BY EXPENDITURE 2016 Estimate Total Population 5,286 5,535 6,564 3 Miles 5 Miles 10 Miles $150,000 or More 1.50% 1.51% 1.53% Elementary (0-8) $100,000 - $149,000 6.40% 6.57% 7.56% Some High School (9-11) 7.39% 7.37% 7.09% $75,000 - $99,999 8.55% 8.69% 10.10% High School Graduate (12) 28.09% 28.14% 29.02% $50,000 - $74,999 20.22% 20.28% 20.07% Some College (13-15) 28.83% 28.74% 28.16% 17.82% Associate Degree Only 10.84% 10.95% 10.95% 42.65% Bachelors Degree Only 10.71% 10.74% 10.89% Graduate Degree 7.52% 7.55% 8.12% HOUSEHOLDS BY INCOME 2016 Estimate $35,000 - $49,999 Under $35,000 17.86% 45.18% 17.78% 44.90% Average Household Income $48,715 $49,039 $50,813 Median Household Income $39,596 $39,922 $41,793 Per Capita Income $20,523 $20,531 $20,917 Population 25+ by Education Level 2016 Estimate Population Age 25+ 7,309 7,729 9,370 4.02% 3.94% 3.60% Source: 2016 Experian 27

PROPERTY NAME GROCERY ANCHORED SHOPPING CENTER DEMOGRAPHICS MARKETING TEAM Population Race and Ethnicity In 2016, the population in your selected geography is 13,862. The population has changed by -9.29% since 2000. It is estimated that the population in your area will be 13,570.00 five years from now, which represents a change of -2.11% from the current year. The current population is 49.63% male and 50.37% female. The median age of the population in your area is 40.70, compare this to the US average which is 37.68. The population density in your area is 44.08 people per square mile. The current year racial makeup of your selected area is as follows: 86.59% White, 6.28% Black, 0.04% Native American and 0.88% Asian/Pacific Islander. Compare these to US averages which are: 70.77% White, 12.80% Black, 0.19% Native American and 5.36% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. Households Housing There are currently 5,604 households in your selected geography. The number of households has changed by -9.11% since 2000. It is estimated that the number of households in your area will be 5,506 five years from now, which represents a change of -1.75% from the current year. The average household size in your area is 2.38 persons. The median housing value in your area was $62,592 in 2016, compare this to the US average of $187,181. In 2000, there were 4,388 owner occupied housing units in your area and there were 1,778 renter occupied housing units in your area. The median rent at the time was $282. Income Employment In 2016, the median household income for your selected geography is $41,793, compare this to the US average which is currently $54,505. The median household income for your area has changed by 33.06% since 2000. It is estimated that the median household income in your area will be $48,878 five years from now, which represents a change of 16.95% from the current year. In 2016, there are 7,908 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 50.72% of employees are employed in white-collar occupations in this geography, and 49.30% are employed in blue-collar occupations. In 2016, unemployment in this area is 6.76%. In 2000, the average time traveled to work was 15.00 minutes. People of Hispanic origin make up 5.28% of the current year population in your selected area. Compare this to the US average of 17.65%. The current year per capita income in your area is $20,917, compare this to the US average, which is $29,962. The current year average household income in your area is $50,813, compare this to the US average which is $78,425. Source: 2016 Experian 28

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PRESENTED BY Daniel Greenamyre Associate Associate Member, National Retail Group Kansas City Office Tel: (816) 410-1028 Fax: (816) 410-1020 daniel.greenamyre@marcusmillichap.com License: KS SP00236311 Greg Bates Supervising Broker Kansas City Office Tel: (816) 410-1025 Fax: (816) 410-1020 Greg.Bates@marcusmillichap.com License: KS BR00035677 www.marcusmillichap.com