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W a l g r e e n s

O F F E R I N G M E M O R A N D U M

8 4 0 N C H I G H W A Y 2 4 / 2 7 B Y PA S S E | A L B E M A R L E , N C

2 | M a t t h e w s2 | M a t t h e w s R e t a i l A d v i s o r s ™

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E X C L U S I V E L Y L I S T E D B Y

b i l l p e d e r s e n

Senior Associate

Bi l l .Pedersen@matthews.comDIR (949) 432-4501MOB (831 ) 246-0646LIC # 01975700 (CA)

K y l e M at t h e w sBROKER OF RECORD

LIC # C27092

W a l g r e e n s , A l b e m a r l e N C | 3

C O N T E N T S

4 INVESTMENT OVERVIEWOffer ing Summary Investment Highl ights

5 FINANCIAL ANALYSISExecut ive SummaryAnnual ized Operat ing DataTenant Summary

6 TENANT OVERVIEWWalgreens Overview

1 0 AREA OVERVIEWCity OverviewMSA Overview

7 PROPERTY OVERVIEWSite Descr ipt ion Parcel MapSurrounding Tenants

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• Over 15 years remaining on the initial term

• Absolute NNN lease with zero landlord responsibilities

• Prototype store format with double drive-thru

• Albemarle is located roughly 40 miles east of Charlotte

• Located at a signalized intersection with nearly 30,000 ADT

• Strong retail corridor with strong national tenant lineup including Aldi,Lowe’s, Ingles Markets, Walmart, Hibbett Sports, Belk, Tractor Supply,Co., Hobby Lobby, Ross, O’Reilly Auto Parts, AutoZone, KFC, Sonic,CVS, Dollar General, McDonald’s, and many more

• Investment grade credit (S&P Rated BBB; Moody’s Baa2); WalgreensBoots Alliance, together with the companies in which it has equitymethod investments, has over 13,200 stores in 11 countries; Fortune500 company - Ranked #17 in 2017

• Completed Rite Aid Acquisition - Walgreens recently receivedregulatory approval to acquire 1,932 Rite Aid stores for $4.38 billion.Walgreens will gain stores located primarily in northeastern andsouthern US. The acquisition of the additional stores is expectedto help Walgreens achieve enhanced, sustainable growth whilebroadening their reach and provide greater access to convenient,affordable care in more local neighborhoods across the country.

i n v e s t m e n t h i g h l i g h t s

e x e c u t i v e s u m m a r y

List Price ...................................................................................................................$5,616,667

CAP Rate - Current ..........................................................................................................6.00%

Gross Leasable Area ........................................................................................... ± 14,820 SF

Lot Size ................................................................................................................. ± 2.78 Acres

Year Built .............................................................................................................................2008

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current $28,083.33 $337,000.00 $22.74 6.00%

Options $28,083.33 $337,000.00 $22.74 6.00%

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 06/01/2008

Lease Expiration Date 05/31/2033

Term Remaining on Lease ± 15.75 Years

Increases None

Options Fifty, 1-Year Options

W A L G R E E N S 840 NC Hwy 24/27 Bypass EAlbemarle, NC 28001

f i n a n c i a l a n a ly s i s

Loan Amount Up to 70% LTV

Interest Rate 4.35%

Term 10 Years

Amortization 25 Years

Prepayment 5.4.3.2.1

Loan quote provided by Barrington Capital based on market conditions at this time. Actual

rates and terms will vary based on market conditions at closing. Please contact Brian Krebs at

the information below:

Brian Krebs: (949) 777-5988 or brian.krebs@barringtoncorp.com

L o a n Q u o t e

W a l g r e e n s , A l b e m a r l e N C | 5

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TENANT OVERVIEW

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. Recently, Walgreen Co. fully acquired Alliance Boots, Europe’s leading drug wholesaler, to create Walgreens Boots Alliance, of which it is a subsidiary.

Walgreens Boots Alliance, Inc. | Public | NASDAQ: WBAwww.walgreens.com

Revenue : $76.39 B

Net Income : $1.93 B

No. of locations : ± 8,300

No. of Employees : ± 253,400

Headquartered : Deerfield, IL

Year Founded : 1901

Stores located within five miles of approximatley 76% of Americans.

Walgreens interacts with 10 million customers a day

W a l g r e e n s , A l b e m a r l e N C | 7

t h e o f f e r i n gProperty Name Walgreens

Property Address840 NC Hwy/27 Bypass E

Albemarle, NC 28001

Assessor’s Parcel Number 6558-03-23-4844

Site DescriptionNumber of Stories One

Year Built 2008

Gross Leasable Area (GLA) ± 14,820 SF

Lot Size ± 2.78 Acres

Type of Ownership Fee Simple

Parking ± 50 Surface Spaces

Parking Ratio 3.37: 1,000 SF

Landscaping Professional

Topography Generally Level

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p a r c e l m a p

Subject Property

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S U R R O U N D I N G T E N A N T S

Subject Property

A r e a O v e r v i e w A l b e m a r l e , N C

Albemarle, NC is the county seat of Stanly County, nicknamed “city on a hill,” because of its

geographic location. The cost of living in Albemarle is 15% lower than the national average and

5% lower than the North Carolina state average. Albemarle is about an hour drive to Charlotte,

NC and just over an hour to Greensboro. Its strategic location makes it accessible without the

congestion of the city traffic. Its low crime rates, moderate seasonal changes and location all

make Albemarle a great place to live and do business.

p r o p e r t y d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 3,344 14,600 22,877

2017 Estimate 3,253 14,323 22,469

2010 Census 3,201 14,288 22,438

2000 Census 3,193 14,474 22,328

Growth 2017 - 2022 2.80% 1.93% 1.82%

Growth 2010 - 2017 1.62% 0.24% 0.14%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 1,374 6,228 9,560

2017 Estimate 1,324 6,063 9,325

2010 Census 1,278 5,952 9,191

Growth 2017 - 2022 3.78% 2.72% 2.52%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$48,877 $50,455 $53,158

W a l g r e e n s , A l b e m a r l e N C | 1 1

The City of Charlotte is a major U.S. financial center, the second largest financial center by assets following New York City. Bank of America and the East Coast operations of Wells Fargo are headquartered in the city. Charlotte is also home of the Carolina Panthers of the National Football League, the Charlotte Bobcats of the National Basketball Association, the Charlotte Hounds of Major League Lacrosse, the NASCAR Hall of Fame, Carowinds amusement park, and the U.S. National Whitewater Center. Both companies and individuals are attracted to the thriving Charlotte region. Booming with economic and commercial activity, Charlotte has all the advantages of one of the most rapidly growing metropolitan areas in the nation. Located in the Piedmont region of the Carolinas, Charlotte is two hours east of the Appalachian Mountains and three hours west of the Atlantic Ocean.

C h a r l o t t e , N C

T o p e m p l o y e r s

Carolinas HealthCare System

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exceptional market access

Charlotte is the 17th largest U.S. city with a population of 772,627, making it the largest city in the region. Of the major metro centers in the Southeast, Charlotte has 7.4 million and Atlanta has 8.3 million people living within a 100-mile radius. This radius population well exceeds Miami’s six million and the 2.6 million around Memphis. As a result, Charlotte has emerged as a financial, distribution and transportation center for the entire urban region. In addition, Charlotte has developed into a major wholesale center with the highest per capita sales in the United States.

q u a l i t y b u s i n e s s e n v i r o n m e n t

Charlotte serves as headquarters for many major national and international companies. During the past ten years, 6,940 new firms have invested more than $10 billion in new Charlotte facilities. Abundant modern office space is conveniently located throughout the city.

Hoover’s lists 4,277 companies with facilities in Charlotte-Mecklenburg in their database of companies with $1 million or more in revenue. In addition, 264 of the Fortune 500 companies have facilities here, seven of which are headquartered in Charlotte, ranking Charlotte sixth nationally in the number of headquartered firms.

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Walgreens located at 840 NC Highway 24/27 Bypass E, Albemarle, NC 28001 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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BROKER OF RECORD

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e x c l u s i v e ly l i s t e d b y

W a l g r e e n s8 4 0 N C H I G H W A Y 2 4 / 2 7 B Y PA S S E

A L B E M A R L E , N C

b i l l p e d e r s e nSenior Associate

Bi l l .Pedersen@matthews.comDIR (949) 432-4501MOB (831 ) 246-0646LIC # 01975700 (CA)

K y l e M at t h e w sBROKER OF RECORD

LIC # C27092