:: E x C L u S I v E I N v E S t M E N t S A L E o P P o R t u N I t y

Capital Markets | National Retail Investment Group

Indianapolis, IN

Longview, WA

Conroe, TX

San Ramon, CA

Littlerock, AR

Springerville, AZ

The K-S Portfolio

A P o r t f o l i o o f S u p e r m a r k e t & B i g B o x L e a s e h o l d s A c r o s s 11 S t a t e s ExECutIvE SuMMARy BRoChuRE

Capital Markets | National Retail Investment Group

Atlanta :: Boston :: Charlotte :: Chicago :: Miami :: Newport Beach :: Washington

The K-S Portfolio

A P o r t f o l i o o f S u p e r m a r k e t & B i g B o x L e a s e h o l d s A c r o s s 11 S t a t e s

ExECutIvE SuM M aRy

CB Richard Ellis is pleased to offer for sale The K-S Portfolio, a group of 18 single-tenant leasehold assets located across 11 states. The portfolio is comprised of 13 supermarkets, three big box stores and two available properties which generate a portfolio level NOI of $1,867,855. The portfolio is offered for sale without a formal asking price and can be acquired either in its entirety, as subportfolios or as individual properties.

P o R t f o l I o ov E R v I E w 13 freestanding supermarkets including: Five Krogers Five Safeways One H-E-B Foods One Homeland Grocery One Lawrence Brothers IGA Three big box stores including: Two Big Lots One Hobby Lobby Two available boxes offering significant upside potential through releasing/redevelopment Long-term ground leases allow buyers to control each property through 2088 (with the exception of Cincinnati-2059, Indianapolis-2048 and Irving-2059) The portfolio offers investors strong, stable tenancy and excellent geographic diversity 15 ground leases include a Purchase Option, allowing investors to acquire the Fee Interest in each property at specified future dates All properties are ground leased at below market rents which remain fixed at current rate throughout the base term and all extension periods

Each property in The K-S Portfolio is offered for sale individually or as part of a larger portfolio.

the K-S Portfolio

KROGER/SAFEWAY
P o R t f o l I o M a P & ov E R v I E w

PORTFOLIO

WA

6
OR ID

MT

ND MN SD WY NE IA IN IL CO KS WI MI NY CT NJ VT NH MA

ME

7
CA

NV

UT

1
KY

PA OH WV VA NC SC MD

AZ

8 9

NM

18 13 17
15
OK

MO

4
10
AR

TN

14

11

3 12
TX

5
MS AL GA

N
954 E. McM illian Street 1. 680 Twin Aire Drive 2. 2201 W. Grauwyler Road 3. 303 St. Louis 4. 614 N. Beechwood Avenue 5. 1227 15th Avenue 6. 2505 San Ramon Valley Blvd 7. 203 S. M ountain Ave 8. 1940 East Broadway Blvd 9. 10. 128 Kilmayne Drive 11. 2513 N. Main Street 12. 721 Mecham Drive 13. 1217 W. Loop Highway # tENaNt 14. 419 Northwest Loop 436 15. 115 East Highway 152 GRoCERy Street 16. 403 N. Main aNChoRED 17. 1435 N. Waco Street 1 Kroger 18. 19302 East Admiral Plaza

16

LA

Cincinatti, OH Kroger Indianapolis, IN Kroger Irving, TX Kroger Batesville, AR Kroger Little Rock, AR Kroger Longview, WA Safeway San Ramon, CA Safeway Springerville, AZ Safeway Tucson, AZ Safeway Cary, NC Big Lots Roswell, NM Big Lots Ruidoso, NM Lawrence Brothers Conroe, TX Hobby loCatIoN Lobby CuRRENt lED Carthage, TX H-E-B Foods Homeland Foods Mustang, OK No Tenant Benton, AR No Tenant Wichita, KS Cincinatti, OH January 31, 2011 No Tenant Tulsa, OK

FL

BuIlDING SIzE Sf

BaSE RENt

RENt PSf

GRouND RENt

NoI

32,200 34,000 43,900

$118,134 $136,076 $198,000

$3.67 $4.00 $4.51

($75,000) ($59,532) ($0)*

$43,134 $76,544 $198,000 $107,003 $139,504 $151,874 $100,410 $124,099 $133,896 $103,000 $163,796 $97,096 $102,006 totAL: $1,540,362

2 3 4 5 6 7 8 9 10 11 12 13

Kroger Kroger Kroger Kroger Safeway Safeway Safeway Safeway Safeway (Dark)

2010 CB Richard E llis, Inc. This information has been obtained from sources believed reliable. We have not verified it and make no guarantee, wa rranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. You and your advisors should conduct a careful, indepe ndent investigation of the property to determine to your satisfaction the suitability of the property for your needs. All logos displayed on this map are the property of their respective owners, used solely to indicate that businesses associated with those marks are located in buildings displayed on the map. All Rights Reserved. Sources: CBRE Mapping Services ( 877) 580-4674; Claritas, Inc./GDT, Inc. MapFiles\Work2010\228034_SafewayKroger.wor 10/05/2010

Indianapolis, IN

January 31, 2014

Irving, TX

December 31, 2018

Batesville, AR Little Rock, AR Longview, WA San Ramon, CA Springerville, AZ Tucson, AZ Benton, AR Ruidoso, NM Carthage, TX Mustang, OK

January 15, 2014 January 15, 2014 January 15, 2014 January 15, 2014 January 15, 2014 January 15, 2024 January 15, 2014 January 15, 2014 January 15, 2014 January 15, 2014

29,000 36,000 48,700 54,000 30,500 55,150 33,500 38,600 27,700 30,200

$174,500 $249,500 $229,672 $282,200 $155,200 $206,000 $166,000 $242,500 $120,000 $132,000

$6.02 $6.93 $4.72 $5.23 $5.09 $3.74 $4.96 $6.28 $4.33 $4.37

($67,497) ($109,996) ($77,798) ($181,790) ($31,101) ($72,104) ($63,000) ($78,704) ($22,904) ($29,994)

Lawrence Brothers IGA H-E-B Foods Homeland Grocery

BIG Box 14 Big Lots (Sub-leased from Kroger) Cary, NC 15 16 Big Lots Hobby Lobby Roswell, NM Conroe, TX

February 2, 2019 January 31, 2014 January 31, 2014

48,000 36,300 75,000

$228,000 $190,578 $341,434

$4.75 $5.25 $4.55

($74,986) ($62,501) ($125,207)

$153,014 $128,077 $216,227 totAL: $497,318

avaIlaBlE 17 Available 18 Available

Tulsa, OK Wichita, KS

30,000 40,000

$0 $0

$0 $0

($38,300) ($82,138)

($51,900)** ($117,925)** totAL: ($169,825)

*Tenant responsible for ground rent payments **Includes estimated 2011 taxes

the K-S Portfolio

954 E. McMillian Street :: Cincinnati, oh 45206

32,200 SF Kroger food store located approximately two miles north of downtown Cincinnati and two miles east of the University of Cincinnati in a densely populated residential area. The property has excellent access and visibility to the intersection of Gilbert Avenue and E. McMillan Avenue as well as the entire trade area. local Broker Contact Chris Hodge First Vice President 513.369.1603 chris.hodge@cbre.com CB Richard Ellis 201 E. Fifth Street Suite 1200 Cincinnati, OH 45202

680 twin Aire Drive :: Indianapolis, IN 46203

34,000 SF, freestanding, established Kroger grocery store located on 9.9 acres. The property is the dominant grocer in the area serving a dense population of nearly 125,000 people within a three-mile radius.

local Broker Contact Donna Hovey Vice President 317.269.1138 donna.hovey@cbre.com

CB Richard Ellis 101 W. Washington Street Suite 1000 East Indianapolis, IN 46204

2201 W. Grauwyler Road :: Irving, tx 75061

43,900 SF, single-tenant Kroger grocery store located in a heavily populated area at the convergence of Grauwyler Road, Irving Boulevard and Story Road The Kroger is part of a large retail area known as Plymouth Park Shopping Center which was one of the first and largest retail destinations in Irving. local Broker Contact Beth Pierson Associate 972.458.4922 beth.pierson@cbre.com

CB Richard Ellis 5430 LBJ Freeway Suite 1100 Dallas, TX 75240

303 Saint Louis Street :: Batesville, AR 72501

29,000 SF, freestanding Kroger grocery store located on Saint Louis Street, is also known as Highway 167, a primary north/south transportation artery for the region. The property is located immediately west of Lyon College and possesses excellent access to major transit arteries. local Broker Contact John Lamberson Executive Vice President 901.260.1060 john.lamberson@cbre.com

CB Richard Ellis 2620 Thousand Oaks Boulevard Suite 4000 Memphis, TN 38118

the K-S Portfolio

614 N. Beechwood Avenue :: Little Rock, AR 72205

Kroger is located at the intersection of Beechwood and Kavanaugh Boulevard in the popular Hillcrest neighborhood of Little Rock, AR. The property is 36,000 SF on 2.8 acres and is currently undergoing an extensive renovation including a remodeled faade. local Broker Contact John Lamberson Executive Vice President 901.260.1060 john.lamberson@cbre.com

CB Richard Ellis 2620 Thousand Oaks Boulevard Suite 4000 Memphis, TN 38118

1227 15th Avenue :: Longview, WA 98632

48,700 SF Safeway well located in the heart of Longview, WA on the main north-south arterial connecting Longview and Rainier, OR. Safeway recently completed a lifestyle remodel of the store and added Safeway Fuel which further solidifies their stake in the established trade area. local Broker Contact Brent Tayet Associate 253.596.0053 brent.tayet@cbre.com

CB Richard Ellis 1145 Broadway Plaza Suite 1000 Tacoma, WA 98402

2505 San Ramon valley Boulevard :: San Ramon, CA 94583

54,000 SF property leased to Safeway and located in the premier Diablo Plaza shopping center which includes other national tenants such as CVS Pharmacy, Jo-Ann Fabrics and McDonalds. The property is located in an extremely affluent submarket and was recently remodeled into their lifestyle format. local Broker Contact Gleb Lvovich Sales Assistant (Lic. 01496699) 949.725.8694 gleb.lvovich@cbre.com

CB Richard Ellis 3501 Jamboree Rd. Suite 100 Newport Beach, CA 92660

203 S. Mountain Avenue :: Springerville, AZ 85938

30,500 SF property leased to Safeway grocery store within Round Valley Plaza, the largest retail center in Springerville, AZ and the neighboring town of Eagar. Co-tenants at the plaza include ALCO and Family Dollar. This Safeway services many neighboring towns and there is limited competition among regional grocers (one within 35 miles). local Broker Contact Claudia Gilbert Senior Associate 602.735.5221 claudia.gilbert@cbre.com

CB Richard Ellis 2415 E. Camelback Road Phoenix, AZ 85016

the K-S Portfolio

1940 E. Broadway Boulevard :: tucson, AZ 85719

The subject property is a 55,150 SF, newly constructed Safeway grocery store located on Broadway Boulevard, one of Tucsons premier east west arterials connecting with Interstate 10. Safeway is the only full-line grocer for a stretch of about 10 miles along Broadway Boulevard and is the closest grocer to the University of Arizona campus. local Broker Contact Nancy A. McClure First Vice President 520.323.5117 nancy.mcclure@cbre.com

CB Richard Ellis 3719 North Campbell Avenue Tucson, AZ 85719

403 N. Main Street :: Benton, AR 72015

The property is a 33,500 SF dark Safeway (formerly a Harvest Foods location) located in the popular bedroom community of Benton, AR approximately 25 miles southwest of Little Rock. Bentons population growth and desirable demographics have generated an increased interest from national retailers. local Broker Contact John Lamberson Executive Vice President 901.260.1060 john.lamberson@cbre.com

CB Richard Ellis 2620 Thousand Oaks Boulevard Suite 4000 Memphis, TN 38118

721 Mecham Drive :: Ruidoso, NM 88345

38,600 SF building leased to Lawrence Brothers IGA grocery and located within a highly visible shopping center. Other tenants in the center include Family Dollar and Allen Theaters. The property is adjacent to Eastern New Mexico University and is located within the resort village of Ruidoso. local Broker Contact Seth Nodelman Vice President 505.837.4951 seth.nodelman@cbre.com

CB Richard Ellis 6100 Uptown Boulevard, NE Suite 300 Albuquerque, NM 87110

419 Northwest Loop :: Carthage, tx 75633

The property is a 27,700 SF, single-tenant building leased to H-E-B grocery store that sits at the major retail intersection of State Loop 436 and State Highway 79. H-E-B is a private grocery operator based in south Texas and is the dominant grocer in the Carthage retail trade area. local Broker Contact Beth Pierson Associate 972.458.4922 beth.pierson@cbre.com

CB Richard Ellis 5430 LBJ Freeway Suite 1100 Dallas, TX 75240

the K-S Portfolio

115 E. highway 152 :: Mustang, oK 73064

30,200 SF, single-tenant property leased to Homeland Foods, a regional grocery chain in Oklahoma. The property is located at one of the main intersections of the market and is highly visible to both Mustang Road and Highway 152. Mustang, OK is a popular bedroom community boasting some of the highest growth rates in the state. local Broker Contact Mark W. Inman, CPA Senior Vice President 405.272.5326 mark.inman@cbreok.com

CB Richard Ellis 1200 NW 63rd Street Suite 500 Oklahoma City, OK 73116

128 Kilmayne Drive :: Cary, NC 27511

48,000 SF former Kroger currently subleased to Big Lots located on a highly visible seven-acre site. The area around the subject includes a solid mix of national retailers and restaurants and is in a highly educated, affluent and rapidly growing suburb of Raleigh, NC. local Broker Contact Mike Burkard Senior Vice President 704.331.1205 mike.burkard@cbre.com

CB Richard Ellis 201 S. College Street Suite 1900 Charlotte, NC 28244

2513 N. Main Street :: Roswell, NM 88201

36,300 SF, single-tenant property located within a highly visible shopping center on one of Roswells busiest intersections. The property is leased to Big Lots, the largest closeout retailer in the U.S. Other tenants in the center include Factory 2-U and Rent-A-Center. local Broker Contact Seth Nodelman Vice President 505.837.4951 seth.nodelman@cbre.com

CB Richard Ellis 6100 Uptown Boulevard, NE Suite 300 Albuquerque, NM 87110

1217 W. Loop highway 336 :: Conroe, tx 77301

75,000 SF building leased to Hobby Lobby, the number three craft and fabric
retailer in the country. The property is located at the major intersection on Conroes North Loop at Interstate 45, providing a regional consumer draw in a well-established trade area. The property includes approximately 4,700 SF of retail space adjacent to Hobby Lobby, currently leased through January 2011 to Remco Insurance and Graymeiren.

local Broker Contact Ryan West First Vice President 713.787.1949 ryan.west@cbre.com

CB Richard Ellis 2800 Post Oak Boulevard Suite 2100 Houston, TX 77056

the K-S Portfolio

19302 E. Admiral Plaza :: tulsa, oK 74138

The property is a former 30,000 SF Homeland grocery store on 3.38 acres with excellent highway visibility located on the southeast corner of E. Admiral and S. 193rd East Avenue. Catoosa, OK is a bedroom community located just 10 miles east of Tulsa. local Broker Contact Richard Monaghan, CCIM Vice President 918.392.7221 richard.monaghan@cbreok.com

CB Richard Ellis 1401 S. Boulder Avenue Suite 100 Tulsa, OK 74119

1435 N. Waco Street :: Wichita, KS 67203

This 44,197 SF vacant building was the former Dillons grocery site. The property is located within minutes of Wichitas Central Business District and is situated within the Riverside neighborhood, a high-density, single family residential area. local Broker Contact Doug Malone Associate 316.292.3938 malone@weigand.com

J.P. Weigand & Sons, Inc. 150 N. Market Wichita, KS 67202

the K-S Portfolio

t h E K-S P o R t f o l I o a f f I l I at E D B u S I N E S S D I S C lo S u R E a N D C o N f I D E N t I a l I t y aG R E E M E N t
CB Richard Ellis, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an Affiliate) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CB Richard Ellis Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the Property) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CB Richard Ellis, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CB Richard Ellis, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum. This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property. This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the Owner), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CB Richard Ellis, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner. Neither the Owner or CB Richard Ellis, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property. The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owners obligations therein have been satisfied or waived. By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CB Richard Ellis, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CB Richard Ellis, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CB Richard Ellis, Inc. CBRE, CB RICHARD ELLIS, and the CBRE CB RICHARD ELLIS logo are service marks of CB Richard Ellis, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.

PORTFOLIO MARKETING :: Chris angelone Executive Vice President 617.912.7062 chris.angelone@cbre-ne.com Jim Koury Executive Vice President 617.912.7015 james.koury@cbre-ne.com Bill Moylan Executive Vice President 617.912.7029 bill.moylan@cbre-ne.com

CALIFORNIA :: Gleb lvovich Director Lic. 01496699 949.725.8694 gleb.lvovich@cbre.com

OHIO :: Chris hodge First Vice President 513.369.1603 chris.hodge@cbre.com

Capital Markets | National Retail Investment Group

::

OKLAHOMA INDIANA :: Donna hovey Vice President 317.269.1138 donna.hovey@cbre.com MuStaNG :: Mark Inman Senior Vice President 405.272.5326 mark.inman@cbreok.com tulSa :: Richard Monaghan, CCIM Vice President 918.392.7221 richard.monaghan@cbreok.com

::

KANSAS :: Doug Malone Associate J.P . Weigand & Sons Inc 316.292.3938 malone@weigand.com

:: Nat heald Vice President 617.912.7021 nat.heald@cbre-ne.com

TEXAS CaRthaGE & IRvING :: Beth Pierson Associate 972.458.4922 beth.pierson@cbre.com CoNRoE :: Ryan west First Vice President 713.787.1949 ryan.west@cbre.com

ARIZONA SPRINGERvIllE :: Claudia Gilbert Senior Associate 602.735.5221 claudia.gilbert@cbre.com tuCSoN :: Nancy a. McClure First Vice President 520.323.5117 nancy.mcclure@cbre.com

NEW MEXICO :: Seth Nodelman Vice President 505.837.4951 seth.nodelman@cbre.com

NORTH CAROLINA :: Mike Burkard Senior Vice President 704.331.1205 mike.burkard@cbre.com

WASHINGTON :: Brent tayet Associate 253.596.0053 brent.tayet@cbre.com

ARKANSAS :: John lamberson Executive Vice President 901.260.1060 john.lamberson@cbre.com

For more information please visit:

www.cbre.com/K-sportfolio
CB RiChaRd ellis 33 aRCh stReet, flooR 28 Boston, M assaChuset ts 02110 617.912.7000, fa x 617.912.7001 w w w.CBRe-ne.CoM
2010 CB Richard Ellis, Inc. The information above has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent investigation of the property to determine to your satisfaction the suitability of the property for your needs. CBRE, CB RICHARD ELLIS and the CBRE CB RICHARD ELLIS logo are service marks of CB Richard Ellis, Inc. and/or its affiliated or related companies in the United States and other countries. All other marks displayed on this document are the property of their respective owners.