PowerPoint Presentation...Recent Sold Comparables. Sale Date City State SF Sale Price PSF Cap Rate ....

Q3 2019INTELLIGENCE

REPORTSINGLE-TENANT RETAIL REAL ESTATE

The Quantum Pulse

Data Source: Costar, Moody’s, S&P and corporate sources and earning calls for public

companies. Comps based on freestanding locations unless otherwise noted dates

ranging 9/24/18 thru 9/24/19 (12 month average). Average sales rounded and avg

building sf based on sold properties. Cap rates blended based on available data; actual

yields will vary. NOI calculated based on data available cap rates & published sale.

Disclaimer: Although Quantum Real Estate Advisors has obtained the information

contained herein from sources it believes to be reliable, and believes the information to

be correct, no representations or warranties, express or implied, are made as to the

accuracy or reliability of this information. Any references to financials, terms, comps,

square footage or age are approximate only and obtained at time of collection. The

recipient bears sole responsibility for verification of the accuracy of the information

contained herein and bears all risk for any inaccuracies. Quantum Real Estate Advisors

shall have no liability or responsibility to any party for any loss or damage arising from

reliance by any party on the information contained herein.

Definitions: NR - Not Reported. STNL – Single Tenant Net Lease. BPS – Basis Points

Chad M. Firsel

President

P (312) 269-0220

[email protected]

Jason L. Caplan

Senior Vice President

P (312) 553-2347

[email protected]

Daniel J. Waszak

Senior Vice President

P (312) 269-0550

[email protected]

Zackary J. Hilgendorf

Vice President

P (312) 533-2348

[email protected]

Jason R. Lenhoff

Vice President

P (312) 683-9920

[email protected]

Hope Firsel

VP of Communications

P (773) 848-9349

[email protected]

The Quantum Edge

Details determine the success or failure of an investment transaction. In physics, the quantum is the smallest possible unit of any physical property. At Quantum Real Estate Advisors Inc., we focus on every ‘quantum’ of a single or multi-tenant property.

Coast to Coast Knowledge

mailto:[email protected]?subject=Retail%20Intelligence%20Inquiry






mailto:[email protected]






The Quantum PulseRetail Intelligence 2019

Auto / Auto Parts

Advance Auto Parts 4

Auto Zone 4

Jiffy Lube 5

Firestone 5

O’Reilly 6

Industry Highlights 6

Banks

Bank of America 7

BMO Harris Bank 7

JP Morgan Chase 8

PNC Financial 8

TD Bank 9

Wells Fargo 9

Big Box Retail

Bass Pro Shops 10

Best Buy 10

Big Lots 11

Costco 11

Dick’s Sporting Goods 12

Gander Outdoors 12

Kohl’s Corporation 13

Michaels 13

Office Depot 14

Staples 14

Target 15

Walmart 15

Book Stores

Barnes & Noble 16

Books-A- Million 16

Convenience / Gas Station

7- Eleven 17

Alimentation Couche-Tard 17

Chevron 18

Citgo Petroleum 18

Exxon Mobil 19

Phillips 66 19

Shell Oil 20

QuickTrip 20

Speedway 21

Wawa 21


Credit Ratings 49

Dollar Store

Dollar General 22

Family Dollar 22

Entertainment

AMC Theatres 23

Dave & Busters 23

Garden Supply / Hardware

Ace Hardware 24

Tractor Supply 24

Grocery

Albertsons 25

Aldi 25

Kroger 26

Meijer 26

Piggly Wiggly 26

Publix 27

Sprouts 27

Trader Joes 28

Whole Foods 28

Wegman’s 29


Home Improvements & Furnishings

Bed Bath & Beyond 30

Harbor Freight Tools 30

Home Depot 31

HomeGoods 31

Lowes 32

Menards 32


Pier 1 Imports 33

Sherwin Williams 33

Quick Service Restaurants (QSR)

Arby’s 34

Burger King 34

Carl’s Jr 35

Chick-fil-A 35

Chipotle 36

Dominos 36

Dunkin Donuts 37


KFC 37

McDonald’s 38

Panera Bread 38

Pizza Hut 39

Starbucks 39

Subway 40

Taco Bell 40

Wendy’s 41


Other / Specialty

24 Hour Fitness 42

Bright Horizons Family 42

DaVita Healthcare 43

Game Stop 43

GNC Holdings 43

Jo-Ann Fabrics & Crafts 44

Kindercare Education 44

The Learning Experience 44

LA Fitness 45

Leslie’s Poolmart 45

Party City 45

Petco 46

PetSmart 46

Pharmacy / Drugstore

CVS 47

Rite Aid 47

Walgreens 48


Recent Sold Comparables

Sale Date City State SF Sale Price PSF Cap Rate

9/10/2019 Oviedo FL 7,475 $1,300,000 $173.91 5.25%

9/09/2019 Summersville WV 7,381 $710,000 $96.19 6.50%

8/28/2019 Denton TX 6,840 $1,887,600 $275.96 4.99%

8/16/2019 Bloomfield CT 5,533 $1,145,000 $206.94 5.76%

8/15/2019 Columbia MO 6,000 $1,100,000 $183.33 5.00%

Advance Auto Parts Avg CAP Rate 7.20%

2019 Avg $ Sale $1,600,000

NOI $115,200

Avg $/Square Ft $218

Avg Building SF 7,900 SF

Lot Size .70 - 1.00 Acres

Lease Term 5 - 15 Years

# of Locations 4,931

Credit Rating S&P BBB-

Moody's Baa2


Auto | Auto Parts

Intelligence

HQ in Raleigh, NC. Relocated from Virginia in effort to attract talent to expand itstechnology/ecommerce efforts and expansion. Average cap rates down 52 basis points from2018 (7.53%) to 2019 (7.01%). Q2 19’ net sales increased .2% to $2.3B and comparable storestales were flat. Operating cash flow increased 10.9% to $492.2M. Company named JasonMcDonnell as Chief Marketing Officer in July and also rolled out new speed perks rewardsprogram. Avg months to sale: 5.2 months. Typical lease structures: NN

Auto ZoneAvg CAP Rate 6.20%

2019 Avg $ Sale $1,700,000

NOI $105,400




Lease Term 15 Years


Credit Rating S&P BBB

Moody's Baa1

Intelligence

HQ in Memphis, TN. Q2 19’ same store sales increased 3.9%, with net sales of $2.8B, anincrease of 4.6% from year prior. Gross profit as a percentage of sales was 53.6%, versus 53.5%same period year prior. Operating expenses were up .9% to 33.9% due to increased storepayroll expenses. No store closures in Q2 19’ and added 35 stores in the U.S during the quarterending May 4, 2019. Company employees over 54,900 employees. Typical lease structure:gross leases. Avg months to sale: 5.5 months.

4Data Source: Advance Auto Parts based on 75 sold comps. Auto Zone based on 54 sold comps.



8/15/2019 Shippensburg PA 7,000 $1,000,000 $142.86 7.27%

7/05/2019 Hollywood FL 7,000 $1,950,000 $278.57 6.25%

6/07/2019 Kent WA 7,900 $1,625,000 $205.70 6.70%

5/17/2019 Cleveland OH 7,000 $1,175,000 $167.86 8.63%

4/30/2019 Barnwell SC 6,000 $762,000 $127.00 7.48%


Auto | Auto Parts

Intelligence

HQ in Houston, Texas. A subsidiary of Royal Dutch Shell Company*. Locations are mostlyfranchised and independently owned by 252 operators. Operators required. To have minimumnet worth of $450,000 and liquidity of $150,000. Franchise agreements in place for 20 yearswith 10 year renewal options w/ 3% royalty payments. Locations are in 3 mile non-competering of each other. Locations require minimum of four employees during operating hours. Avgmonths to sale: 6.7 months.

Firestone / BridgestoneAvg CAP Rate 8.10%

2019 Avg $ Sale $2,200,000

NOI $178,200



Lot Size 1 Acre

Lease Term Varies


Credit Rating S&P A

Moody's A2

Jiffy LubeAvg CAP Rate 6.30%

2019 Avg $ Sale $1,700,000

NOI $107,100



Lot Size .25 - .75 Acres

Lease Term 10-20 Years


Credit Rating S&P NR*

Moody's NR

Intelligence

HQ in Nashville, TN. Firestone is a subsidiary of Bridgestone Americas. Locations are ownedand operated by Bridgestone. Company closed 13 of 14 locations in Salt Lake City areareportedly due to expiration of master lease in Apr 19’. Avg months to sale: 7.2 months.

5Data Source: Jiffy Lube based on 49 sold comps. Firestone based on 26 sold comps.



7/19/2019 Riverview FL 7,526 $1,550,000 $205.95 5.15%

7/17/2019 Oswego IL 7,753 $1,425,000 $183.80 10.48%

7/02/2019 Mchenry IL 7,575 $2,780,000 $367.00 8.30%

5/24/2019 Kingsport TN 6,116 $3,310,000 $541.20 5.34%

1/10/2019 Renton WA 8,261 $4,415,000 $534.44 4.77%



9/05/2019 Florissant MO 3,878 $1,405,655 $362.47 7.25%

8/20/2019 Independence MO 2,810 $1,153,000 $410.32 6.67%

7/17/2019 Memphis TN 1,440 $550,000 $381.94 8.64%

7/08/2019 Arlington TX 1,590 $1,625,000 $1,022.01 6.44%

6/21/2019 North Las Vegas NV 1,457 $896,000 $614.96 6.00%


Auto | Auto Parts

Intelligence

Sales for Q2 19’ increased 5% to $2.59B from $2.46B the same period year prior. Comparablesales growth was 3.4% on the lower end of the company’s target guidance range of 3% - 5%, asa result of unseasonably cool and rainy weather, causing significant delays in construction andnew store openings. As a result, company stock fell 1.4% due to the disappointing guidancereport. Avg months to sale: 5.8 months.

O’ReillyAvg CAP Rate 6.30%

2019 Avg $ Sale $1,700,000

NOI $107,100




Lease Term 20 Years



Moody's Baa1

6Data Source: O’Reilly based on 45 sold comps.



7/25/2019 Lehigh Acres FL 7,225 $2,439,000 $337.58 5.55%

7/15/2019 Lexington SC 7,225 $1,682,000 $232.80 6.25%

7/10/2019 Meriden CT 7,225 $2,437,621 $337.39 5.40%

7/08/2019 Waunakee WI 6,545 $1,775,000 $271.20 5.34%

6/18/2019 Orem UT 9,639 $1,525,000 $158.21 7.10%

The Auto Parts retail industry is a $58b industry with historic single digit growth. Total industry revenues historically have seen consistent growth year over year however have remained stagnant since 2018. Online auto part sales in 2019 forecasted to reach $12 billion (a $3.11b increase since 2017) and projected to reach $19 billion by 2022. The top market share is led by AutoZone, Advance Auto Parts and O’Reilly Auto Parts. The industry has lower entry barriers, subject to few restrictive regulations, and industry employees do not need to be highly skilled. Despite low barriers, high levels of competition exist making it difficult for new operators to succeed. The market is attractive as vehicles continue to age and car owners keeping their vehicles vs. purchasing new.

Advance Auto Parts2018 Avg Cap Rate 6.64%2019 Avg Cap Rate 7.20% 56 BPS Increase

Auto Zone2018 Avg Cap Rate 5.79%2019 Avg Cap Rate 6.20% 41 BPS Increase

O’Reilly2018 Avg Cap Rate 5.93%2019 Avg Cap Rate 6.30% 37 BPS Increase

Industry Highlights: Auto Part Trends


Banks

Intelligence

In 2018, Bank of America announced mobile deposits outpaced those made at branches for thefirst time. Technology adoptions has allowed the bank to shrink its physical branch footprint.The bank has plans however to open more than 500 new branches in the coming years with aneffort towards an optimal network of having branches in the top 30 urban markets thatgenerates 88% of the US GDP. Avg months to sale: 7 months.

BMO Harris BankAvg CAP Rate 6.80%

2019 Avg $ Sale $1,900,000

NOI $129,200



Lot Size 1.25 - 1.75 Acres

Lease Term 10 Years

# of Locations 600+

Credit Rating S&P A+

Moody's a3

Bank of AmericaAvg CAP Rate 5.80%

2019 Avg $ Sale $3,000,000

NOI $174,000



Lot Size 1 Acre


# of Locations Approx 4,411


Moody's A3

Intelligence

Company has greatest footprint in the Midwest, Arizona and Florida. Q2 2019, net income up$1.497M, up 20% from Q2 2018. As of June 19’ BMO expanding presence in North Texas withLaunch of second commercial banking unit and asset based lending expansion in Boston andAtlanta. Avg months to sale: 14.5 months.

7Data Source: Bank of America based on 55 sold comps. BMO Harris based on 11 sold comps.



7/24/2019 Brookfield WI 27,005 $4,750,000 $175.89 5.90%

7/09/2019 Broadview IL 3,402 $814,500 $239.42 7.74%

6/14/2019 Sauk City WI 6,543 $1,500,000 $229.25 8.09%

3/15/2019 Baraboo WI 7,724 $1,100,000 $142.41 7.12%

1/11/2019 Sun City AZ 7,537 $3,825,000 $507.50 5.56%



8/07/2019 Virginia Beach VA 3,018 $1,700,000 $563.29 5.87%

7/25/2019 Charlotte NC 2,700 $794,500 $294.23 6.56%

6/12/2019 Doral FL 5,923 $3,683,981 $621.98 4.60%

5/28/2019 Spring Lake NC 3,364 $1,400,000 $416.17 6.75%

5/08/2019 Brooksville FL 3,892 $1,156,540 $297.16 5.00%



8/30/2019 Pittsburgh PA 2,958 $2,375,000 $802.91 6.37%

6/19/2019 Cincinnati OH 14,216 $802,000 $56.42 6.86%

6/14/2019 Orlando FL 4,128 $3,093,000 $749.27 6.34%

3/08/2019 York PA 2,392 $980,000 $409.70 7.36%

1/17/2019 Downers Grove IL 3,200 $2,083,000 $650.94 6.00%



9/05/2019 Kissimmee FL 3,500 $2,937,500 $839.29 5.15%

8/13/2019 Franklin Park IL 4,213 $5,445,120 $1,292.46 5.00%

7/24/2019 Glenwood IL 4,375 $5,624,000 $1,285.49 5.15%

7/11/2019 Thousand Oaks CA 4,200 $4,400,000 $1,047.62 4.37%

6/17/2019 Anthem AZ 4,137 $3,324,375 $803.57 5.50%


Intelligence

Q2 19’ reported revenue of $28.8B, average loans up 2% year over year and down 1% quarterover quarter. Consumer and Business banking net revenue was $6.8B. Bank announced plansfor major branch expansion in 2019, opening up to 90 branches in new markets and hiring upto 700 employees by year end. Market areas include: Greater Washington D.C, Philadelphia,Boston and new retail branches in Charlotte, Raleigh, Greenville, Kansas City, Minneapolis,Nashville, Pittsburgh, Providence and St. Louis. Avg months to sale: 6.2 months.

PNC FinancialAvg CAP Rate 6.90%

2019 Avg $ Sale $1,800,000

NOI $124,200



Lot Size 1 - 1.5 Acres


# of Locations 2,459 Branches

Credit Rating S&P A

Moody's A2

JP Morgan ChaseAvg CAP Rate 5.60%

2019 Avg $ Sale $2,500,000

NOI $140,000



Lot Size .5 - 1 Acre




Moody's A2

Intelligence

PNC looking forward to the evolving banking experience. ATMs will enable banks to handlemany banking transactions quicker and more efficiently. Bank branches becoming smaller andmore energy efficient comprised of customer friendly lobby, ATMs, concierge stations, multiplemeeting spaces and energy efficiency package to reduce operating costs. As of Aug 19’ PNCreportedly had plans to close 200 branches with ATMs staying in place and relying on mobilebanking usage in those markets, creating a savings of $700M. Avg months to sale: 7.2 months.

8Data Source: JP Morgan Chase based on 32 sold comps. PNC Financial based on 15 sold comps. Banks



2/27/2019 Homestead FL 3,964 $4,100,000 $1,034.31 4.93%

2/26/2019 Flushing NY 3,669 $5,900,000 $1,608.07 4.75%

11/16/2018 Silver Spring MD 4,100 $6,900,000 $1,682.93 6.30%

9/18/2018 Darien CT 4,380 $6,900,000 $1,575.34 5.69%


Intelligence

Q2 19’ TD Bank saw a dip in earnings. Much of this is related to growth in expenses rather thandeposit or loan performance. Canadian branches have greater value than their U.S.counterparts. U.S. loans account for 23% of bank’s portfolio. This benefited the bank initiallygiven the trajectory of rising interest rates, however when the Federal Reverse reduced rates,there are growing concerns of economic growth. TD Banks’s U.S. presence has predominatelybeen through acquisitions. Avg months to sale: 6.2 months.

Wells FargoAvg CAP Rate 6.50%

2019 Avg $ Sale $2,500,000

NOI $162,500






Credit Rating S&P A-

Moody's Aa2

TD BankAvg CAP Rate 6.10%

2019 Avg $ Sale $6,000,000

NOI $366,000

Avg $/Square Ft $1,477





Credit Rating S&P AA-

Moody's A2

Intelligence

Over the past few years, Wells Fargo made announces of bank closures in shrinking its physicalfootprint. With 200 branches closed in 2017, the bank had plans to close an additional 800 locationsby 2020. This will leave Wells Fargo with about 5,000 branches. The strategy is a result of consumerpreference for online and mobile banking. Wells Fargo also has had mounting legal litigation expensesas a result of its fake account debacle and investigations into pre-crisis mortgages. The bank plans tohave saved $4B with branch closures by end of 2019. Avg months to sale: 6.4 months.

9Data Source: TD Bank based on 6 sold comps. Wells Fargo based on 33 sold comps.



7/23/2019 Wilmington CA 4,876 $4,600,000 $943.40 6.68%

7/09/2019 Houston TX 4,017 $3,936,813 $980.04 5.50%

4/25/2019 Roxboro NC 8,895 $1,700,000 $191.12 7.60%

4/16/2019 Houston TX 2,483 $2,044,000 $823.20 7.40%

11/27/2018 Nampa ID 5,000 $2,610,000 $522.00 7.00%

Banks



8/29/2019 Sanford FL 30,767 $8,275,000 $268.96 8.37%

7/03/2019 Peoria IL 46,432 $7,746,811 $166.84 9.50%

5/17/2019 Visalia CA 41,000 $10,375,000 $253.05 6.72%

3/13/2009 Tacoma WA 46,592 $6,056,000 $129.98 6.85%

12/27/2018 Eagan MN 45,386 $7,175,000 $158.09 8.10%

Intelligence▪ Locations dominate U.S. East coast. In 2017, Bass Pro acquired Cabela’s in a $5B transaction

and has been monetizing from the real estate business.

▪ Bass Pro sold off Cabela’s HQ in Sidney, Nebraska to MMP, a Canadian based logistics management company. The site formerly employed over 2,000 at its HQ and distribution center in Nebraska.

▪ 2019, arranged for sale lease back term for 25 years of 11 properties totaling 1.6M SF and additional 277 acres of land with Sansome Pacific JV. Transaction valued at $324M.

▪ Plans announced August 2019 for new retail store in Morganstown, West Virginia with first of its kind, five-story boat tower.

▪ In 2015, sale lease back of 135,000 SF location for $6,900,000 $51.11 PSF in Portage, Indiana. Sites sold in 2019: Saint Charles, MO, Leeds, AL and Macon, GA.

Bass Pro ShopsAsking Avg CAP Rate 7.80%

2019 Avg $ Asking $22,400,000

NOI $ -




Lease Term 15-30 Years; 4 Yrs Remaining5 Yr Options



Moody’s Baa1


Big Box Retail

Best BuyAvg CAP Rate 7.80%

2019 Avg $ Sale $7,000,000

NOI $546,000




Lease Term 15-30 Years; 4 Yrs Remaining5 Yr Options



Moody’s Baa1

Intelligence

Locations in dense retail & housing developments. Better than expected earnings in Q1 19’with boost from appliances and wearable technology. Sites have minimal landlordresponsibilities, Absolute NNN & NN leases with smaller footprints, under 30,000 SF. Someleases with guaranty by Best Buy Co., Inc. Best Buy embraced omnichannel retailing with anonline experience enhanced with its physical locations creating a store within a store for majorbrands with focus on growing its service business. Avg months to sale: 8.1 months.

10Data Source: Bass Pro Shops based on 3 sold comps. Best Buy based on 16 sold comps.

Intelligence

Q2 19’ revenue increased 7% year over year to $35.4B, driven by membership fees and 5%increase in comparable sales. Reported net sales for August 2019 were $11.79B, an increase of6.9% from $11.03B from last year. Same store sales consistently grow despite increasedmembership fees. Costco plans for 6 new locations by November in Bradenton, FL, Sharpsburg,GA, Loves Park, IL, Dallas, Tx Business Center, East Lyme, Ct and Eagan, MN. This is part of Costco’sexpansion plans include another 19 cities through 2022.

Costco leases land and/or buildings under operating leases at various dates through 2065. Leasesgenerally contain one or more of the following options that may be exercised at end of initial term:renewal of of the lease define for a number of years at FMV or rate stipulated in agreement;purchase of the property at then FMV; or ROFR in event of a third party purchase offer.



9/28/2019 Enfield CT 136,739 $13,887,158 $101.56 -



6/28/2019 Madison IN 65,195 $1,450,000 $22.24 11.18%

6/07/2019 Haines City FL 131,501 $11,000,000 $83.65 8.11%

5/23/2019 Orange City FL 102,854 $10,000,000 $97.23 9.10%

3/19/2019 Indianapolis IN 68,400 $6,125,000 $89.55 9.00%

11/29/2018 Stockbridge GA 138,274 $11,600,000 $83.69 8.50%

Big LotsAvg CAP Rate 8.80% *

2019 Avg $ Sale $7,600,000

NOI $668,800

Avg $/Square Ft $73


Lot Size Varies

Lease Term Varies

# of Locations Approx 1,400


Moody's NR


Intelligence

Q2 2019 comparable store sales increased 1.2% with net sales for the quarter totaling $1.24M, a 2.5% increased resulting from comparable store sales and sales growth in high volume new stores, partially offset by lower store count year over year. Despite tariff environment from global imports to the U.S., Big Lots is optimistic that strategies in place will drive profitable long-term growth. Operates five distribution centers in Montgomery, AL, Durant, OK, Rancho Cucamonga, CA, Tremont, PA and Columbus, Ohio. Average months to sale: 7.8 months.

CostcoAvg CAP Rate -

2019 Avg $ Sale $13,900,000

NOI -



Lot Size 15 - 30 Acres

Lease Term Varies (Long Term)

# of Locations 544 Warehouses


Moody's Aa3

11Data Source: Big Lots based on 26 sold comps *part of shopping center. Costco based on 1 sold comp. Big Box Retail



7/01/2019 Chambersburg PA 31,080 $2,100,000 $67.57 9.01%

5/28/2019 Dayton OH 66,761 $3,300,000 $49.43 NR

12/11/2018 Dothan AL 87,091 $4,575,000 $52.53 NR



9/03/2019 Charlotte NC 84,000 $16,825,000 $200.30 7.59%

7/29/2019 Pace FL 60,782 $12,763,343 $209.99 NR

4/23/2019 Wausau WI 45,000 $7,305,195 $162.34

3/21/2019 Deer Park IL 50,000 $1,249,332 * $24.99 NR

3/15/2019 Appleton WI 52,000 $6,000,000 $115.38 7.80%


Gander OutdoorsAvg CAP Rate 9.00%

2019 Avg $ Sale $3,300,000

NOI $297,000

Avg $/Square Ft $54

Avg Building SF 50,000 - 120,000 SF


Lease Term 15 Years

# of Locations 69

Credit Rating S&P NR

Moody's NR

Dick’s Sporting GoodsAvg CAP Rate 7.70%

2019 Avg $ Sale $10,100,000

NOI $777,700



Lot Size 4 Acres

Lease Term 10 Years

# of Locations 728 and 95 Golf Galaxy Stores


Moody’s NR

Intelligence

Consolidated same store sales in Q2 19’ increased 3.2# driven by increases in average ticket andtransactions, representing company’s strongest quarterly comp sales gain since 2016. In 2019,banned sale of certain guns and eliminated the hunting department altogether at more than 100stores due to a slump in sales. Merchandise that replaced the department carries higher marginse.g. baseball equipment, licensed products and outerwear apparel. In Q2 19’, Dick’s SportingGoods opened two new locations in Pineville, NC, Beaumont, Texas and two additional locations inQ3 in Kennewick, WA and Plymouth Meeting, PA.

Intelligence

Originally founded in 1960, company filed bankruptcy in Q1 17’. Camping World Holdings , basedin Lincolnshire, Illinois, acquired company through bankruptcy auction. In January 18’, companyannounced official list of stores to reopen under new Gander outdoors branding with a total of 69stores across 22 states.

Some leases NNN with renewal options e.g. Four 5 year renewals with 8% increases. Cap rates forsale offered at approx. 6.25% - 8.75% with NOI of $700K+.

12Data Source: Dick’s Sporting Goods based on 11 sold comps. Gander Outdoors based on 3 sold comps. * Part of Portfolio Sale/ Allocated Sale Proceeds Big Box Retail



8/21/2019 Frederick MD 86,584 $8,045,556* $92.92 NR

7/17/2019 Clovis CA 75,088 $4,769,523* $63.52 NR

6/19/2019 Findlay OH 96,227 $8,397,888 $87.27 6.69%


Michael’sAvg CAP Rate 8.20% *

2019 Avg $ Sale $16,700,000

NOI $1,369,400



Lot Size 2 Acres

Lease Term 20 Years


Credit Rating S&P BB-

Moody's Ba2

Kohl’s CorporationAvg CAP Rate 9.20%

2019 Avg $ Sale $9,600,000

NOI $883,200




Lease Term 20 Years

# of Locations 1,150 +


Moody's Baa2

Intelligence

Kohl’s has 4 concepts for various markets to ensure they are conveniently located includingtraditional 87k stores, smaller 64k and 55k formats with a new 5k prototype for rural and denseurban markets. In past several years, Kohl’s changed layouts and fixtures at approx. 500 stores toreduce space from 85k to 60-65K SF range and offering excess space to strategic partnersincluding Planet Fitness & Aldi for rental income and cross traffic. A pilot program offeringAmazon returns was also successful and rolled out in all of its stores across the county as of July19’ increasing in-store foot traffic. Q2 19’ comparable store sales over Q1 sales were up 1%,driven by early back to school season. Cognizant of apparel tariffs and strategizing outsourcing toprepare for escalations. Average months to sale: 6.7 months.

Intelligence

HQ in Irving, TX. In Q2 19’ comparable store sales increase 0.3% with an operating income of$71.3M. During Q2, Michaels opened 4 new stores, closed 2 and relocated 1. Michael’s alsoclosed off all of its Pat Catan stores. For fiscal 2019, Michaels anticipates to open net 16 newstores, inclusive of rebranding and reopening 12 Pat Catan stores. There are also plans to relocate13 existing locations. This activity is predominately anticipated to occur in Q3 19’. Michael’s is setto hire 15,000 seasonal employees for the holiday. Avg months to sale: 6.5 months.

13Data Source: Kohl’s Corporation based on 15 sold comps. Michael’s based on 31 sold comps as a part of shopping center comps. * Part of Portfolio Sale/ Allocated Sale Proceeds



7/15/2019 Knightdale NC 139,462 $14,075,936 * $100.93 9.00%

6/26/2019 Woodhaven MI 50,414 $5,700,000 $113.06 9.28%

1/11/2019 Winchester VA 135,008 $20,883,433 * $154.68 8.60%

1/10/2019 Cape Coral FL 111,967 $17,109,622* $152.81 6.79%

12/21/2018 Marion IA 166,749 $13,650,000 $81.86 7.50%

Big Box Retail



8/14/2019 Miami FL 20,388 $14,000,000 $686.68 7.20%

7/01/2019 Temecula CA 23,942 $5,300,000 $221.37 6.35%

6/25/2019 Port Orchard WA 23,940 $2,520,000 $105.26 9.50%

5/15/2019 Napa CA 12,523 $4,356,000 $347.84 5.75%

4/04/2019 Shawnee OK 24,049 $2,300,000 $95.64 9.15%



2/13/2019 Thousand Oaks CA 20,118 $6,603,982 $328.26 NR

1/14/2019 Wellington FL 15,957 $5,026,166 $314.98 NR

11/20/2018 Lafayette LA 28,000 $2,346,500 $83.80 7.76%

10/16/2018 Marble Falls TX 18,571 $2,575,000 $138.66 NR


StaplesAvg CAP Rate 8.00%

2019 Avg $ Sale $4,400,000

NOI $352,000

Avg $/Square Ft $209.00


Lot Size 2 Acres




Moody's NR

Office DepotAvg CAP Rate 6.90%

2019 Avg $ Sale $4,137,912

NOI $285,516



Lot Size 2 Acres

Lease Term 10 Years


Credit Rating S&P B

Moody's Ba3

Intelligence

Q1 19’ sales fell 2% to $2.8B due to losses in retail divisions and CompuCom (IT and ConsultingServices to Businesses). Plans to close a total of 50 stores under Office Depot and Office Maxbanner in fiscal 2019 as a part of its three-year strategic plan commencing Q3 16’ that was to closeapproximately 300 stores. Office Depot continues to look at expanding its business outside of itsretail footprint in areas such as B2B, IT services and tech-based solutions. There are mixedmessages from leadership; CEO Gerry Smith was noted as stating that store closures was a going-out-of business strategy, whereas CFO stated that retail could represent 20% of sales mix in threeyears by 2022. Avg months to sale: 5.3 months.

Intelligence

HQ in Framingham, MA. Company is privately held. Q2 19’ the company announced rebrandingwith powerful new digital experience and delivery being the front and center to help customersthrive in the workplace. This includes the launch of five innovative product brands including TRURED, NXT Technologies, Coastwide Professional, Union & Scale and Perk. These independentproduct brands aim to help teams work, provide technology solutions, supplies, furniture andbreakroom essentials respectively. Rumors are that this launch is an indicator to winding downStaple’s weaker retail operations. Avg months to sale: 8.7 months.

14Data Source: Office Depot based on 4 sold comps. Staples based on 17 sold comps. Big Box Retail



10/04/2018 Skokie IL 33,049 $13,850,000 $419.07 5.29%

Intelligence

HQ in Minneapolis, Minnesota. Q2 19’ same store sales up 3.4% vs growth of 2.9% expectedand revenue was $18.42B vs. $18.34 expected. This strong momentum in first half of fiscal 19’prompted Target to raise is full-year estimates.

Company has three store formats: Target (135,000 SF avg), Super Target (inclusion ofexpanded grocery) and small-format Target (15,000 -80,000 SF) including TargetExpress andCityTarget. Nearly all of the planned 30 new store openings in 2019 are small formats under50,000 SF primarily in college towns or densely populated areas. In 2017, Target announced a$7B investment plan of which over 500 stores have been remodeled; on track to remodeladditional 300 stores by 2020. Post-remodel, same store sales up 2% - 4%. Target to open 30small-format stores each year (up to 100).


WalmartAvg CAP Rate 6.20%

2019 Avg $ Sale $11,600,000

NOI $719,200



Lot Size Varies

Lease Term 20 Years


Credit Rating S&P AA

Moody's Aa2

TargetAvg CAP Rate 5.30%

2019 Avg $ Sale $13,800,000

NOI $731,400



Lot Size Varies

Lease Term Varies


Credit Rating S&P A

Moody's A2

Intelligence

Q2 20’ comp sales grew 2.8%, eCommerce sales grew 37% including strong growth in online grocery. Company raised expectations for fiscal 2020. Walmart’s ecommerce division is set to lose $1B in retired efforts to compete with Amazon by acquiring small retailers over the past three years. The forward strategy will be to create its own “digital first” brands to introduce into the marketplace. Walmart has more than 4,700 stores (3,570 Supercenters and nearly 700 Neighborhood Markets). Neighborhood Markets are 1/5 the size of Supercenter and found in urban areas. 17 stores slated for closure fiscal 2019 & open fewer than 10 new stores.

15Data Source: Target based on 3 sold comps. Walmart based on 10 sold comps. * Part of Portfolio Sale/ Allocated Sale Proceeds



8/29/2019 Albany GA 41,953 $10,650,000 $253.86 5.54%

7/09/2019 Marion OH 214,984 $7,967,197 $37.06 6.65%

12/28/2018 Milwaukee WI 109,800 $10,810,000 $98.45 7.00%

12/26/2019 Haymarket VA 153,000 $17,859,660 * $116.73 7.12%

10/29/2018 Tell City IN 195,715 $5,550,000 $28.36 6.64%

Big Box Retail



9/06/2019 Virginia Beach VA 145,512 $24,923,512* $171.28 NR

6/14/2019 Bradenton FL 30,459 $2,818,664 * $92.54 NR

11/30/2018 Davenport FL 88,964 $7,384,991 * $83.01 NR



7/15/2019 High Point NC 25,920 $2,000,000 $77.16 5.00%

4/18/2019 Colorado Springs CO 26,825 $3,025,000 $112.77 9.71%

2/12/2019 Bellevue WA 27,900 $42,726,491 * $1,531.42 NR


Book Stores

Books - A - MillionAvg CAP Rate -

2019 Avg $ Sale $11,700,000

NOI -



Lot Size Varies

Lease Term Varies

# of Locations 260


Moody's NR

Barnes & NobleAvg CAP Rate 7.80%

2019 Avg $ Sale $15,900,000

NOI $1,240,200

Avg $/Square Ft $95


Lot Size Varies

Lease Term 10 Years *

# of Locations 627


Moody's NR

Intelligence

HQ in Birmingham, Alabama. Second largest bookstore chain, operates in 32 states under theBAM! Banner and 2

nd& Charles. Store sizes range from 4,000 to 30,000 SF. The company is

operating less than one-third of it once held upwards of 680 stores in its prime. At the end of2015, investors took the company private. Company holds other companies diversifying itsportfolio including frozen yogurt retailer, Yogurt Mountain Holding with 40 locations, internetdevelopment company, Net Central and Preferred Growth Properties managing and developingcommercial real estate investments.

Intelligence

After years of declining sales, layoffs and store closures, Barnes and Noble’s viability was inquestion despite holding 1/5 of the physical market as it closed more than 150 stores in the last10 years. The bookseller was recently acquired by a hedge fund, Elliott Advisors, for $638M inJune 19’. Elliott Advisors has experience in turning around bookstore operations after acquiringWaterstones in the U.K. and brought it back to profitably. The strategy in the U.K. included storeclosures and giving stores autonomy over their inventory & promotions to better serve itscommunities. Previously, typical lease terms were *10 years; with leases expiring, booksellertook opportunity to negotiate shorter term leases to allow stores to close quickly. Avg months tosale: 8.8 months.

16Data Source: Barnes & Noble based on 3 sold comps. Books-A-Million based on 4 sold comps as a part of a shopping center. * Part of Portfolio Sale/ Allocated Sale Proceeds.

Alimentation Couche-Tard / Circle KAvg CAP Rate 6.80%

2019 Avg $ Sale $1,600,000

NOI $108,800







Moody's Baa2



7/29/2019 Augusta GA 2,590 $1,857,100 $717.03 7.00%

7/10/2019 Ocean Isle Beach NC 4,130 $2,625,000 $635.59 6.15%

6/18/2019 Akron OH 2,520 $615,000 $244.05 6.50%

5/30/2019 Phoenix AZ 5,319 $2,806,120 $527.57 5.10%

4/26/2019 Tucson AZ 2,904 $2,150,000 $740.36 7.60%



9/24/2019 Gainesville VA 3,132 $3,570,000 $1,139.85 5.15%

9/16/2019 Sarasota FL 2,612 $2,280,000 $872.89 5.00%

9/10/2019 Pittsburgh PA 2,448 $1,645,000 $671.98 6.38%

8/16/2019 Lakeland FL 3,010 $2,891,325 $960.57 4.90%

8/07/2019 Monterey CA 2,405 $2,430,888 $1,010.76 4.50%



7-ElevenAvg CAP Rate 5.40%

2019 Avg $ Sale $2,700,000

NOI $145,800



Lot Size Varies




Moody's Baa1

Intelligence

HQ in Irving, Texas. In 2018, 7-Eleven acquired Sunoco LP at more than $3B adding 1,030convenience stores to its roster. Fuel sales continues to be larger revenue generator and companyseeks to draw customers in to purchase higher-margin food & drinks. In 2019, 7-11 introduced “hotspot” delivery to public areas through this 7-Now mobile delivery app. The convenience landscapecontinues to change with 7-Eleven leading the way by introducing craft beers and meal kits inresponse to consumer trends and attract millennials. 5.1 avg months to sale, NNN or Gross Leases.

Intelligence

HQ in Lavall, Canada. As a part of an agreement in Dec 18’, Couche-Tard announced it agreedtransfer to CrossAmerica 192 stores valued at $185M in exchange for assets of similar value.Couche-Tard closed on a second transaction of asset exchanges in Sept 19’. This included 56company operated Circle K stores to CrossAmerica. CrossAmerica in turn transferred the realproperty for 19 master lease properties operated by Couche-Tard. The balance of sites areanticipated to be exchanged by year end. Avg months to sale: 5.5%

17Data Source: 7 Eleven based on 73 sold comps. Alimentation Couche-Tard/Circle K based on 32 sold comps.



8/21/2019 West Point GA 3,873 $2,000,000 $516.40 7.74%

4/02/2019 Redding CA 2,000 $1,040,000 $520.00 10.00%

2/20/2019 Riverdale GA 2,425 $878,100 $362.10 3.10%

2/01/2019 Decatur GA 2,724 $1,600,000 $587.37 8.00%

12/14/2018 San Jose CA 1,109 $5,050,000 $4,553.65 4.93%



7/29/2019 Winchester TN 3,344 $1,071,000 $320.28 NR

5/17/2019 Chicago IL 1,800 $1,000,000 $555.56 NR

5/02/2019 Atlanta GA 1,700 $1,100,000 $647.06 6.00%

1/18/2019 Lanham MD 1,860 $1,900,000 $1,021.51 6.50%

11/8/2018 Erie PA 4,394 $1,375,000 $312.93 10.47%


ChevronAvg CAP Rate 6.90%

2019 Avg $ Sale $2,100,000

NOI $144,900






Credit Rating S&P AA

Moody's Aa2

Intelligence

As of Q1 18’, ExtraMile Convenience Stores LLC has been operating as a joint venture betweenChevron and Jacksons Food Stores. Partnership was formed to strengthen and expand theExtraMile retail brand. Chevron has been focused on mobile app that consumers can use topay for fuel/car washes and also authorize payment to activate the pump from the dashboardof their vehicle. By 2020, added features will include pre-ordering c-store purchases to drawfoot traffic into stores and decrease time spent at the station. New leases typically 15 - 20years, 5% - 10% increase every 5 years. 13.4 months avg to sale.

Intelligence

HQ in Houston, Texas. Citgo Petroleum is owned by Citgo Holding, LLC. In the late 80’s and early90’s, fifty percent of Citgo was sold to Petroeos de Venezuela. Citgo imports heavy crude oilfrom Venezuela, refines it then distributes in the U.S. Political coffers benefit from this revenuestream. In Q1 19’, the Trump administration blocked all U.S. revenues to Venezuela as achallenge to force a defiant, President, Nicolas Maduro from office. The U.S. operations arerunning sanctions and government oversight including the approval of long term financing of$1.2B. 18.9 months avg to sale.

Citgo PetroleumAvg CAP Rate 10.10%

2019 Avg $ Sale $1,100,000

NOI $111,100



Lot Size .75 Acres

Lease Term 10 Years

# of Locations 1,383+

Credit Rating S&P B-

Moody's B3

18Data Source: Chevron based on 54 sold comps. Citgo Petroleum based on 39 sold comps. Convenience / Gas Station



7/16/2019 Saint Louis MO 2,716 $1,545,700 $569.11 5.64%

3/27/2019 Omaha NE 5,740 $1,650,000 $287.46 8.00%

3/22/2019 Littleton CO 4,321 $3,000,000 $694.28 5.50%

2/27/2016 Sapulpa OK 2,713 $1,000,000 $368.60 9.00%

12/31/2018 Decatur IL 12,400 $1,800,000 $145.16 6.00%



9/17/2019 Southaven MS 4,436 $1,800,000 $405.77 10.00%

8/30/2019 Walnut CA 2,736 $4,650,000 $1,699.56 NR

8/26/2019 Lakeland FL 3,010 $2,891,325 $960.57 4.90%

7/24/2019 Miramar FL 7,348 $9,500,000 $1,292.87 NR

6/20/2019 Crystal Lake IL 3,000 $1,950,000 $650.00 NR


Intelligence

Exxon Mobil in 2019 has been focused on adding mobile payment & rewards to its Speedpass+app to enhance security. The C-store industry as a whole has pushing forward towards to EMVcompliance by October 2020 liability shift by upgrading their dispensers and point of saleequipment to reduce fraud. ExxonMobil has been driving loyalty rewards sign-ups withpromotions and ability to redeem points towards fuel, car washes and c-store purchases. Thecompany continues to promote its Synergy fuel line up and introduced Synergy Diesel Efficient.

Exxon Mobil Corp. Avg CAP Rate 7.05% Exxon 6.30% Mobil

2019 Avg $ Sale $1,600,000 $2,900,000

NOI $112,800 $182,700

Avg $/Square Ft $471 $957

Avg Building SF 3,300 SF 3,000 SF

Lot Size .5 - 1.5 .5 - 1.5 Acres

Lease Term Varies Varies


Credit Rating S&P AA+

Moody's Aaa

Phillips 66Avg CAP Rate 7.00%

2019 Avg $ Sale $1,600,000

NOI $112,000






Credit Rating S&P A

Moody's A3

Intelligence

Phillips 66 has been focused on reimaging its locations. As of Q1 19’, approximately 1,500 of 6,400sites met the new premier imaging standards. This included the forecourt updated with modernmaterials, bright lighting and incorporating its iconic logo. These same store sales increasedapproximately 2%. The reimaging is planned be completed by the end of 2020. The company hasused the mystery—shopper program to enhance its overall customer experience with a focus onclean, operational and well stocked fuel islands and positive in store experience.

19Data Source: Exxon based on 21 comps and Mobil based on 39 sold comps. Phillips 66 based on 22 sold comps. Convenience / Gas Station



9/18/2019 Phoenix AZ 3,432 $1,086,000 $316.43 NR

8/01/2019 Sammamish WA 1,960 $3,650,000 $1,862.24 NR

7/08/2019 Buford GA 2,790 $1,000,000 $358.42 6.00%

6/19/2019 West Palm Beach FL 3,000 $2,975,000 $991.67 11.05%

11/09/2019 Johns Island SC 3,360 $2,568,000 $764.29 7.00%


Shell OilAvg CAP Rate 7.10%

2019 Avg $ Sale $2,400,000

NOI $170,400



Lot Size .5 - 2 Acres

Lease Term 20 years



Moody's Aa2

Intelligence

In 2018, Shell debuted Shell Select, (2,221 SF) its first branded convenience store providinghigh quality, fresh food and beverages. Shell anticipates to continue rolling out additional ShellSelect locations. Q2 19’, Shell announced its most advanced fuel ever with a new andimproved formulation of its premium gasoline, Shell V-Power NiTRO+ launched across alllocations. Typical lease 20 years with 10% escalations every 5 years.

20Data Source: Shell based on 55 sold comps. Quiktrip based on 34 sold comps.

QuikTripAvg CAP Rate 6.14%

2019 Avg $ Sale $3,903,471

NOI $239,673



Lot Size 2 Acres

Lease Term 15 Years

# of Locations 800 +


Moody's NR

Intelligence

HQ in Tulsa, Oklahoma. Founded in 1958, privately held and operates locations in Arizona, Georgia, Illinois, Iowa, Kansas, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas. Introduced new QT Kitchens full-service counters to provide fresh, made to order food options from 6am – 8pm. Quicktrip has 60+ surplus properties listed for sale through its internal real estate department including former locations and land adjacent to existing stores. Reports annual sales in excess of $11 billion and employing over 20,000. Typical lease term: 15 year with ten (10) 5 year options.




9/04/2019 Frisco TX 5,720 $7,400,000 $1,293.71 5.59%

7/19/2019 Charlotte NC 5,787 $5,537,000 $956.80 5.53%

4/29/2019 Saint Louis MO 4,771 $5,700,000 $1,194.72 6.62%

4/25/2019 Garland TX 4,902 $4,231,436 $863.21 6.80%

WawaAvg CAP Rate 4.73%

2019 Avg $ Sale $4,418,929

NOI $209,015




Lease Term 20 Years

# of Locations 842


Moody's NR



9/24/2018 Vero Beach FL 6,119 $3,650,000 $596.50 4.66%

8/16/2016 Cocoa FL 6,119 $3,363,636 $549.70 5.50%

8/07/2016 Winter Park FL 6,074 $2,777,778 $457.32 4.50%

6/14/2019 Quakertown PA 5,773 $5,368,000 $929.85 4.75%

3/04/2019 Somerset NJ 5,500 $5,970,000 $1,085.45 4.75%


Intelligence

Predominately on the East coast in six states, privately held with no franchises. C-store focus ismore on c-store offerings and less on gas. Its food offerings have earned it a spot in Food andWine’s best fast food list by state. Wawa to test smaller c-store format in Pennsylvania withless than 3,000 SF. Stores will feature maximized automation, walk-up window for orderpickups, and new product features such as cold-pressed juices and upscale hot teas. Companyplans to double the number of c-stores with Tesla Supercharges by the end of 2020.

21Data Source: Wawa based on 29 sold comps.

Speedway

Intelligence

Speedway accelerated its store counts throughacquisitions over the past four years, notably itsmerger with Andeavor. On the operations side, thecompany has focused on efficiencies by controllingmore of its supply chain as it grows its foodservicebusiness. For new developments, Speedway specs:1.5 Acres+, 1-mile population of 3,000+, controlledintersection with heavy traffic with preference forfar corner position with 25,000+ VPD, propertyzoned or can be zoned for gas, prefer beer/wineavailability and ability to operate 24/7.

▪ Cross America sold 27 Shell sites to Spirit Realty Capital / REIT in TN for undisclosed amount.

▪ Atlantis Management Group acquired 23 property portfolio clustered in New York and New Jersey. (Shell and Citgo Stations). Transaction estimated at $50.33M totaling 44,555 SF $1,129 PSF.

▪ EG Group acquired Kroger c-store business in April 2018 including 762 sites operating under various banners including Turkey Hill, Loaf ‘N Jug, Kwik Shop, Tom Thumb and Quik Stop across 17 states. EG Group U.S. operations is based in Columbus, Ohio.

▪ EG Group, UK based investor, acquired assets from Travel Centers of America for approximately $330.8M at the end of 2018 including 225 Minit Mart c-stores. The group plans to rebrand and renovate all Minit Mart locations.

▪ EG Group acquired 54 c-stores & fuel business from Syracuse based Fastrac Markets. ▪ EG Group acquired 69 Certified Oil branded c-stores and gas stations in Kentucky, West

Virginia and Ohio expanding its U.S. portfolio to 1,112 stores in 25 states.

Industry Highlights: C-Store Major Acquisitions




8/16/2019 Parker AZ 9,230 $1,016,537 $110.13 7.73%

8/02/2019 Greeley CO 8,300 $1,833,000 $220.84 6.15%

6/17/2019 Sisseton SD 8,000 $810,000 $101.25 9.11%

6/07/2019 Rialto CA 8,357 $2,100,000 $251.29 5.67%

6/07/2019 Lynn MA 9,370 $2,100,000 $224.12 7.61%



9/23/2019 Strathmore CA 9,100 $2,039,373 $224.11 6.30%

9/13/2019 Rustburg VA 9,100 $1,295,000 $142.31 6.92%

9/09/2019 Cleveland OH 7,517 $1,463,000 $194.63 6.25%

9/06/2019 Polo MO 9,014 $916,421 $101.67 7.60%

9/06/2019 Grand Prairie TX 9,020 $1,144,000 $126.83 6.97%


Family DollarAvg CAP Rate 7.59%

2019 Avg $ Sale $1,385,048

NOI $105,125




Lease Term 15 Years



Moody's Baa3

Dollar GeneralAvg CAP Rate 7.01%

2019 Avg $ Sale $1,403,263

NOI $98,369



Lot Size 1.0 Acre




Moody's Baa2

Intelligence

Median asking cap rates 17 basis higher at 6.75%, median NOI’s $89,506 with 10.9 years average remaining on leases on listed properties. New stores are under construction in WA and WY will bring Dollar General’s presence to 46 states in the U.S. In Q2 19’, net sales increased 18.4%; same store sales increased 4%. Operating profit increased 5.9% to $577.8M. Given first half performance, expectations were raised for full-year financial guidance. Positive results due to merchandise innovation, store operations and cost control. Company is also larger rural retailer and partnering w/ FedEx offering parcel pick-up and drop-off in 2019 to drive foot traffic. 30+ sites acquired through 1031 exchange.

Intelligence

Dollar Tree acquired Family Dollar in 2015 for $8.5B. Family Dollar has continued to struggle despite the acquisition. Company will close nearly 400 stores in 2019 in addition to the 110 stores closed in 2018 as part of its store optimization efforts and response to slumping sales. Roughly 200 stores will be rebranded to Dollar Tree this year. Remaining stores will continue to operate under Family Dollar banner with an influx of Dollar Tree merchandise. Company has also worked to mitigate impact of China tariffs including price negotiations, cancelled orders, modified specifications, evolved product mix and diversified vendors.

22Data Source: Dollar General based on 329 sold comps. Family Dollar based on 78 sold comps. Dollar Store



9/24/2019 Vancouver WA 36,427 $9,846,000 $270.29 7.30%

8/14/2019 San Diego CA 61,005 $32,334,318 $530.03 6.99%

Intelligence

Despite upgrades to its food menu and video game offerings, Q2 19’ comparable store salesfell 1.8%, driven by a 2% decline in walk-in sales. Sales rose 8% to $344.6M but gains were dueto a rising store base. Growth outlook for the remainder of 2019 has been lowered. Dave andBuster’s near and long-term value creation include revitalization of existing stores, buildingdeeper guest engagement, disciplined cost management to fuel comp sales growth,investments in high-return new store locations and continue capital return to its shareholders.Company is on track to open 15 – 16 new locations in fiscal 2019; a growth of 12%. Typicallease 15 years with three (3) 5 year options with 10% escalations at time of renewal.



11/01/2018 Tampa FL 43,042 $11,700,000 $271.83 NR

10/08/2018 Overland Park KS 40,000 $12,958,000 $323.95 7.43%


Dave & BustersAvg CAP Rate 7.43%

2019 Avg $ Sale $12,329,000

NOI $916,044



Lot Size Varies

Lease Term 15 Years

# of Locations 73


Moody's NR

23Data Source: AMC Theatres based on 5 sold comps (11 additional sites sold as part of portfolio sale). Dave & Busters based on 2 sold comps.

Intelligence

Q2 19’ total revenues of $1.506 billion, up 4.4% from year prior driven by record attendance inboth U.S. and international markets. AMC outperformed the rest of the U.S. industry andgenerated the second largest domestic industry box office for any quarter in the past 100years. Q2 net earnings of $49.4 million, up 122.5% from 2018. Profit improvement planannounced, targeted to realize approximately $50 million in incremental operating income in2020 from cost savings an revenue initiatives. U.S. food and beverage per patron of $5.58representing 5.5% year over year growth. Financial performance has been greatly supportedby AMC Stubs loyalty program with more than 21M members and 900,000 subscribers to itsAMC Stubs A-list subscription program. Locations may have CPI every 5 years capped at 10%.

AMC Theatres Avg CAP Rate 7.15%

2019 Avg $ Sale $12,059,034

NOI $862,221



Lot Size Varies

Lease Term 10 Years +/-

# of Locations 380


Moody's NR

Entertainment



9/26/2019 Wysox PA 19,097 $3,902,000 $204.33 6.50%

8/02/2019 Cody WY 24,266 $4,800,000 $197.81 6.20%

7/31/2019 Cottonwood AZ 21,930 $4,600,000 $209.76 6.55%

7/09/2019 Comstock Park MI 12,845 $4,200,000 $326.98 6.20%

5/22/2019 Yankton SD 19,097 $1,670,000 $87.45 6.91%



9/03/2019 Acworth GA 18,880 $950,000 $50.32 NR

4/24/2019 Antioch CA 14,940 $1,864,000 $124.77 NR

40/1/2019 Easton PA 17,991 $2,600,000 $144.52 NR

11/13/2018 Mesa AZ 13,923 $1,630,000 $117.07 6.83%

12/13/2018 Colville WA 10,909 $1,700,000 $155.83 4.70%


Tractor SupplyAvg CAP Rate 6.81%

2019 Avg $ Sale $3,425,949

NOI $233,307




Lease Term 15 Years



Moody's NR

Ace HardwareAvg CAP Rate 5.77%

2019 Avg $ Sale $1,391,900

NOI $95,066




Lease Term 15 Years



Moody's NR

Intelligence

Record Q2 19’ revenues of $1.69B, an increase of 6.3% last year. Same store sales up 1.7% andacehardware.com up 58%. Net income of $53.8M, a decrease of 1.8% from last year.Significant growth from new stores, including 44 in Q2, solid same-store-sales growth and thesurge in its online platform. Ace Hardware also acquired Handyman Matters, a franchise ofhome repair, maintenance and improvement services to become Ace Handyman Services andoperate stand-alone, subsidiary of Ace Hardware Corporation.

Intelligence

Q2 19’ net sales increased 6.3%, comparable store sales increased 3.2%. Reported 70% of onlineorders fulfilled in-store. In 2018, Tractor Supply opened 80 new stores and net sales increased9%. In fiscal 2019, company working to optimize use of customer data to drive increased in-storetraffic and sales across their expanding retail footprint. Customer base is rural and itsdemographic purchases equipment and heavier items in bulk vs buying on demand. 13 propertyportfolio purchased by National Retail Properties approx. $40.463M; blended 6.71% cap rate, allnet (no absolute NNN) Landlord responsible for roof & structure. Leases run through 5/2029 andflat rents through 2024 w/ 12% bumps over the last 5 years of term.

24Data Source: Ace Hardware based on 10 sold comps. Tractor Supply based on 39 sold comps. Garden Supply



8/05/2019 Corona CA 65,082 $15,275,000 $234.70 5.18%

7/12/2019 Mission Viejo CA 43,480 $10,300,000 $236.89 4.75%

6/12/2019 Baton Rouge LA 66,430 $12,250,000 $184.40 6.98%

4/02/2019 Bakersfield CA 50,719 $8,200,000 $161.68 5.50%

12/07/2018 Albuquerque NM 65,129 $9,715,822 $149.18 7.30%



7/08/2019 Litchfield IL 22,245 $1,675,000 $75.30 5.45%

4/15/2019 Manahawkin NJ 17,825 $3,473,684 $194.88 4.75%

12/18/2019 Augusta GA 18,226 $2,200,000 $120.71 4.75%

11/02/2018 Mount Airy NC 21,900 $2,079,474 $94.95 4.75%

11/01/2018 Duluth MN 19,000 $2,250,000 $118.42 5.24%

Intelligence

No-frills German discount grocery chain attracting consumers through rock-bottom prices witha stripped down & efficient shopping experience. Aldi’s operates at a lower profit margin thancompetitors and estimates its operating costs are nearly half of its competition. Grocer haspresence in 35 states and focused on growing in the Midwest, Mid-Atlantic, Florida andCalifornia. On track to become third largest chain behind Walmart and Kroger with 2,500stores by the end of 2022.


AldiAvg CAP Rate 4.99%

2019 Avg $ Sale $2,113,026

NOI $105,440







Moody's NR

AlbertsonsAvg CAP Rate 6.33%

2019 Avg $ Sale $10,162,395

NOI $643,279



Lot Size Varies



Credit Rating S&P B

Moody's B1

Intelligence

New CEO, Vivek Sankaran replaced its past CEO who was in the role for less than sevenmonths. Company ranks three in overall grocery market share behind Walmart and Kroger. In2018, the grocer had a failed merger with Rite Aid. Grocer allocated $362M in capitalexpenditures in Q1 19’ towards commerce an digital technology investments, 28 storeremodels and the opening of six new stores. Q1 19’ identical sales increased 1.5%, net incomepositive $49M compared to a net loss of $17.7M the year prior, digital sales grew 33%.

25Data Source: Albertsons based on 11 sold comps. Aldi based on 7 sold comps. Grocery



9/13/2019 Springfield OH 43,400 $2,200,000 $50.69 NR

5/02/2019 Dublin GA 70,225 $5,300,000 $75.47 6.74%


MeijerKrogerAvg CAP Rate 6.74%

2019 Avg $ Sale $3,750,000

NOI $252,750



Lot Size 5 Acres

Lease Term 20 Years



Moody's Baa1

Intelligence

Sales flat for Q2 19’ with improved same store results. Sales totaled $28.17B, up .5%.Operating profits were slightly up 1.8% to $559M. Digital sales grew 31% in Q2 with anexpanded 1,780 online grocery pickup sites and 2,225 delivery locations; covering more than95% of households in the grocer’s market areas. Grocer was unable to confirm whether it is ontrack towards its $400M in incremental operating profit expectation by 2020. Typical leasestructure: NNN.

Intelligence▪ HQ in Grand Rapids, Michigan with 242 store regional

presence in MI, OH, IN, IL, KY and WI. Privately ownedand family run grocer debuted new format 37,000 SFneighborhood grocery store near downtown GrandRapids, MI featuring an open-air, pedestrian friendlydesign at at mixed-use development.

▪ Plans for six additional smaller format urban stores by2021. Typical supercenters are up to 155,000 SF andoperate 24/7.

▪ Three new super centers were opened in OH as part ofMeijer’s expansion plans into the state.

26Data Source: Kroger based on 2 sold comps. No reported sales for Meijer.

Piggly Wiggly

Intelligence▪ HQ in Keene, NH. Has more than 530 locations serving 17

states. All stores are independently owned and operatedprimarily in the Southeast. Grocer is an affiliate of C&SWholesale Grocers, Inc. which ranked as 10

thlargest

privately held company in the U.S. For over 90 years, C&Shas provided warehousing and distribution to some ofthe largest supermarket chains in the U.S.

▪ Over the years, Piggly Wiggly has backfilled dark spacese.g. former Dominick’s in Chicago area, Jim’s LocalMarket in the Southeast.

▪ Partnered with Instacart to provide home deliveryservices in 2019.

Grocery

Intelligence

HQ in Lakeland, Florida with operations in FL, GA, AL, TN, SC, NC and VA. Grocer had a strongperforming Q2 19’ with sales up 6.8% to $9.35B compared to year prior, with same store salesup 4.8%. In Q1, grocer opened 13 supermarkets, including 4 replacement locations, remodeled78 stores and closed 3 sites. Company has rolled out additional small-format concept(GreenWise Market) primarily in Florida with 11 sites total focusing on specialty, localofferings, natural and organic foods. These format stores range 28,000 – 38,000 SF. Publix realestate executive, Sr. VP Jeff Chamberlain retiring after 47 years with the company.



9/27/2018 Mission Viejo CA 24,240 $9,465,000 $390.47 5.25%

6/04/2019 Simi Valley CA 36,787 $1,785,000 $48.52 NR

5/31/2019 Memphis TN 28,000 $8,875,000 $316.96 6.25%

2/07/2019 Lees Summit MO 26,814 $6,909,753 $257.69 6.50%



8/07/2019 Bonaire GA 45,600 $11,000,000 $241.23 5.70%

4/03/2019 Savannah GA 43,783 $5,200,000 $118.77 4.00%

12/11/2018 Tampa FL 37,600 $7,690,133 $204.52 NR


SproutsAvg CAP Rate 5.88%

2019 Avg $ Sale $6,758,688

NOI $397,411




Lease Term 15 Years

# of Locations 322


Moody's NR

PublixAvg CAP Rate 4.00%

2019 Avg $ Sale $7,963,378

NOI $318,535




Lease Term 20 Years



Moody's NR

Intelligence

Grocer chain went public in 2013, Sprouts has posted modest revenue and profit gains over theyears. Majority of stores located in Arizona and California with approximately 30 storesopening each year. Q1 19’ same store sales grew 1.4%. Despite top-line gains, operatingincome has been flat and earnings down due to higher general and administrative expenses aswell as additional costs associated with a few store closures. New CEO appointed, Jack Sinclairformerly CEO of 99 Cents Stores and former executive at Walmart’s grocery division.

27Data Source: Publix based on 3 sold comps. Sprouts based on 4 sold comps. Grocery



4/29/2019 Exton PA 54,729 $22,140,368 $404.55 4.91%

Intelligence

Trader Joes is operated by Aldi Nord, the same family that owns the Aldi chain. Grocer continuesto eliminate plastic packaging waste and pass on the savings to customers. The grocer has focusedmore on an expeditious in-store shopping experience in a small store format while minimizingcosts and keeping prices low. Trader Joes has known not overstocking its stores, keeping productsfresh and eliminating waste. Underperforming products are also pulled, making room forperforming products. Its lack of digital presence and delivery is the company’s efforts to keepcosts low. 516 avg days on market.



4/30/2019 Walnut Creek CA 24,600 $12,700,000 $516.26 NR

4/15/2019 Paramus NJ 41,988 $8,400,000 * $200.06 NR


Whole FoodsAvg CAP Rate 4.91%

2019 Avg $ Sale $22,140,368

NOI $1,087,092




Lease Term 20 Years

# of Locations 483


Moody's A3

Traders JoesAvg CAP Rate NR

2019 Avg $ Sale $10,550,000

NOI -



Lot Size 1 Acre

Lease Term 15 Years



Moody's NR

Intelligence

HQ in Austin, Texas. When Amazon acquired Whole Foods two years ago for $13.7B, itprompted competitors to invest in their ecommerce grocery services. While Amazon hasn’tdominated grocery sales, the acquisition has provided an offline platform for Amazon topromote its brand. According to market survey, found that quality and transparent sourcing isdriving millennial food choices – Whole Foods is working hard to anticipate the needs of thismarket segment. Its Whole Foods 365 store format also aims to be more accessible and lessexpense than a traditional Whole Foods, emphasizing on its private label-brand 365.

28Data Source: Trader Joes based on 2 sold comps, * part of 2 tenant shopping center sale. Whole Foods based on 1 sold comp. Grocery



6/27/2019 Amherst NY 122,669 $6,000,000 $48.91 NR

2/28/2019 Midlothian VA 130,000 $20,516,971 $157.82 NR


WegmansAvg CAP Rate NR

2019 Avg $ Sale $13,258,486

NOI -



Lot Size Varies

Lease Term 20 Years

# of Locations 96

Credit Rating S&P BBB+

Moody's NR

Intelligence

HQ in Rochester, New York. Stores in NY, PA, NJ, VA, MD, MA and NC. Wegmans opened its 100

thstore , and its first, in Raleigh, North Carolina. The opening was welcomed in the

community with record breaking attendance for the grocer with more than 30,000 customers at its grand opening. An additional store slated to open at Brooklyn Navy Yard in NY. In 2018, Wegmans backfilled a former J.C. Penney (Natick, MA) inside a mall in with a skywalk connected to the shopping center. Its second floor features a Mexican restaurant and tequila bar, a Burger Bar and Buzz Coffee Shop.

29Data Source: Wegmans based on 2 sold comps.

▪ Amazon grocery store chain reportedly signed more than a dozen leases in Los Angeles, California area. Other stores slated for San Francisco, Seattle, Chicago, Washington D.C. Philadelphia.

▪ The Impossible Burger made its debut September 20th

and has ranked as top seller across several grocery chains. The product outsold all types of ground beef from cows based on both revenue and total number of pounds sold at Gelson’s grocery chain. It is also available at Wegmans’ 100 locations.

▪ Grocery Pickup continues to evolve with grocers aiming to reduce wait times, improve fulfillment. This service is on pace to reach $35 billion in revenues by 2020, estimating that 1 in 4 shoppers use the service. Kroger and Walmarthave been on the forefront of innovation and rapidly rolling it out across their retail footprint. SpartanNash introduced mobile tracking technology that alerts the grocer of the consumer’s location when in proximity to their store reducing average wait times to near zero.

▪ Technology firms including Trigo Vision, Standard Cognition Grabango, Sensei and Zipping are working toward developing cashier-less technology similar to Amazon Go in efforts to modernize the consumer checkout experience.

▪ Lidl, a German discounter entered U.S. market in June 2017 originally planned to open more than 100 stores in its first year faced setbacks primarily its ability to generated the sales it predicted. It is working on revamping its merchandising and seek smaller store format ranging 20,000 – 25,000 SF vs its original 36,000 SF model. The company currently operates 107 stores with six new stores set to open in the Mid Atlantic.

Industry Highlights: Grocery News & Trends

Grocery



9/27/2019 Morristown TN 15,000 $3,394,124 $226.27 6.89%

9/27/2019 Casa Grande AZ 12,600 $2,928,279 $232.40 6.52%

9/27/2019 Howell MI 19,101 $3,714,383 $194.46 6.95%

9/27/2019 Columbus OH 15,000 $4,522,380 $301.49 6.68%

9/24/2019 Statesboro GA 15,000 $2,650,000 $176.67 7.22%



3/18/2019 Hamden CT 34,880 $5,000,000 $143.35 5.94%

1/11/2019 Winchester VA 135,008 $20,883,433 $154.68 8.60%

1/10/2019 Cape Coral FL 111,967 $17,109,622 $152.81 6.79%

12/14/2019 Lincoln NE 25,000 $3,381,250* $135.25 7.96%

10/22/2018 Warner Robins GA 65,667 $9,286,614* $141.42 NR


Harbor Freight ToolsAvg CAP Rate 6.82%

2019 Avg $ Sale $3,915,390

NOI $267,030



Lot Size Varies


# of Locations 900

Credit Rating S&P BB-

Moody's Ba3

Bed Bath & BeyondAvg CAP Rate 6.95%

2019 Avg $ Sale $15,790,341

NOI $1,097,428


Avg Building SF Varies

Lot Size Varies

Lease Term Varies

# of Locations 995

Credit Rating S&P BB+

Moody's Baa3

Intelligence

Retailer has been cutting costs by renegotiating leases with the help of a third-party consultant andre-evaluating stores to maintain, close or sell (including its other stores under names of WorldMarket, Buy Buy Baby, Christmas Tree Shops and Harmon). A rapid refresh of 160 locations isunderway. In early 2019, BB&B closed 40 stores, offset by 15 store openings. In April, activistinvestors have pressured the company to sell non-core assets. As of August, there are rumors ofpotential buyers for their World Market and PersonalizationMall businesses. Net sales declined inQ1 19’ 6.6% and comp sales declined at the same rate.

Intelligence

HQ in Calabasas, California. All stores company owned and do not offer franchises. Site criteria:15,000 – 16,500 SF, 70% retail/30% retail replenishment, street visibility, 4:1 parking ratio,open or suspended t-bar ceiling with minimum 15’ AFF, polished concrete flooring, 80’ candlelighting in retail area, 77’ – 85’ frontage preferred, access for 53’ trailer plus tractor, 600 amps120/208V. Company had 4 distribution centers with one location closing in Camarillo, CAconsolidating operations in its Moreno Valley, CA location in 2019.

30Data Source: Bed Bath & Beyond based on 40 sold comps part of shopping centers, * denotes STNL. Harbor Freight based on 21 sold comps. Home Improvement & Furnishings



8/30/2019 West Seneca NY 103,344 $18,900,000 $182.88 6.50%

8/02/2019 Lodi NJ 147,157 $53,000,000 $360.16 6.50%

7/12/2019 Attleboro MA 308,037 * $43,300,987 * $140.57 NR

6/11/2019 Orange Park FL 108,578 $13,475,000 $124.10 NR

3/28/2019 Plymouth MN 111,847 $19,550,485 $174.80 6.15%



9/10/2019 Mount Kisco NY 24,830 $6,829,350 $275.04 6.00%

6/18/2019 Lakeville MN 59,269 $8,850,000 * $149.32 6.50%

6/12/2019 Menomonee Falls WI 101,307 $17,400,000 * $171.76 8.83%

3/28/2019 Folsom CA 74,552 $15,325,000 * $205.56 6.29%

12/27/2018 Kansas City MO 558,926 $74,500,000 * $133.29 7.48%


Home GoodsAvg CAP Rate 6.87%

2019 Avg $ Sale $24,760,107

NOI $1,701,019


Avg Building SF Varies

Lot Size Varies

Lease Term Varies

# of Locations 831


Moody's A2

Home DepotAvg CAP Rate 6.38%

2019 Avg $ Sale $26,096,878

NOI $1,664,981




Lease Term 15 Years


Credit Rating S&P A

Moody's A2

Intelligence

Q2 19’ reported sales of $30.8B, a 1.2% increase from second quarter of 2018. Comp sales forquarter were up 3.1% with net earnings remaining flat at $3.5B. Strong comp performanceattributed to health of U.S consumer and stable housing environment. Lumber prices havedeclined significantly compared to last year, which impacted sales growth in 19’. Salesguidance for remainder of 19’ reflects lumber price deflation as well as potential impacts to U.Sconsumer arising from recently announced tariffs.

Intelligence

Stores average 25,000 SF, mainly operate in a standalone format or combined with one of TJXCompany’s TJ Maxx or Marshalls. Approximately 40 new Home Goods locations in 2019. TJX isin process of building a $170M in Lordstown, Ohio distribution center to employ more than1,000 workers and ship to more than 300 stores. Recently, company has backfilled big boxstores formerly occupied by Babies R US and Best Buy.

31Data Source: The Home Depot based on 15 sold comps, * denotes allocation as part of portfolio sale. Home Goods based on 23 sold comps as part of shopping center*. Home Improvement & Furnishings

Menards



9/27/2019 Waxhaw NC 142,212 $8,000,000 $56.25 4.06%

7/10/2019 Presque Isle ME 147,000 $4,800,000 $32.65 6.88%

5/21/2019 Gainesville FL 136,858 $18,250,000 $133.35 5.74%

3/29/2019 Bloomington IN 137,391 $13,536,121 $98.52 6.57%

3/04/2019 Hendersonville TN 129,044 $16,500,000 $127.86 6.90%


LowesAvg CAP Rate 6.12%

2019 Avg $ Sale $14,340,660

NOI $877,648



Lot Size 15 Acres

Lease Term 20 Years



Moody's Baa1

Intelligence

In August, Lowes eliminated thousands of jobs, outsourcing maintenance and assemblyworkers to third-party companies. A total of 20 underperforming U.S. locations were alsoclosed to reduce costs. Q2 19’ comp sales increased 3.2% and sales increased .5% to $21B,capitalizing on spring demand, strong holiday event execution and growth in paint. Total salesin 2019 fiscal anticipated to increase 2% and comp sales expected to increase 3%.

Intelligence▪ A family owned company started in 1958 with

HQ in Eau Claire, Wisconsin. 300+ locationsprimarily in IL, IN, IA, KS, KY, MI, MN, MI, NB,ND, OH, SD, WI and WY. Menards real estatedepartment has a slew of real estate includingoutlot parcels, residential sites, tenant spaceand self storage in proximity to its locations.

▪ Company also has a freight transportationdivision and Midwest manufacturing. Addedseveral new locations in 2019 to its roster.

32Data Source: Lowe’s based on 12 sold comps, no reported sales for Menards.

▪ Spending: Forecast of 4.1% industry growth with product sales to upwards of $450 billion.

▪ Equity: Home equity nearly doubled in last 5 years allowing homeowners to dispose money towards home improvements.

▪ Age: U.S. housing average home age is 40 years old; despite all new inventory building during the housing boom. Approximately 80% are at least 20 years old and 40% are at least 50 years old.

▪ Demographics: Millennials beginning to purchase older homes and performing greater number of home improvement projects each year than any other age group. Also performing more Do-It-Yourself projects than previous generations.

Industry Highlights: Home Improvement Spending & Economy

Home Improvement & Furnishings



8/14/2019 Greensboro NC 4,500 $770,000 $171.11 7.23%

7/24/2019 Rochester NY 5,074 $1,520,000 $299.57 7.51%

6/21/2019 Rochester Hills MI 5,000 $1,769,758 $353.95 6.20%

6/14/2019 Novato CA 4,398 $3,115,000 $708.28 4.65%

6/13/2019 Douglasville GA 5,127 $1,210,000 $236.01 6.40%



8/28/2019 Salt Lake City UT 10,000 $2,200,000 $220.00 NR

1/07/2019 Sebring FL 9,040 $1,000,000 $110.62 10.57%

12/21/2019 Marion IA 166,749 $13,650,000 * $81.86 7.50%

12/07/2018 Harper Woods MI 9,972 $1,350,000 $135.38 8.80%

11/01/2018 Tacoma WA 7,996 $3,469,230 $433.87 6.69%


Sherwin-WilliamsAvg CAP Rate 6.81%

2019 Avg $ Sale $1,618,131

NOI $110,195




Lease Term 10 Years



Moody's Baa3

Pier 1 ImportsAvg CAP Rate 8.39%

2019 Avg $ Sale $6,480,179

NOI $543,687



Lot Size Varies

Lease Term 10 Years


Credit Rating S&P CCC-

Moody's NR

Intelligence

HQ in Fort Worth, Texas. Q1 20’ Total sales declined 15.5% in Q1 20’ to $314.3M in comparisonto $371.9M year prior. Same store sales fell 13.5% slightly below expectations. Store traffictrends softer but steady in comparison to Q4 19’. 57 stores planned for closure in 2019, upfrom previous estimate of 45. In April, S&P downgraded Pier 1’s credit rating from CCC+ toCCC-, reflecting concerns about the company’s ability to pay back its debts. This reflectsquestionability about Pier 1’s path to profitability in the coming six months to one year.

Intelligence

Q2 19’ consolidated net sales increased 2.2% to $4.88B, net sales from stores in the U.S andCanada increased 4.3%. Increase in the quarter was primarily due to higher paint sales volume inNorth American stores, a new customer program launched in 2018 and selling price increases,partially offset by demand softness in some end markets outside the U.S. and unfavorablecurrently rate changes. On 12/28/18, 98 property portfolio acquired by Agree Realty Corp (REIT)from corporate owned assets in a $142.2M sale lease back transaction. Long term NNN leases,6.69% cap on $9.52M annualized base rent.

33Data Source: Pier 1 Imports based on 21 sold comps, * denotes part of shopping center. Sherwin-Williams based on 24 sold comps. Home Improvement & Furnishings



8/30/2019 Las Cruces NM 2,866 $2,770,000 $966.50 5.60%

8/27/2019 Omaha NE 4,398 $2,610,000 $593.45 6.49%

8/19/2019 Russellville KY 3,514 $2,477,900 $705.15 6.17%

8/19/2019 Martin TN 3,702 $1,456,000 $393.30 5.90%

8/19/2019 Victorville CA 3,292 $1,100,000 $334.14 5.45%



9/23/2019 Northwood OH 2,640 $1,550,000 $587.12 6.19%

9/13/2019 Bullhead City AZ 3,099 $1,750,000 $564.70 5.65%

9/12/2019 Cookeville TN 2,570 $1,510,204 $587.63 5.00%

8/30/2019 Columbus GA 3,003 $1,011,000 $336.66 5.50%

8/29/2019 Richmond IN 3,000 $1,342,000 $447.33 6.41%


Burger KingAvg CAP Rate 5.78%

2019 Avg $ Sale $2,023,778

NOI $116,974






Credit Rating S&P B+

Moody’s NR

Arby’sAvg CAP Rate 6.04%

2019 Avg $ Sale $1,720,860

NOI $103,940




Lease Term 20 Years


Credit Rating S&P NR Franchise

Moody's NR Franchise

Intelligence

Arby’s announced opening of its 1,000th

Inspire design restaurant; with nearly one-third of its global system of over 3,400 locations now features the Inspire design. The innovative format reduces development costs, expands site selection options, delivers upgraded guest experience and provides multiple operation models to drive value for the brand and its franchises. Newly designed stores posted 10% higher average unit volumes and are11% more energy efficient that its counterparts. In 2017, signed development agreements to build 25 new locations in Chicagoland area over five years including downtown area – seeking to triple its footprint.

Intelligence

System wide sales growth excluding franchises were up 1.5% $2.58B Q2 19’ vs. 3.3% $2.546Bfrom year prior. Comp sales were up .5% vs. 1.8% from year prior. In 2019 Q1 & Q2, effectivemenu updates included reintroduction of the spicy nugget, and the impossible veggie burgeralone boosted traffic by 18%. The launch of BK Café platform (expanded specialty coffee menu)in March in an effort to help drive guest count and sales growth. Typical lease structure: NNN.

34Data Source: Arby’s based on 57 sold comps. Burger King based on 93 sold comps. Quick Service Restaurants (QSR)



9/09/2019 Taylorsville UT 4,828 $2,950,000 $611.02 4.25%

8/27/2019 Aurora CO 4,304 $2,195,000 $509.99 4.55%

7/17/2019 Lansing MI 4,971 $2,085,000 $419.43 4.74%

7/03/2019 Washington PA 5,188 $1,621,053 $312.46 4.75%

4/05/2019 Mayfield Hgts OH 5,000 $3,395,580 $679.12 4.05%


Chick-fil-AAvg CAP Rate 4.45%

2019 Avg $ Sale $2,116,742

NOI $94,195




Lease Term 20 Years



Moody's NR

Carl’s JrAvg CAP Rate 5.98%

2019 Avg $ Sale $2,100,967

NOI $125,638




Lease Term 20 Years


Credit Rating S&P NR Franchise

Moody's NR Franchise

Intelligence

HQ in Franklin, Tennessee. After nearly 20 years of co-branding with Hardee’s, the parent.Company, CKE Restaurants, is separating the two and rebranding. The former racyadvertisements have been replaced with food focused. One of the first quick service restaurantsto offer plant based meat on its menu through a partnership with Beyond Meat. Franchiseesunder pressure with mandatory higher wages in some states/cities. Its corporate offices wereclosed in late 2018 and consolidated with its operations in TN. Carl’s Jr. has slowly closed locationsover the years and has continued into 2019.

Intelligence

HQ in Atlanta, Georgia. Privately held with 2018 revenues reported in excess of $10B, marking51 consecutive years of sales growth. Nearly every week, a new location opens somewhereacross the country. 5 new restaurants slated to open in Sept 19’. Chick-fil-A reached its goal toserve poultry/proteins with no antibiotics ever in its poultry and proteins.

35Data Source: Carl’s Jr based on 18 sold comps. Chick-fil-A based on 25 sold comps. Quick Service Restaurants (QSR)



9/17/2019 Las Vegas NV 3,198 $3,500,000 $1,094.93 6.35%

6/28/2019 Sulphur OK 3,500 $995,000 $284.29 7.10%

6/06/2019 Logan UT 3,080 $900,000 $292.21 7.00%

5/30/2019 Albuquerque NM 3,200 $2,280,000 $712.50 6.25%

5/20/2019 Yuma AZ 2,437 $1,550,000 $636.03 4.65%



8/09/2019 Vancouver WA 2,516 $2,150,000 $854.53 5.61%

11/02/2018 Spokane WA 3,007 $1,409,900 $468.87 NR

9/24/2018 Indianapolis IN 1,339 $575,000 $429.42 NR



8/21/2019 Chaska MN 2,330 $1,537,800 $660.00 5.00%

8/16/2019 Lake Mary FL 3,060 $2,290,000 $748.37 4.19%

4/08/2019 Hadley MA 2,100 $1,625,000 $773.81 4.92%

3/25/2019 Ankeny IA 2,266 $2,173,000 $958.96 5.75%

3/18/2019 Coral Springs FL 2,583 $2,148,598 $831.82 5.35%


Domino’sAvg CAP Rate 5.61%

2019 Avg $ Sale $1,378,300

NOI $77,323



Lot Size < 1 Acre

Lease Term 10 Years

# of Locations 16,000 +/-


Moody's NR

ChipotleAvg CAP Rate 5.20%

2019 Avg $ Sale $1,795,461

NOI $93,363







Moody's NR

Intelligence

In Q2 19’ Chipotle opened 19 net stores with total revenues increasing. 13.2% to $1.4B, compsale increased 10%, net of 40 bps from loyalty deferral and included nearly 7% of comparablerestaurant transaction growth. Digital sales (mobile order, loyalty promotions and digitaldelivery) grew 99.1% and counted for 18.2% of sales for the quarter. Digital sales is the. fastestgrowth driver for Chipotle and new menu items have been well received by customers.

Intelligence

HQ in Ann Arbor, MI. U.S same store sales in Q2 19’ grew 3% vs the prior year quarter. Thismarked the 33

rdconsecutive quarter of same store sales growth. 42 net new stores opened in

Q2. Additionally, Dominos sold off 59 company owned stores to existing franchisees. Companyalso has a new “Domino’s Innovation Garage” , a 33,000 SF two story open concept space at itsheadquarters to drive it technology and innovation efforts. Company also rolled out a testprogram of e-bikes for delivery pizzas in Houston, Miami and New York in early 2019.

36Data Source: Chipotle based on 16 sold comps. Domino’s based on 3 STNL sold comps. Quick Service Restaurants (QSR)



9/12/2019 Phoenix AZ 2,954 $1,129,372 $382.32 5.40%

8/12/2019 Westminster CA 2,251 $3,500,000 $1,554.86 4.29%

7/29/2019 Lemont IL 1,823 $2,300,000 $1,261.66 5.00%

7/23/2019 Orlando FL 3,918 $1,700,000 $433.89 5.60%

5/23/2019 Wallington NJ 2,288 $1,125,000 $491.70 6.00%


KFC (Yum! Brands)Avg CAP Rate 5.84%

2019 Avg $ Sale $1,362,449

NOI $79,567






Credit Rating S&P BB

Moody's Ba3

Dunkin’ DonutsAvg CAP Rate 5.40%

2019 Avg $ Sale $1,631,634

NOI $88,108







Moody's NR

Intelligence

Q2 19’ U.S. comp store sales growth of 1.7%, added 46 net new Dunkin’ locations in the U.S.,revenues increased 2.5%. In 2018, Dunkin invested in espresso equipment and training and hasdelivered strong returns with it being the fastest growing category in Q2 with sales up 40%.Additionally, the “Better for you Power Platform” has attracted new consumers. Dunkin announcedit has signed agreements to open 50 new locations in key growth markets including TX, MI, KY, MN,WI, NC, NV and MO. Plans to add 200-250 net new locations each year in the next three years.

Intelligence

Q2 19’ US same store sales growth up 6% exceeding 3.68% expectations. Test programs in2019 included plant based chicken in partnership with Beyond Meat in Atlanta, GA. And aChicken and donuts sandwich in Richmond, VA. KFC is also working to improve guestexperience including a scoop to order instead of pre-packaged sides and for those dining-in,boxes have been replaced with open paper. Containers on a tray with wood-themed design.KFC has also had a rotation of Colonel Sanders impersonators in its ad campaigns since 2018.

37Data Source: Dunkin’ based on 42 sold comps. KFC based on 118 sold comps. Quick Service Restaurants (QSR)



7/26/2019 Kalamazoo MI 2,566 $880,000 $342.95 5.75%

7/02/2019 Madison Hgts VA 3,500 $1,178,000 $336.57 6.35%

6/27/2019 Clarksville AR 3,260 $1,042,669 $319.84 5.90%

6/17/2019 Memphis TN 2,395 $975,000 $407.10 5.85%

5/23/2019 Buffalo NY 2,451 $1,100,000 $448.80 5.96%



8/21/2019 Lincoln NE 5,009 $3,737,000 $746.06 4.95%

7/31/2019 Hanover PA 4,051 $1,846,000 $455.69 5.99%

7/02/2019 Weatherford TX 4,300 $3,839,596 $892.93 4.95%

6/06/2019 Adrian MI 3,515 $2,500,000 $711.24 6.00%

4/11/2019 Algonquin IL 5,000 $4,150,000 $830.00 5.09%



9/18/2019 Brooklyn NY 4,588 $1,728,575 $376.76 3.50%

8/15/2019 Fort Lauderdale FL 4,508 $2,500,000 $554.57 4.25%

6/17/2019 Hoffman Estates IL 4,500 $2,150,000 $477.78 4.80%

5/19/2019 N. Richland Hills TX 4,000 $1,883,500 $470.88 4.00%

4/08/2019 Lansing MI 3,256 $2,625,000 $806.20 5.08%


Panera BreadAvg CAP Rate 5.32%

2019 Avg $ Sale $2,986,775

NOI $158,896




Lease Term 15 Years


Credit Rating S&P A-

Moody's Baa1

McDonald’sAvg CAP Rate 4.51%

2019 Avg $ Sale $2,587,292

NOI $116,687




Lease Term 20 Years

# of Locations 14,000 + (U.S. Locations)


Moody’s Baa1

Intelligence

Q2 19’ comp sales increased 5.7%, reflecting successful national and local deal offerings includingthe 2 for $5 Mix and Match deal and strength in core menu items. In consumer appeal towardsingredient transparency, McDonald’s introduced fresh beef last year leading to substantial marketgrowth. Franchisees have felt the monetary pressure with capital put towards new refrigeration &storage equipment, remodeling and modernizations. Part of these modernizations includetechnology to enhance consumer experience including the global mobile app and the adaptation ofself-order kiosks. Acquired Dynamic Yield for $300+ million in efforts to improve technologies.

Intelligence

IN Q2, Panera expanded its delivery capabilities with partnerships with Doordash, Grubhub andUbereats. Also working to refresh its offerings for breakfast on the go with new menu itemsand elevated coffee platform to meet untapped consumer demand for convenient, yet highquality, delicious breakfast. In 2017, company was acquired by JAB Holding Company* (parentcompany to Peets Coffee, Pret A Manager, Noah’s Bagels Caribou Coffee and Krispy Kreme.)

38Data Source: McDonald’s based on 40 sold comps. Panera Bread based on 25 sold comps. Quick Service Restaurants (QSR)



9/03/2019 Washington DC 4,356 $3,600,000 $826.45 4.40%

8/26/2019 Emerson GA 2,200 $1,850,000 $840.91 5.84%

8/22/2019 Patterson CA 2,439 $3,055,000 $1,252.56 4.45%

8/22/2019 Chaska MN 2,200 $1,792,200 $814.64 5.03%

8/05/2019 Sheffield Village OH 2,934 $1,841,900 $627.78 5.43%



9/18/2019 Milwaukee WI 1,829 $800,000 $437.40 9.58%

9/02/2019 Augusta GA 3,252 $825,000 $253.69 13.28%

8/07/2019 New Hartford NY 3,051 $926,217 $303.58 5.80%

6/27/2019 Knoxville TN 2,620 $750,000 $286.26 6.40%

6/12/2019 Camby IN 3,070 $1,750,000 $570.03 5.89%


StarbucksAvg CAP Rate 5.22%

2019 Avg $ Sale $2,351,523

NOI $122,750

Avg $/Square Ft $1,051.14



Lease Term 10 Years



Moody's Baa1

Pizza Hut (Yum! Brands)Avg CAP Rate 6.58%

2019 Avg $ Sale $1,264,719

NOI $83,219







Moody's Ba3

Intelligence

Q2 19’ U.S. same store sales growth up 4%. In Q3, announced Pizza Hut is partnering withKellogg to create stuffed Cheez-It pizza. In August, announcements made to close more than400 - 500 U.S. dine-in Pizza Hut restaurants as it competes with delivery and carry-out orders.The restructuring is an aim to strengthen the business and set it up for a faster long-termgrowth. Of its locations, 6,100 are traditional restaurants and 1,350 are express units. It willcontinue to address issues as having too much debt or a lack of access to capital.

Intelligence

Net revenues in the Americas grew 11% over Q3 18’ to $4.7B primarily driven by 7% growth incomparable store sales and 641 net new store openings. Operating income grew 18% to$1,067.1M in the quarter up from $906.8M in prior period; with operating margin of 22.8%expanded 130 basis points primarily due to sales leverage, cost savings initiatives partiallyoffset by growth in wages and higher inventory reserves. Starbucks continues to innovate itsmenu offering and recently added four new colorful drinks to its lineup included limited timefood offerings.

39Data Source: Pizza Hut based on 31 sold comps. Starbucks based on 69 sold comps. Quick Service Restaurants (QSR)



9/10/2019 Seffner FL 2,015 $3,025,000 $1,501.24 5.50%

9/04/2019 Louisville KY 2,660 $1,150,000 $432.33 6.39%

9/03/2019 Elk Grove Village IL 2,094 $1,218,000 $581.66 5.23%

8/30/2019 Dayton NV 2,500 $3,325,000 $1,330.00 5.50%

8/15/2019 Killeen TX 2,704 $1,919,000 $709.69 4.64%



8/28/2019 New Castle IN 2,787 $1,375,000 $493.36 NR

7/23/2019 Englewood FL 2,514 $1,700,000 $676.21 5.56%

12/31/2019 Jonesboro AR 2,000 $580,000 $290.00 6.75%

10/12/2018 Westerville OH 2,350 $463,024 $197.03 NR

10/12/2019 Columbus OH 1,874 $310,338 $165.60 NR


Taco Bell (Yum! Brands)Avg CAP Rate 5.62%

2019 Avg $ Sale $1,833,793

NOI $103,059



Lot Size .5 – 1.2 Acres

Lease Term 20 Years



Moody's Ba3

SubwayAvg CAP Rate 6.16%

2019 Avg $ Sale $835,524

NOI $51,468



Lot Size < 1 Acre

Lease Term Varies

# of Locations > 25,000

Credit Rating S&P NR Franchisee

Moody's NR Franchisee

Intelligence

Traffic and sales has been challenging in the past for Subway. Company closed 1,100 stores androlled out a Fresh Forward design across 10,500 locations and thousands more by end of 2020. Inefforts to expedite the remodel, Subway partnered with vendors to provide $10,000 grants tooperators for a less expensive rollout. Locations updated realized an 11% increase in gross profitsand 8% increase in traffic. Additionally, in 2019, Subway has focused on improving product offeringsthrough new menu launches and partnered with Tastemade to create innovate menu options.

Intelligence

Same store sales grew 7%, compared with 3.75% expected. Consistently has been best performerin the family of Yum brands (Pizza Hut & KFC) with same store sales growing for past 12 quarters.Taco Bell recently introduced its newly redesigned menu, eliminating 9 items while also adding ona vegetarian section. A test program is also underway in Birmingham, Alabama for a giant NachosParty Pack

40Data Source: Subway based on 13 sold comps. Taco Bell based on 75 sold comps. Quick Service Restaurants (QSR)


Wendy’sAvg CAP Rate 5.86%

2019 Avg $ Sale $1,874,869

NOI $109,7867


Avg Building SF 2925 SF


Lease Term 20 Years


Credit Rating S&P B

Moody's B2

Intelligence

Wendy’s also announced its plans to refinance a portion of its outstanding securitization debtwith a new series of securitize notes under an existing securitized financing facility. Thecompany intends to issue at least $850M of new fixed rate senior secured notes to close by theend of Q2 2019. Wendy’s cut its 2019 forecast (expects adjusted earnings per share to declineby 3.5% to 6.5%) as it prepares reintroduce its breakfast offering in 2020 with an estimated$20M investment. Typical lease structure: NNN.

41



9/16/2019 Zephyrhills FL 2,950 $2,525,000 $855.93 5.35%

8/30/2019 Fort Wayne IN 3,047 $1,940,000 $636.69 5.00%

8/29/2019 High Point NC 3,500 $2,380,000 $680.00 5.25%

8/26/2019 Appleton WI 3,771 $2,410,000 $639.09 5.19%

7/31/2019 Urbana IL 2,795 $1,950,000 $697.67 5.64%

Data Source: Wendy’s based on 69 sold comps.

▪ Spending: National Restaurant Association projects industry sales will hit a highof $863 billion in 2019, up from 3.6% in 2018; $273 Billion in the U.S. U.S. CensusBureau indicates sales at eating and drinking establishments are up more than4% this year.

▪ Digital Growth & Delivery: Delivery continues to growth and set to outpace inrestaurant sales according to QSR Magazine. Millennials expected to account for70% of at home delivery business by 2020 with digital sales to grow at acompound annual rate of over 22% through 2023.

Emerging Concepts▪ Dog Haus has 48 gourmet hot dog locations with 12 new locations pending. Sites

include CA, LV, AZ, UT, CO, TX, LA, IL, IN, MI, KY, TN, FL, MD, VA, NY, CT and RI,▪ Sub Zero Nitrogen Ice Cream made its initial debut on Shark Tank but failed to

get a deal. Nearly 60 locations serving its patented liquid nitrogen ice cream.▪ Main Squeeze Juice Company founded in 2017 has 40+ franchisees in

development and corporate stores serving cold pressed juices, superfoodsmoothies and cleanses. Current locations operating primarily in Louisiana andTexas with 14 locations.

▪ Nekter Juice Bar was founded in 2010 has more than 125 locations with another175 in development. Aiming to reach 425 locations by 2020. Concept servesfreshly made, clean and nutritious juices, superfood smoothies, acai bowls and100% vegan frozen treats.

▪ Freddy’s burger joint has 300+ locations across 31 states serving an indulgentcomfort food menu.

▪ Taziki’s Mediterranean Café has over 88 locations across 17 states. Concept hascustomer loyalty program and older locations are being renovated in efforts toenhance guest experience.

Industry Highlights: Growth & Emerging Concepts




8/15/2019 Alameda CA 11,882 $4,200,000 $353.48 5.15%

3/01/2019 Alpharetta GA 10,232 $2,362,000 $230.84 NR

11/05/2018 Flanders NJ 8,830 $2,975,743 $337.00 7.00%

11/01/2018 Emmaus PA 13,339 $536,973 * $40.26 NR

10/03/2018 Nashville TN 9,176 $1,100,000 $119.88 NR



7/29/2019 Highlands Ranch CO 45,500 $22,750,000 $500.00 7.38%

5/28/2019 Falls Church VA 46,000 $21,250,000 $461.96 6.25%

3/22/2019 Fort Worth TX 42,267 $15,177,000 $359.07 7.91%

2/08/2019 Indio CA 36,612 $14,325,000 $391.27 6.65%

12/27/2018 Miami Gardens FL 37,000 $12,070,000 $326.22 6.50%


Bright Horizons FamilyAvg CAP Rate 6.08%

2019 Avg $ Sale $2,518,679

NOI $153,135



Lot Size 1.5 Acres

Lease Term 20 Years


Credit Rating S&P B+

Moody's Ba3

24 Hour FitnessAvg CAP Rate 6.94%

2019 Avg $ Sale $15,855,019

NOI $1,100,338






Credit Rating S&P B

Moody's B2

Intelligence

HQ in San Ramon, CA. Has 400+ clubs in 13 states, primarily on the East Coast including Hawaii.13 new locations in 2019 in CA, CO, FL, NJ, TX and WA. Club uses 24Go mobile app to assistwith health goals. Both in and outside the club including how to guidance for workouts,progress tracking and sharing. The founder of 24 Hour Fitness has also recently invested inFitplan, a Los Angeles based mobile app being developed to focus on personal training,wellness and fitness. Typical lease structure: NNN.

Intelligence

Q2 19’ strong and consistent performance, top line growth of 8% $528M. Added 12 locationsthis quarter. Operating income grew 13% and expanded 70 basis points to 14.2% of revenue.Develop strategic corporate relationships to provide employee benefits of childcare. In the.Company’s lease consortium model, they provide child care and early education to theemployees of multiple employers within a real estate development; a total of 95 locationswere opened over the last six years focused on urban locations. Typical lease structure: NNN

42Data Source: 24 Hour Fitness based on 13 sold comps. Bright Horizons based on 5 sold comps, * denotes redevelopment project. Other/Specialty



8/14/2019 Orlando FL 7,122 $3,792,000 $532.43 5.86%

8/07/2019 Richland WA 7,500 $4,407,000 $587.60 4.95%

6/11/2019 Los Angeles CA 9,988 $7,050,000 $705.85 5.50%

5/28/2019 San Antonio TX 8,040 $2,297,143 $285.71 7.00%

04/25/2019 Tucson AZ 13,084 $2,000,000 $152.86 10.80%


GameStopDavita HealthcareAvg CAP Rate 6.38%

2019 Avg $ Sale $4,757,301

NOI $303,516




Lease Term 15 Years



Moody's Ba2

Intelligence

Q2 19’ Operating income near $460M, including $40M in income attributable toreimbursement for calicmimetics. (not to be seen in 2020). Non acquired treatment had growthof 2.1% with 7,520,587 treatments during the quarter. Revenue per treatment approximately$350, an increase of $1.60 from Q1. Cost per treatment decreased approximately $9 from Q1driven primarily by reduced calcimimetics expense, reduced labor and benefit expense due tostrong productivity. Evaluating opportunities market by market for growth, productivity andefficiencies. Typical lease structure: NN or NNN.

Intelligence▪ Global sale for Q2 19’ decreased 14.3% to $1.3B

with consolidated comp store sales decrease of11.6%. New hardware sales decreased 41.1%,reflective of announcements for next generationconsole launches in 2020. Net income loss was$415.3M.

▪ Plans are underway to close up to 200underperforming stores by end of fiscal 2019.Company hinted at a much larger tranche ofclosures over the coming 12 to 24 months. Typically,there are 3 locations within a 5 mile radius and onaverage 6.2 locations within 10 miles.

43Data Source: Davita Healthcare based on 34 sold comps. Game Stop & GNC locations sold in larger shopping center transactions.

GNC Holdings

Intelligence▪ Q2 19’ working on strengthening and stabilizing U.S.

business. Made adjustments to promotional offers and saw negative impact, course corrected including increase on pro customers and saw strong results to offset.

▪ Negative trend in traffic at mall stores haveaccelerated. Increasing focus on mall locations andhave short lease terms across store portfolio. Stripcenters are stable comparable. 61% store base arestrip centers and 28% in malls. Its selling platform onAmazon has been soft but is making progressing.Online business are expected to improve through theyear. Anticipate 700-900 store closurespredominately mall-business.

Other/Specialty



8/28/2019 Rohnert Park CA 8,316 $3,850,000 $462.96 5.40%

6/19/2019 Mt Lebanon PA 9,984 $4,260,000 $426.68 7.50%

5/01/2019 Fort Collins CO 10,095 $3,159,050 $312.93 6.93%

2/28/2019 De Pere WI 10,293 $1,500,000 $145.73 6.79%

1/25/2019 Mayfield Hgts OH 7,492 $2,196,095 $293.13 7.36%

The Learning Experience



8/21/2019 Athens GA 21,500 $3,100,000 $144.19 7.62%


Jo-Ann Fabrics & Crafts

Intelligence

HQ in Hudson, Ohio. 850 Locations. Privately heldcompany; taken private in 2011 by Leonard Green &Partners in a $1.6B deal. Estimates of revenues in 2017was $2.5B. In 2018, teamed up with Teemo a mobilelocation platform for retailers to generate foot traffic totheir brick and mortar locations. Via personalized mobileadvertising. Joann saw a 35% return on ad spend and78% more visits compared to their competitors. In thesecond half of 2019, 10 new locations slated for openingin CA, IN, UT, FL, GA, IA, KY and TN. In 2018, companywent through major rebranding from Jo-Ann Fabrics toJoann to emphasize it offers more than just fabrics.

44Data Source: Kindercare Education based on 12 sold comps. Jo-Ann based on 1 freestanding locations only.

Kindercare EducationAvg CAP Rate 6.63%

2019 Avg $ Sale $3,153,369

NOI $209,068



Lot Size 1.5 Acres

Lease Term 20 Years



Moody's NR

Intelligence

HQ in Portland, Oregon. Owned by Kindercare Education (includes ownership of KnowledgeBeginnings, The Grove School, Cambridge Schools and Rainbow Child Care Center). Nearly100% of centers are accredited. Fifteen (15) new centers slated to open in 2019/2020 in FL, MI,PA NC, NY, WA, WI and VA. A portfolio of 49 properties were sold in an off-market transactionby Realty Income (REIT) for an approximate $107M according to public records with long termNNN leases.

Intelligence

HQ in Deerfield Beach, Florida. Seeking build to suitdevelopers to offer multiple locations in specificgeographic territories. Project that the franchise willgrow to more than 200 locations in two years.Currently has more than 3 million SF developed todate. Prefer freestanding locations 9,000 – 12,000 SFwith adjacent 5,000 SF playground; 1-2 acres andlease terms of 15 years plus minimum two 5-yearoptions. Currently developing in NY, NJ, PA, NC, CT,IL, GA, MI, VA,MA, NH, TX, AZ, CO, FL, CA, TN, MDand OH.

Other/Specialty

Party City



5/16/2019 Holland OH 13,500 $2,575,000 $190.74 7.34%



9/09/2019 Stoughton MA 45,000 $14,935,000 $331.89 7.13%

8/29/2019 Newbury Park CA 36,900 $14,550,000 $394.31 5.83%

6/28/2019 Irvine CA 41,000 $18,500,000 $451.22 5.39%

6/26/2019 Ft Washington PA 41,000 $9,048,331 $220.69 7.25%

5/22/2019 Gilbert AZ 44,462 $11,750,000 $264.27 6.08%


LA FitnessAvg CAP Rate 6.85%

2019 Avg $ Sale $12,670,498

NOI $867,929



Lot Size 5 Acres

Lease Term 15 Years



Moody's NR

Intelligence

HQ in Irvine, California. Privately owned with major ownership interest held by CIVC Partners,Madison Dearborn Partners and Seidler Equity Partners. LA fitness has over 690 clubs in the U.S.alone. 8 new clubs pending in FL, GA, IL, MD, NY, PA, TN and TX. Lease terms typically 15 yearsand NN lease structure.

45Data Source: LA Fitness based on 20 sold comps. Party City comp based on freestanding location.

Leslie’s PoolmartIntelligence

Based in Phoenix, Arizona. In 2017, CVC Capital Partnerssold off Leslie’s Holdings to L Catteron, a Connecticut basedglobal private equity firm. The management team at thetime stay in place and worked to continue the company’sgrowth, expand its national footprint and enhance in-storeand online operations. Has strong retail presence in AZ,CA,FL, GA and TX. For site locations, seeks 2,500 - 3,500 SFretail, excellent visibility, strip & regional centers, power &community centers, 10-15 parking spaces, 150,000population within 5 miles and min avg HH income of$70,000.

Intelligence

Based in New Jersey. Store has plans to close 55 storesthroughout fiscal 2019. Helium shortage in the industryaffected sales with Q2 net income totaling $48.4M, up from$19.3M the year prior. Total revenues increased .5% to$563.9M vs $572M expectations. Same store sales decreased2.1% due to the helium shortage. Typical lease structure: NN,NNN with escalations 10% every 5 years. In Q2, entered saleleaseback of 3 properties (distribution center and twomanufacturing facilities), generating $58.4M gain.

Other/Specialty



8/28/2019 Saint Paul MN 26,270 $5,215,000 $198.51 8.00%

8/27/2019 Little Rock AR 25,702 $4,523,548 $176.00 7.75%

8/14/2019 Grand Junction CO 26,040 $4,920,000 $188.94 NR

2/06/2019 Palm Desert CA 23,908 $6,425,000 $268.74 6.94%

1/23/2019 Pocatello ID 18,000 $3,950,000 $219.44 7.97%



9/06/2019 Bellingham WA 12,096 $1,346,800 $111.34 NR

4/05/2019 Redwood City CA 18,241 $9,750,000 $534.51 4.00%

11/12/2019 Pembroke Pines FL 15,775 $6,500,000 $412.04 NR

11/29/2018 Kyle TX 13,488 $3,034,836 * $225.00 NR

10/30/2018 Northridge CA 14,280 $9,695,000 $678.92 5.74%


PetSmartAvg CAP Rate 7.67%

2019 Avg $ Sale $5,186,828

NOI $397,829


Avg Building SF 27,731

Lot Size 2.5 Acres

Lease Term 10 Years


Credit Rating S&P CCC

Moody's Caa1

PetcoAvg CAP Rate 4.87%

2019 Avg $ Sale $5,264,866

NOI $256,399



Lot Size 2.5 Acres

Lease Term 10 Years +


Credit Rating S&P B

Moody's B2

Intelligence

HQ in San Diego, California. Typical lease term, 10 years with NN lease structure w/ somecorporate guarantee. Petco has been expanding its footprint of in-store veterinary hospitalswith new regional partners, aiming to double its count of full service in-store vet hospitals bythe end of 2019. In Q2, Petco also partnered with Shipt to offer same day deliveries to itscustomer base.

Intelligence

In 2015, PetSmart was acquired in a public to private transaction by a consortium led by fundsadvised by BC Partners along with a number of Limited Partners. Stores offer full veterinaryservices through vet hospitals in over 800 locations. In May 2017, PetSmart acquired Chewy for$3.4B, an online pet supply retailer startup. In June, Chewy was taken public and valued at morethan $15B following the stock sale. Typical lease structure: NN or NNN with 10 year lease term.

46Data Source: Petco based on 7 sold comps, * Part of portfolio sale. PetSmart based on 11 sold comps. Other/Specialty



9/09/2019 Clifton NJ 13,226 $7,368,421 $557.12 4.75%

9/06/2019 Lexington Park MD 10,125 $3,282,000 $324.15 5.48%

9/05/2019 Bellmore NY 10,125 $1,300,000 $128.40 10.66%

8/28/2019 Southwick MA 13,25 $3,300,000 $249.53 5.24%

8/08/2019 Cypress TX 12,036 $3,825,480 $317.84 5.20%


Rite AidAvg CAP Rate 7.75%

2019 Avg $ Sale $3,449,544

NOI $267,340




Lease Term 20 Years



Moody's Baa2

CVS PharmacyAvg CAP Rate 6.03%

2019 Avg $ Sale $4,704,737

NOI $283,695




Lease Term 25 Years



Moody's Baa2

Intelligence

Q2 19’ CVS beat its expectations (revenues $63.43B vs. $62.65B expectation; up 35% from year prior based on Aetna merger) and raised its full-year forecast. Prices of brand medications rose in the quarter, boosting results and also filled 19% more scripts this quarter than the year prior. It also planned to expand its membership program: CarePass nationwide and aiming on integrating Aetna and transform into an innovative health-care company. Walgreens will be first U.S. retailer to test on demand drone delivery in partnership with Alphabet’s Wing Aviation.

Intelligence

Q1 20’, same store sales increased 1.4% with prescription counts growing 3.7%. Front end same store sales excluding cigarettes and tobacco products grew .3%. Net loss from continuing operations of $99.3 vs prior year net loss of $41.7M. $43.4M of net loss is due to pre-tax restructuring related costs. In Q1, Rite Aid remodeled 27 stores for a total of wellness stores to 1,787 updated. A total of 4 stores were closed and 1 new location opened.

47Data Source: CVS Pharmacy based on 174 sold comps. Rite Aid based on 53 sold comps. Pharmacy/Drugstore



9/10/2019 Rural Hall NC 11,200 $2,450,000 $218.75 10.01%

9/04/2019 Granite Falls WA 17,272 $7,147,508 $413.82 7.12%

9/03/2019 Ocean Springs MS 10,752 $2,825,093 $262.75 7.48%

8/29/2019 Fallbrook CA 16,708 $5,736,500 $343.34 7.00%

7/02/2019 Clarksville TN 11,200 $1,625,000 $145.09 14.29%



9/13/2019 Mill Valley CA 13,905 $8,200,000 $589.72 4.78%

9/05/2019 Chandler AZ 14,820 $8,150,000 $549.93 6.26%

9/03/2019 Orlando FL 14,549 $8,450,000 $580.80 5.21%

8/30/2019 Canonsburg PA 14,620 $6,680,000 $456.91 4.50%

8/08/2019 Collinsville IL 14,820 $5,365,853 $362.07 6.15%


WalgreensAvg CAP Rate 6.10%

2019 Avg $ Sale $5,799,925

NOI $356,393




Lease Term 25 Years



Moody's Baa2

Intelligence

HQ in Deerfield, Illinois. Q2 19’, US sales increased 7.3% to $26.3B since the year prior.Pharmacy sales accounted for 71.9% of sales, a 9.8% increase reflecting higher prescriptionvolume with acquisition of Rite Aid stores, strong growth in central specialty and 1.9% increasein comparable pharmacy sales. 286.3M scripts were filled, including immunizations, adjusted to30 day equivalents in the quarter. Increased target annual costs savings in excess of $1B to$1.5B by fiscal 2022 globally. Typical lease structure: NNN.

48Data Source: Walgreens based on 238 sold comps. Pharmacy/Drugstore

CVS and Walgreens are the market leaders in the U.S. drugstore industry accounting for more than half of the market share in top metropolitan areas. Over the years, drugstores have evolved into all-encompassing health service providers and as a result have strategically positioned themselves to diversify their portfolios by acquiring key competitors and forging partnerships to protect themselves from growing online threat.

Industry demand is driven by an aging population, health issues and advances in medical treatment. Drugstore rely heavily on their prescription business that has grown over the years, while same store comps for front of store sales have decreased.

CVS Pharmacy2017 Avg Cap Rate 5.96%2018 Avg Cap Rate 6.10% 2019 Avg Cap Rate 6.03% Decrease of 7 BPS

Rite Aid2017 Avg Cap Rate 7.45% 2018 Avg Cap Rate 8.70%2019 Avg Cap Rate 7.75% Decrease of 95 BPS

Walgreens2017 Avg Cap Rate 6.08% 2018 Avg Cap Rate 6.05%2019 Avg Cap Rate 6.10% Increase of 10 BPS

Industry Highlights: Pharmacy


Credit Ratings 3

Standard & Poor’s Credit RatingsRating Description

AAA Extremely strong capacity to meet financial commitments. Highest Rating.

AA Very strong capacity to meet financial commitments.

A Strong capacity to meet financial commitments, but somewhat susceptible

to adverse economic conditions and changes in circumstances.

BBB Adequate capacity to meet financial commitments, but more subjective to

adverse economic conditions.

BBB- Considered lowest investment grade by market participants.

BB+ Considered highest speculative grade by market participants.

BB Less vulnerable in the near term but faces major ongoing uncertainties to

adverse business, financial and economic conditions risk.

B More vulnerable to adverse business, financial and economic conditions but

currently has the capacity to meet financial commitments.

CCC Currently vulnerable and dependent on favorable business, financial and

economic conditions to meet financial commitments.

CC Currently highly vulnerable.

C Currently highly vulnerable obligations and other define circumstances.

D Payment default on financial commitments.

Moody’s Credit RatingsRating Description

Aaa Obligations judged to be of highest quality with minimal risk.

Aa Obligations judged to be of high quality and subject to low credit risk.

A Obligations are considered upper-medium grade and are subject to low

credit risk.

Baa Obligations subject to moderate risk. They are considered medium grade

and may possess certain speculative characteristics.

Ba Obligations judged to have speculative elements and are subject to

substantial credit risk.

B Obligations are considered speculative and are subject to high credit risk.

Caa Obligations judged to be of poor standing and are subject to very high credit

risk.

Ca Obligations are highly speculative and are likely in, or very near, default,

with some prospect of recovery of principal and interest.

C Lowest rated class and typically in default, with little prospect for recovery

of principal or interest.

Date post:	06-Jul-2020
Category:	Documents
Upload:	others
View:	4 times
Download:	0 times

PowerPoint Presentation...Recent Sold Comparables. Sale Date City State SF Sale Price PSF Cap Rate ....

Documents