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SINGLE TENANT NET LEASED INVESTMENT

INVESTMENT OPPORTUNITYREGAL CINEMAS STADIUM 16CRYSTAL LAKE, IL (CHICAGO MSA)

FOR MORE INFORMATION CONTACT:

Michael KaiderNNN SpecialistFirst Vice President+1 630 573 7015michael.kaider@cbre.com

Derrick AlmassyVice President+1 630 573 7045derrick.almassy@cbre.com

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EXECUTIVE SUMMARY

CBRE is pleased to present for sale the fee interest in a corporate net lease

with Regal Cinemas in Crystal Lake, Illinois. Regal has over 10 years of term

remaining and includes rental bumps every 5 years. The tenant, Regal Cinemas,

is a subsidiary of publicly traded Regal Entertainment Group, one of the largest

theatre companies in the nation.

INVESTMENT SUMMARY

Offering Price: $19,000,000

Cap Rate: 7.00%

Lease Structure: Corporate Net Lease

Parcel Size: ±11.5 acres

Approximate Building Size: ±73,000

Year Built: 1999

Tenant: Regal Cinemas, Inc.

Lease Commencement: 5/21/1999

Lease Expiration: 6/30/2025*

Current Rent thru 6/30/2020: $1,330,790 ($18.23 PSF)

Rent 7/1/2020 - 6/30/2025: $1,405,250 ($19.25 PSF)

Renewal Options: Two 5-year options

Option Rent:7/1/2025 - 6/30/20307/1/2030 - 6/30/2035

$1,464,000 ($20.05 PSF)$1,610,000 ($22.05 PSF)

Landlord Responsibilities: Roof and Structure

* New lease term is based upon tenant’s completion of Premise Renovations. It is assumed that this will occur in June 2015.

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INVESTMENT HIGHLIGHTS

•Long Term Net Lease: The subject property is leased to Regal Entertainment Group with 16 auditoriums and approximately 3,157 auditorium seats. Regal Cinemas is one the nation’s largest theatre companies with over 580 cinemas across the nation, and provides for a high level of consumer traffic to the area.

•New Renovation Plan: The current owner has recently contributed a substantial amount for Regal to upgrade and modernize the theatre and customer experience to their “luxury package” as they are doing in several locations around the country.

•Recently Extended Lease Term: Regal Entertainment Group recently executed a 10-year extension through 2025 showing a very strong commitment to the site.

•Powerful Demographics: There is an estimated 2014 population of 124,704 with average household incomes exceeding $97,500 per year within a five-mile radius of the Property. That level of average income is 32% above the Illinois average and 37% above the national average.

•ExcellentVisibilityandHighTrafficCounts: The Property enjoys a strategic location in Crystal Lake near the intersection of Northwest Highway and Route 31. The roads form an ideal infrastructure to funnel consumers to the Property and have a combined estimated daily traffic count of over 60,000.

•Superior Retail Corridor: A critical mass of major national and regional tenants have a presence in this strategic retail corridor. These tenants include: Kohl’s, Sears, Sports Authority, Bed Bath & Beyond, Barnes & Noble, Party City, Walgreens, Famous Footwear, Panera Bread, The Vitamin Shoppe, Portillo’s, Five Below, Chase, PNC Bank, BMO Harris Bank, GNC, Sprint, Boston Market, Chili’s, Starbucks, Jamba Juice, 5 Guys Burgers and Fries, Wendy’s, McDonald’s, Baskin Robbins, and FedEx. The area forms the cradle of retail activity for Crystal Lake, Illinois.

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AERIAL VIEW

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THE MARKET: Area Retailers

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SITE PLAN

Flood Zone Disclosure

According to FEMA Community Map Panel 17111C0335J dated November 16, 2006 the property is located in Flood Zone X, an area of minimal flooding,

usually depicted as above the 500-year flood level. Flood insurance is not required.

Parcel outlines are approximate

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LEASE ABSTRACT

Tenant Regal Cinemas, Inc.

Land Size 11.5 acres

Building Size 73,000 SF

Lease Term May 21, 1999 – *June 30, 2025. As of January 6th, 2015 the Tenant has extended the lease term commencing on the first day of the month following the date Tenant completes its Premises Renovations.

*This model assumes the Tenant will complete its Premises Renovations in June of 2015

Lease Extensions Two (2), five (5) year options with at least nine (9) months notice

Annual Base Rent June 1, 2014 - June 30, 2020 $1,330,790 $18.23July 1, 2020 - June 30, 2025 $1,405,250 $19.25

Option RentJuly 1, 2025 - June 30, 2030 $1,464,000 $20.05July 1, 2030 - June 30, 2035 $1,610,000 $22.05

Percentage Rent The Lease has a percentage rent clause as outlined in Section 5.07 of the Lease.

Sales Reporting Tenant shall deliver to Landlord within thirty (30) days after the end of each calendar month an informal report of Gross Sales. Tenant shall also deliver to Landlord within ninety (90) days after the end of each Calendar Year a complete statement certified by an officer of Tenant, showing the amount of Gross Sales, the amount or Minimum Rent paid to Landlord, and the amount of Percentage Rent payable for such Calendar Year.

Tenant Responsibilities CAM, Taxes, Insurance, Parking & Exterior Areas

Landlord Responsibilities Roof and Structure

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Assignment / Subletting Provided Tenant is not then in material default and the use provision continues to be applicable, Tenant may, without the prior specific consent of Landlord, assign Tenant’s right, title and interest in this Lease to any individual or entity which either (1) operates and owns movie theatres containing one hundred fifty (150) or more screens-auditoriums and has a net worth of no less than Twenty Million Dollars ($20,000,000.00), (2) wholly owns the corporation which is Tenant, or (3) is acquiring substantially all of the assets of Tenant.

Exclusive Use Tenant shall have the exclusive right within any real property located within a five (5) mile radius of the Premises, owned in fee title, leasehold title, operated, or managed by Landlord to operate a motion picture theatre, regardless of the technology involved.

LEASE ABSTRACT (continued)

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PROPERTY PHOTOGRAPHS

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REGIONAL & LOCATOR MAPS

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THE TENANT

Regal Entertainment Group Regal Entertainment Group, through its subsidiaries, operates as a motion picture exhibitor in the United States. The company develops, acquires, and operates multi-screen theatres primarily in mid-sized metropolitan markets and suburban growth areas of larger metropolitan markets. It owns and operates a theatre circuit under the brands of Regal Cinemas, United Artists, Edwards, Great Escape Theatres, and Hollywood Theatres. As of January 1, 2015, it operated 7,367 screens in 574 theatres in 42 states, as well as in the District of Columbia, American Samoa, Guam, and Saipan. Regal Entertainment Group was founded in 2002 and is based in Knoxville, Tennessee.

NYSE: RGC

Total Employees: 24,200

Total # of Theatres: 574 in 42 states, as well as in the District of Columbia, American Samoa, Guam, and Saipan.

# of Screens: 7,367

2013 Revenue: $3.0 Billion+

Sources: Yahoo Finance

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THE MARKET

Crystal Lake is located 50 miles northwest of Chicago, a short drive

from O’Hare International Airport, near several major highways

and interstates. The Union Pacific rail line provides easy access

to Chicago. As a result, Crystal Lake residents enjoy the many

employment, cultural, and recreational opportunities of a major

metro city, yet live in a pleasant, friendly, small-town atmosphere.

The city of Crystal Lake has experienced significant growth over

the past several years, increasing in population from 37,505 at

the 2000 Census to its current estimated population of 40,273.

Residents of Crystal Lake are affluent, with an average household

income of $87,311, approximately 22% higher than the US average

household income of $71,318. Average housing value is $236,355.

Northwest Highway (Route 14) is a the primary retail corridor

in Crystal Lake. Several community centers are located along

Northwest Highway from Virginia Road on the west to Route 31

on the east. Retailers located in this corridor include Sears, Petco,

TJ Maxx, Hobby Lobby, Marshalls, Toys R Us, Best Buy, Big Kmart,

Sports Authority, Target, Sam’s Club, Kohl’s, Bed Bath & Beyond,

Party City, Menards, Sports Authority, PetSmart and Home Depot.

The subject property is located at the northeast corner of Northwest

Highway and Pingree Road. Traffic counts are 30,800 VPD on

Northwest Highway and 11,600 on Pingree Road.

Crystal Lake Demographics

Population

40,273

Households

14,455 - Average value $236,355

Average HH Income

$87,311

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THE MARKET: Chicago

TRANSPORTATION

• Midway International Airport - 9.4 million passengers annually• O’Hare International Airport - 32.1 million passengers annually• Hub for 6 of the nations 7 class I railroads• 6 major interstates

POPULATION

• City of Chicago: 2.7 million• Chicago MSA: 9.8 million • 3rd largest MSA in the US• Employees: 4+ million

ECONOMY

• Gross Domestic Product: $571 million• 28 Fortune 500 companies• 265,000 businesses• 4+ million employees• 46.2 million tourists annually

CULTURE & RECREATION

• 70 museums• More than 200 theatres• More than 7,300 restaurants• 26 miles of lakefront• 552 parks• 7 major sports teams

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DEMOGRAPHICS

5000NorthwestHwy•CrystalLake,IL 1 Mile 3 Miles 5 MilesPO

PULA

TIO

N

2014 Estimated Population 2,917 48,107 124,704

2019 Projected Population 2,838 47,059 122,621

2010 Census Population 2,997 49,174 126,886

2000 Census Population 3,493 48,280 116,826

Growth 2010-2014 -2.68% -2.17% -1.72%

Growth 2014-2019 -2.70% -2.18% -1.67%

2014 Estimated Median Age 38.97 38.76 39.14

2014 Estimated Average Age 38.90 38.18 37.66

HO

USE

HO

LDS

2014 Estimated Households 1,043 17,633 44,195

2019 Projected Households 1,030 17,397 43,720

2010 Census Households 1,040 17,747 44,454

2000 Census Households 1,085 16,772 39,451

Growth 2010-2014 0.30% -0.64% -0.58%

Growth 2014-2019 -1.24% -1.34% -1.07%

2014 Est. Average Household Size 2.66 2.72 2.83

INC

OM

E

2014 Est. Median HH Income $64,966 $69,896 $79,163

2019 Projected Median HH Income $72,100 $76,033 $86,908

2000 Census Median HH Income $71,749 $66,950 $72,209

2014 Est. Average HH Income $83,491 $88,488 $97,584

2014 Est. Per Capita Income $29,852 $32,435 $34,583

HO

USI

NG

2014 Estimated Housing Units 1,135 18,704 46,729

2014 Estimated Occupied Units 1,043 17,633 44,195

2014 Estimated Vacant Units 93 1,071 2,534

2014 Est. Owner Occupied Units 884 14,264 38,147

2014 Est. Renter Occupied Units 158 3,369 6,048

2014 Est. Median Housing Value $183,219 $210,530 $228,789

2014 Estimated Average Housing Value $212,730 $237,089 $261,429

Source: CBRE Mapping Center / Claritas

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CONFIDENTIAL MEMORANDUM & DISCLAIMER

CBRE, Inc. operates within a global family of companies with many subsidiaries and/or related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates may represent various clients with competing interests in the same transaction. For example, this Memorandum may be received by our Affiliates, including CBRE Investors, Inc. or Trammell Crow Company. Those, or other, Affiliates may express an interest in the property described in this Memorandum (the “Property”) may submit an offer to purchase the Property and may be the successful bidder for the Property. You hereby acknowledge that possibility and agree that neither CBRE, Inc. nor any involved Affiliate will have any obligation to disclose to you the involvement of any Affiliate in the sale or purchase of the Property. In all instances, however, CBRE, Inc. will act in the best interest of the client(s) it represents in the transaction described in this Memorandum and will not act in concert with or otherwise conduct its business in a way that benefits any Affiliate to the detriment of any other offeror or prospective offeror, but rather will conduct its business in a manner consistent with the law and any fiduciary duties owed to the client(s) it represents in the transaction described in this Memorandum.

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of the state of affairs of the Property or the owner of the Property (the “Owner”), to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections

and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition and other factors beyond the control of the Owner and CBRE, Inc. Therefore, all projections, assumptions and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to interested and qualified prospective purchasers. In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are expected to review all such summaries and other documents of whatever nature independently and not rely on the contents of this Memorandum in any manner.

Neither the Owner or CBRE, Inc, nor any of their respective directors, officers, Affiliates or representatives make any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserved the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the

purchase of the Property have been fully executed, delivered and approved by the Owner and any conditions to the Owner’s obligations therein have been satisfied or waived.

By receipt of this Memorandum, you agree that this Memorandum and its contents are of a confident nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

CBRE and the CBRE logo are service marks of CBRE, Inc. and/or its affiliated or related companies in the United States and other countries. all other marks displayed on this document are the property of their respective owners.

Photos herein are the property of their respective owners and use of these images without the express written consent of the owner is prohibited.

Prospective Purchaser hereby acknowledges that Prospective Purchaser has been informed, both orally and by this written disclosure, that:

A. Listing Agent through George Good, Bob Mahoney, Rich Frolik, Christian Williams, Derrick Almassy and Mike Kaider are acting as Agent(s) of the Seller of the Property, and

B. Any information given by Prospective Purchaser to Listing Agent may be disclosed to the Seller.

© 2015 CBRE, Inc. The information contained in this document has been obtained from sources believed reliable. While CBRE, Inc. does not doubt its accuracy, CBRE, Inc. has not verified it and makes no guarantee, warranty or

representation about it. It is your responsibility to independently confirm its accuracy and completeness. Any projections, opinions, assumptions or estimates used are for example only and do not represent the current or future

performance of the property. The value of this transaction to you depends on tax and other factors which should be evaluated by your tax, financial and legal advisors. You and your advisors should conduct a careful, independent

investigation of the property to determine to your satisfaction the suitability of the property for your needs.

INVESTMENT OPPORTUNITYREGAL CINEMA STADIUM 16CRYSTAL LAKE, IL

FOR MORE INFORMATION CONTACT:

Michael KaiderNNN SpecialistFirst Vice President+1 630 573 7015michael.kaider@cbre.com

Derrick AlmassyVice President+1 630 573 7075derrick.almassy@cbre.com

CBRE700 Commerce DriveSuite 550Oak Brook, IL 60523

SINGLE TENANT NET LEASED INVESTMENT