SINGLE TENANT NET LEASE Safeway 702 North 5th Ave, Sandpoint, ID

Introduction | Disclaimer

This Investment Offering Memorandum has been prepared by

Thomas Company and does not purport to provide a necessarily

accurate summary of the Property or any of the documents related

thereto, nor do they purport to be all inclusive or to contain all of

the information which prospective investors may need or desire.

All projections have been developed by Seller, Thomas Company

and designated sources, and are based upon assumptions relating

to the general economy, competition and other factors beyond

the control of Seller, and therefore are subject to variation. No

representation is made by Seller or Thomas Company as to the

accuracy or completeness of the information contained herein,

and nothing contain herein, is, or shall be relied on as a promise

or representation as to the future performance of the Property.

Although the information contained herein is believed to be

correct, Seller and its officers, directors and employees disclaim any

responsibility for inaccuracies and expect prospective purchasers to

exercise independent due diligence in verifying all such information.

Further, Thomas Company, Seller and its officers, directors and

employees disclaim any and all liability for representations and

warranties, expressed and implied, contained in, or omission from

the Investment Offering Memorandum or any other written or oral

communication transmitted or made available to the recipient.

The Investment Offering Memorandum does not constitute a

representation that there has been a change in the business or

affairs of the Property or Seller since the date of preparation of the

Investment Offering Memorandum. Analysis and verification of the

information contained in the Investment Offering Memorandum is

solely the responsibility of the prospective purchaser.

Seller and Thomas Company each expressly reserve the right, at

their sole discretion, to reject any and all expressions of interest

or offers regarding the Property and/or terminate discussions with

any entity at any time with or without notice. Seller shall have no

legal commitment or obligation to sell the property to any entity

reviewing the Investment Offering Memorandum or making

an offer to purchase the Property unless and until such offer is

approved by Seller, a written agreement for the purchase of the

Property has been fully executed, delivered and approved by Seller

and its legal counsel and any conditions to Seller’s obligations

thereunder have been satisfied or waived. This Investment Offering

Memorandum and the contents are of a confidential nature. By

accepting the Investment Offering Memorandum, you agree that

you will hold and treat it in the strictest confidence, that you will not

photocopy or duplicate it, that you will not disclose the Investment

Offering Memorandum or any of the contents to any other entity

(except to outside advisors retained by you if necessary, for your

determination of whether or not to make a proposal and from

whom you have obtained an agreement of confidentiality) without

the prior written authorization of Seller, and that you will not use

the Investment Offering Memorandum or any of the contents in any

fashion or manner detrimental to the interest of Seller or Thomas

Company. If you do not have an interest in the Property at this time,

please return the Investment Offering Memorandum forthwith.

© 2018 Thomas Company

Exclusively Marketed By

PLEASE CONTACT

JEFFREY S. THOMAS

THOMAS COMPANY210 Third Avenue SouthSuite 5CSeattle, WA 98104800.775.3350JEFF@THOMASCOMPANY.COMTHOMASCOMPANY.COM

ID Real Estate License: #DB46528

TABLE OF CONTENTS

Offering Highlights

The Property

The Lease

Rent Schedule

Site Map/Demographics

Area Maps

Market Overview

Albertsons Companies, LLC

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8910

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EXECUTIVE SUMMARY

PROPERTY OVERVIEW

TENANT OVERVIEW

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INVESTMENT HIGHLIGHTSTHE OFFERINGThomas Company is pleased to offer for sale a well-located Safeway store totaling +/- 44,369 square feet. The property is offered free and clear of debt. The store has +/- 20 years remaining on a triple-net lease with no landlord responsibilities.

Long-Term LeaseThe store has +/- 20 years remaining on the in-place lease, providing the Landlord with consistent management-free cash flow during that time. There is no rent holiday in the lease.

Passive OwnershipThe Tenant has executed a triple-net (NNN) lease with no Landlord responsibilities.

EXECUTIVE SUMMARY

Secure Cash FlowAlbertsons Companies, LLC (“Albertsons”, or the “Company”) is the 2nd largest traditional grocer in the United States serving over 34 million customers per week and generating $60 billion in sales annually. As of June 2017, the Company operated 2,329 stores across 35 states under 20 well-known banners with long operating histories.

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Milledgeville, GAPulaski, TN

ADDRESS702 North 5th Ave, Sandpoint, ID

PRICE$7,290,000

CAP RATE5.45%

ANNUAL RENT$397,291

THE PROPERTY

EXECUTIVE SUMMARY

BUILDING SIZE +/- 44,369

LAND SIZE+/- 2.74 Acres

YEAR BUILTRenovated in 2010 / Built in 1982

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TENANTSafeway, Inc.

GUARANTORAlbertsons Companies, LLC

OCCUPANCY100%

LEASE COMMENCEMENT1/18/18

LEASE EXPIRATION1/31/38

REMAINING LEASE TERMApprox. 20 Years

LEASE STRUCTURENNN

EXECUTIVE SUMMARY

LANDLORD RESPONSIBILITIESThe Tenant is responsible for all repair and maintenance of the property, including the roof and structure.

RENT INCREASESYears 2-5: 1.50% annual increasesYear 11: 7.50% increaseYear 16: 7.50% increase(See Rent Schedule on Page 7)

EXTENSION OPTIONS8 x 5-year extension options.

EXTENSION OPTION RENTOption Periods 1-3: 7.50% increase at the beginning of each option.Option Periods 4-8: Fair Market Rent (as defined in the Lease), but not lower than the rent during the previous term.

THE LEASE

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EXECUTIVE SUMMARY

RENT SCHEDULE

Lease Year Increase Monthly Rent Annual Rent1 $33,107.60 $397,291.212 1.50% $33,604.21 $403,250.58

3 1.50% $34, 108.28 $409,299.344 1.50% $34,619 .90 $415,438.83

5 1.50% $35,139.20 $421,670.41

6 $35,139.20 $421,670.417 $35,139.20 $421,670.41

8 $35,139.20 $421,670.41

9 $35,139.20 $421,670.4110 $35,139.20 $421,670.41

11 7.50% $37,774.64 $453,295.6912 $37,774.64 $453,295.69

13 $37,774.64 $453,295.6914 $37,774.64 $453,295.6915 $37,774.64 $453,295.69

16 7.50% $40 ,607.74 $487,292.8717 $40,607.74 $487,292.87

18 $40,607.74 $487,292.8719 $40,607.74 $487,292.87

20 $40,607.74 $487,292.87

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SITE MAP

Larch St

N 4th A

ve

Fir St

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PROPERTY OVERVIEW

Shell

1mi 3mi 5mi

5,638 11,385 15,571

1mi 3mi 5mi

4.00% 22.00% 22.00%

1mi 3mi 5mi

$54,181 $58,832 $61,231

1mi 3mi 5mi

37.7 39.9 41.9

Est. Population

Est. Ave HH Income

Median Age

Est. Population Growth 2000-2017

DEMOGRAPHICS

21,000 Daily

Traffic Counts

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AREA MAP

Sandpoint

PROPERTY OVERVIEW

Spokane

Safeway | 702 North 5th Avenue, Sandpoint, Idaho

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MARKET OVERVIEW

Sandpoint is a scenic resort destination and retail hub in northern Idaho. The estimated median house or condo value in 2016 was $215,571, up from $106,200 in 2000 and compared to a state median of $189,400.

Sandpoint’s main industries include forestry, light manufacturing, tourism, recreation and government services. As the largest service center in northern Idaho and northwestern Montana, the city supports a thriving retail sector. It is the headquarters of Biomedical Innovations, a medical device contract manufacturer; Quest Aircraft, a manufacturer of utility aircraft and seaplanes; Litehouse Foods, maker of dressings, dips and cheeses; Tamarack Aerospace Group, developer of a winglet that boosts the range of jet aircraft; Timbersled, a maker of snowmobiles; and Kochava, a leading mobile technology company that provides analytics and other data tools.

Part of Sandpoint’s appeal to residents and visitors is the dramatic scenery. The city is located on the shores Lake Pend Oreille, Idaho’s largest lake, and is surrounded

by the Selkirk, Cabinet and Bitterroot mountain ranges. It is home to Schweitzer Mountain Resort, Idaho’s largest ski resort. Sandpoint is part of the International Selkirk Loop, and is on two National Scenic Byways.

The Spokane-Coeur d’Alene combined metropolitan area spans the Washington-Idaho border along Interstate 90. The region’s population was 710,946 as of 2016. It is the 69th largest Combined Statistical Area in the United States, and is the economic and cultural center of the Inland Northwest.

Spokane is the second-largest city in Washington State, after Seattle. The city has a gross metro product of $27.8 billion, median household income of $51,895 and a job growth rate of 2.1%. The cost of living is 3.6% below the national average. The median home price was $203,300 with an increase in price of 7.4% over the previous year. The city currently rates #67 on Forbes’s list of “Best Places For Business And Careers”. As one of the most productive mining districts in North

America, Spokane’s economy has traditionally been based on natural resources. However, the city’s economy has diversified to encompass other industries, including biotechnology and finance. It is home to Gonzaga and Whitworth colleges, as well as the Community Colleges of Spokane.

Spokane’s proximity to lakes, rivers, and mountains of fers abundant opportunities for outdoor recreation. It is also the home of the Northwest Museum of Arts and Culture. Residents of Spokane also benefit from an expansive Riverfront Park, which offers a cable car with views of Spokane Falls and a sculpture walk. The city is also home to Manito Park and Botanical Gardens, a 90-acre public park with an arboretum, botanical gardens, and a conservatory.

On the eastern side of the CSA, fast-growing Coeur d’Alene is home to a metro population of 150,700, up 38.8% since the 2000 Census.The area has a gross metro product of $5.4

billion, with major industries including healthcare, tourism and publishing. The median household income is $50,246, with a cost of living 4.5% below the national average. It currently ranks #23 nationally on Forbes’s list “Best Small Places for Business and Careers”. The percentage of unemployed people in the city is significantly below the state average. The city is located on the north shore of Lake Coeur d’Alene, named one of the world’s top 10 most beautiful lakes by National Geographic. Coeur d’Alene’s tourism industry has grown substantially in recent years as visitors flock to the city’s ski resorts for vacations, conferences and competitions. The industry is projected to add 1,560 new jobs in Northern Idaho by 2020. The city is also home to twelve industrial parks.

SANDPOINT, IDAHO

PROPERTY OVERVIEW

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ALBERTSONS COMPANIES, LLC

TENANT OVERVIEW

Albertsons Companies, LLC (“Albertsons”, or the “Company”) is the 2nd largest traditional grocer in the United States serving over 34 million customers per week and generating $60 billion in sales annually. In January 2015, Albertsons merged with Safeway, creating a best-in-class organization dedicated to bringing a better shopping experience to customers across the country. The Company’s powerful combination of strong local presence and national scale, vast range of brands and products, and service-oriented staff enable them to meet evolving shopping preferences.

As of June 2017, the Company operated 2,329 stores across 35 states under 20 well-known banners with long operating histories. Albertsons has grown strategically through a series of strategic acquisitions in recent years into a $2.8 billion adjusted EBITDA company as of fiscal year 2016 ended February 25, 2017, and as of Q1 2017 the Company had already generated $771.7 million in adjusted EBITDA.

COMPANY BANNERS

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ALBERTSONS COMPANIES, LLC (CONTINUED)

TENANT OVERVIEW

Albertsons Companies, LLC is one of the largest food retailers and the second largest traditional grocer in the United States.

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INVESTMENT SALES • ADVISORY SERVICES • SALE LEASEBACKS • DEBT PLACEMENT

Exclusively Marketed By

PLEASE CONTACT

JEFFREY S. THOMAS

THOMAS COMPANY210 Third Avenue South | Suite 5C

Seattle, WA 98104800.775.3350

jeff@thomascompany.com

ID Real Estate License: #DB46528

THOMASCOMPANY.COM