Evoke - Real Estate Marketing

Preston @ Wade Crossing Retail & Office Development

Frisco Athletic Center

Lebanon Trail High School Opened 2016

Strikz Entertainment Family Health Market

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Offering Memorandum

Tom Thumb Frisco (Dallas-Fort Worth), Texas Albertsons Corporate Guaranty | Brand New 20-Year Lease | Absolute NNN

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Martial Arts

Crossfit Remedy

Spice Bazaar

Confidentiality and Restricted Use Agreement

Offered Exclusively by

NAME of Realtors

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View from Subject Property

Table of Contents Section 1: About the Investment The Offering & Investment Highlights. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Section 2: About the Tenant Guarantor Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Competitive Landscape. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Tenant Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Section 3: About the Property Pricing & Property Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Lease Abstract & Rent Schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Subject Property Photographs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Section 4: About the Location Location Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Dallas-Fort Worth Metro. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Surrounding Development. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Aerial Maps. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18-19 Demographics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Tom Thumb - Frisco (Dallas-Fort Worth), TX

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Section One

About the Investment

Purchase Price: Cap Rate:

Investment Highlights Strong Corporate Credit Guaranty Long-Term Lease -

The Offering

Passive Income Lease Structure Desirable Rent Increases Superior Location Within the DFW Metroplex Exceptional Demographics High Density, Rapidly Expanding Retail Trade Area Established, Strong Performing Store -

Tom Thumb - Frisco (Dallas-Fort Worth), TX

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Section Two

About the Tenant

Guarantor Overview Founded in 1939 and based in Boise, Idaho, Albertsons Companies, LLC (“Albertsons,” or "the Company”) is the second 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.

2nd Largest Traditional Grocer in U.S.

2,300 Retail Stores

Operating in 35 States including D.C.

$59.7 Billion Annual Sales

34 Million Weekly Customers

380+ Fuel Stations

$2.8 BIllion Adj. EBITDA in FY2016

273,000 Employees

18 Food & Beverage Plants

500 New Albertsons-Brand Items Launched Each Year

1,700 In-Store Pharmacies

4th Largest E-Commerce Platform in the U.S.

32 Years Avg Retail Management Experience

#1 or #2 Market Share in 66% of 122 MSAs

Home Delivery in 8 of Top 10 U.S. Markets

$800 Million Synergy Realization Plan

28 Distribution Centers

Largest USDA-Certified Organic Brand in the U.S.

Company Banners

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Competitive Landscape Title Albertsons Companies, LLC is one of the largest food retailers and the second largest traditional grocer in the UnitedChart States.

200

Chart Title 5,000 5,000

150 $150

3,000 3,000

0 $0

$12

$16

$31

$32

$48

$49

$56

$98 229

370

508

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2,324

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Top 10 U.S. Food Retailers by Grocery Sales (in billions) $169

4,672

4,000 4,000

Top 10 U.S. Food Retailers by Store Count

Note: Store counts based on publically available information; Walmart, Costco, and Target grocery sales based on a percentage of total sales as of the latest fiscal year; Kroger and Albertsons sales exclude fuel sales of ~$14 billion and ~$3 billion, respectively.

Tom Thumb - Frisco (Dallas-Fort Worth), TX

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Tenant Overview Tom Thumb begain in 1948 when two Dallas friends with family roots in the grocery business became intrigued with a new shopping concept. The men were J.R. Bost and Bob Cullum. The new concept was called "supermarkets."

Together they bought a small local chain and for the first few years worked nights and weekends to upgrade the selection, quality and overall shopping experience. They made sure that, despite their small size, they could compete against the national chains. This eager customer service became represented by a friendly little cartoon figure in a grocer's apron, the still recognizable Tom Thumb logo.

As Dallas boomed and its suburban limits expanded, so did Tom Thumb. The marketplace was fiercely competitive. But by leveraging its local advantage, it prospered, and by 1956 had grown to 20 stores. Tom Thumb was well on its way to becoming a major regional chain. Bob Cullum was a tireless innovator, especially in offering non-food items such as housewares and health and beauty products. Construction of new, larger stores and purchases of small chains continued non-stop.

From 1950-1966, Tom Thumb doubled its sales volume. They bought the gourmet specialty Simon David stores, 34 Hinky Dinky stores in the Midwest, and 17 Pantry Food Markets in California. Easily the most impactful move was the addition of Page Drugs. It signaled a new direction for Tom Thumb, combining food and drug in one store. It worked spectacularly. By 1974, sales had reached half a billion dollars.

A refocused corporate strategy in the 90’s led to a consolidation. In 1992 Jack Evans merged the Tom Thumb operations with those of a longtime colleague, Robert Onstead of Randalls. Tom Thumb’s historic tradition of innovative customer service continued after the merger. In 1997, the first steps were begun to introduce online grocery service.

In 2015, Tom Thumb's parent company, Albertsons Companies, LLC, completed a transaction with Safeway that included Tom Thumb stores.

Today, as part of the company’s Southern Division, Tom Thumb operates 57 stores as part of the Albertsons Southern Division in North Texas.

Tom Thumb believes in working together with customers to support programs that improve the quality of life in the communities they serve. The Company offers customers a way to direct donation dollars to their favorite church, school or other non-profit organization. Through the Good Neighbor Program, organizations sign up to have an exclusive account number; members supporting that organization can then link the account number to their Tom Thumb Rewards card. Since the program began in the fall of 1996, Tom Thumb/Randalls has donated nearly $48 million to over 8,000 participating organizations.

Subject Property Offerings: Grocery Delivery, Bakery, Deli, Liquor, Pharmacy, Starbucks, Olive Bar, Sushi Bar, Redbox, Coinstar, Wells Fargo Bank ATM, Western Union, Beverage Stewards, Debi Lilly Wedding Collection

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Section Three

About the Property

Pricing Overview Purchase Price: Cap Rate: Annual Rent: Tenant: Trade Name:

Tom Thumb

Guarantor:

Albertsons Companies, LLC

Property Overview 4848 Preston Road, Frisco, TX 75034 Building Size:

± 63,200 SF

Land Area:

± 6.34 acres

Year Built:

1999 / Renovated 2014

Parking:

305 dedicated spaces

Inline/Standalone:

Inline

Parcel ID:

R2087242

Tom Thumb - Frisco (Dallas-Fort Worth), TX

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Lease Abstract 4848 Preston Road, Frisco, TX 75034

Rent Schedule Term

Start Date

Annual Rent

Rent/SF

Increase

Tenant: Tenant Trade Name: Guarantor: Ownership Type: Rentable Building Area: Lease Commencement: Primary Lease Term: Lease Expiration: Lease Term Remaining: Current Annual Rent: Rental Increases: Renewal Options: Expense Structure: Termination Options:

*Greater of (i) the then current FMV rental rates or (ii) rent in the previous option period

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Tom Thumb - Frisco (Dallas-Fort Worth), TX

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Section Four

About the Location

Location Overview Frisco is located at the intersection of the Dallas North Tollway and State Highway 121, approximately 25 minutes north of downtown Dallas, with a population exceeding 169,000 residents. One of the fastest growing communities in Texas, Frisco has experienced population growth of more than 300 percent since 2000. Its exponential growth from 2000 – 2009 made it the fastest growing city in America for the decade. With major highways north-south and east-west, Frisco is well positioned on the path of growth in the Dallas area and provides easy access to all its amenities.

Supported by strong infrastructure, exceptional leadership and quality commercial developments, Frisco has been recognized by Money Magazine as one of the top 100 places to live in the United States. The infrastructure supports an exceptional community and an extraordinary quality of life. The City is known for exemplary schools, pristine parks and destination dining, retail, sports and entertainment. It is also a magnet for a skilled workforce, contributing to Frisco's rapid residential growth rate of more than five percent annually. In May 2014, voters within the Frisco Independent School District approved a $775 million bond to build 14 new schools that will accommodate 66,000 students.

Frisco is the headquarters for several professional sports teams and four prosports venues: Dr. Pepper Ballpark, a 10,300-seat stadium for minor leage baseball; Dr. Pepper Arena, a 6,000-seat entertainment venue and ice rink; Toyota Stadium, an 18,000-seat soccer stadium; and the Ford Center, a brand new, state-of-the-art indoor athletic training facility for the Dallas Cowboys.

With a recent wave of corporate office growth, Frisco has also seen a number of large developments take shape over the past five years. With Toyota recently opening its highly publicized North American headquarters in nearby Plano, the area is quickly becoming host to large corporate campuses.

In August 2017, WalletHub named Frisco the #1 Best Real Estate Market, based on key indicators of housing market attractiveness, including median home-price appreciation, home sales turnover rate and job growth.

Ford Center Tom Thumb - Frisco (Dallas-Fort Worth), TX

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Dallas-Fort Worth Metro The Dallas-Fort Worth Metroplex is the economic and cultural hub of North Texas and is the largest inland metropolitan area in the United States with a population of 7.1 million. The region is expected to grow to a population of 10.5 million people by the year 2040.

#1

in the country for percent job growth (2015-2016)

#2

in the country in absolute job growth (2015-2016)

DFW adds Texas Named Best State For Business 12 Consecutive Years (Chief Executive Magazine)

360 New Residents EACH DAY

A magnet for corporate headquarters and major company operations, DallasFort Worth has attracted 20 Fortune 500 company headquarters and 39 headquarters among the Fortune 1000. The metro's corporate powerhouse companies are distributed throughout the region, an indication of its strength, quality of the workforce, and ease of navigation between cities and corporate centers. The breadth and depth of the business community is impressive, from high-tech industry leaders, telecommunications, logistics and finance, to consumer brands that ease the daily lives of families across the globe. Companies with more than 10,000 employees include American Airlines, AT&T, Bank of America, Baylor Scott & White, HCA North Texas, JPMorgan Chase, Lockheed Martin, Texas Instruments, the U.S. Postal Service and Walmart Stores. Dallas–Fort Worth’s diverse base of employers drives the region’s economic strength, pulling from a variety of industries so that growth is possible even during weak business cycles.

The Dallas–Fort Worth region is well known for taking on very large construction projects. They range from public infrastructure projects, such as the expansion of Interstate 35 and extending and connecting regional transit systems, to the creation of entirely new business parks and mixeduse developments like Cypress Waters and CityLine. Future developments spanning more than 10 years in planning and construction are helping to ensure that DFW is at the forefront of industry and livability.

The future is rife with innovative developments, impactful architectural feats, and continually improved design to strengthen the region’s appeal. Planned development projects include the $909 million Fort Worth Trinity River rerouting and trail creation, a $1.25 billion mixed-use district in Arlington, a 430-acre mixed-use space in North Dallas, and a 157-acre campus in Las Colinas featuring office space, dedicated DART station, retail and residential.

Texas Central Partners is also working to bring high-speed rail between Dallas and Houston, with service expected to begin as early as 2022.

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$5 BILLION MILE Frisco claims one of the most dynamic development concentrations in America with more than $5 billion in capital investment, either recently opened or under construction, within a one-mile stretch of road along the Dallas North Tollway from Warren Parkway north to Lebanon Road.

The Gate

Frisco Station

The Star

The Gate is a 41-acre, $1 billion mixed-use development. The first phase of the plan includes 350 apartments, followed by more multifamily, luxury condos, townhomes, offices and a luxury hotel.

Scottish Rite Hospital

Wade Park

Wade Park is a planned 175-acre mixed-use development anchored

by Whole Foods, iPic Theaters and Pinstripes Inc. A total of 600K SF of specialty retail will include national fashion retailers and best-in-class restaurants in a village format. This retail space will sit alongside 6M SF of office space, in both over-retail and office tower formats. Residents can choose from 1,300 apartment units, 50 condos, and 127 premier singlefamily homes. A boutique hotel and a luxury hotel will total 500 rooms.

Frisco Station is a 242-acre, nextgeneration development, unified by a unique wellness program and gathering spaces. When complete, the development will feature 3M SF in corporate high-rise offices; a 1M SF corporate headquarters campus; 1.5M SF in creative office space; 2,000 residences; a 15-acre park and over 1M SF in retail, restaurant and wellness facilities. Daytime employment is expected to be approximately 15,000.

The Star is a 91-acre campus that hosts the world headquarters of the Dallas Cowboys. In addition to the corporate offices and practice facility, The Star features the Ford Center, a 12,000-seat, state-ofthe-art indoor football stadium that hosts a variety of events, an entertainment district lined with restaurants and shops, the Omni hotel, a medical center and more.

Texas Scottish Rite Hospital for Children will bring a new five-story, 345,000-square-foot ambulatory care facility to North Texas in fall of 2018. The new facility will include a movement science center, occupational therapy, playing fields, a walking trail and a playground park for patients and the community.

Hall Park is a 162-acre development with more than 2.5M SF of Class-A office space. 8,000 employees work at Hall Park in 16 completed buildings, with a 17th currently under construction.

Hall Park

Stonebriar Centre

Stonebriar Centre is one of the premier shopping centers in the Southwest. Featuring major stores such as Nordstrom, Macy's and Dillards, the mall also offers a family-friendly setting with a lively carousel, Western-themed kids play area and a 24-screen AMC Theatre movie complex.

Tom Thumb - Frisco (Dallas-Fort Worth), TX

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FedEx Office HQ

Frisco Station Campus at Legacy West

242-Acre Mixed-Use Development

Hall Office Park

Liberty Mutual Campus

The Star

91-Acre Campus Opening 2018 Dallas Cowboys World Headquarters

162 Acres 2.5 Million SF

DALLAS N TOLLWAY (85,000 VPD) Granite Park Towers & Boardwalk

Dr. Pepper Ballpark

Stonebriar Centre

Stonebrook Park

15,000 Future Daytime Employees

Mixed-Use Opening Q4 2017

The Gate $1 Billion Development

Starwood

Shops at Professional Starwood Buildings

Conifer Health

Dr. Pepper Arena

Wade Park

Conifer Health

Frisco Conference Center

175-Acre Mixed-Use Development

Parkwood Office Center Frisco Bridges Office Park

Frisco Police Department

40-Acre Scottish Rite Hospital & Offices Opening 2018

Frisco High School 2,136 Students

Opening 2018

The Centre at Preston Ridge Hunt Middle School

Preston @ Wade Crossing Retail & Offices

SA M

485 Students

Spears Elementary 764 Students

R AY

PRESTON RD (55,738 VPD)

BUR N TO 1 AY ( LLW 03 , 0

Lebanon Trail High School

Frisco Athletic Center

Opened 2016

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Smith Clark Middle Elementary School 603 853 Students Students

Frisco ISD Career & Tech Center

Preston-Ridge Campus of Collin College

N Tom Thumb - Frisco (Dallas-Fort Worth), TX

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Life Storage Hunt Middle School 485 Students

Strikz Entertainment

Chicago Title Frisco Sports Center

360 Chiropractic City Vet Lawyers Title Lee Lighting

Family Health Market

Mr. Clean Car Wash

Dobson's Flooring

Texas Health ER

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Martial Arts

NO

Frisco Primary Rosewood Care Academy

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Music Institute of North Texas Advanced Smiles

N

Lebanon Trail High School Opened 2016

Tom Thumb - Frisco (Dallas-Fort Worth), TX

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Demographics Population

1 mile

3 miles

5 miles

2010 Population

9,875

79,065

213,645

2017 Population

10,303

94,203

263,493

2022 Population

11,365

105,998

298,365

2000-2010 Annual Rate

9.05%

7.28%

6.89%

2010-2017 Annual Rate

0.59%

2.45%

2.93%

2017-2022 Annual Rate

1.98%

2.39%

2.52%

2010 Total Households

4,023

30,141

77,655

2017 Total Households

4,316

36,089

94,682

2022 Total Households

4,814

40,732

106,900

2000-2010 Annual Rate

10.54%

7.92%

7.19%

2010-2017 Annual Rate

0.97%

2.52%

2.77%

2017-2022 Annual Rate

2.21%

2.45%

2.46%

2017 Median Household Income

$98,643

$98,949

$107,129

2017 Average Household Income

$118,197

$127,010

$135,733

Households

1 m il e

3 m ile s

Household Income

$

135k

avg. HH inc.

(5 miles)

5 m il e s

263k population (5 miles)

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Company Moto

Company Name