BEST BUYPEORIA, ILLINOIS

BEST BUY

9.00%CAP

$8,177,191PRICE

LEASEABLE SF46,432 SF

LAND AREA6.05 AC

LEASE TYPE* CORPORATE NN

LEASE EXPIRATION7/31/2025

YEAR BUILT 2003

ONGOING CO-TENANCIESNONE

5001 N BIG HOLLOW RD, PEORIA, IL 61615

Corporate guaranteed lease, with 15 years of operating history at this site

Proven store – Best Buy just renewed for 7 years

All major tenants in the center recently invested millions into renovationsor renewed their lease

Investment Grade Rating – (BBB-) – Net worth over $4.35 billion

Located in the dominant trade area of town – Target & Lowe’s Anchored

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Overview

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*Landlord responsible for roof & structure

THE OFFERING provides the opportunity to acquire a net-lease Best Buy property located within the Target and Lowe’s anchored Glen Hollow Shopping Center in Peoria, Illinois. Target owns their site and is currently under construction on a multi-million dollar interior and exterior renovation. Lowe’s invested over $1M into a remodel of their store and Petsmart and Barnes & Noble just renewed their leases, attesting that each of the anchors in the center is performing well based on their 15+ year histories at this location.

The subject property is located along and is visible from U.S. Route 150, which benefits from traffic counts that exceed 40,000 VPD, and is just north of Interstate 74, a primary thoroughfare in Peoria. Glen Hollow Shopping Center is flanked by two recently modernized pylon signs with tenant directories on U.S. Route 150, further boosting the center’s visibility.

THE RETAIL MARKET – Best Buy’s North Big Hollow Road location is within a dense retail area, and is just north of the Westlake Shopping Center and Northwoods, a 694,000 square foot mall that features 90 national and regional retailers. The Glen Hollow Shopping Center and adjacent strip centers have diverse tenant mixes of internet-resistant and investment grade retailers, which include Target, Lowe’s, PetSmart, Five Below, and Steak ‘n Shake.

IN 2017, BEST BUY’S ONLINE SALES GREW BY 24.1%, ESTABLISHING THEM AS #10 ON THE INTERNET RETAILER 2017 LIST

Investment Highlights

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715CA DRE# 01440360

Contact the team

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

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IN CONJUNCTION WITH IL LICENSED BROKER: Shai Town Realty Group Inc.Shai Wolkowicki PH: 773-382-0591

SURROUNDING RETAIL

JUSTIN SHARPjsharp@capitalpacific.comPH: 415.274.7392CA BRE# 01895013

74

74

74

150

150

150

8

8

N STERLING AVENUE

W F

ARM

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TON

RO

AD

W G

LEN

AV

ENU

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N UNIVERSITY STREET

W M

AIN

STR

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MAIN STREET

N BI

G HO

LLOW

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AD

N ROCKWOOD DRIVE

ST. PHILOMENA CATHOLIC SCHOOL

STERLING MIDDLE SCHOOL

QUEST ACADEMY

HIGH SCHOOL

FRANKLIN PRIMARY SCHOOL

ROLLING ACRES

MIDDLE SCHOOL

ROBERT A. JAMIESON SCHOOL

PLEASANT VALLEY MIDDLE SCHOOL

HOLY FAMILY

SCHOOL

NEWMAN GOLF

COURSE

CALVIN COOLIDGE SCHOOL

THOMAS JEFFERSON

PRIMARY SCHOOLPEORIA

HIGH SCHOOL

HINES PRIMARY SCHOOL

PEORIA NOTRE

DAME HIGH SCHOOL

WEAVER RIDGE

GOLF CLUB

ILLINOIS CENTRAL COLLEGE-

PEORIA CAMPUS

UNITY HEALTH-

PROCTOR HOSPITALUNIVERSITY

POINT HEALTH

METHODIST HOSPITAL

BRADLEY UNIVERSITY

UNIVERSITY OF ILLINOIS COLLEGE OF MEDICINE AT

PEORIA

®

23,500 VPD

30,000 VPD

40,900 VPD

62,100 VPD

22,500 VPD

62,100 VPD

CHICAGO160 MILES

Zoomed-Out Aerial

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NORTHWOODS MALL

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

N ROCKWOOD DRIVE

W G

LEN

AV

ENU

E

W G

LEN

AV

ENU

EN STERLING AVENUE

W WAR MEMORIAL DRIVE

W WAR MEMORIAL DRIVE

N BIG HOLLOW

ROAD

74

74

150

150

150

150

®

CONCORDIA LUTHERAN

SCHOOL

ILLINOIS CENTRAL COLLEGE-

PEORIA

10,400 VPD

8,800 VPD

22,500 VPD

23,500 VPD

62,100 VPD

40,900 VPD

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NORTHWOODS MALL

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Zoomed-In Aerial

CHICAGO160 MILES

Surrounding Retail

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

PRICE $8,177,191 Price Per Square Foot: $176.11

Capitalization Rate: 9.00%

Total Rentable Area (SF): 46,432

Lot Size (AC): 2.12

STABILIZED INCOME PSFScheduled Rent $15.85 $735,947

Effective Gross Income $15.85 $735,947

LESS PSFTaxes NNN $0.00

Insurance NNN $0.00

Total Operating Expenses NNN $0.00

NET OPERATING INCOME $735,947

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Income & Expense

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

TENANT INFO LEASE TERMS RENT SUMMARY

TENANT NAME SQ. FT. CURRENT RENT

MONTHLY RENT

YEARLYRENT

MONTHLY RENT/FT

YEARLYRENT/FT

Best Buy 46,432 10/24/03 01/31/09 $71,583 $858,992 $1.54 $18.50

02/01/09 01/31/14 $74,485 $893,816 $1.60 $19.25

02/01/14 01/31/18 $77,387 $928,640 $1.67 $20.00

02/01/18 07/31/25 $735,947 $61,329 $735,947 $1.32 $15.85

Option 1 08/01/25 07/31/30 $64,231 $770,771 $1.38 $16.60

Option 2 08/01/30 07/31/35 $67,133 $805,595 $1.45 $17.35

Option 3 08/01/35 07/31/40 $70,035 $840,419 $1.51 $18.10

TOTALS: 46,432 $735,947 $61,329 $735,947 $1.32 $15.85

*Tenant just right sized their rent to market from $20/ft. to $15.85/ft. which is where recent junior box leases have been signed in the trade area.

**There are no ongoing co-tenancy clauses.

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Rent Roll

BASE RENT

DATE RANGE MONTHLY RENT ANNUAL RENT

10/24/03 - 01/31/09 $71,583 $858,99202/01/09 - 01/31/14 $74,485 $893,81602/01/14 - 01/31/18 $77,387 $928,64002/01/18 - 07/31/25 $61,329 $735,947

OPTION RENTS

DATE RANGE MONTHLY RENT ANNUAL RENT

#1. 08/01/25 - 07/31/30 $64,231 $770,771#2. 08/01/30 - 07/31/35 $67,133 $805,595#3. 08/01/35 - 07/31/40 $70,035 $840,419

RENT

TENANT Best Buy Stores, L.P.GUARANTOR Best Buy Co., Inc.BUILDING SF 46,432 SFLEASE TYPE Corporate NNRENT COMMENCEMENT 10/24/2003RENT EXPIRATION 07/31/2025OPTIONS REMAINING Two 5-year options (Option 1 exercised)

TAXES - Tenant shall reimburse Landlord for the ad valorem taxes payable with respect to the Property.

TENANT’S OBLIGATIONS - Tenant is responsible for the repairs and maintenance of all non-structural portions of the Premises including HVAC, common area maintenance parking lot repairs, and parking lot maintenance.

LANDLORD’S OBLIGATIONS - Landlord is responsible for the repairs and maintenance of the roof and structure.

INSURANCE - Tenant shall maintain commercial general liability insurance with a combined single limit of $3 million per occurrence, naming Landlord as additional insured. Landlord shall maintain the following insurance policies: (1) Fire and extended coverage insurance on a replacement cost basis; and (2) public liability insurance covering the common areas with a combined single limit no less than $3 million, naming Tenant as additional insured. Tenant shall pay its pro-rata share of Landlord’s insurance costs.

UTILITIES - Tenant is responsible for direct payment of all utilities to the appropriate billing authority, as well as for Tenant’s pro-rata share of common area utility charges.

ON-GOING CO-TENANCIES - None.

ESTOPPEL - Each party shall deliver an executed Estoppel within 30 days of written notice from the other party.

EXPENSES

LEASEPROVISIONS

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Lease Abstract

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150W

WAR M

EMO

RIAL DRIVE

GLEN HOLLOW

N BIG HOLLOW ROAD

W GLEN AVENUE

NOT A PART

10,400 VPD

40,000 VPD

22,500 VPD

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INTERIOR AND EXTERIOR REMODEL

UNDERWAYENTIRE REMODEL COMPLETED 2 YEARS AGO

LEASE RENEWED FOR

10 YEARS

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

UNDER REDEVELOPMENT - 3 NEW NATIONAL

TENANTS

RECENTLY

RENEWED LE

ASE

Site Plan

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Best Buy Co. Inc. (NYSE: BBY) is an American multinational consumer electronics corporation with over 1,400 locations and 125,000 employees. As a leading provider of technology products, services and solutions, the company reported total revenue of $39.53 billion, net income of $897 million, and a net worth of $4.38 billion in FY2017. Best Buy is an investment grade credit tenant and holds an S&P credit rating of BBB-/Stable.

In 2017, their online sales grew by 24.1%, establishing them as #10 on the Internet Retailer 2017 List. Their Q4 2017 online sales surpassed $6 billion, up $4.85 billion from the year before. Their overall sales in 2017 surpassed $39 billion, and their 2018 sales are projected to surpass $42 billion. EBITDA is over $2.5 billion.

ABOUT BEST BUY

Tenant Overview

S&P RATINGBBB-

FISCAL 2018REVENUE

(ESTIMATED)$42 Billion

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POPULATION

1-MILE 3-MILES 5-MILES

2018 7,238 60,499 121,230

2018 HH INCOME

1-MILE 3-MILES 5-MILES

Average $74,245 $80,573 $73,469

PEORIA

THE AVERAGE HOUSEHOLD INCOME WITHIN A 3-MILE RADIUS

IS OVER $80K

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Demographics

CHICAGO(2 HR 30 MIN, 160 MILES)

GREATER PEORIA TOP EMPLOYERS

EMPLOYER # OF EMPLOYEES

Caterpillar Inc.* 13,100

OSF St. Francis Medical Center 6,000

UnityPoint Health 3,283

Keystone Steel and Wire 1,300

Advanced Technology Services 1,073

*Caterpillar Inc. just invested $30M into their HQ in 2018

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PEORIA, ILLINOIS

PEORIA, the county seat of Peoria County, is located in central Illinois along the Illinois River. The city has a riverfront museum with a planetarium, sculpture garden, and a collection of fine art. Peoria’s downtown area includes corporate, governmental, convention, educational, medical facilities and plenty of leisure activities for residents and visitors to enjoy. Peoria is also home to the Peoria Civic Center, Theatres, and Dozer Park, as well as an arts, dining, and entertainment area near the riverfront. Peoria has a very developed educational system with four k-12 districts, several private schools districts and seven colleges including Bradley University, Midstate College, Methodist College, OSF St. Francis College of Nursing, the University of Illinois College of Medicine at Peoria, the Downtown and North campuses of Illinois Central College, and the Peoria campus of Robert Morris University.

GREATER PEORIA has a thriving economy, with $1 billion spent annually in research and development, 3 major hospitals, 40 million tons of freight passing

though the county and a workforce of over 195,000. As the 30th largest economy in the U.S., and growing, Greater Peoria’s employment increased by 3,374 workers through 2017 and 5 of the 8 major industries in Peoria’s MSA saw employment increases from Q4 2016 to Q4 2017.

PEORIAMSA

373,590

PEORIA MSA POPULATION (ESTIMATED)

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Location Overview

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We’d love to hearfrom you.

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

JOHN ANDREINIjandreini@capitalpacific.comPH: 415.274.2715

CA DRE# 01440360

JOE CACCAMOJOHN ANDREINI

ZANDY SMITH

DAVE LUCAS

RICK SANNER JACK NAVARRA

CHRIS KOSTANECKIZEB RIPPLE CHRIS PETERS

IN CONJUNCTION WITH IL LICENSED BROKER: Shai Town Realty Group Inc.Shai Wolkowicki PH: 773-382-0591

JUSTIN SHARP

JUSTIN SHARPjsharp@capitalpacific.comPH: 415.274.7392CA BRE# 01895013

CAPITALPACIFIC.COM

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