Best Buy 550 Mid Rivers Mall Drive St. Peters, Missouri 63376 Offering Memorandum

$2,153,043 | Investment Details

Absolute NNN Chili’s Ground Lease Outparcel to Mid Rivers Mall

Located Approximately 25 Miles From St. Louis

Mid Rivers Mall is Anchored by Macy’s, Sears, JC Penny, Dillard’s,

and Dick’s Sporting Goods

Chili’s has been at the Site for Over 17 Years and has a 4.6%

rent to sales ratio

Franchisee Currently Operates Over 125 Chili’s and 230 Wendy’s

Highly Populated Region with Roughly 150,000 Residents in a 5-

Mile Radius

Average Household Income Over $82,000 in a Five-Mile Radius

$6,821,132 | Investment Details

NN Best Buy Lease Outparcel to Mid Rivers Mall

Located Approximately 25 Miles From St. Louis

Mid Rivers Mall is Anchored by Macy’s, Sears, JC

Penny, Dillard’s, and Dick’s Sporting Goods

Highly Populated Region with Roughly 150,000

Residents in a 5-Mile Radius

Average Household Income Over $82,000 in a

Five-Mile Radius

TENANT OVERVIEW

Best Buy Company Profile

Tenant Trade Name Best Buy

Ownership Public

Sales Volume $42.568 Billion

Lease Guarantor Corporate

Credit Rating BB

Rating Agency Standard & Poor’s

Stock Symbol BBY

Board NYSE

No. of Locations 1,050

Headquarters Richfield, Minnesota

Website www.bestbuy.com

TENANT INFO TENANT INFO

Best Buy is an American multinational consumer electronics corporation headquartered in

Richfield, Minnesota, a Minneapolis suburb. It operates in the United States, Mexico, and

Canada. All Best Buy Stores in China were closed in February 2011 and merged with Five Star. [1]

The company was founded by Richard M. Schulze and Gary Smoliak in 1966 as an audio specialty

store. In 1983, it was renamed and rebranded with more emphasis placed on consumer

electronics.

Best Buy's subsidiaries include Geek Squad, Magnolia Audio Video, and Pacific Sales. Best Buy

operates under the Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video, Insignia and

Pacific Sales brands in the United States; the Best Buy, Geek Squad and Best Buy Mobile brands

in Canada; Best Buy Mobile and Five Star in China; and Best Buy, Best Buy Express, and Geek

Squad in Mexico. Best Buy sells cellular phones with phones from Verizon Wireless, AT&T

Mobility, Sprint Corporation, Boost Mobile and T-Mobile US, in regular stores and standalone Best

Buy Mobile stores in shopping malls. Best Buy was named "Company of the Year" by Forbes

magazine in 2004, "Specialty Retailer of the Decade" by Discount Store News in 2001, ranked in

the Top 10 of "America's Most Generous Corporations" by Forbes in 2005 (based on 2004

giving), and made Fortune magazine's List of Most Admired Companies in 2006.

Overview

Price $6,821,132

Gross Leasable Area 45,190 sq/ft

Year Built 1999

Net Operating Income $542,280

CAP Rate 7.95%

Lease Abstract

Lease Type Fee Simple

Lease Term 15 Years

Lease Start 2/1/2000

Lease Expiration 1/31/2015

Renewal Options Three 5-Year

Roof and Structure Landlord Responsible

Annualized Operating Data

Lease Term Annual Rent

Current-1/31/2020 $542,280

Option 2 -1/31/2025 $587,470

Option 3 -1/31/2030 $632,660

The subject property is a 45,190 +/- sf freestanding NN Best Buy located in St. Peters, MO, approximately 25 miles from St. Louis. The Mid Rivers Mall is anchored by Macy's, Sears, JCPenny, Dick's

Sporting Goods, Dillards, and also has over 75 specialty shops. Other retailers in the immediate area include: Chili’s, Jo-Ann's, Marshalls, Wehrenberg 14 Cinema, Costco, hhgregg, Menards, Ruby

Tuesdays, Pier I Imports, HomeGoods, and Bank of America. Best Buy has operated at the location for over sixteen years and has 3.4 years left on the first option with two (2) 5 year options remaining.

THE OFFERING

1,050+ $42.57 Billion

Locations In Forbes Annual Revenue

Company of the Year

Aerial View

Aerial View

Also Available

Chili’s

Planet Fitness

Location Map

AREA MAPPING

Population 1-Mile 3-Mile 5-Mile

2010 5,853 51,845 143,943

2015 6,159 53,734 148,458

2020 6,208 55,560 155,395

Top Employers in St. Peters # of Employees*

Barnes-Jewish St. Peters Hospital 970

Fort Zumwalt School District R-II 709

City of St. Peters 522

Dierbergs 353

2015

Household

Incomes

1-Mile 3-Mile 5-Mile

Average $60,845 $78,972 $82,764

Median $49,656 $68,321 $70,399

About St. Peters, Missouri

St. Peters is a city in St. Charles County, Missouri, United States. The 2010

census showed the city's population to be 52,575 tied for 10th in the state with

Blue Springs, Missouri.

Interstate 70 passes through the city, providing a major transportation link. In

2008 St. Peters was named the 60th best place to live by Money magazine,

putting it at the top in the state of Missouri. It also ranked in Money magazine's

Top 100 in 2010 and 2012.

The "Rec-Plex" in St. Peters is an award-winning recreation and fitness complex

that underwent an $18.5 million expansion in 2007. The city also hosts the

county's largest shopping center, Mid Rivers Mall, the location of the property,

which plans a 120,000 sq. ft (11,000 m2) expansion.

$82,764

5-mile radius average HH Income

148,458 5-mile radius population

56,375 5-mile radius number of households

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representation, with respect to the income or expenses for the subject property, the future

projected financial performance of the property, the size and square footage of the property and

improvements, the presence or absence of contaminating substances, PCB's or asbestos, the

compliance with State and Federal regulations, the physical condition of the improvements

thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or

intentions to continue its occupancy of the subject property. The information contained in this

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provided. All potential buyers must take appropriate measures to verify all of the information

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representation whatsoever about the accuracy or completeness of any information provided. As the Buyer of a

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all material information before completing any purchase. This Marketing Brochure is not a substitute for your

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obligation to conduct a due diligence examination of this Property for Buyer. Any projections, opinions,

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current or future performance of this property. The value of a net leased property to you depends on factors

that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent

investigation of any net leased property to determine to your satisfaction with the suitability of the property for

your needs. Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal

and financial advisors must request and carefully review all legal and financial documents related to the

property and tenant. While the tenant’s past performance at this or other locations is an important

consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including

newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with

little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the

tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other

material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic,

environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for

conducting his/her own investigation of all matters affecting the intrinsic value of the property and the value of

any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should

default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential

replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of

the property.

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Best Buy| 550 Mid Rivers Mall Drive St. Peters, Missouri 63376