Lowe's - Roeland Park, KS

(GROUND LEASE) ROELAND PARK, KS

LISTED IN CONJUNCTION WITH KANSAS BROKER OF RECORD DZ NET LEASE REALTY, LLC (DAVID B ZACHARIA LICENSE BR00047228)

PRICING & FINANCIAL ANALYSIS

LOWE’S (GROUND LEASE)

FINANCIAL ANALYSIS

Lowe’s (Ground Lease) 4960 Roe Boulevard Roeland Park, KS 66205

Offering Summary Price Cap Rate Net Operating Income

5.50% $425,000 2004

Gross Leasable Area

132,908 SF

Lot Size

10.93 Acres

Annualized Operating Data

Lease Summary Lease Term

Year(s) 21.5 Years

Commencement

Annual

Increase

8/27/2004

$375,000

-

1-5

08/27/2004

6-10

4/7/2011

$400,000

6.67%

Lease Expiration

04/30/2026

11-15

4/7/2016

$425,000

6.25%

Remaining Term

9.5 Years

16-20

4/7/2021

$450,000

5.88%

Option 1: 21-25

4/7/2026

$500,000

11.11%

Option 2: 26-30

4/7/2031

$550,000

10.00%

Option 3: 31-35

4/7/2036

$600,000

9.09%

Option 4: 36-40

4/7/2041

$660,000

10.00%

Option 5: 41-45

4/7/2046

$720,000

9.09%

Option 6: 46-50

4/7/2051

$780,000

26.67%

Roof & Structure Increases Options Options to Purchase

Ground Lease Tenant Yes - Every 5 Years 6 x 5 Year None

Net Operating Income

MARKET OVERVIEW

Lease Commencement

Lease Type

PROPERTY DESCRIPTION

Year Built

$7,730,000

$425,000

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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TENANT INFORMATION

LOWE’S (GROUND LEASE)

FINANCIAL ANALYSIS

Company Summary Company Ownership

Lowe’s Companies, Inc. Public

Rating Agency Ticker Symbol Exchange Market Cap Sales Volume Number of Locations Years In Business

PROPERTY DESCRIPTION

Lowe’s Companies, Inc. is a fortune 49 American company that operates a chain of retail home improvement and appliance stores.

Founded in 1946 in North Wilkesboro, North Carolina, the chain has 1,840 stores in the United States, Canada, and Mexico. Expansion into Canada began in 2007 with the opening of a store in Hamilton, Ontario in early 2008. As of 2010, the chain is based in Mooresville, North Carolina. Lowe’s is the second-largest hardware chain in the United States.

AStandard & Poor’s LOW NYSE 62.90 Billion 62.5 Billion 1,840+ 70 Years

Headquarters

Mooresville, NC

Website

www.lowes.com

MARKET OVERVIEW

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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INVESTMENT HIGHLIGHTS

Lease

-

Zero

FINANCIAL ANALYSIS

• Long-Term Net Responsibility

LOWE’S (GROUND LEASE)

Landlord

• Lowe’s (NYSE: LOW) is an ‘A-’ Credit Company with a $63 Billion Market Cap

PROPERTY DESCRIPTION

• Located in Between Walmart SuperCenter and Price Choppers Grocery Store • Low Rental Rate - $3.19 PSF and Only $63 PSF to the Building - Well Below Replacement Cost • Situated in Prestigious Northeast Kansas, 15 Minutes from Kansas City • Over 256,000 Potential Customers in a 5-Mile Radius

MARKET OVERVIEW

• Average Household Income within a 3-Mile Radius is Above the National Average • Solid Traffic counts on Roe Boulevard and Just off I-35

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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AERIAL MAP

LOWE’S (GROUND LEASE)

FINANCIAL ANALYSIS

ER

35

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PROPERTY DESCRIPTION

INT

TE STA

E BL VD

MARKET OVERVIEW

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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LOCAL MAP

LOWE’S (GROUND LEASE)

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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REGIONAL MAP

LOWE’S (GROUND LEASE)

FINANCIAL ANALYSIS PROPERTY DESCRIPTION MARKET OVERVIEW

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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MARKET SUMMARY

LOWE’S (GROUND LEASE)

FINANCIAL ANALYSIS PROPERTY DESCRIPTION

KANSAS CITY, MO Kansas City is the largest city in the U.S. state of Missouri and the sixth largest city in the Midwest. According to the U.S. Census Bureau, the city had an estimated population of 475,378 in 2015, making it the 36th largest city by population in the United States. It is the anchor city of the Kansas City metropolitan area, which straddles the Kansas–Missouri border.

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

MARKET OVERVIEW

The federal government is the largest employer in the Kansas City metro area. More than 146 federal agencies maintain a presence there.

Kansas City is one of ten regional office cities for the US government. The Internal Revenue Service maintains a large service center in Kansas City. The IRS has approximately 2,700 full-time employees in Kansas City, growing to 4,000 during tax season. The General Services Administration has more than 800 employees.

Honeywell employs nearly 2,700 at the Kansas City Plant, which produces and assembles 85%

of the non-nuclear components of the United States nuclear bomb arsenal. The Social Security Administration has more than 1,700 employees in the Kansas City area, with more than 1,200 located at its downtown Mid-America Program Service Center (MAMPSC). Ford Motor Company operates a large manufacturing facility in Claycomo at the Ford Kansas City Assembly Plant, which currently builds the Ford F-150. One of the largest US drug manufacturing plants is the Sanofi-Aventis plant located in south Kansas City. Numerous agriculture companies operate out of the city.Other notale companies currently headquartered in Kansas City include: Saint Luke’s Health System , Sprint Corporation , AMC Theaters, Applebee’s, Hallmark Cards, H&R Block, Hostess Brands, and J.E. Dunn Construction Group.

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DEMOGRAPHIC SUMMARY

LOWE’S (GROUND LEASE)

Geography: 5 Miles

FINANCIAL ANALYSIS

Population

In the identified area, the current year population is 256,844 The rate of change since 2010 was 3.6%. The five-year projection for the population in the area is 266,802 representing a change of 3.9% from 2016 to 2021. Currently, the population is 49.2% male and 50.8% female. The median age in this area is 36.1 compared to the U.S. median agoe of 38.0.

Households There are currently 113,153 households in your selected georgraphy. The number of households has changed by 3.7% since 2010. It is estimated that the number of households in your area will be 117,441 five years from now, which represents a change of 3.5% from the current year. The average household size in your area is 2.23 persons.

Income PROPERTY DESCRIPTION

In 2016, the median household income for your selected georgraphy is $50,794 compare this to the Entire U.S. average, which is currently $54,149. It is estimated that the median household income in your area will be $55,027 five years from now, which represents a change of 8.5% from the current year.

The current year per capita income in your area is $32,733 compare this to the Entire U.S. average, which is $29,472. The current year average household income in your area is $73,794 compare this to the Entire U.S. average, which is $77,008.

Race and Ethnicity The current year racial makeup of your selected area is as follows: 69.8% White, 15.5% Black, 0.6% Native American and 3.2% Asian/Pacific Islander. Compare these to the Entire U.S. Averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander.

People of Hispanic origin are counted independently of race. People of Hispanic origin make up 17.5% of the current year population in your selected area. Compare this to the Entire U.S. average of 17.9%.

MARKET OVERVIEW

Housing In 2016, there were 64,013 owner occupied housing units in your area and there were 49,140 renter occupied housing units in your area.

Median home value in the area is $167,087 compared to a median home value of $198,891 for the U.S.

Employment In 2016, there are 136,619 employees in your selected area, this is also known as the daytime population. Currently, 67.3% of employees are employed in white-collar occupations in this geography, and 16.4% are employed in blue-collar occupations. In 2016, unemployment in this area is 4.9%.

Demographic data © 2016 esri 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. © 2015 Vitorino Group

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DEMOGRAPHIC STATISTICS

LOWE’S (GROUND LEASE) 1 Mile

3 Miles

5 Miles

Income

1 Mile

3 Miles

5 Miles

2000 Population

11,728

93,259

262,598

$ 0 - $14,999

8.2%

13.5%

15.1%

2010 Population

11,744

89,324

247,635

$ 15,000 - $24,999

7.6%

9.1%

10.3%

2016 Population

11,795

92,247

256,844

$ 25,000 - $34,999

13.2%

11.3%

11.0%

2021 Population

12,085

95,719

266,802

$ 35,000 - $49,999

15.0%

12.4%

12.8%

$ 50,000 - $74,999

23.1%

17.9%

18.0%

$ 75,000 - $99,999

15.2%

12.0%

11.8%

$100,000 - $149,999

12.2%

11.9%

11.8%

3.1%

4.5%

4.2%

1 Mile

3 Miles

5 Miles

$200,000 +

2.6%

7.4%

5.2%

2000 Households

5,301

43,487

114,921

2016 Median Household Income

$54,617

$53,730

$50,794

2010 Households

5,202

41,251

109,355

2016 Per Capita Income

$30,650

$38,495

$32,733

2016 Households

5,187

42,602

113,153

2016 Average Household Income

$68,817

$83,119

$73,794

2021 Households

5,306

44,195

117,441

2016 Daytime Population

6,939

51,582

136,619

2.27

2.15

2.23

2010 Owner Occupied Housing Units

57.3%

52.0%

51.8%

2010 Renter Occupied Housing Units

33.8%

37.6%

36.4%

2010 Vacant

8.8%

10.4%

11.8%

2016 Owner Occupied Housing Units

55.7%

49.8%

49.5%

2016 Renter Occupied Housing Units

33.2%

39.3%

38.0%

2016 Vacant

11.2%

11.0%

12.4%

2021 Owner Occupied Housing Units

56.0%

49.5%

49.3%

2021 Renter Occupied Housing Units

32.0%

39.4%

38.2%

2021 Vacant

12.0%

11.1%

12.6%

2016 Average Household Size

PROPERTY DESCRIPTION

$150,000 - $199,999 Households

FINANCIAL ANALYSIS

Population

Traffic Counts

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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Š 2015 Vitorino Group

MARKET OVERVIEW

21,925

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CONFIDENTIALITY AGREEMENT The information contained in the following offering memorandum is proprietary and strictly confidential.

It is intended to be reviewed only by the party receiving it from Vitorino Group and it should not be made available to any other person or entity without the written consent of Vitorino Group. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Vitorino Group.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation.

Vitorino Group has not made any investigation, and makes no warranty or 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, PCBs or asbestos, the compliance with local, 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 offering memorandum has been obtained from sources we believe to be reliable; however, Vitorino Group has not verified, and will not verify, any of the information contained herein, nor has Vitorino Group conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE VITORINO GROUP AGENT FOR MORE DETAILS.

Net Lease Disclaimer Vitorino Group hereby advises all prospective purchasers of Net Leased property as follows: The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, the Vitorino Group has not and will not verify any of this information, nor has the Vitorino Group conducted any investigation regarding these matters.

The Vitorino Group makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. The Vitorino Group expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the 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.

By accepting this Marketing Brochure you agree to release The Vitorino Group and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this net leased property.

Approved by the Texas Real Estate Commission for Voluntary Use Texas law requires all real estate licensees to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords.

B

Information About Brokerage Services

efore working with a real estate broker, you should know that the duties of a broker depend on whom the broker represents. If you are a prospective seller or landlord (owner) or a prospective buyer or tenant (buyer), you should know that the broker who lists the property for sale or lease is the owner’s agent. A broker who acts as a subagent represents the owner in cooperation with the listing broker. A broker who acts as a buyer’s agent represents the buyer. A broker may act as an intermediary between the parties if the parties consent in writing. A broker can assist you in locating a property, preparing a contract or lease, or obtaining financing without representing you. A broker is obligated by law to treat you honestly.

IF THE BROKER REPRESENTS THE OWNER: The broker becomes the owner’s agent by entering into an agreement with the owner, usually through a written - listing agreement, or by agreeing to act as a subagent by accepting an offer of subagency from the listing broker. A subagent may work in a different real estate office. A listing broker or subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. The buyer should not tell the owner’s agent anything the buyer would not want the owner to know because an owner’s agent must disclose to the owner any material information known to the agent.

IF THE BROKER REPRESENTS THE BUYER: The broker becomes the buyer’s agent by entering into an agreement to represent the buyer, usually through a written buyer representation agreement. A buyer’s agent can assist the owner but does not represent the owner and must place the interests of the buyer first. The owner should not tell a buyer’s agent anything the owner would not want the buyer to know because a buyer’s agent must disclose to the buyer any material information known to the agent.

IF THE BROKER ACTS AS AN INTERMEDIARY: A broker may act as an intermediary between the parties if the broker complies with The Texas Real Estate License Act. The broker must obtain the written consent of each party to the transaction to act as an

intermediary. The written consent must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker’s obligations as an intermediary. The broker is required to treat each party honestly and fairly and to comply with The Texas Real Estate License Act. A broker who acts as an intermediary in a transaction: (1) shall treat all parties honestly; (2) may not disclose that the owner will accept a price less than the asking price unless authorized in writing to do so by the owner; (3) may not disclose that the buyer will pay a price greater than the price submitted in a written offer unless authorized in writing to do so by the buyer; and (4) may not disclose any confidential information or any information that a party specifically instructs the broker in writing not to disclose unless authorized in writing to disclose the information or required to do so by The Texas Real Estate License Act or a court order or if the information materially relates to the condition of the property.

With the parties’ consent, a broker acting as an intermediary between the parties may appoint a person who is licensed under The Texas Real Estate License Act and associated with the broker to communicate with and carry out instructions of one party and another person who is licensed under that Act and associated with the broker to communicate with and carry out instructions of the other party.

If you choose to have a broker represent you, you should enter into a written agreement with the broker that clearly establishes the broker’s obligations and your obligations. The agreement should state how and by whom the broker will be paid. You have the right to choose the type of representation, if any, you wish to receive. Your payment of a fee to a broker does not necessarily establish that the broker represents you. If you have any questions regarding the duties and responsibilities of the broker, you should resolve those questions before proceeding.

Real estate licensee asks that you acknowledge receipt of this information about brokerage services for the licensee’s records.

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