4101 Yellowstone Avenue Chubbuck, ID Pocatello-Chubbuck MSA

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Sale Summary AT PINE RIDGE MALL 4101 Yellowstone Avenue Chubbuck, ID Pocatello-Chubbuck MSA Newly Built with Fifteen Year Lease DON ZEBE 208 403 1973 don.

1 Sale Summary AT PINE RIDGE MALL 4101 Yellowstone Avenue Chubbuck, ID Pocatello-Chubbuck MSA Newly Built with Fifteen Year Lease DON ZEBE JARED ZEBE Colliers International Idaho 2043 East Center Street, Pocatello, Idaho

Investment Summary Investment opportunity to acquire the fee simple interest in a 55,000-square foot Hobby Lobby.

5 million square feet of retail property.

2 Investment Summary Investment opportunity to acquire the fee simple interest in a 55,000-square foot Hobby Lobby. The NNN lease has a new 15-year lease that includes 7% base rent increases starting at the end of the 3 rd year and continues to increase by 7% every 5 years. The building fronts Yellowstone Avenue, which has the highest traffic counts in the city/county and is surrounded by approximately 5 million square feet of retail property. Within the primary retail corridor at the heart of the Pocatello MSA, the subject property serves a trade area population of 160,000. Pricing: $5,632,000 Annual Rent: $352,000 Cap Rate: 6.25% Size: 55,000 SF Price/PSF: $94.82 Site Colliers International Idaho 2043 East Center Street, Pocatello, Idaho P.2

3 Financial Overview Price: $5,632,000 Cap Rate: 6.25% Current Annual Rent: $352,000 Lease Structure: Net Year Built: 2016 Parking: 110 Spaces Building Size: 55,000 SF Tenant: Hobby Lobby Guarantor: Hobby Lobby Stores, Inc Landlord Responsibility: Roof and Structure CAM: NO CAM EXPENSES FOR THIS PARCEL Utilities: Tenant responsible for all utility charges Lease Term: 15 Years Lease Expiration: 9/30/2026 Renewal Options: Three, 5-year options Rent Schedule Time Period Annual Monthly Per SF Cap Rate Primary Term 9/5/16 9/30/21 $352, $29, $ % Primary Term 10/1/21 9/30/26 $379, $31, $ % Primary Term 10/1/26 9/30/31 $407, $33, $ % Primary Term 10/1/31 9/30/33 $434, $36, $ % 1 st Renewal Term 10/1/33 9/30/36 $434, $36, $ % 1 st Renewal Term 10/1/36 9/30/38 $462, $38, $ % 2 nd Renewal Term 10/1/38 9/30/41 $462, $38, $ % 2 nd Renewal Term 10/1/41 9/30/43 $489, $40, $ % 3 rd Renewal Term 10/1/43 9/30/46 $489, $40, $ % 3 rd Renewal Term 10/1/46 9/30/48 $517, $43, $ % Colliers International Idaho 2043 East Center Street, Pocatello, Idaho P.3

Property Overview Investment Highlights» Strong tenant with long term lease, fifteen years remaining on new lease with additional renewal options» More than 2,500 jobs added to area within one mile

retailers include; The Home Depot, AMC Theater, Ulta Beauty, Walmart Supercenter, Costco, T.J.

is the largest privately-owned arts-and-crafts retailer with more than 800 stores across the nation.

4 Property Overview Investment Highlights» Strong tenant with long term lease, fifteen years remaining on new lease with additional renewal options» More than 2,500 jobs added to area within one mile of subject site within the past two years» Minimal competition, only one direct competitor within 50 miles» Within dense retail corridor, more than 5 million square feet of retail space» Surrounding retailers include; The Home Depot, AMC Theater, Ulta Beauty, Walmart Supercenter, Costco, T.J. Maxx, Shoe Carnival, Dick s Sporting Goods, Ashley Furniture, Ross Dress for Less, Bed Bath & Beyond and many more! Tenant Profile Founded in 1972, Hobby Lobby Stores, Inc. is the largest privately-owned arts-and-crafts retailer with more than 800 stores across the nation. Hobby Lobby offers more than 70,000 arts, crafts, hobbies, home decor, Holiday, and seasonal products. The company has had strong growth with 63 new stores, which includes 12 relocated stores during Hobby Lobby plans to continue its expansion by adding 60 new locations and hiring 2,500 new employees in The Hobby Lobby is included in Forbes annual list of America s largest private companies and had December 2016 sales exceeding $4.3 billion.» Since 2013, $28 million has been invested in the surrounding property Colliers International Idaho 2043 East Center Street, Pocatello, Idaho P.4

Area Overview AREA OVERVIEW Pocatello serves as the

with an economy driven by research, food

fabrication, medical, manufacturing and fabrication,

The metro area has approximately 85,000 people and

Pocatello offers shopping, theater, movies, museums,

resort and ski area within 1/2 hour drives.

with several large industry leading companies and

Reservation just north of the Pocatello Metro Area

year. Idaho is known for world-class recreation and

the city with endless mountains, cliffs, lakes,

climbing, water skiing, rafting, swimming, snow

5 Area Overview AREA OVERVIEW Pocatello serves as the educational and commercial center for Eastern Idaho with an economy driven by research, food production/processing, semiconductor design, wafer fabrication, medical, manufacturing and fabrication, data processing and telecommunications. The metro area has approximately 85,000 people and more than 160,000 in the larger trade area. Pocatello offers shopping, theater, movies, museums, parks, golf courses, a zoo and both a hot springs resort and ski area within 1/2 hour drives. The trade area is economically and culturally diverse with several large industry leading companies and Idaho State University, the 3rd largest university in Idaho. The Shoshone-Bannock Tribe, located on the Fort Hall Reservation just north of the Pocatello Metro Area contributes $400 million to the regional economy each year. Idaho is known for world-class recreation and Pocatello is in the middle of an unspoiled outdoor paradise. Millions of acres of publicly managed land surround the city with endless mountains, cliffs, lakes, rivers, and natural hot springs offering an abundance of outdoor recreation. Popular activities include fishing, hunting, rock climbing, water skiing, rafting, swimming, snow skiing, hiking, mountain biking, snowmobiling, and horseback riding. MAJOR AREA EMPLOYERS 4,162 1, ,200 1, ,100 2,200 Colliers International Idaho 2043 East Center Street, Pocatello, Idaho P.5

6 Location SITE Colliers International Idaho 2043 East Center Street, Pocatello, Idaho P.6

7 Location 6 EXECUTIVE SUMMARY Colliers International Idaho 2043 East Center Street, Pocatello, Idaho P.7

Area Statistics DEMOGRAPHICS MARKET GAP ANALYSIS Pine Ridge Mall 1 Mile 3 Miles 5 Miles 2018 Estimated Population 10,679 41,759 67,059 INDUSTRY GROUP DEMAND (POTENTIAL) SUPPLY (RETAIL SALES) RETAIL

Household Income $62,815 $65,291 $65,266 2018 Est. Med. Household Income $50,828 $53,782 $51,545 2010 Median Home Value $133,545 $145,664 $146,824 2010 Median Rent $648 $598 $558 2018 Est.

8 Area Statistics DEMOGRAPHICS MARKET GAP ANALYSIS Pine Ridge Mall 1 Mile 3 Miles 5 Miles 2018 Estimated Population 10,679 41,759 67,059 INDUSTRY GROUP DEMAND (POTENTIAL) SUPPLY (RETAIL SALES) RETAIL GAP $263 Million 2023 Projected Population 10,877 42,697 68, Estimated Households 3,957 15,568 25, Projected Households 4,068 16,077 26, Est. Avg. Household Income $62,815 $65,291 $65, Est. Med. Household Income $50,828 $53,782 $51, Median Home Value $133,545 $145,664 $146, Median Rent $648 $598 $ Est. Median Age Est. Total HH Expenditure $202 M $812 M $1.33 B Recreational Vehicle Dealers $50.3 M $26.7 M $23.6 M Furniture Stores $30 M $13.3 M $16.7 M Grocery Stores $226 M $162.2 M $63.9 M Specialty Food Stores $13.5 M $4.8 M $8.6 M Electronics & Appliance Stores $46 M $43 M $3 M Health & Personal Care Stores $77.8 M $72.3 M $5.5 M Clothing Stores $34. M $12.9 M $21. M Shoe Stores $7.3 M $3.9 M $3.4 M Jewelry, Luggage & Leather Goods Stores Sporting Goods, Hobby, Book & Music Stores Book, Periodical & Music Instruments Department Stores Excluding Leased Depts. Office Supplies, Stationery & Gift Stores $12.5 M $7.8 M $4.8 M $57.9 M $26.3 M $31.6 M $6.7 M $1 M $5.7 M $228.7 M $176.6 M $52.2 M $14.3 M $12.2 M $2.1 M Restaurants/Other Eating Places $158.5 M $135.2 M $23.3 M Other Miscellaneous Store Retailers $44.1 M $17.3 M $26.8 M Source: Retail MarketPlace Copyright 2017 Infogroup, Inc. All rights reserved. Colliers International Idaho 2043 East Center Street, Pocatello, Idaho P.8

Area Overview IDAHO TAX OVERVIEW Sales and Use Tax in Idaho is 6%. This would apply to items purchased or consumed in Idaho.

any equipment or material used in research and development activities. We do not tax services including telecommunication services, and utilities such as water, gas, electricity, or natural gas.

8% Bannock County Average Range: 0.8-1.2% Canyon County Average Range: 1.5% - 2.5% Elmore County Average Range: 1.8% Idaho does not have an inventory tax. Corporate Income Tax Computed at 7.

Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a 3 factor formula to ascertain how much of the business is conducted in Idaho.

These three factors, with the sales factor being double weighted for all taxpayers except for electrical and telephone companies, are totaled and divided by 4 to compute the Idaho apportionment

9 Area Overview IDAHO TAX OVERVIEW Sales and Use Tax in Idaho is 6%. This would apply to items purchased or consumed in Idaho. Exemptions are available for equipment and raw materials used directly in manufacturing, processing, or fabrication; clean rooms used in semiconductor and semiconductor equipment manufacturing; and any equipment or material used in research and development activities. We do not tax services including telecommunication services, and utilities such as water, gas, electricity, or natural gas. In our region we do not have any local option sales tax. Property Tax personal (machinery/equipment) and real (land/ buildings) based on market value Rates: Ada County Average Range: 1.1% - 1.8% Bannock County Average Range: % Canyon County Average Range: 1.5% - 2.5% Elmore County Average Range: 1.8% Idaho does not have an inventory tax. Corporate Income Tax Computed at 7.4% of the Idaho taxable income of a corporation. Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a 3 factor formula to ascertain how much of the business is conducted in Idaho. The apportionment formula is made up of a property factor, a payroll factor, and a sales factor. These three factors, with the sales factor being double weighted for all taxpayers except for electrical and telephone companies, are totaled and divided by 4 to compute the Idaho apportionment factor. The Idaho apportionment factor is then applied to the business income of the corporation to compute income assigned to Idaho. Non-business income allocable to Idaho is added to the income apportioned to Idaho to arrive at Idaho taxable income. Colliers International Idaho 7% 6% CORPORATE INCOME TAX SALES & USE TAX $7.25/hr 1.91% #2 BEST STATE PERSONAL INCOME TAX RATE RANGE Rate range on a bracketed system based on income levels (2013 Tax Foundation Study) 2043 East Center Street, Pocatello, Idaho STATE UNEMPLOYMENT INSURANCE RATE 1.6%-7.8% Property tax rate 7.1% MINIMUM WAGE UNION MEMBERSHIP (NAT L AVG: 11.9%) PROPERTY EXEMPTION First $100,000 of personal property is exempt from taxation IDAHO IS A right to work STATE P.9

10 AT PINE RIDGE MALL 4101 Yellowstone Avenue Chubbuck, ID DON ZEBE JARED ZEBE Colliers International Idaho 2043 East Center Street, Pocatello, Idaho

Sale Summary BREAD 4031 POLE LINE DRIVE CHUBBUCK, ID. DON ZEBE JARED ZEBE

Sale Summary BREAD 4031 POLE LINE DRIVE CHUBBUCK, ID. DON ZEBE JARED ZEBE Sale Summary 4031 POLE LINE DRIVE CHUBBUCK, ID DON ZEBE 208 403 1973 don.zebe@colliers.com JARED ZEBE 208 709 7311 jared.zebe@colliers.com Investment Summary This investment opportunity to acquire the