Offering Memorandum

ROUND LAKE COURT | DOLLAR TREE

ANCHORED CENTER270-276 E. Rollins Road

Round Lake Beach, Illinois 60073

E Rollins Rd33,000 VPD

Subject Property

Round Lake Court | Dollar Tree Anchored Center270-276 E. Rollins Road, Round Lake Beach, Illinois 60073

Price $4,600,000 Cap Rate 7.83%Price/ SF $155.68 Gross Leasable Area 29,547 SFYear Built 2008Lot Size 7.12 Acres +/-Parcel Numbers 06-16-104-004 Parking 497 Surface Spaces +/-

Current Rent $386,215 Total Reimbursements $270,368 Vacancy/Collection Allowance (Actual) $59,000 Effective Gross Income $656,583 Expenses $296,538 NOI $360,045

VITAL DATA

PROPOSED FINANCINGLTV 70%Interest Rate | Amortization 4.25% | 25 YearsDown Payment $1,380,000 First Trust Deed/Mortgage $3,220,000 Debt Service $209,328 Debt Coverage Ratio 1.72Net Cash Flow After Debt Services | Return % $150,717 | 10.92%Principal Reduction $73,906 Total Return | Return % $224,623 | 16.28%

INVESTMENT HIGHLIGHTS

� National Tenants Include Dollar Tree, Famous Footwear, Sally Beauty Supply and Ann’s Hallmark

� New 10-Year Dollar Tree Extension with Rent Increase in Base Term and Option Periods

� 75 Percent of the Gross Leasable Area is Occupied by Tenants Who Have Operated in Their Space Since Center was Constructed

� Opportunity to Add Value and Grow Returns Through Leasing the Remaining 3,511 Square Feet of Vacant Space

� High Visibility Site with Multiple Points of Ingress/Egress | Property is Well-Parked with 497 Surface Spaces

� Located on Heavily Traveled Retail Thoroughfare | 33,000 Vehicles Passing per Day Along Rollins Road

� Notable Major Retailers in the Area Include Meijer, The Home Depot, Jewel-Osco, LA Fitness, Starbucks, McDonald’s, Dunkin’, Petland and Petco

NationalTenants

HeavilyTraveled

Abundance of Retailers

AnchoredCenter

RENT ROLL

Famous Footwear 6,964 23.57% 10/13/2008 10/31/2023 15 Years Option 1 Current $7,254 $87,050 $12.50 - 20% 2, 5-Year Net

Retail, Suite A Option 2 11/1/2023 $8,415 $100,978 $14.50 16%

Option 3 11/1/2028 $8,995 $107,942 $15.50 7%

Notes: Tenant will have right to terminate if gross sales made through the 133rd-144th (11/1/2019-10/31/2020) month do not exceed $1,100,000

Vacant 3,511 11.88% - - - Option 1 Current $4,917 $59,000 $16.80 - 13% N/A -

Retail, Suite B - - - - - -

Notes: N/A

Sally Beauty 1,755 5.94% 5/1/2014 4/30/2024 10 Years Base Current $3,364 $40,365 $23.00 - 9% 1, 5-Year Net

Retail, Suite C Option 2 5/1/2024 - TBD - -

Notes: N/A

Bella’s Bistro 2,222 7.52% 5/13/2017 5/12/2022 5 Years Base Current $4,000 $48,000 $21.60 - 11% 1, 5-Year Gross

Retail, Suite D Option 1 5/13/2022 $4,500 $54,000 $24.30 13%

Notes: N/A

Ann's Hallmark 5,031 17.03% 3/1/2009 2/28/2023 14 Years Option 2 Current $7,083 $85,000 $16.90 - 19% None Gross

Retail, Suite E - 3/1/2021 $7,438 $89,250 $17.74 5%

Notes: N/A

Dollar Tree 10,064 34.06% 8/1/2008 4/30/2030 22 Years Base Current $10,483 $125,800 $12.50 - 28% 2, 5-year Net

Retail, Suite F - 5/1/2025 $10,903 $130,832 $13.00 4%

Option 1 5/1/2030 $11,322 $135,864 $13.50 4%

Option 2 5/1/2035 $11,741 $140,896 $14.00 4%

Notes: CAM cap of 105 percent of prior year. Admin fee shall not exceed 10 percent of CAM

Occupied 26,036 88% $386,215 $14.83

Vacant 3,511 12% $59,000 $16.80

Total 29,547 100% $445,215 $15.07

Tenant /Suite #SF

Leased% of

Total SFStart End

Term of Occupancy

(Yrs)

Rent Schedule% of

Total Rent

Renewal Options

Remaining

Lease TypePeriod Changes on

Monthly Rent

Annual Rent

Rent/ SF

Increase

INCOME & EXPENSE

TenantAnnual Expense Reimbursements Total Expense

Reimbursement Taxes Insurance CAM Admin Fee

Famous Footwear $25,952 $1,008 $14,782 $1,616 $43,358

Vacant $0 $0 $0 $0 $0

Sally Beauty $8,057 $473 $8,057 $806 $17,392

Belies Bistro $0 $0 $0 $0 $0

Ann's Hallmark $0 $0 $0 $0 $0

Dollar Tree $46,472 $1,954 $37,744 $2,486 $88,655

Office Max CAM $0 $0 $120,963 $0 $120,963

Total $80,480 $3,435 $181,545 $4,907 $270,368

CASH FLOW YEAR ONE - STARTING 6/1/2020

Base Rent Current Per SF

Occupied Space $386,215 $14.83

Available Space $59,000 $16.80

Gross Potential Rent $445,215 $15.07

Expense Reimbursements

Real Estate Taxes $80,480 $2.72

CAM / Insurance (including Office Max Outparcel) $184,980 $6.26

Administrative Fee $4,907 $0.17

Total Expense Reimbursements $270,368 $9.15

Gross Potential Income $715,583 $24.22

Vacancy/Collection Allowance $59,000 $2.00

Effective Gross Income $656,583 $22.22

Expenses

Real Estate Taxes $136,437 $4.62

Insurance $7,961 $0.27

CAM $135,640 $4.59

Management Fee $16,500 $0.56

Total Expenses $296,538 $10.04

Net Operating Income $360,045 $12.19

CAM EXPENSE BREAKDOWN

CAM Current Per SF

Snow & Ice Removal $72,988 $2.47

M&R $19,104 $0.65

Landscaping & Groundskeeping $18,300 $0.62

Parking Lot Sweeping $16,150 $0.55

Electric $6,046 $0.20

Water/Sewer $1,995 $0.07

Security / FireLife Safety $1,057 $0.04

Total CAM $135,640 $4.59

LOCATION HIGHLIGHTS | ROUND LAKE BEACH

� Excellent Demographics | Population of 73,765 Within Three Miles of Subject Property

� Anticipated Five Percent Population Increase by 2023

� Affluent Area | Average Household Income Within Five Miles is $104,343

� Located in Lake County | 51 Miles Northwest of Downtown Chicago

� Many New and Redeveloped Commercial Properties, Especially Along Rollins Road

� Half a Mile to the Metra North Central Service Line Providing Direct Access to Downtown Chicago | 1,640,984 Annual Ridership

� Home to Lakefront Park at Round Lake Beach

� Awarded the Certificate of Achievement for Excellence in Financial Reporting (GFOA 2018)

� Awarded the Distinguished Budget Presentation Award for (GFOA 2009-2018)

AnticipatedGrowth

5%

AffluentDemographics

Near Metra Station

Award Winning Town

DEMOGRAPHICSPopulation 1-Mile 3-Miles 5-Miles2018 Population 14,403 73,765 149,6792023 Population 14,914 78,157 163,066

Households 1-Mile 3-Miles 5-Miles2018 Households 4,086 23,851 50,9562023 Households 4,300 25,835 56,218

Daytime Population 1-Mile 3-Miles 5-Miles2018 Population 7,716 48,887 114,710

Income 1-Mile 3-Miles 5-Miles2018 Median HH Income $71,602 $72,310 $81,4312018 Average HH Income $84,738 $91,831 $104,343

Round Lake Court | Dollar Tree Anchored Center270-276 E. Rollins Road, Round Lake Beach, Illinois 60073

TENANT OVERVIEWS

� Quarter Three 2019, Consolidated Sales Increased 3.7 Percent to $5.75 Billion DBA Dollar Tree, Inc.

� Located in 48 States and Five Canadian Provinces Tenant Dollar Tree Stores, Inc.

� Fortune 200 Company Number of Locations 15,000+

� In 2020, Planning for Over 1,000 Family Dollar H2 Renovation Projects Stock Symbol | Board DLTR | NASDAQ

� Number 61 on Forbes Global 2000 Growth Champions Credit Rating | Agency BB+ | Standard & Poor’s

dollartree.com � Brands Include Dollar Tree, Family Dollar, and Dollar Tree Canada

� DLTR on the NASDAQ Stock Market

� Largest Manufacturer of Greeting Cards in the United States DBA Ann’s Hallmark

� $4 Billion in 2019 Revenue Tenant/Guarantor G. Fraley Co., Inc.

� Portfolio of Six Product Lines Number of Corporate Locations 2,000+

� Over 2,000 Stores in Five Countries

� Founded in 1910

hallmark.com � Headquartered in Kansas City, Missouri

� Global Distributor and Retailer of Professional Beauty Products Brand Sally Beauty Supply

� Carrier to Over 8,000 Professional Salon Products Tenant/Guarantor Sally Beauty Supply LLC

� 3,695 Stores Worldwide | 2,791 Located in United States (as of 12.2019) Number of Locations 3,695

� Over 500 Stores in Europe, United Kingdom, Ireland and South America Stock Symbol | Board SBH | NYSE

� Annual Revenue of $3.9 Billion | $272 Million in Net Earnings (2019) Credit Rating | Agency BB- | Standard & Poor’s

sallybeauty.com � Founded in 1964

� Retailer for Athletic and Casual Shoes Brand Famous Footwear

� Offers Hundred of Name Brands for Women, Men and Children Number of Brand Locations 992

� Record Third Quarter Sales of $792.4 Million, Up 2.1 Percent Guarantor BG Retail, LLC

� Located in the United States and Canada

famousfootwear.com � Headquartered in St. Louis, Missouri

� Diverse Portfolio of 17 Global Footwear Brands Parent Company Caleres

� Brands Located in Retail Locations, Department and Specialty Stores Number of Locations 1,200+

� $2.8 Billion in Revenue (2018) Stock Symbol | Board CAL | NYSE

� Brand Portfolio Sales Increased Seven Percent in 2018

� Headquartered in St Louis, Missouri

caleres.com � Founded in 1878

TENANT OVERVIEWS

E Rollins Rd33,000 VPD

Hook Dr5,200 VPD

Subject Property

Post Office

Police Department

E Rollins Rd33,000 VPD

Grayslake North High School

Country Walk Park

Lakewood Park

Route 8323,250 VPD

Hook Dr5,200 VPD

N Orchard Ln

NCS Line 1,640,984 Annual Ridership

Renwood Golf Round Lake Beach

Avon School

Post Office

Subject Property

AERIAL

REGIONAL MAP

Subject Property

Lake Michigan

CONFIDENTIALITY AGREEMENT

The information contained in the following Marketing Brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Brochure has been prepared to provide summary, unverified 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. Marcus & Millichap 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, 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 Marketing Brochure has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

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. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2019 Marcus & Millichap. All Rights Reserved. Activity ID: ZAB0670213

STEVEN WEINSTOCKBROKER OF RECORD

Chicago Oakbrook(630) 570-2250

(630) 570-2323 faxsteven.weinstock@marcusmillichap.com

IL 471.011175

Exclusively Listed By

SEAN SHARKOSENIOR VICE PRESIDENT INVESTMENTSChicago Oakbrook(630) 570-2238sean.sharko@marcusmillichap.com IL 471.010712

AUSTIN WEISENBECKSENIOR VICE PRESIDENT INVESTMENTSChicago Oakbrook(630) 570-2169austin.weisenbeck@marcusmillichap.com IL 475.140200

ADRIAN MENDOZAFIRST VICE PRESIDENT INVESTMENTSChicago Oakbrook(630) 570-2163adrian.mendoza@marcusmillichap.com IL 475.147980