exclusive listing...vitamins, dietary supplements and natural body care products. in 2011 and 2012,...

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness.

For more information, please contact: In association with:

Robert C. Sanner

Senior Managing Director, Principal

415-677-0439

[email protected]

Rick Sanner Senior Vice President

415-677-0429

[email protected]

LIC #01792433

Brett Bunnet

Regional Managing Principal

Texas Licensee

LIC #3128590

www.cassidyturley.com www.ctbtnnn.com

Natural Grocers Supermarket

TEXAS

HIGH GROWTH PUBLIC COMPANY

Price: $5,525,000 — 6.50% Cap Rate

New 15-Year Net Lease With Increases

Stock Price has More Than Doubled in the Last Year !!

Wichita Falls, Texas — Metro Population 150,000+

File Photograph

EXCLUSIVE LISTING

Natural Grocers Wichita Falls, Texas

The information set forth herein has been received by us from sources we believe to be reliable. We do not warrant its accuracy or completeness. RCS:dkw:0813:12

LOCATION Northwest corner of Lawrence Road and Call Field Road, Wichita Falls, Texas.

Directly across from Kohl’s in the heart of Wichita Falls regional retail market.

LOT SIZE Approximately 1.5 acres — 65,340+/– square feet

IMPROVEMENTS Under construction to be completed in November 2013, a 15,000+/– square foot

freestanding NATURAL GROCERS supermarket with 77 parking spaces. See

“Store Layout.” This will be one of the few stand-alone locations of this tenant.

LEASE Leased to VITAMIN COTTAGE NATURAL FOOD MARKETS, INC., doing business

as NATURAL GROCERS for 15 years from about December 5, 2013 until November

30, 2028. The annual rent of $359,100 increases to $374,100 in Year 11. The lease

is net with the tenant responsible for all taxes, insurance and maintenance. The

landlord is only responsible for structure including structural support for the roof (but

not the roof membrane nor any parking lots). There are four 5-year options to renew

with fixed rental increases each option period.

ANNUAL INCOME

PRICE $5,525,000 — 6.50% Cap Rate

PRICE PER SQUARE FOOT $368

RENT PER SQUARE FOOT $23.94 net per year — $2.00 net per month

FINANCING The property will be delivered free and clear.

ANNUAL RENT

1 – 10 $359,100

11 – 15 $374,100

Option 1 $389,100

Option 2 $404,100

Option 3 $419,100

Option 4 $434,100



VITAMIN COTTAGE NATURAL

FOOD MARKETS, INC.

VITAMIN COTTAGE NATURAL FOOD MARKETS, INC. (dba “Natural Grocers”) is a

Colorado based health food chain founded in 1955. In July, 2012, the company went

public in an IPO. The stock symbol is “NGVC,” and the market capitalization

(August, 2013) is over $750 million. The company operates currently operates 70

retail grocery stores in 13 states. Products include natural and organic food,

vitamins, dietary supplements and natural body care products. In 2011 and 2012, it

opened 10 stores each year. It will open or has already opened 13 stores in 2013,

and plans for 15 new stores in 2014.

The company is well known for its manifesto entitled “What We Won’t Sell and Why.”

Certain ingredients are not allowed in ANY product sold by the company. This list

includes artificial colors and flavors, artificial preservatives, irradiated food and meat

raised using artificial hormones and antibiotics. Only “USDA certified organic” fruits

and vegetables are sold. The company differs distinctly from “gourmet natural

smorgasbord markets” such as Whole Foods in that it does not focus on promoting

indulgent, but often unhealthy and expensive, processed or prepared foods.

For the fiscal year ended September 30, 2012, net sales increased 27.2% to $336.4

million and net income increased 9% to $6.6 million.

For the nine months ended June 30, 2013, the company reported net sales of $315

million with net income of $8.3 million and stockholder’s equity of $81 million. Using

as a basis sales for the quarter April-June, 2013, the sales are now running at an

annual rate of $452 million. Since new stores are still opening, fiscal 2014 sales will

certainly be higher.

Website: www.naturalgrocers.com



TENANT’S OUTSTANDING

FINANCIAL METRICS

STORE LAYOUT The store will have about 10,000 sf of grocery; 3,000 sf of vitamins and supplements;

and 1,000 sf of cosmetics. Additionally, there will be 1,000 sf classroom and

community space available for in-house nutritional consultants or community

presentations on the general topic of the types of merchandise sold here: healthy

foods, supplements, and organic body care products.

SITE INFORMATION The subject property is located on Lawrence Road, ½ mile from Highway 277/82 and

Kell Boulevard, in a dense retail area. It is a well established neighborhood with

numerous national retailers, shops and restaurants surrounding the subject property.

This is a front parcel in a to-be-built retail center.

Located ½ mile east is Sikes Senter Mall, the only enclosed mall within a 100-mile

radius, serving a 19 county trade area. The mall offers three major department

stores, JCPenney, Dillard’s and Sears, as well as a 10-screen fully digital movie

theater and 80 specialty stores.

Neighboring tenants include Wal-Mart Supercenter, Sam’s Club, Target, Home

Depot, Lowe’s, Kohl’s, Best Buy, Academy Sports, Big Lots, Michaels, Bed Bath &

Beyond, PetSmart, Ross and TJ Maxx, to name a few.

Stock Price: $15.00 at IPO date, July 25, 2012.

$35.14 on August 8, 2013.

Store Count: 2009 — 33 Stores

2012 — 59 Stores

2013 — 72 (Projected by September 30, 2013)

Same Store Sales: Positive same store sales increases, quarter over quarter,

for 46 consecutive quarters. For the last 10 quarters, those

same store sales increases have ranged from 3% to 13%.

For each of the last three quarters, same store sales have

increased at least 10% over the comparable quarter of the

previous year.

Total Sales: Total sales increased from $227 million in fiscal 2010 to

$336 million in fiscal 2012 — 48+%. For the first nine

months of fiscal 2013, sales are up 28% compared to the

comparable period of fiscal 2012.



WICHITA FALLS, TEXAS Wichita Falls is located in north-central Texas, about 15 miles south of the Oklahoma

border and 140 miles northwest of Dallas. Wichita Falls is serviced by Interstate I-44

and U.S. Routes 277, 281, 287, and 82. Texas State Highways 79 and 240 also run

through the city. Wichita Falls serves as the county seat of Wichita County and is

considered the primary population center of North Texas. According to the 2010

census, the city had a population of 104,553. The metro area had a population of

151,306.

In Wichita Falls is Sheppard Air Force Base, which employs over 15,000 people and

is the only military base in the nation to provide jet training to 13 NATO countries.

Wichita Falls is home to Midwestern State University, the only independent liberal

arts college in Texas offering both bachelor's and master's degrees. A local branch of

Vernon College offers two-year degrees, certificate programs, and workforce

development programs. The former has 6,000 students, and the latter has 1,300.

Both are ½ mile to one mile east of the subject.

Most visitors will fly to one of the two Dallas airports and make the 2+ hour drive to

Wichita Falls. There is a small commercial airport in Wichita Falls, but there is air

service only to DFW airport in Dallas.

DEMOGRAPHICS

*The above net income is an estimate and does not provide for all potential costs

and expenses (i.e., maintenance, repair, etc.) that may be required of the owner.

Any reserves set forth herein are merely estimates and not based on any experience,

physical inspection, or prior knowledge. All prospective purchasers are strongly

advised to make an independent investigation to determine their estimate of costs

and expenses prior to entering into an agreement to purchase.

NOTE The information set forth herein has been received by us from sources we believe to

be reliable, but we have made no independent investigation of the accuracy or

completeness of the information and make no representations with respect thereto.

The above is submitted subject to errors, prior sale or lease, change in status, or

withdrawal without notice.

TEXAS

2012 ESTIMATES 1-MILE 3-MILES 5-MILES

Population 9,117 61,536 86,990

Average HH Income $48,750 $60,809 $55,666



PHOTOGRAPHS OF ANOTHER STORE



RENDERING OF SUBJECT PROPERTY


SITE PLAN

Fuel Station



MASTER SITE PLAN



AERIAL



MAP

Market ProfileNatural Grocers Wichita Falls TXRing: 1 mile radius Latitude: 33.87255

Longitude: -98.54042

1 mile 3 miles 5 milesPopulation Summary

2000 Total Population 8,590 58,051 83,4852010 Total Population 8,909 60,748 86,0202012 Total Population 9,117 61,536 86,990

2012 Group Quarters 590 1,607 2,6492017 Total Population 9,325 61,968 87,366

2012-2017 Annual Rate 0.45% 0.14% 0.09%Household Summary

2000 Households 3,674 24,064 33,7052000 Average Household Size 2.20 2.35 2.40



2017 Households 4,225 25,993 35,5972017 Average Household Size 2.07 2.32 2.382012-2017 Annual Rate 0.79% 0.34% 0.27%

2010 Families 2,201 15,327 21,5392010 Average Family Size 2.79 2.97 3.02

2012 Families 2,198 15,170 21,2962012 Average Family Size 2.79 2.97 3.03

2017 Families 2,304 15,633 21,8752017 Average Family Size 2.77 2.96 3.012012-2017 Annual Rate 0.95% 0.60% 0.54%

Housing Unit Summary2000 Housing Units 3,935 26,259 37,137

Owner Occupied Housing Units 63.0% 55.6% 55.1%Renter Occupied Housing Units 30.3% 36.0% 35.6%Vacant Housing Units 6.6% 8.4% 9.2%

2010 Housing Units 4,337 28,508 39,483Owner Occupied Housing Units 54.5% 52.4% 52.5%Renter Occupied Housing Units 36.9% 36.5% 35.8%Vacant Housing Units 8.6% 11.1% 11.6%



Median Household Income2012 $37,241 $41,660 $38,6282017 $43,384 $50,686 $46,240

Median Home Value2012 $113,362 $140,291 $125,3232017 $129,556 $157,381 $140,847

Per Capita Income2012 $22,097 $26,086 $23,4652017 $25,365 $29,919 $26,872

Median Age2010 31.4 35.2 35.32012 31.6 35.4 35.52017 32.4 36.2 36.3

Data Note: Household population includes persons not residing in group quarters. Average Household Size is the household population divided by total households.Persons in families include the householder and persons related to the householder by birth, marriage, or adoption. Per Capita Income represents the income received byall persons aged 15 years and over divided by the total population.

July 02, 2013

Made with Esri Business Analyst©2013 Esri www.esri.com/ba 800-447-9778

Source: U.S. Census Bureau, Census 2010 Summary File 1. Esri forecasts for 2012 and 2017. Esri converted Census 2000 data into 2010 geography.

http://www.esri.com/ba



1 mile 3 miles 5 miles2012 Households by Income

Household Income Base 4,063 25,561 35,120<$15,000 17.8% 16.0% 19.0%$15,000 - $24,999 14.3% 13.1% 13.6%$25,000 - $34,999 13.5% 11.7% 12.0%$35,000 - $49,999 21.0% 17.3% 17.1%$50,000 - $74,999 17.6% 17.2% 16.9%$75,000 - $99,999 6.9% 10.4% 9.4%$100,000 - $149,999 6.0% 7.7% 6.7%$150,000 - $199,999 1.5% 2.6% 2.1%$200,000+ 1.5% 3.9% 3.2%

Average Household Income $48,750 $60,809 $55,6662017 Households by Income

Household Income Base 4,225 25,993 35,597<$15,000 17.0% 15.0% 18.0%$15,000 - $24,999 11.0% 9.9% 10.4%$25,000 - $34,999 10.6% 9.2% 9.7%$35,000 - $49,999 17.8% 14.9% 14.7%$50,000 - $74,999 23.3% 21.5% 21.3%$75,000 - $99,999 9.5% 13.4% 12.2%$100,000 - $149,999 7.3% 8.9% 7.7%$150,000 - $199,999 1.8% 3.0% 2.4%$200,000+ 1.8% 4.1% 3.4%

Average Household Income $55,997 $69,312 $63,4462012 Owner Occupied Housing Units by Value

Total 2,361 14,765 20,496<$50,000 4.7% 6.1% 9.7%$50,000 - $99,999 37.7% 22.9% 28.0%$100,000 - $149,999 28.1% 26.0% 24.3%$150,000 - $199,999 15.3% 20.1% 17.5%$200,000 - $249,999 6.7% 10.9% 9.3%$250,000 - $299,999 2.7% 5.9% 4.9%$300,000 - $399,999 2.8% 4.3% 3.5%$400,000 - $499,999 1.1% 1.9% 1.5%$500,000 - $749,999 0.8% 1.3% 1.0%$750,000 - $999,999 0.0% 0.4% 0.3%$1,000,000 + 0.0% 0.1% 0.1%

Average Home Value $133,819 $164,152 $147,6252017 Owner Occupied Housing Units by Value

Total 2,462 15,222 21,067<$50,000 2.7% 4.2% 7.4%$50,000 - $99,999 30.2% 18.7% 24.2%$100,000 - $149,999 29.0% 23.5% 22.5%$150,000 - $199,999 19.8% 23.8% 21.0%$200,000 - $249,999 9.2% 14.3% 12.4%$250,000 - $299,999 3.4% 6.7% 5.7%$300,000 - $399,999 3.4% 4.7% 3.8%$400,000 - $499,999 1.2% 1.7% 1.3%$500,000 - $749,999 1.1% 1.7% 1.3%$750,000 - $999,999 0.1% 0.5% 0.4%$1,000,000 + 0.0% 0.1% 0.1%

Average Home Value $149,322 $177,177 $160,077

Data Note: Income represents the preceding year, expressed in current dollars. Household income includes wage and salary earnings, interest dividends, net rents,pensions, SSI and welfare payments, child support, and alimony.

July 02, 2013






1 mile 3 miles 5 miles2010 Population by Race/Ethnicity

Total 8,907 60,748 86,020White Alone 83.5% 81.5% 76.9%Black Alone 6.3% 6.7% 9.8%American Indian Alone 0.9% 1.0% 1.0%Asian Alone 2.0% 2.5% 2.3%Pacific Islander Alone 0.1% 0.1% 0.1%Some Other Race Alone 5.0% 5.6% 7.0%Two or More Races 2.3% 2.7% 2.9%

Hispanic Origin 15.0% 16.6% 19.1%Diversity Index 47.7 51.6 58.5

2012 Population by Race/EthnicityTotal 9,117 61,536 86,990

White Alone 82.6% 80.7% 76.1%Black Alone 6.5% 6.8% 9.9%American Indian Alone 0.9% 1.0% 1.0%Asian Alone 2.0% 2.6% 2.3%Pacific Islander Alone 0.1% 0.1% 0.1%Some Other Race Alone 5.4% 6.0% 7.5%Two or More Races 2.4% 2.8% 3.1%


2017 Population by Race/EthnicityTotal 9,324 61,969 87,365

White Alone 81.0% 79.0% 74.5%Black Alone 6.9% 7.1% 10.0%American Indian Alone 0.9% 1.0% 1.1%Asian Alone 2.1% 2.7% 2.4%Pacific Islander Alone 0.1% 0.2% 0.1%Some Other Race Alone 6.3% 6.9% 8.5%Two or More Races 2.7% 3.1% 3.3%


2010 Population by Relationship and Household TypeTotal 8,909 60,748 86,020

In Households 93.4% 97.4% 96.9%In Family Households 71.0% 76.9% 77.9%

Householder 23.5% 25.2% 25.0%Spouse 16.6% 18.2% 17.4%Child 26.2% 28.5% 29.9%Other relative 2.7% 3.0% 3.3%Nonrelative 2.1% 2.1% 2.3%

In Nonfamily Households 22.4% 20.5% 19.1%In Group Quarters 6.6% 2.6% 3.1%

Institutionalized Population 0.1% 1.1% 1.8%Noninstitutionalized Population 6.5% 1.5% 1.2%

Data Note: Persons of Hispanic Origin may be of any race. The Diversity Index measures the probability that two people from the same area will be from differentrace/ethnic groups.

July 02, 2013




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