fresh thyme farmers market

FRESH THYME FARMERS MARKET

17550 GOLD PLAZAOMAHA, NE 68130

NET LEASE PROPERTY GROUP

2 FRESH THYME — OMAHA, NE

AFFILIATED BUSINESS DISCLOSURE

Affiliated Business Disclosure CBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Affiliate”) engaging in a broad range of commercial real estate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At times different Affiliates, including CBRE Global Investors, Inc. or Trammell Crow Company, may have or represent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in the property described in this Memorandum (the “Property”), and may be the successful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgment of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or purchase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENT

Your receipt of this Memorandum constitutes your acknowledgment that (i) it is a confidential

Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the acquisition of the Property, (ii)you will hold it in the strictest confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc. If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMER

This Memorandum contains select information pertaining to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the information which prospective investors may require to evaluate a purchase of the Property. The information contained in this Memorandum has been obtained from sources believed to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without representation or warranty of any kind. Such information includes estimates based on forward-looking assumptions relating to the general economy, market conditions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approximations. This Memorandum describes

certain documents, including leases and other materials, in summary form. These summaries may not be complete nor accurate descriptions of the full agreements referenced. Additional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and information contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discussions at any time with or without notice to you. All offers, counteroffers, and negotiations shall be non-binding and neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner. ALL PARCEL LINES ON SITE PLAN AND AERIALS ARE APPROXIMATE.

AFFILIATED BUSINESS DISCLOSURE AND CONFIDENTIALITY AGREEMENT

3

PR IMARY CONTACTS

NANCY K JOHNSON Senior Vice President +1 402 697 5828 [email protected]

MICHAEL KAIDER First Vice President/NNN Specialist +1 630 573 7015 [email protected]

CBRE11213 Davenport StreetSuite 300Omaha, NE 68154

CBRE700 Commerce DriveSuite 450Oak Brook, IL 60523

DEBT & S TRUCTURED F INANCE

GEOFFREY HARRISSenior Vice President+1 602 735 [email protected]

CBRE2575 East Camelback RoadSuite 500Phoenix, AZ 85016

04EXECUTIVE SUMMARY

13PROPERTY

DESCRIPTION

18MARKET

OVERVIEW

TABLE OF CONTENTS

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EXECUTIVE SUMMARY

5

THE OFFERINGCBRE’s Net Lease Property Group – Midwest is pleased to present the opportunity to acquire 100% fee interest in a 29,055-square foot single tenant Fresh Thyme Farmers Market located in Omaha, Nebraska. The property is new construction, with the grand opening in 2017. The original 15-year lease has over 13 years of term remaining and four options to extend for five additional years each. The lease has a Meijer Companies, Ltd. guaranty for the first five years of the base term up to $5 million.

Fresh Thyme is a full-service, natural and specialty grocer offering a farmer’s market concept with nutritious options at an affordable price and the convenience of a neighborhood store. The company was founded in 2012 and has had substantial growth throughout the Midwest with 75 locations in 11 states.

Fresh Thyme is well positioned on Center Road with exceptional visibility and access, and traffic counts exceeding 39,000 vehicles per day. The Property benefits from a strategic neighborhood location in proximity to the housing stock in the area. The area surrounding the property features a growing affluent population base.


Offering Price $10,015,000

Cap Rate 6.60%

Annual Rent $661,001.28

Lease Structure NNN

Building Size 29,055 Square Feet

Land Area ±3.12 Acres / 135,915 Square Feet

Guarantor Meijer Companies, Ltd., a Michigan Corporation (For the first 5 years of base term up to $5 million)

Lease Commencement February 21, 2017

Lease Expiration February 29, 2032

Lease Term Remaining 13 Years, 6 Months

Renewal Options Four, 5-Year Options

Rental Increases 10% in Year 6 and 10 of base term and each option period.

Landlord Responsibilities Roof and structure (Roof warranty until February 7, 2037)

Utilities Tenant will promptly pay all charges (based on consumption) for electricity, water, gas, telephone, sewer and other utilities furnished to the Premises directly to the utility providing such service.

Insurance Tenant reimburses Landlord.

Taxes Tenant pays direct.

FINANCIAL OVERVIEW

7

FINANCIAL OVERVIEW

Original Term Annual Rent Monthly Rent PSF

1 – 5 2/21/2017 to 2/28/2022 $661,001.28 $55,083.44 $22.75

6 - 10 3/1/2022 to 2/28/2027 $727,246.68 $60,603.89 $25.03

11 - 15 3/1/2027 to 2/29/2032 $799,884.12 $66,657.01 $27.53

FRESH THYME RENT SCHEDULE

Option Periods Annual Rent Monthly Rent PSF

Option 1: 16-20 3/1/2032 to 2/28/2037 $879,785.40 $73,315.45 $30.28

Option 2: 21-25 3/1/2037 to 2/28/2042 $967,822.08 $80,651.84 $33.31

Option 3: 26-30 3/1/2042 to 2/28/2047 $1,064,575.20 $88,714.60 $36.64

Option 4: 31-35 3/1/2047 to 2/29/2052 $1,170,916.56 $97,576.38 $40.30

8

INVESTMENT HIGHLIGHTS

The opportunity to acquire fee interest in a NNN (LL has roof and structure) Fresh Thyme located in Omaha, NE. The original 15-year lease has over 13 years of term remaining and features strong 10% rental increases every 5 years in the base term and each option period.

T R E M E N D O U S O P P O R T U N I T Y :

Fresh Thyme is located along the Center Road retail corridor which encompasses more than 3.5 million square feet of retail GLA. The corridor is anchored by Oak View Mall, an 859,439-square foot mall operated by GGP. The mall features over 100 retailers and restaurants and is anchored by Dillard’s, JCPenney, and Sears. Prominent retailers within the corridor include Target, Life Time Fitness, Burlington, TJ Maxx, HomeGoods, Marshalls, Party City, Lowe’s Home Improvement, and Walmart Supercenter among others.

S T R O N G R E T A I L C O R R I D O R :

Fresh Thyme is located in one of Omaha’s fastest-growing areas. Within a three-mile radius from the Property there are 80,851 residents, a 71% increase from the 2000 population of 47,211. Population growth is projected to continue over the next five years at a growth rate of 1.75%. The average household income within the trade area is $128,671 – 54% higher than the national average.

A F F L U E N T, G R O W I N G T R A D E A R E A :

9

INVESTMENT HIGHLIGHTS

Fresh Thyme is located on Center Road, a primary thoroughfare serving the area. Traffic counts on Center Road exceed 39,000 vehicles per day. The Property can be accessed from Center Road via 175th and 177th Streets.

H I G H T R A F F I C V O L U M E :

The Property was constructed in 2017 and has been flawlessly maintained, providing the incoming owner minimal capital improvement risk.

N E W C O N S T R U C T I O N :

Fresh Thyme is located less than one mile east of CHI Health Lakeside Hospital, creating a surge in traffic to the area. CHI Health is one of the top employers with more than 150 employed physician practice locations and 12,000 employees in Nebraska and southwestern Iowa.

P R O X I M I T Y T O M A J O R E M P L O Y E R :

Fresh Thyme is located 18 miles west of downtown Omaha, the largest city in Nebraska, 40th largest city in the United States, and the county seat of Douglas County. The Omaha MSA has a population of 952,190, a 10% increase from the 2010 population of 865,350. The MSA’s growth is projected to continue over the next five years. The MSA is characterized by a booming, robust, and diverse economy with excellent business opportunities. Omaha is home to the headquarters of four Fortune 500 companies.

O M A H A M S A :


AERIAL VIEW LOOKING EAST

AERIAL VIEW LOOKING WEST

11MARKET OVERVIEW


REGIONAL MAP

PROPERTY DESCRIPTION

S 177TH ST

S 17

7TH

ST

S 17

5TH

ST


TENANT PROFILE

Fresh Thyme Farmers Market is a full-service, natural and specialty grocer offering a farmer’s market concept with nutritious options at an affordable price and the convenience of a neighborhood store. Fresh Thyme’s extensive produce department offers organic and local fruits and vegetables. Other products throughout the store include natural meat raised without hormones, seafood, hearty breads, delicious treats from local artisan bakeries, barrels of natural and organic bulk foods, earth-friendly cleaning supplies, and gluten free and dairy free options among many others. Founded in 2012, Fresh Thyme has had substantial growth in the Midwest and opened locations in Nebraska, Iowa, and other new markets in recent years. Currently, the company is headquartered in Downers Grove, IL and operates 75 locations in 11 states throughout the Midwest.

Fresh Thyme is backed by an investment from Meijer Companies, Ltd. Meijer is a Grand Rapids, Michigan based retailer, offering a one-stop shopping concept. Founded in 1934, the privately-owned company operates more than 240 stores throughout Michigan, Ohio, Indiana, Illinois, Kentucky, and Wisconsin. Meijer was ranked by Forbes as one of America’s largest private companies. Meijer currently employs more than 77,000 and had fiscal year ending January 31, 2017 sales of $16.6 billion.

S 177TH ST

S 17

7TH

ST

S 17

5TH

ST

15

SITE PLAN

Square Footage29,055 SF

Lot Size± 3.12 Acres

Parking Spaces135 spaces


PROPERTY HIGHLIGHTSLocation17550 Gold Plaza, Omaha (Douglas County), NE 68130

General DescriptionOne-story, single tenant building

Year Built2017

Building Size29,055 Square Feet

Land Area± 3.12 Acres / 135,915 Square Feet

Parcel Number2604-5010-23

ParkingSurface parking is provided for 135 vehicles, or 4.65 spaces per 1,000 SF of GLA.

ZoningMU - Mixed Use

AccessThe Property is accessible from Center Road via 175th Street and 177th Street.

Flood ZoneAccording to the flood hazard maps published by the FEMA, the site is within Zone X as indicated on Community Map Panel No. 31055C0302J dated May 3, 2010. Zone X, an area that is determined to be outside the 100-and 500-yearflood plains.

Traffic CountsCenter Road — 39,325+ 180th Street — 27,310+

AERIAL VIEW LOOKING NORTHWEST

17

MARKET OVERVIEW

19MARKET OVERVIEW

OMAHA/COUNCIL BLUFFS

METRO AREA OVERV IEW

The Omaha MSA is comprised of the cities of Omaha, Nebraska;

Council Bluffs, Iowa; and surrounding communities. The MSA consists of

Cass, Douglas, Sarpy, Saunders and Washington counties in Nebraska,

and the counties of Pottawattamie, Harrison, and Mills in Iowa. The

MSA has a current population exceeding 952,000 and is expected to

increase 5.7% over the next five years. With a population of 450,466,

Omaha currently ranks as the 40th largest city in the United States. The

metropolitan area is the epicenter for business and retailing in the State

of Nebraska and southwestern Iowa.

The Omaha metropolitan area is characterized by a booming,

robust, and diverse economy with excellent business opportunities. A

business-oriented tax and incentive structure, very low unemployment

compensation insurance rates, and low crime rates compared to similar-

size metropolitan areas are just a few of the factors contributing to make

Omaha a superlative location from both enterprise and residential

perspectives.


• central location

• diverse economic base

• above average population growth and income levels

• highly educated workforce• low business costs

• strong in agribusiness, military and defense, financial services, logistics, and life science

Omaha is highly sought after location for management operations

21MARKET OVERVIEW

EPPLEY AIRFIELD

8 JET SERVICE AIR CARRIERS

4.6 MILLION PASSENGERS

The Omaha metropolitan area is well positioned as a central transportation hub. The area is served by Interstates 29, 80, 480 and 680. I-680 provides access into Omaha from the northeast while I-80 provides access to the city from the southwest and northeast. Interstate 29 provides access from the north and south and runs along the east side of the metro area. Finally, Interstate 480 in conjunction with Interstates 80 and 29, act as a small beltway in the eastern part of the city.

Omaha’s main airport is Eppley Airfield, a major regional terminal located five minutes from Omaha’s downtown Central Business District. Eppley Airfield is served by 8 jet service air carriers and has approximately 130 daily flights to 34 non-stop destinations. During 2017, Eppley Airfield served 4.6 million passengers.

MARKET OVERVIEW

Omaha weathered the recession better than almost every other MSA, according to the Brookings Institution. When comparing how the nation’s 100 largest metro areas performed on key economic indicators from the start of the downturn to its depths, Brookings found that Omaha fared second best.

In effect, no metro area in the country took a less of an economic tumble. Economists and others attribute that to a number of factors, including a diverse economic mix strong in finance, insurance, agriculture-related industry, transportation and health care, plus a generally conservative business climate that helps it avoid all the economic highs and lows seen on the coasts.

Omaha’s economy is in a healthy expansion mode, with unemployment rates holding at pre-recession levels. As of March 2018, the unemployment rate for the MSA was 3.3% — significantly below the national figure of 4.1%.

E C O N O M Y

T R A N S P O R T A T I O N

The Omaha MSA’s population has seen significant growth since 2000 which has translated into job creation across all industries. The MSA has been able to attract and retain an educated workforce from this growth with nearly 37% of the population age 25 and over have a Bachelor’s degree or higher. This can also be attributed to the abundant colleges and universities within the MSA.

According to Costar, finance, insurance, and professional and business services have set the MSA apart from the rest of the area. As of the first quarter 2018, office-using jobs were 10% above their pre-recession peak and business services jobs were nearly 15% higher. Insurance jobs make up the largest segment of the financial services sector in Omaha, which is more than 8% above its prerecession employment level. White-collar-related industries continue to target the metro for expansion because of its well-educated workforce and low business costs. The cost of doing business in Omaha is 11% less than the U.S. average, due primarily to lower office rents and taxes. The education and health services sector is also a significant driver of employment growth. Employment in the sector is 15% above its prerecession peak and grew by nearly 3.5% in the last year, the highest rate of all sectors.

E M P L O Y M E N T

GREATER OMAHA ACCOLADES & RANKINGS

#1 – BEST CITIES FOR COLLEGE GRADS TO START THEIR CAREERSZipRecruiter – May 2018

#3 – MOST UP AND COMING CITIES IN AMERICA(Omaha) Time – October 2017

#8 – BEST LARGE REAL ESTATE MARKET(Omaha) WalletHub – August 2017

#10 – AMERICA’S BEST STATES TO LIVE(NE) CNBC – July 2017

#14 – HARDEST-WORKING CITIES IN AMERICA(Omaha) Smart Asset – October 2017

#17 – BEST CITIES FOR QUALITY OF LIFEOmaha) Nerd Wallet – October 2017

23MARKET OVERVIEW

2018 POPULATION

POPULATION PER SQUARE MILE - 2018

Over 2,500

1,000 to 2,500

500 to 1,000

250 to 500

Less than 250

3 Mile 80,851

1 Mile 8,834

5 Mile 194,950

5 Miles96,355

DAYTIME POPULATION

1 MILE

3 MILE

5 MILE

POPULATION CONCENTRATION


2018 AVERAGE HOUSEHOLD INCOME

AVERAGE HOUSEHOLD INCOME - 2018

Over $125,000

$100,000 to $125,000

$75,000 to $100,000

$50,000 to $75,000

Less than $50,000

HOUSEHOLDS EARNING OVER $75,000 ANNUALLY

3 Mile $128,671

3 Mile 19,624

1 Mile $148,042

1 Mile 2,369

5 Mile $115,359

5 Mile 44,332

1 MILE

3 MILE

5 MILE

HOUSEHOLD INCOME

25

POPULATION GROWTH

POPULATION GROWTH 2010 - 2018 (%)

POPULATION GROWTH 2010 TO 2018

Over 50%

25% to 50%

10% to 25%

Up To 10%

Loss or No Growth

3 Mile 15.4%

1 Mile 18.6%

5 Mile 16.7%

1 MILE

3 MILE

5 MILE

PROJECTED POPULATION GROWTH 2018 - 2023 (%)

3 Mile 7.1%

1 Mile 6.2%

5 Mile 8.1%

17550 GOLD PLAZA | OMAHA, NE 68130

PR IMARY CONTACTS

NANCY K JOHNSON Senior Vice President +1 402 697 5828 [email protected]

MICHAEL KAIDER First Vice President/NNN Specialist +1 630 573 7015 [email protected]

CBRE11213 Davenport StreetSuite 300Omaha, NE 68154

CBRE700 Commerce DriveSuite 450Oak Brook, IL 60523

© 2018 CBRE, Inc. All rights reserved. This information has been obtained from sources believed reliable, but has not been verified for accuracy or completeness. You should conduct a careful, independent investigation of the property and verify all information. Any reliance on this information is solely at your own risk.

DEBT & S TRUCTURED F INANCE

GEOFFREY HARRISSenior Vice President+1 602 735 [email protected]

CBRE2575 East Camelback RoadSuite 500Phoenix, AZ 85016

FOR MORE INFORMAT ION P LEASE CONTACT:

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fresh thyme farmers market

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