O F F E R I N G M E M O R A N D U M

B E S T B U Y5 8 9 0 N E L I Z A B E T H S T | P U E B L O , C O

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E X C L U S I V E LY L I S T E D BY

Kyle MatthewsBroker of Record

Emai l : colorado@matthews.comDIR 310.579.9693LIC # EC.100070704

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C O N T E N T S

4 INVESTMENT OVERVIEWOffer ing Summary Investment Highl ights

6 FINANCIAL ANALYSISExecut ive SummaryAnnual ized Operat ing DataTenant SummaryLease Abstract

8 TENANT OVERVIEWCompet i t ion MapBest Buy Overview Best Buy in the news

1 2 AREA OVERVIEWPueblo, COCommunity DevelopmentPoints of InterestColorado Spr ings

8 PROPERTY OVERVIEWSite Descr ipt ion Parcel MapSurrounding Retai lFuture Development

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• Build to Suit in 2007 – Modern 20k Prototype Building

• Best Buy has been at this location since 2007

• Recently exercised the first five-year option to extend with Three, 5-year Options to renew

• Guaranteed by Best Buy Corporation (NYSE: BBY)

• Ranked #60 on Fortune 500’s 2014 list of America’s Largest Companies

• “BBB-” S&P RATED COMPANY $39+ BILLION REVENUE

i n v e s t m e n t h i g h l i g h t s

Well located right off Interstate I-25, North of Hwy (36,000 CPD) Pueblo Crossing Shopping Center, Anchors

including Kohl’s, Bed Bath & Beyond, Famous Footwear, DressBarn, Petco and Cavender’s restaurants

include Buffalo Wild Wings, Johnny Carino’s and Chili’s. New adjacent developments including a Dick’s

and Ulta Beauty. Population (1 mile/3,712), (3 Mile/31,097), (5 Mile/ 66,865), Ave HH Income(1 mile/

$72,342).

o f f e r i n g s u m m a r y

e x e c u t i v e s u m m a r y

o f f e r i n g s u m m a r y

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B e s t B u y5890 N Elizabeth StPueblo, CO 81008

List Price ...................................................................................................................$3,928,571

CAP Rate - Current ...........................................................................................................7.00%

Gross Leasable Area ...........................................................................................± 20,004 SF

Lot Size .................................................................................................................± 3.00 Acres

Year Built ..............................................................................................................................2007

Annualized Operating DataMonthly Rent Annual Rent Rent/SF Cap Rate

Current - 1/31/2018 $22,916.67 $275,000.01 $13.75 7.00%

2/1/2018 - 7/31/2023 (early extension)

$22,500.00 $270,000.00 $13.50 6.87%

8/1/2023 - 7/31/2028 (Opt. 2)

$22,916.67 $275,000.00 $13.75 7.00%

8/1/2028 - 7/31/2033 (Opt. 3)

$23,750.00 $285,000.00 $14.25 7.25%

8/1/2033 - 7/31/2038 (Opt. 4)

$26,250.00 $315,000.00 $15.75 8.01%

Tenant Summary

Tenant Trade Name Best Buy

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN

Original Lease Term 10 Years

Lease Commencement Date 9/14/2007

Rent Commencement Date 9/14/2007

Lease Expiration Date 1/31/2023

Term Remaining on Lease ± 6 Years

Options Three, 5-Year Options

f i n a n c i a l a n a ly s i s

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l e a s e a b s t r a c t

LandlordLandlord, at sole cost and expense, shall make all structural repairs to the premises, shall repair, replace and maintain in good

condition the structure, roof, foundation, and parking and drive areas. Landlord shall or unrepairable HVAC make all necessary replacements of obsolete or unrepairable HVAC

Tenant: Tenant agrees to keep and maintain the interior of the Premises and routine maintenance of the HVAC, plumbing, gas and electrical.

Guarantor: Corporate

Address: 5890 N Elizabeth St Pueblo, CO 81008

Size: 20,170 SF

Ownership type: Fee Simple

Rent Commencement: 9/14/2007

Lease Expiration: 1/31/2023

Remaining Renewal Options: Approximately 6 Years

Current Rent: $275,000

Common Area:

Landlord shall maintain in good order, condition and repair all areas in the common area, which shall include parking areas, landscaping, sidewalks, drive ways, and monument signs. Tenant shall pay Landlord, as additional rent its proportionate share of the

annual amortization of costs of repaving or replacing all or any part of the parking area, and the cost of electricity and costs to maintain the pylon sign.

Landlord Responsibilities:Landlord, at sole cost and expense, shall make all structural repairs to the premises, shall repair, replace and maintain in good

condition the structure, roof, foundation, and parking and drive areas. Landlord shall make all necessary replacements of obsolete or unrepairable HVAC

Tenant Responsibilities: Tenant agrees to keep and maintain the interior of the Premises and routine maintenance of the HVAC, plumbing, gas and electrical.

Insurance Tenant maintains general liability insurance eat sole cost and expense.

Utilities: Tenant shall pay directly.

Taxes: Tenant pays directly

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T e n a n t O v e r v i e w c o m p e t i t i o n m a p

> Closest Radio Shack : 35.6 Miles

> Closest Best Buy : 40.8 Miles

> Closest Apple Store : 48.4 Miles

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Property Name Best Buy Co.

Industry Electronics

Revenue (2016) $39.528 B

Net Income (2016) $ 897 M

No. of Locations ± 1,026

No. of Employees ± 125,000

Headquartered Richfield, Minnesota

Website www.bestbuy.com

Year Founded 1966

T E N A N T O V E R V I E W

Best Buy is a leading provider of technology products, services, and solutions. The Company offers products and services to the customers visiting its stores, engaging with Geek Squad agents, or using its websites or mobile applications. It has operations in the United States, Canada, and Mexico.

The Company operates through two segments: Domestic and International. The Domestic segment consists of the operations in all states, districts, and territories of the United States, under various brand names, including Best Buy, bestbuy.com, Best Buy Mobile, Best Buy Direct, Best Buy Express, Geek Squad, Magnolia Home Theater, and Pacific Kitchen and Home. The International segment consists of all operations in Canada and Mexico under the brand names, Best Buy, bestbuy.com.ca, bestbuy.com.mx, Best Buy Express, Best Buy Mobile and Geek Squad. The Company operates approximately 1,200 large-format and over 400 small-format stores throughout its Domestic and International segments. It has a global sourcing operation to design, develop, test and contract-manufacture its brand products.

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B e s t B u y i n t h e N e w s

Best Buy reported better-than-expected profit and sales for its second quarter amid growth for smartphones, connected home and wearable devices. But the retailer added a slight caveat going forward. Best Buy is currently up 31% so far. Best Buy’s successful turn around began in 2012 and has not stopped.

Since 2012, the company has held its own against the rise of Amazon.com by becoming more competitive, revamping its website, and speeding up delivery times by shipping orders directly from its stores.

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Analyst: Best Buy's multichannel model proving to be a core strength

August 29, 2017 I Neil Saunders I Chain Store Age

Although up against a soft comparative from the prior year, it is fair to say that Best Buy has produced a very robust set of second quarter numbers. The 4.9% increase in domestic sales underlines that the company is more than holding its own in the electricals market and should put pay to the oft repeated fiction that retailers of its ilk will struggle to survive in the era of Amazon.

Overall we remain confident about Best Buy. The company is well managed and is successfully navigating many of the challenges of retail. The exit of rivals has provided some helpful breathing space, and we do not doubt that there will be further exits over the years ahead. Best Buy is in an ideal position to capitalize on this.

Best Buy ups full-year outlook on heels of strong Q2August 29, 2017 I Marianne Wilson I Chain Store Age

Best Buy reported better-than-expected profit and sales for its second quarter amid growth for smartphones, connected home and wearable devices. But the retailer added a slight caveat going forward. Best Buy’s same-store sales rose 5.2% in the quarter ended July 29, easily topping analysts’ estimates for a 2.1% gain. But on the chain’s quarterly call with analysts, CEO Hubert Joly said that he did not think that the mid-single-digit rise in comparable sales would continue, and that it did not represent a “new normal.”

Best Buy raised its guidance for the full year. It now expects sales for the full year to increase 4%, compared to a prior forecast of 2.5%. It estimates income to rise 4% to 9% compared to a previous estimate for 3.5% to 8.5%.

Why Best Buy Stock Is Up 31% So Far This YearJuly 18, 2017 I Timothy Green I The Motley Fool

Shares of consumer electronics retailer Best Buy (NYSE:BBY) have surged 31% year to date, according to data from S&P Global Market Intelligence. The stock rose along with the market during the first half of the year, and a strong first-quarter report in May helped propel it to a new all-time high.

Best Buy’s successful turnaround began in 2012. The company slashed unnecessary costs, mostly by removing layers of management and making its supply chain more efficient. It also lowered prices and invested in its e-commerce business.

Best Buy’s online sales surged as well, up 22.5% year over year. The company has managed to hold its own against Amazon.com by becoming more competitive on price, revamping its website, and speeding up delivery times by shipping orders directly from its stores.

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t h e o f f e r i n gProperty Name Best Buy

Property Address 5890 N Elizabeth St

Pueblo, CO 81008

Assessor’s Parcel Number 501005012

Site DescriptionNumber of Stories One

Year Built 2007

Gross Leasable Area (GLA) ± 20,004 SF

Lot Size ± 3.0 Acres (20,170 SF)

Type of Ownership Fee Simple

Parking Professional

Parking Ratio Generally Level

Landscaping Professional

Topography Generally Level

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Future Shopping

Center

Subject Property

HWY 25 ± 28,000 ADT

f u t u r e d e v e l o p m e n t

Subject Property

Future Shopping

Center

Pueblo Crossing Shopping Center: The developer of the new Dick’s Sporting Goods/Ulta Beauty/Maurice’s addition recently began work on a second retail building.

The 13,700-square-foot strip mall-style building at 5931 N. Elizabeth St. will house up to seven small retailers or a mix of small and midsized retailers, according to Tennessee-based developer Hutton. The building site is in front of Dick’s.

To the south of the shopping center on Elizabeth Street, construction appears nearly completed on Pueblo’s first Tractor Supply store and is in the early stages on the city’s first Sportsman’s Warehouse. The building sites are just to the north of Outpost Harley-Davidson.

Immediately behind the shopping center to the west, construction is advancing on the new state Department of Transportation’s regional office and maintenance complex. The exterior walls of the $28 million complex are now in place.

13,700 SF

7

$28 MILLION

OF RETAIL

NEW RETAILERS

COMPLEX

Click here to learn more!

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Future Shopping Center

Subject Property

Future Shopping

Center

s u r r o u d i n g r e ta i l

A r e a O v e r v i e w P u e b l o , C oThe City of Pueblo has a long and colorful history dating back to 1842 when it was called Fort Pueblo.What brought the city from a small fort in southern Colorado to a major city were the ore mines. Thisarea once housed 4 separate towns, Pueblo, South Pueblo, Central Pueblo, and Bessemer. These 4towns together now make up the City of Pueblo.

The City of Pueblo is also known as “America’s Home of Heroes,” as was proclaimed by the UnitedStates Congress in 1993. Pueblo hosts National Medal of Honor Day and has had as many as 4living Medal of Honor recipients living in their community.

Economically, Pueblo is booming. It is one of the largest steel-producing cities in the UnitedStates and is often referred to as the “Steel City”. Additionally, Pueblo has one of the top 5lowest costs of living when comparing price levels of housing, utilities, transportation, andgroceries.

Portland Park Shelters:1700 Block of East 19 Street – Eastside Neighborhood.Installation of one park shelter and the accompanying ADA accessible route, relocation of the irrigation system, electrical service and lighting, installation of new picnic tables.

St Anne’s Park Ball Field Rehabilitation: 2700 E. 12 Street -Eastside NeighborhoodThe project will undertake the rehabilitation of the ball field to include the removal of substandard structures to provide improved playing conditions to area residents and youth baseball teams. Improvements to be undertaken are the construction of the backstop, removal, and replacement of broken chain-link fencing, construction of a new announcer’s booth and new infield mix.

Installation of Streetlights:2500 & 2600 Blk. E. 9 St & 2600 Blk. E. 10 StInstallation of three cobra head streetlights on the above-listed streets. At present, there are no streetlights on these blocks. Improvements will provide for safer pedestrian and vehicular transit.

p u e b l o c o m m u n i t y d e v e l o p m e n t

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p o i n t s o f i n t e r e s t

whitewater park pueblo mountain park steelworks museum

The Colorado State fair is an annual event

located in Pueblo. The fair features a variety

of events including concerts, rodeos, parades

and carnival rides and games. This event takes

place at the end of August and runs through the

beginning of September.

Located in Downtown Pueblo, the Whitewater

Park is approximately ½ mile long and contains

eight drops. While it is called a “park”, this kayak

course is a real river.

Lake Pueblo has been rated a “fishing hot spot”

as it provides 60 miles of shoreline, 4,600

surface acres of water, and 10,000 acres of

land. The area offers a full-service marina and a

variety of campsites so guests can stay awhile.

Along with the top ranked fishing, you can find

guests sailing, waterskiing and much more.

Colorado is known for its beautiful scenery

and guests can immerse themselves in nature

at Pueblo Mountain Park. Several hiking trails

are found on the 611-acre park whether it be

a guided hike or discovering your own path.

Additionally, Horseshoe Lodge offers a “nature

inspired” bed and breakfast so visitors can stay

multiple days.

The Pueblo Zoo is an AZA (Association of Zoos

and Aquariums) accredited facility that covers

twenty-five acres in the southwest quadrant of

Pueblo City Park. It is home to more than 500

animals representing over 125 different species

from around the world. The Zoo is a place where

animals are exhibited in natural settings.

The Steelworks Center of the West provides

continuing education to the public through

the preservation of historic archives, artifacts

and buildings of the Colorado Fuel and Iron

Company (CF&I), and related activities leading

to the industrialization of the entire Western

United States.

lake pueblocolorado state fair pueblo zoo

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c o l o r a d o s p r i n g s

Colorado Springs is home to the United States OlympicTraining Center and the headquarters of the United StatesOlympic Committee. Additionally, 24 of the United States’national federations for individual Olympic sports havetheir headquarters in Colorado Springs including the United States bobsled, fencing and figure skating. Figuringskating has had a particularly long associate with the cityhaving hosted the U.S. Figure Skating Championships sixtimes and the World Figure Skating Championships fivetimes.

olympic traning center

Only 40 minutes from Pueblo is the second most populous city in Colorado, Colorado Springs. This cityis a prime tourist location as it’s at the base of Pikes Peak and the Rocky Mountains and has an averageof 243 sunny days per year. 5 million visitors come to the area annually contributing $1.35 billion inrevenue. Colorado Springs has more than 55 attractions and activities in the area including the U.S.Olympic Training Center.

The city’s economy is still based heavily on tourism, although in more recent years, Colorado Springs has gained a strong foothold in the electronics, high-technology, and manufacturing industries while having a growing commercial economy led by varying components of the high-tech industry. Additionally, the area has seen a dramatic population growth over the last 30 years with the unemployment rate beingbelow the US average.

p r o p e r t y d e m o g r a p h i c s

POPULATION 1 Mile 3 Mile 5 Mile

2022 Projection 2,692 23,523 63,485

2017 Estimate 2,382 21,989 60,577

2010 Census 1,889 19,980 57,453

2000 Census 823 15,782 50,479

Growth 2017 - 2021 13.02% 6.98% 4.80%

Growth 2010 - 2017 26.13% 10.06% 5.44%

Growth 2000 - 2010 129.54% 26.60% 13.82%

HOUSEHOLDS 1 Mile 3 Mile 5 Mile

2022 Projection 1,066 9,623 25,547

2017 Estimate 942 8,962 24,221

2010 Census 745 8,082 22,672

Growth 2017 - 2022 13.13% 7.37% 5.48%

INCOME 1 Mile 3 Mile 5 Mile

2017 Est. Average Household Income

$80,671 $67,887 $54,227

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445,830

$72,579

34.4

POPULATION

AVERAGE HOUSEHOLD INCOME

MEDIAN AGE

COLORADO SPRINGS BY THE NUMBERS

top employers

Memorial Health Services

Penrose – St. Francis Health Services

Lockheed Martin Corporation

Atmel Corporation

Hewlett Packard

Broadmoor Hotel

Progressive Insurance Company

Verizon Business

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Best Buy located at 5890 N Elizabeth St, Pueblo, CO 81008 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TAT E M E N T

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BROKER OF RECORD

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e x c l u s i v e ly l i s t e d b y

O F F E R I N G M E M O R A N D U M

B e s t b u y5 8 9 0 N E L I Z A B E T H S T | P U E B L O , C O

Kyle MatthewsBroker of Record

Emai l : colorado@matthews.comDIR 310.579.9693LIC # EC.100070704