SLEEP NUMBER Freddy’s Frozen Custard · 2is iti s ee secued suces e elieve t e elile ut e e eesettis ties exessed ilied s t te ccucy te iti Reeeces t sue te e e approxite Buye ust

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

SLEEP NUMBER794 OLSON DRIVEPAPILLION, NE 68046

Offering Memorandum

AERIAL PHOTO SLEEP NUMBER

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. © 2013 Marcus & Millichap ACT ID Z0070443

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.

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25,000 STUDENTS

INDUSTRIAL

RALSTONHIGH SCHOOL1,000 STUDENTS

SHADOW LAKE TOWNE CENTER

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Starbucks

264 UNITS

STATE HWY 37029,800 CPD OLSON DRIVE




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APARTMENTS

STATE HWY 37029,800 CPD

OLSON DRIVE

MCDONALD’S

JIMMY JOHN’S


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SLEEP NUMBER794 Olson DrivePapillion, NE 68046

FINANCIAL SUMMARY

Price $2,200,000

Down Payment 100% $2,200,000

Cap Rate 6.0%

Building SF 3,366 SF

Net Cash Flow 6.0% $132,000

Year Built 2019

Lot Size .82 Acres

LEASE SUMMARY

Lease Type Double-Net (NN) Lease

Tenant Select Comfort Retail Corporation dba Sleep Number

Lease Guarantor Corporate

Roof & Structure Landlord Responsible

Rent Commencement Date March 31, 2019

Lease Expiration Date March 31, 2029

Lease Term 10 Years

Rental Increases 2% Annually

Renewal Options 2, 5 Year Options

BASE RENT $132,000

Net Operating Income $132,000

Total Return 6.0% $132,000

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

Year 1 $132,000 6.00%

Year 2 $134,640 6.12%

Year 3 $137,346 6.24%

Year 4 $140,085 6.37%

Year 5 $142,890 6.50%

Year 6 $145,761 6.63%

Year 7 $148,665 6.76%

Year 8 $151,635 6.89%

Year 9 $154,671 7.03%

Year 10 $157,773 7.17%

FIRST OPTION PERIOD ANNUAL RENT CAP RATE

Year 11 $160,908 7.31%

Year 12 $164,142 7.46%

Year 13 $167,409 7.61%

Year 14 $170,742 7.76%

Year 15 $174,141 7.92%

SECOND OPTION PERIOD ANNUAL RENT CAP RATE

Year 16 $177,639 8.07%

Year 17 $181,203 8.24%

Year 18 $184,833 8.40%

Year 19 $188,529 8.57%

Year 20 $192,291 8.74%

EXECUTIVE SUMMARY




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TENANT OVERVIEW

Founded in 1987 and based in Minneapolis, Sleep Number (publicly traded and U.S. based) designs, manufactures, markets and supports a line of adjustable-firmness mattresses featuring air-chamber technol-ogy, branded the SLEEP NUMBER® bed, as well as bases and bedding accessories. SLEEP NUMBER® products are sold through its approxi-mately 569 company-owned stores located across the United States in the 4,500-10,000 SF range; select bedding retailers; direct marketing operations; and online at www.sleepnumber.com.

At Sleep Number, their mission is to improve lives by individualizing sleep experiences. They start by focusing on the customer. By believ-ing that each customer is unique and deserves sleep solutions that are just right for him or her, Sleep Number provides products designed to help individuals sleep their very best.

Sleep Number is a high-end brand with opportunities for deeper mar-ket penetration. The company currently has a partnership with the NFL and plans to continue aggressive growth. The company has increased their R&D spending 93% and 75% from 2015-2016 and 2016-2017, respectively. In 2018, Sleep Number’s net sales increased 13% during the fourth quarter to $412 million, topping analysts’ estimates of $408 million, and full-year sales increased 6% to a record $1.53 billion.

Headquarters Plymouth, MN

Stock Symbol NASDAQ: SCSS

Founded 1987

Locations 569 in 49 States

Website www.sleepnumber.com

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Starbucks

Situated in Sarpy County and part of the larger Omaha Metropolitan Area, Papillion is an 1870s railroad town and suburb of Omaha. Though Sarpy County is the smallest county in the state, it has the third largest population. Over the last three years, the county has experienced an average population growth of 1.82%

Papillion is home to a thriving business environment with a relatively young and affluent population. The city benefits from its proximity to the greater Omaha metro. Papillion has the lowest property tax levy in the region, sales tax that is consistent with surrounding cities and no restaurant tax. The Papillion Business and Technology Park also offers a profitable opportunity for developers and organizations looking to set up operations in the city. It is a 50-minute drive from 60% of Nebraska’s labor force and much of eastern Iowa and is visible to over 21,000 cars per day. The largest employers in the county include Offut Air Force Base, PayPal Inc. and Werner Enterprises Inc.

The Omaha Metropolitan Area extends over a large area on both sides of the Missouri River in Nebraska and Iowa and consists of eight counties – five in Nebraska and three in Iowa. The region’s economy benefits from the numerous Fortune 500 and Fortune 1000 companies headquartered in Omaha as well as from tourists flocking to the region’s many attractions.

Sarpy County in 2019 will be a hotbed of construction activity. A massive Facebook data center is currently underway that is expected to span about 3 million-square-feet of building space on both sides of Nebraska Highway 50. Another giant data center is poised to rise on a 275-acre site northwest of Highway 50 and Schram Road. Also in 2019, Omaha Box Co. will build a $45 million, 335,000-square-foot headquarters south of 150th Street and Schram Road. Meanwhile, Dowd Properties and Noddle Cos. will continue development of a 350-acre site near Interstate 80 and Nebraska Highway 370 that features auto dealers and future retailers, distribution centers and industrial warehouses.

Among other ongoing construction projects is the $235 million mixed-use City Centre in La Vista. All this is on top of various residential construction, including the first phase of a 50-acre rental community called Urban Waters rising near Prairie Queen Recreation Area.

LOCATION OVERVIEW

NEW DEVELOPMENTS IN SARPY COUNTY

INVESTMENT HIGHLIGHTS

• Brand New 10-Year Corporate Lease with Sleep Number – 2019 Construction

• 2% Annual Rental Increases

• 124,843 Residents in Growing Papillion Trade Area – Omaha MSA

• Adjacent to Shadow Lake Towne Center – 735,000 SF Outdoor Shopping Center

• Excellent Visibility from State Highway 370 (29,800+ CPD)

• Minutes from the Interstate-80 – a Major East-West Transcontinental FreewayConnecting Lincoln, Omaha and Des Moines

• Close Proximity to Offut Air Force Base

• Average Household Income Exceeds $104K in 3-Mile Radius

• 102,500+ Daytime Employees in Surrounding Area

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles

2017 Est. Average Household Income $79,960 $104,211 $88,087

2017 Est. Median Household Income $63,990 $87,410 $70,897

2017 Est. Per Capita Income $31,301 $36,665 $33,212

Population 1-Mile 3-Miles 5-Miles

2022 Projection 9,398 52,230 134,364

2017 Estimate 8,771 46,791 124,843

Growth 2017 - 2022 7.15% 11.63% 7.63%

Households 1-Mile 3-Miles 5-Miles

2022 Projections 3,726 18,551 51,174

2017 Estimate 3,398 16,405 46,989

Growth 2017 - 2022 9.65% 13.08% 8.91%

DEMOGRAPHICS




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PROPERTY PHOTOS

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SLEEP NUMBER



Starbucks

SITE PLAN

N

3,36

6 SF

.82

ACRES




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LOCAL MAP

Williams-Sonoma

MAP

3 MILESWalnut Creek

Lake & Recreation

10 MILESUniversity of

Nebraska Omaha

16 MILESOmaha EppleyAirfield (OMA)

13 MILESDowntown

Omaha

Net Leased Disclaimer

OMNE Partners hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, OMNE Partners has not and will not verify any of this information, nor has OMNE Partners conducted any investigation regarding these matters. OMNE Partners makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. OMNE Partners expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care-ful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and finan-cial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed fa-cilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be inter-rupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

Confidentiality Agreement

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from OMNE Partners and it should not be made available to any other person or entity without the written consent of OMNE Partners By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to OMNE Partners.

This offering memorandum has been prepared to provide summary, unverified financial and physical 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. OMNE Partners 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, PCBs or asbestos, the compliance with local, 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 offering memorandum has been obtained from sources we believe to be reliable; however, OMNE Partners has not verified, and will not verify, any of the information contained herein, nor has OMNE Partners 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. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE OMNE PARTNERS AGENT FOR MORE DETAILS.

exclusively listedExclusively listed by:

DAN GOALEYBroker of RecordNEBRASKA OFFICETel: (402) 505-7736License: 20061147

Documents

SLEEP NUMBER Freddy’s Frozen Custard · 2is iti s ee secued suces e elieve t e elile ut e e eesettis ties exessed ilied s t te ccucy te iti Reeeces t sue te e e approxite Buye ust