Lancaster Marketplace 1120 Lancaster Dr. SESalem, Oregon

Offered exclusively for sale by:

A.E. “Cap” Berri III VP, Chief Operating Officer, Principal BrokerLicensed in Oregon & Washingtoncberri@naielliott.com503.972.7187

R. Louis Elliott President, NAI Director, BrokerLicensed in Oregon & Washingtonlelliott@naielliott.com503.972.7212

119,137 sf Investment Offering$13,500,000

03 Property Highlights

04 Proforma NOI

05 Highlights

06 Tenants

10 Aerial Map

12 Site Plan

13 Site Details 15 Parcel Map

16 Demographics

17 The Market

Table ofContents

03

Lancaster Marketplace is a shopping center in Salem, Oregon consisting of a Sportsman’s Warehouse, Dollar Tree, Boys and Girls Club, and various retail stores This center is co-anchored by Shopko (not part of the sale) and WinCo Foods (not part of the sale).

Name: Lancaster Marketplace

Location: 1120-1264 Lancaster Drive SE Salem, OR 97317

Property Type: Retail, Shopping Center-Neighborhood Center

Year Built: 1991

GLA: 119,137 sf

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

Building Size: Sportsman’s Warehouse - 46,719 sf (39%) Dollar Tree - 28,528 sf (24%) Boys and Girls Club Bingo - 15,300 sf (13%) Retail Shop Space - 12,428 sf (10%) Month to month tenant- 2,800 sf (2%) Month to month storage- 9,700 sf (8%) Vacant shell space- 3,662 sf (3%)

Site Size: 8.17 acres (355,885 sf )

Parking: 359 spaces, 3 spaces per 1,000 sf of GLA

PropertyDetails

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

04

2016 ProformaNOI

Highlights:

• Long term leases with strong tenants• Excellent access to freeway system and

nearby employment center• Well-situated near residential neighborhoods• Located within an established, fully developed regional commercial center• Strong demographics• Month to month tenancy and shell

space represent upside potential• Excellent visibility to Highway 22 and

Lancaster Drive• Two pylon directory signs on property

and highly visible sign band• Professionally managed by NAI Elliott

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

05

Highlights

Tenants

Sportsman’s Warehouse was founded in 1986. Over the years, the concept evolved to focus exclusively on the outdoor enthusiast. Sportsman’s Warehouse offers an extensive selection of hunting, fishing, camping, optics, clothing and footwear merchandise, including more than 1,000 firearms, 80,000 flies for fishing, over 100 models each of tents, sleeping bags and back packs, and over 150 different types of binoculars and spotting scopes.

The Sportsman’s Warehouse opened in 2002 and will expire in March of 2023.

Sportsman’s Warehouse

Dollar Tree

Dollar Tree, Inc. is the world’s leading operator of $1 price point variety stores. Dollar Tree operates over 4,600 stores across the contiguous United States and five Canadian provinces and in at this point the company adds about 300 stores per year. A Fortune 500 Company, Dollar Tree has served North American retail centers and malls for more than twenty-six years. Stores operate under the names of Dollar Tree®, Dollar Bill$®, Only $1.00, ONLY $ONE®, Dollar Express and Greenbacks.

Dollar Tree opened in Lancaster Mall in 2004 and the current lease term expires in 2019.

Metro PCS

Metro PCS offers retail wireless equipment, accessories and service contracts.

This tenant opened in 2014 with the current lease term expiring in 2017.

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

06

Subway

Subway continues to be the undisputed leader in the submarine sandwich category serving fresh, great tasting, made-to-order sandwiches and salads many of which have 6 grams of fat or less. Offering a healthful alternative to traditionally fatty fast food has made the Subway chain a popular destination for health conscious consumers.

This Subway store opened in 1992 and the current lease expires in 2018.

Las Palomas Mexican Restaurant

This long term tenant of Lancaster Marketplace has offered a traditional Mexican menu and beverages in a sit down format for the last 20 years. This favorite local dining destination continues to be successful.

Las Palomas opened in 1992 and the current lease term expires in 2020.

Thai Beer Restaurant

A long term and successful business in the center for the last ten years, Thai Beer offers traditional Thai food and serves wine and beer.

Thai Beer Restaurant opened in 1999 and the current lease term expires in 2019.

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

07

Tenants

Daisy Nail Salon and Spa

This business is a retail nail salon and spa which specializes in manicures and pedicures, also providing waxing and hair design services.

Daisy Nail Salon and Spa opened at Lancaster Marketplace in 2007 and the current lease term expires in 2016.

Perfect Look

Offering family oriented, non-appointment haircuts, Perfect Look is part of an employee owned company with 100 stores operating in Oregon, Washington, Idaho, Alaska, and Arizona.

Perfect Look opened in 2013 with the current lease term ending in 2018.

Boys & Girls Club Bingo

The Boys & Girls Club of Salem is the tenant under the lease for this space. The non-profit club operates bingo games from the premises. The proceeds of the games go to support the services of this charity.

The Boys and Girls Club of Salem opened in the center in 2010 and the current lease term expires in 2020.

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

08

Tenants

WinCo Foods

WinCo Foods is the primary grocery anchor of Lancaster Marketplace. WinCo Foods is a regional grocery chain headquartered in Boise, Idaho with 90 stores located in 7 western states with 14,000 employees. WinCo has competed successfully in the lower-priced grocery marketed for over 40 years. The WinCo Foods store is approximately 82,000 square feet and is open 24 hours per day.

WinCo Foods owns its building and parking field and the property is not part of this offering.

ShopKoShopKo is a secondary anchor in Lancaster Marketplace offering discount prices on a wide variety of consumer goods along with a pharmacy and optometry services. This store is approximately 110,000 square feet. ShopKo is headquartered in Green Bay, Wisconsin, traces it’s history back to 1962, and now has grown to 330 stores in 21 states. The company is on a growth curve, and looks to open new stores at a rate of from 10 to 20 stores per year.

The ShopKo property is not part of this offering.

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

09

Shari’sShari’s Restaurants is a chain of family dining restaurants in the western United States. Shari’s is open 24 hours a day, 365 days a year. Shari’s currently has 98 locations in California, Idaho, Nebraska, Oregon, Washington and Wyoming

Shari’s property is not part of this offering.

ShadowAnchors

LancasterMarketplace

Aerial Map

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

10

Aerial View

— Property Offered For Sale

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

11

Retail Shop Building Tenants(enlarged area)(1) Suite 1120 - Metro PCS (future tenant)(2) Suite 1122 - Subway(3) Suite 1126-B Las Palomas Mexican Rest.

(4) Suite 1130 - Thai Beer

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Tenants(enlarged area)

(5) Suite 1250 Your Home(6) Suite 1254 Daisy Nail(7) Suite 1256 Perfect Look

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(8) Suite 1260 Sportsman’s(9) Suite 1264- A Dollar Tree(10) Suite 1264-B B & G Bingo(11) Suite 1264 -C Your Home Storage(12) Suite 1256 -D Vacant Shell

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

12

**Note: Winco, ShopKo, Shari’s, Burger King, and Chevron are not included in the sale of Lancaster Marketplace**

Site Plan

Site Details

Size: 8.17 acres (355,885 SF)

Topography: Generally levelAdjacent PropertiesNorth: Retail strip mallsSouth: Hwy 22 - North Santiam HighwayEast: Residential HomesWest: Retail Businesses

Utilities: All utilities are available to the site.

Street Improvements: Lancaster Drive SE. is a four-lane, two-way, asphalt paved street with curbs, sidewalks, and streetlights.

Accessibility: Access to the property is only available via Rickey Street SE.

Traffic Count: Lancaster Drive SE & Rickey Street SE - 30,120 dailySantiam Hwy SE & Lancaster Drive Exit - 56,200 daily

Exposure: Exposure of Lancaster Marketplace is average/good from Lancaster Drive SE, with exposure from both Hwy 22 (major arterial) and Rickey Street SE, which is a minor surface street.

Landscaping: Good quality landscaping at perimeters of the site

Site Improvements: Extensive concrete curbing, gutters and sidewalks, asphalt paving and approximately 350+ marked parking spaces

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

13

Site Details

Zoning: The property is zoned CR (Commercial Retail). The purpose of the CR (commercial retail) zone is to provide areas suitable for professional and general commercial offices, retail sales within a building, eating and drinking places, commercial accommodations and commercial services. The commercial retail zone is appropriate in those areas designated commercial in the applicable urban area comprehensive plan and where the location has access to a collector or arterial street.

Soils: Based on similar uses surrounding the center, it appears the soils are stable and suitable for the existing improvements.

Earthquake Zone: Marion County is located in Seismic Zone 3. Zone 3 is a medium risk area which applies to all of Western Oregon State.

Flood Plain: The property is in Flood Zone X. Zones X is an area of low flood risk determined to be outside the 100-year floodplain. This is referenced by Federal Emergency Management Agency Flood Map, Community Number #41047C, Panel #0361 H, dated January 2, 2003.

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

14

— Property Offered For SaleReference Parcel Numbers 072W31D00500072W31D01000

Rickey Street SE

Lanc

aste

r Driv

e SE

Hwy 22 - North Santiam Hwy

Parcel Map

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

15

Demographics

Source: STDBonline / U.S. Census Bureau (DataMetrix® Products)

1.0 Mile 2.0 Mile 3.0 Mile

2015 Population Total Population 12,891 30,649 73,901 Median Age 34.90 36.00 36.40

2015 Income Median HH Income $42,596 $41,710 $41,364

Average HH Income $47,639 $48,176 $51,721

2015 Households Total Households 4,509 9,949 24,973 Average Household Size 2.80 2.80 2.70 Median Home Value $140,264 $139,048 $152,830 Average Household Vehicles 2.00 2.00 2.00

2015 Housing Owner Occupied Housing Units 2,373 5,469 13,181 Renter Occupied Units 2,136 4,480 11,792

Population 2020 Population (forecast) 13,333 31,656 73,901

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

16

The Market

The City of Salem is Oregon’s state capital and the third largest city. Located alongside the Willamette River, Salem was founded in 1842 and is in the center of the Willamette Valley. The Willamette Valley is one of the most fertile and agriculturally productive regions in the world. Salem is 55 miles to the east of the Pacific Ocean, 47 miles south of Portland and 64 miles north of Eugene. The Salem metropolitan statistical area has a population of 390,738 with a median house income of $43,202. State government is the city’s largest employer, with approximately 13,000 full-time employees, 38 of the largest state agencies and more than 20 smaller ones are located in the vicinity.The region consistently scores high on quality of life, with favorable labor, taxes, educational institutions, cultural offerings, governmental services, developable sites, good transportation, which all contribute to attracting new industries and help retain existing businesses.

Overview

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

17

As the capital of Oregon, Salem is primarily a government-supported community representing about 41,600 jobs. Other private employers represent about 66,000 jobs. The Salem metropolitan and rural area has a diversified economic base, which also includes food processing, wood products, manufacturing, paper converting and agriculture. Outside of government jobs the food production and processing industry remains the largest private employer with in the region.

Major employers outside the government sector include Salem Hospital, Salem-Keiser Public Schools, State Farm Insurance, Norpac Foods, SAIF Corporation, Agripac, Fred Meyer, Siltec (a manufacturer of silicon wafers for the high tech industry), and Willamette Industries. Downtown Salem is a strong retail area dominated by Salem Center, which occupies two full blocks. Several department stores anchor the downtown retail market - Nordstrom, Macy’s, JCPenney, Kohl’s and Ross Dress For Less.

Lancaster Mall in east Salem is a regional shopping center developed in 1971. The mall experienced a complete remodel in 2002 and is now home to several major department stores: Best Buy, Macy’s, Burlington Coat Factory, Jo-Ann Fabric & Craft, Sports Authority and Sears. Other major retailers include Regal Cinemas, Victoria’s Secret, The Children’s Place, Pier 1 Imports, Famous Footwear, and Payless Shoe Source. Restaurants include Applebee’s Grill, Baja Fresh, McGrath’s Fish House, Subway, Orange Julius and Starbucks to name a few.

Economic Overview

The information herein has been obtained from sources we deem reliable. We do not, however, guarantee its accuracy. All information should be verified prior to purchase

18

The Market

Contact:

A.E. “Cap” Berri IIIVP, Chief Operating Officer, Principal BrokerLicensed in Oregon & Washingtoncberri@naielliott.com503.972.7187

R. Louis Elliott President, NAI Director, BrokerLicensed in Oregon & Washingtonlelliott@naielliott.com503.972.7212