ESSENTIAL GROWTH ACQUISITION PROPERTIES FUND I

INVESTOR PRESENTATION | JULY 2021

ESSENTIAL GROWTHACQUISITION PROPERTIES FUND I

TABLE OF CONTENTS

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3 eGap’s POINT OF DIFFERENCE4 LEADERSHIP5 eGap FLYWHEEL6 FUND OVERVIEW & FEE STRUCTURE8 WHY ESSENTIAL / GROCERY10 ACQUISITIONS: FILTERING, DEAL FLOW, PROCESS12 EGAP FUND STRATEGY15 CASE STUDIES18 CONTACT

eGap’s POINT OF DIFFERENCE

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COMPANY OVERVIEW

Essential Growth Acquisition Properties, Inc. (eGap), founded in Cincinnati, OH in 2021, is a full-service real estate acquisition, ownership & management company focused on the grocery-anchored shopping center space. Formed as a partnership between a 20-year grocery real estate executive at The Kroger Co. and principals from Kroger’s integrated property management and real estate business services company (1045, LLC), eGap is uniquely positioned to create value through the ownership and operation of high-quality grocery anchored shopping centers.

Grocery customers are shifting channels between brick & mortar and eCommerce, but they remain committed to the in-store experience offered by the best retailers. Change in the grocery industry is accelerating at a rapid pace, and it is critical for investors to remain a step ahead. eGap’s experienced and diverse management team has a 360-degree view of the business, uniquely positioning them to navigate the impacts of these industry changes on the real estate community. This can drive long-term value creation through the ownership of grocery anchored centers.

1045, LLC has provided property management and other integrated services for Kroger and other retailers for over 40 years. They have 2,900 shopping centers under management, totaling 74.5 million square feet in 45 states. Their 78 professionals are located in 17 states, performing full-service property management, landlord dispatch, lease restructuring, CAM auditing, brokerage and specialty leasing services for these retailers. These workstreams each generate visibility and touchpoints into unique opportunities to acquire assets and create investor value. eGap’s assets and investors will benefit from this tremendous scale, integration and relentless obsession with the retail customer.

The grocery anchored sector has never been hotter. eGap has a true point of difference to win in this changing space.

eGap LEADERSHIP

MICHAEL MARGIOTTA | PrincipalMr. Margiotta has been in commercial real estate for close to 20 years. Prior to forming 1045 Real Estate, he worked as the Sr. Dir. ofManagement for Priority Properties managing both finance and operations. He currently sits on the 1st Advantage Bank’s Board ofDirectors, on their Legal Board & ALCO committee. His strengths include business development, implementation of new technologiesand financial acumen. He holds both a BA and an MBA from the University of Tulsa.

RICHARD WEBB | PrincipalRichard Webb has been working in the commercial real estate arena since the 1980’s and is a licensed commercial real estate broker. In1982, he began managing large portfolios of commercial real estate assets. His experience is in the banking, finance, leasing, propertymanagement and acquisition/dispositions area of the real estate industry. Richard is involved in the transaction side of 1045 and managesthe leasing and due diligence operation teams. Richard is a graduate of the University of Texas Tech and holds a Bachelor of Sciencedegree in Business Administration.

MATT PRICE | CPA, PrincipalMr. Price has been working in the commercial real estate industry since 1997. Prior to forming 1045 Real Estate, he worked as the CFOfor Emersons Commercial Management, overseeing both the financial and operational aspects of the company. He is a Certified PublicAccountant and has experience with all facets of commercial real estate transactions. His strengths include business development,financial aspects of commercial real estate and real estate management. He holds both Bachelor and Master’s degrees in accounting fromthe University of North Texas.

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NICHOLAS HODGE | Chief Executive Officer, Fund Manager and PrincipalMr. Hodge has been in commercial real estate for 25 years, including 20 years with The Kroger Co. where he most recently served asVice President, Corporate Real Estate (Head of Real Estate), covering nearly 3,000 retail, industrial & manufacturing assets. In addition todeploying over $2 Billion per year in brick & mortar capital for Kroger and serving on their Capital Committee, he also had direct P&Lresponsibility for 200 company owned shopping centers. Mr. Hodge is on the Board of Trustees for the International Council ofShopping Centers (ICSC), the Downtown Cincinnati Improvement District Board and serves on the Financial Committee for theDowntown Cincinnati Development Corporation (3CDC). He holds both a BA from Washington & Lee University and an MBA inFinance from The Ohio State University.

eGap’s unique virtuous circle is a competitive advantage in a competitive market.

• Management has unique insights & 360-degreeexperience in changing environment.

• 1045 LLC provides scale and efficiencies at theasset & property management level.

• Specialty Leasing Infrastructure in place to createincremental value (outparcel carveouts, cell towers,EV Chargers, e.g.)

• Strong/Integrated Management relationships withretailers in the industry.

THE eGap FLYWHEEL

Investor Value

Diverse Management Expertise &

Proven Track Record

Property & Asset Mgt at

Scale

Integrated Value-Add Services

(Specialty Leasing)

Integrated Industry

Relationships

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ESSENTIAL GROCERY ANCHORED PROPERTIES FUND I OVERVIEW

FUND STRATEGYSource and acquire stable, grocery-anchored shopping centers, leveraging deep asset and property management relationships, nationwide

– Leverage longstanding relationships andmanagement of elite grocery brands

– Target brands and banners from elite, proven brandfamilies such as The Kroger Co., Albertson’s, andDelhaize, among others

– Seek double net+ leases: Tenants responsible forproperty taxes, insurance, and most maintenance

– Create value via lease restructuring, tenancyoptimization, advantageous sales

– Fund managed by eGap Fund I Manager, LLC– Fund seeks to raise a maximum of $50,000,000– Offered on a non-commission basis to accredited

investors and via Registered Investment Advisors(RIAs)

– $500,000 per unit, 100 units available for purchase– 6% preferred return– Target IRR of 15-19% net of fees and expenses– Fund has option to recycle capital during the

investment period– Target 60-70% leverage, fund-wide

THE OFFERINGClosed-end limited partnership structure

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CAPITAL CALLS

INITIAL DEPOSIT10% of capital commitment, paid at time of subscription submittal

SUBSEQUENT CALLSAt Manager’s discretion to finance Fund’s operations

FEE STRUCTURE & CAPITAL CALL PROCESS

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FEE STRUCTURE

COMMISSIONS None

ORGANIZATIONAL EXPENSES & EQUITY RAISING $350,000

ASSET MANAGEMENT 1% per annum on committed capital

PROPERTY AQUISITION/SALE 1% of transaction price

CARRIED INTEREST 20%

Please see EGAP PPM for detailed schedule of fees

Please see EGAP PPM for detailed capital call process overview.

GROCERY: THEN & NOW

NOWGrocery remains the epicenter of the shopping and

commerce experience for humans, and other necessities are intentionally located in close

proximity to grocery markets

THENGrocery markets are some of mankind’s longest

standing institutions, and have long served as gathering places for humans to socialize and

participate in trade

Grocery has always been essential

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COVID-19 AND THE TWO TRACK PATH

– Grocery Anchored Shopping Centershave navigated COVID-19 on a two-track path

– Certain shopping center tenants thatrequire in-person interactions andface-to-face contact remain wellbelow pre-pandemic foot traffic andrevenue levels due to risks ofinfection

– Grocery stores are eminently essentialfor all US consumers, and haverequired in person visits or onlineordering

91%of shoppers say

they miss shopping in

stores1

79%of consumers have bought groceries

online duringthe pandemic2

88%of consumers expect

their community connections to stay

intact long afterthe virus is contained.4

80%feel more or as connected

to their communities than they did before

the pandemic3

40%of U.S. consumers are

becoming more mindful of where they spend their money5

69%and say COVID-19 hasmade them morefocused on managingtheir mental healthandwell-being6

Source: 1Incisiv 2Inmar Intelligence 3Accenture 4Accenture 5McKinsey 6PwC

– This duality serves asturnkey diversificationand risk mitigation forthe EGAP investor

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ACQUISITIONS: DEAL SOURCING | PROPRIETARY DEAL FLOW

ROBUST, EFFICIENT, PROPRIETARY DATA PIPELINE, ENABLING MANAGER TO:

Massive focus on supremely high touch relationships with targeted, elite grocery brands

Track owner/sponsor, master servicer, special servicer and directing certificate holders of assets leased to elite grocery brands

Track all newly defaulted CRE loans in US across all real estate asset classes

Output from decades of relationship building with professional brokers with significant deal flow

MONITOR DETAILED INFORMATION ON ELITE, GROCERY-RELATED ASSETS INCLUDING:

Debt maturity data-points

Corresponding lease expiration

Tenant Credit Rating/Health Ratio

Account for every elite grocery asset in the market for sale including assets housed on all loan servicer auction platforms

Receive automated real-time notifications via email when any loan with a target brand goes into default

Additional platforms data include: TREPP, Reonomy, First American Title Research Portal, Costar Suite & Argus

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ACQUISITIONS: FILTERING, UNDERWRITING, DUE DILIGENCE, & CLOSING

FILTERING

Sourced deals are filtered via information gleaned from sellers, brokers and servicers to narrow pipeline of prioritized transaction opportunities

EVALUATING AND UNDERWRITING

Team reviews market and property data to compile underwriting and investment overview, which establishes initial pricing

eGap consults with corporate brand management, as appropriate

DUE DILIGENCE

Site Visit: Member of deal team visits site to meet brokers, property management and contractors and confirm:

– market assumptions andmarketing plan

– building condition,occupancy and requiredimprovements

Property Condition/Capital Budget:

Team uses property condition report and on-site visit to refine and confirm capital budget

Legal Review: Title, lease, and transaction document reviews conducted

Investment Committee Approval

CLOSING

Equity capital called, as appropriate

Debt Capital secured and drawn

Transaction closes

1045/EGAP assume management of asset

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BRANDS

WHAT WE SEEK:

eGap targets stable shopping centers anchored by premier, proven brands

Specific focus on The Kroger Company, Delhaize, and Albertson’s brands,as 1045 maintains deep, proprietary relationships with these management teams

Opportunistic, relationship-oriented investments in essential pharmacy and convenience properties

WHAT WE AVOID:

Non-anchored centers

Non-grocery anchored centersNon-stabilized grocery anchored centersNon-essential pharmacy/convenience

ESSENTIAL PHARMACY&

CONVENIENCE / OTHER

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EGAP ECOSYSTEM

Elite Pharmacy/Convenience properties can be found in close proximity to elite grocery properties.

These brands boast the brand power and differentiation that enhances their performance by locating nearby.

ELITE GROCERY+ ELITE PHARMACY/CONVENIENCE+ NECESSITY RETAIL+ 1045 MANAGEMENT AT SCALE

= EGAP ECOSYSTEM

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EXAMPLE EGAP FUND AT MATURITY

80%Grocery AnchoredShopping Centers

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20%Essential Pharmacy &Convenience/Other

AT MATURITY, EGAP WILL OWN A DIVERSIFIED PORTFOLIO COMPRISED OF:

– At least 80% of the portfolio invested ingrocery anchored shopping centers withleases to elite, targeted brands

– 20% or less of the portfolio invested inessential pharmacy and convenienceproperties leased to elite, targeted brands

RESULT: ENHANCED DIVERSIFICATION FOR EGAP INVESTORS

CASE STUDY: Roundy’s | Mazo, WI

400 Walter Rd, Mazomanie, WI 53560

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– This opportunity reflects 1045’s unique deal pipeline. We were able to source this

deal off-market on a relationship basis.

– Received through a ROFR from Kroger. Purchased this Roundy’s distribution facility

at a 9.6% cap ($5.5MM), extended the lease for 10 years of total term for $500K in

TI, sold for $8.740 MM (6.35 cap).

– Raised equity from a Dallas family office, who closed all cash.

– Sold prior to the placement of permanent financing.

ACQUISITION INFORMATION

TRANSACTION TYPE ROFR

PURCHASE PRICE $5,500,000

CAP RATE 9.6%

OCCUPANCY 100%

ANCHOR % OF INCOME 100%

STABILIZED INFORMATION

SALES PRICE $8,740,000

CAP RATE 6.35%

NEW OCCUPANCY 100%


IRR >40%

MONEY MULTIPLE 1.40x

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CASE STUDY: Four Kroger Sale Leaseback

CONYERS, GA1745 GA-138 SE, Conyers, GA 30013

ACQUISITION INFO

TRANSACTION TYPE Sale Leaseback


CAP RATE 8.00%

OCCUPANCY 89%

ANCHOR % OF 61.75%

STABLIZED INFO


CAP RATE 7%

NEW OCCUPANCY 89%


IRR >15%

MONEY MULTIPLE >1.2x

Purchased four Kroger shopping centers in 30 days at an 8% cap rate (15-year terms) via sale leaseback. 1045 instituted operational efficiencies andclosed new leases with Kroger, selling the properties thereafter. Kroger anchored space sold at 6% caps, Adjacent retail sold at 7.5%-8% caps.Also had offers to buy each center in full at a 7% cap (100bps of compression, + lease up value). This sale leaseback was entirely driven through1045’s relationship with Kroger.

MONROE, MI850 S Monroe St.,Monroe, MI 48161

ACQUISITION INFO



CAP RATE 8.00%

OCCUPANCY 86%


STABLIZED INFO


CAP RATE 7%

NEW OCCUPANCY 86%


IRR >15%


FARMINGTON HILLS, MI25780 Middlebelt Rd Farmington Hills, MI 48336

ACQUISITION INFO



CAP RATE 8.00%

OCCUPANCY 90%


STABLIZED INFO


CAP RATE 7%

NEW OCCUPANCY 91.1%


IRR >15%

FORT WAYNE, IN125 W State Blvd Fort Wayne, IN 46808

ACQUISITION INFO



CAP RATE 8.00%

OCCUPANCY 91%


STABLIZED INFO


CAP RATE 7%

NEW OCCUPANCY 95%


IRR >15%


CASE STUDY: Kroger | “DELCHAMPS”

1829 Hwy 45 N, Columbus, MS 39705

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– 1045 purchased a retail shopping center (at an 8.8% cap rate) adjacent to a wellperforming, Kroger-anchored center with expansion possibilities. 1045 subsequentlyacquired the Kroger center via sale leaseback on a 15-year master lease at a 6.5%cap rate. The combined center will likely attract a marketplace premium and is anexample of 1045’s ability to leverage its relationships and marketplace knowledgeto creatively deliver value.

– The transaction was funded by 1045 and private capital.

ACQUISITION INFORMATION


PURCHASE PRICE $11,164,292.31

CAP RATE 7.36%

OCCUPANCY 100%


STABILIZED INFORMATION

EST SALES PRICE $13,313,000

CAP RATE 6.18%

NEW OCCUPANCY 100%


IRR >17%

MONEY MULTIPLE >1.40

CONTACT

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This summary does not constitute an offer tosell securities nor a solicitation of offers to purchase securities. The information presented herein was prepared by the Manager and does not purport to be all inclusive,does not purport to provide cash distribution projections that are necessarily predictive of actual results,and does not contain all of the information that a prospective investor may desire in investigating the Company. Any offering of securities will be made pursuant to the disclosures,terms,and conditions contained in a private placement memorandum distributed to prospective investors. Generally,only accredited investors will be permitted to become investors.

Any requests for additional information and/or the private placement memorandum should be directed to:

Nicholas HodgeChief Executive Officer & Fund Manager

[email protected]

513.713.0702

www.egapfunds.com

mailto:[email protected]

ESSENTIAL GROWTH ACQUISITION PROPERTIES FUND I

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