ACTU

AL SI

TE

MULTI TENANT INVESTMENT OPPORTUNITYNewton, Iowa

Newton Shops

CONTENTSINVESTMENT SUMMARY .................................3

HIGHLIGHTS ...................................................4

PROPERTY DESCRIPTION .................................5

AERIAL VIEW & SITE PLAN ................................6

AREA OVERVIEW ............................................11

RENT ROLL ....................................................12

PRICING SUMMARY .......................................13

TENANT SYNOPSIS .........................................14

CONTENTS | 2 NEWTON SHOPS | NEWTON, IOWA

This Offering Memorandum has been prepared by SRS and has been approved for distribution by the owner. Although effort has been made to provide accurate

information, neither the owner nor SRS can warrant or represent accuracy or completeness of the materials presented herein or in any other written or oral

communications transmitted or made available to the purchaser. Many documents have been referred to in summary form and these summaries do not purport

to represent or constitute a legal analysis of the contents of the applicable documents. Neither owner nor SRS represents that this offering summary is all inclusive

or contains all of the information a purchaser may require. All of the financial projections and/or conclusions presented herein are provided strictly for reference

purposes and have been developed based upon assumptions and conditions in effect at the time the evaluations were undertaken. They do not purport to reflect

changes in the economic performance of the property or the business activities of the owner since the date of preparation of this Offering Memorandum. The pro-

jected economic performance of the property, competitive submarket conditions, and selected economic and demographic statistics may have changed subsequent

to the preparation of the package. Qualified purchasers are urged to inspect the property and undertake their own independent evaluation of the property, the

market and the surrounding competitive environment.

EXCLUSIVELY MARKETED BY

SEAN LUTZ | Senior Vice PresidentSRS National Net Lease Group155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606D: 312.279.5343

Sean.Lutz@srsre.com | License No. 475132482

DAN ELLIOT | Senior Vice PresidentSRS National Net Lease Group155 N. Wacker Drive, Suite 3660 | Chicago, IL 60606D: 312.279.5342

Dan.Elliot@srsre.com | License No. 475144985

INVESTMENT SUMMARY | 3

SRS National Net Lease Group is pleased to present the opportunity to acquire Newton Shops, a 20,153 SF, 6-unit, net leased, 100% occupied, strip center located in Newton, Iowa. Newton Shops features a mix of national and local tenants such as Good Will, Verizon Wireless, National Cash Advance, El Sombrero, China King, and #1 Nails. The leases have variable expiration dates and a low average rent per square foot of $7.16. Newton Shops is priced below its replacement cost at $76 PSF.

Newton Shops is located at the signalized, hard corner intersection of 1st Avenue E. and E. 12th Street (15,900 combined vehicles per day) in downtown Newton. 1st Ave is the major thoroughfare for the city of Newton and provides direct access to Interstate 80. Additionally, 1st Ave is a retail corridor with national/credit tenants such as O’Reilly Auto Parts, Walgreens, Anytime Fitness, and more. Other tenants within the trade area include Walmart, Hyvee, and US Bank. The 5-mile trade area is supported by a population of 17,800 with an average household income of $56,700.

OFFERINGPricing: $1,540,000Net Operating Income: $127,573Cap Rate: 8.28%

PROPERTY SPECIFICATIONSRentable Area: 20,153 SFLand Area: 2.08 AcresProperty Address: 1110 1st Avenue East, Newton, IA 50208Year Built: 1972 Parcel Number: 0834231031Ownership: Fee Simple (Land and Building)

NEWTON SHOPS - NEWTON, IOWA

ACTU

AL SI

TE

NEWTON SHOPS | NEWTON, IOWA

HIGHLIGHTS | 4

Fee Simple Ownership (Land & Building) / Strong Tenant Lineup • Tenants include: Good Will, Verizon Wireless, National Cash Advance,

El Sombrero, China King, and #1 Nails• Majority of tenants reimburse for CAM

Low Rent Per SF / Priced Below Replacement Cost• Newton Shops features a low average rental rate of $7.16/SF/Year• Priced below its replacement cost at $76 PSF

Signalized Hard Corner Intersection / Interstate 80 Access• Newton Shops is situated at the signalized, hard corner intersection of 1st Avenue E. and

E. 12th Street (15,900 combined vehicles per day) in downtown Newton.• 1st Avenue E. is a major thoroughfare for the city of Newton• One mile away from Interstate 80 with 26,000 vehicles per day

Retail Corridor / National Tenant Presence• Subject property is adjacent to Walgreens and O’Reilly Auto Parts, creating strong tenant

synergy and crossover traffic.• National/credit tenants within the trade include Walmart, Anytime Fitness, Hyvee, and more• Increases consumer draw to the trade area

Well Maintained Center / Recently Renovated / Pride Of Ownership• Newton shops has been well-maintained on a regular basis by its current owners• Recent full concrete parking lot replacement

Strong Demographics In The Trade Area • 5-mile trade area is supported by over 17,800 residents and 10,000 employees• $56,700 average household income

ACTU

AL SI

TE

NEWTON SHOPS | NEWTON, IOWA

PROPERTY DESCRIPTION | 5

PROPERTY DESCRIPTION

PARCELParcel: 0834231031 Acres: 2.08 Square Feet: 90,605 SF

ZONINGC-A: Arterial Commercial District

ACCESSThere are three (3) access points with one (1) along 1st Avenue East/ U.S. Route 6 and two (2) along East 12th Street North

TRAFFIC COUNTS1st Avenue East/ U.S. Route 6: ..............................................................................................................................................12,100Interstate 80: .........................................................................................................................................................................26,000

IMPROVEMENTSThere is approximately 20,153 SF of existing building area.

PARKINGThere are approximately 97 parking spaces on the owned parcel. The parking ratio is approximately 4.81 per 1,000 SF of leasable area.

YEAR BUILT1972

ACTU

AL SI

TE

NEWTON SHOPS | NEWTON, IOWA

AERIAL VIEW | 6 NEWTON SHOPS | NEWTON, IOWA

AERIAL VIEW | 7 NEWTON SHOPS | NEWTON, IOWA

WATERLOO

2015 ESTIMATED POPULATION3 Mile ......................................................... 16,6485 Mile ......................................................... 17,839

2015 AVERAGE HOUSEHOLD INCOME3 Mile ........................................................$55,0365 Mile ........................................................$56,655

2015 ESTIMATED TOTAL EMPLOYEES3 Mile ........................................................... 9,6985 Mile ......................................................... 10,049

LOCATION MAP | 8

IOWA CITY

DES MOINES

NEWTON

SUBJECT PROPERTY

NEWTON SHOPS | NEWTON, IOWA

SITE PLAN | 9

1st Ave. E.

E. 12th St.N.#1 Na

ils

El Som

brer

o

China

King

SUITE NAME SQ FT1 #1 Nails 2,100

2 National Cash Advance 1,694

3 Good Will 9,365

4 China King 1,404

5 Verizon Wireless 2,170

6 El Sombrero 3,420

NEWTON SHOPS | NEWTON, IOWA

PHOTOS | 10 RE

PRES

ENTA

TIVE P

HOTO

NEWTON SHOPS | NEWTON, IOWA

AREA OVERVIEW | 11

CITY OF NEWTONNewton is a city in and the county seat of Jasper County, Iowa. The City of Newton had a population of 14,936 as of July 1, 2015. It is located 30 minutes east of downtown Des Moines, its central Iowa location makes it the perfect City for raising a family, starting a business, or building a home.

Newton’s location in the middle of America has always attracted a number of employers. It is also a commercial and retail hub for communities throughout east central Iowa. It has a long tradition as a home for successful entrepreneurs in manufacturing, advertising specialties, printing, distribution, and warehousing. Interstate 80 runs from New York west to California, and right through Newton, Iowa. In addition, Interstate 35, the north/south corridor of the United States, is less than 30 minutes from Newton. So it’s safe to say, “Newton is truly at the crossroads of America.” It has a full service aviation airport just a few minutes’ drive from the downtown square and located adjacent to the Iowa Speedway.

DEMOGRAPHICS 1 Mile 3 Miles 5 Miles2015 Estimated Population 9,496 16,648 17,8392020 Projected Population 9,331 16,466 17,6722010 Census Population 9,777 16,944 18,1052000 Census Population 10,316 17,373 18,567

2015 Estimated Households 4,311 7,266 7,7402020 Projected Households 4,247 7,202 7,6872010 Census Households 4,411 7,358 7,8132000 Census Households 4,513 7,460 7,915

2015 Estimated White 95.72% 95.10% 94.82%2015 Estimated Black or African American 1.03% 1.61% 1.96%2015 Estimated Asian or Pacific Islander 0.67% 0.74% 0.71%2015 Estimated American Indian or Native Alaskan 0.58% 0.46% 0.47%2015 Estimated Other Races 0.42% 0.47% 0.49%2015 Estimated Hispanic 2.00% 2.22% 2.24%

2015 Estimated Average Household Income $50,883 $55,036 $56,655 2015 Estimated Median Household Income $38,479 $41,336 $42,273 2015 Estimated Per Capita Income $23,179 $23,829 $24,113

2015 Estimated Total Businesses 553 811 8502015 Estimated Total Employees 5,937 9,698 10,049

NEWTON SHOPS | NEWTON, IOWA

SUITE#

TENANTNAME

SIZESF

PRORATA(SF)

RENTMONTHLY

RENT$/SF/MO

RENTANNUAL

RENT$/SF/YR

PRORATA($)

INCREASEDATE

INC.RENTALRENT

MONTHLY

INCREASESRENT

$/SF/MO

RENTANNUAL

RENT$/SF/YR

EXPENSERECOVERY

TYPE

LEASESTARTDATE

LEASEENDDATE

LEASEOPTIONS

1 #1 NAILS (1) 2,100 10% $750 $0.36 $9,000 $4.29 6% - - - - - - MOD SEP-04 JAN-18 NONEGROSS

2 NATIONAL (2) 1,694 8% $2,250 $1.33 $27,000 $15.94 19% - - - - - - MOD APR-98 MAR-18 1 (3-YEAR)CASH ADVANCE GROSS OPT 1:$28,200/YR

3 GOODWILL (3) 9,365 46% $3,731 $0.40 $44,777 $4.78 31% - - - - - - MOD MAY-05 DEC-19 NONEGROSS

4 CHINA KING (4) 1,404 7% $1,700 $1.21 $20,400 $14.53 14% - - - - - - MOD FEB-03 JUL-19 1 (5-YEAR)GROSS OPT 1: $21,600/YR

5 VERIZON WIRELESS (5) (6) 2,170 11% $1,700 $0.78 $20,400 $9.40 14% JAN-17 1% $1,725 $0.79 $20,700 $9.54 MOD DEC-12 DEC-17 3 (1-YEAR)GROSS OPT 1-3: $21,000/YR

6 EL SOMBRERO (7) 3,420 17% $1,900 $0.56 $22,800 $6.67 16% SEP-16 5% $2,000 $0.58 $24,000 $7.02 MOD FEB-12 AUG-18 NONEGROSS

TOTAL OCCUPIED 20,153 100% $12,031 $0.60 $144,377 $7.16 100%TOTAL VACANT 0 0% $0 $0 0%

TOTAL / WTD. AVG: 20,153 100% $12,031 $0.60 $144,377 $7.16 100%

NOTES:1) #1 Nails pays for snow and utilities. 5) Verizon Wireless pays for snow removal.2) National Cash Advance pays for for structure, CAM, and utilities. 6) Verizon Wireless has a co-tenancy clause. Tenant pays $1,000/mo if center is less than 30% occupied.3) Good Will pays for repairs (up to $500), CAM and utilities. 7) El Sombrero pays for snow and HVAC.4) China King pays for insurance, structure, and CAM

ACTU

AL SI

TE

RENT ROLL | 12 NEWTON SHOPS | NEWTON, IOWA

PRICING SUMMARY | 13

OPERATING CASH FLOW JAN 2017 IN-PLACE

Potential Rental Revenue: $145,877

Potential Reimbursement Revenue: $12,896

Gross Potential Revenue: $158,773

Rental Vacancy Factor (5%): ($7,294)

Reimbursement Vacancy Factor (5%): ($645)

Effective Gross Revenue (EGR): $150,834

Less Expenses: ($23,261)

Net Operating Income: $127,573

Less Loan Payment: ($58,479)

Cash Flow: $69,094

PRICING SUMMARY

Price: $1,540,000

Price/SF: $76

Jan 2017 Cap Rate: 8.28%

Jan 2017 Cash/Cash: 11.05%

FINANCING INFORMATION

Loan Amount (60%): $924,000

Down Payment (40%): $616,000

Payment (annual): ($59,523)

Interest Rate: 5.00%

Amortization: 30 years

Maturity: 10 yearsOPERATING EXPENSES PSF/YRTaxes: $14,846 $0.74

Insurance: $1,521 $0.08

CAM: $1,856 $0.09

Reserves: $5,038 $0.25

Total: $23,261 $1.15

NOTES

1) Landlord is responsible for roof and structure.

2) Taxes, Insurance, CAM are based off of provided 2016 budget.

3) Management is estimated at 3% of EGR.

ACTU

AL SI

TE

NEWTON SHOPS | NEWTON, IOWA

TENANT SYNOPSIS | 14 STRIP CENTER | NEWTON, IOWA

StarbucksStarbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company oper-ates in four segments: Americas, Europe, Africa, and China/Asia Pacific. Starbucks stores offer coffee and tea beverag-es, packaged roasted whole bean and ground coffees, and other bottled beverages. Its stores also provide fresh food offerings such as pastries, breakfast sandwiches, and lunch items. As of August 27, 2015, Starbucks operates 21,000 stores. Starbucks was founded in 1985 and is headquartered in Seattle, Washington.

Advance America Cash AdvanceAdvance America Cash Advance Centers, Inc. is the country’s leading provider of non-bank cash advance services, with approximately 2,400 centers across the country. The company offers cash advance services comprising cash advances and installment loans to middle-income working individuals; check-cashing services; pre-paid debit cards; and money orders and money transfer, and bill payment services as an agent of a licensed third-party money transmitter. The company was founded in 1997 and is headquartered in Spartanburg, South Carolina.

Company Type: ...................................... Subsidiary

Locations: .............................................. 2,400

Website: ................................................. www.advanceamerica.net

Verizon WirelessVerizon Wireless is the #1 US wireless phone operator in terms of sales and subscribers (ahead of top rival AT&T Mobility). Serving nearly 137 million consumer, business, and government customers nationwide, the company offers both standard post-paid (about 95% of its customers) and prepaid subscription plans. It distributes new and pre-owned phones from manufacturers including Samsung Electronics, BlackBerry, LG, and Apple. The company also offers mobile data services, including text messaging, multimedia content (V CAST), and Web access. Verizon Wireless is wholly owned by Verizon Communications.

Company Type: ...................... Subsidiary

2015 Revenue: ..................... $131 Billion

20XX Net Income: .................. $18 Billion

Parent Company: .....................(NYSE: VZ)

2015 Assets: ......................... $244 Billion

20XX Equity: ........................... $16 Billion

GoodwillGoodwill Industries International is a network of 164 community-based organizations in the United States and Canada with a presence in 13 other countries. Goodwill is one of America’s top 20 most inspiring companies (Forbes, 2014). Goodwill organizations are innovative and sustainable social enterprises that fund job training programs, employment placement services and other community-based programs by selling donated clothing and household items in more than 3,100 stores and online at shopgoodwill.com.

Company Type: .....Private (Not for Profit)

Locations: .................................... 3,100+

Website: .....................www.goodwill.org

ACTU

AL SI

TE

ACTU

AL SI

TE