WALGREENS - HESPERIA, CALIFORNIANNN INVESTMENT OPPORTUNITY

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AGM, Inc. hereby advises all prospective purchases of net leased property as follows:This confidential offering memorandum has been prepared by AGM, Inc. for use by a limited number of parties and does not purport to provide a necessarily accu-rate summary of the property or any of the documents related thereto, nor does it purport to be all-inclusive or to contain all of the information which prospectiveinvestors may need or desire. No representation is made by AGM, Inc. or the property owner as to the accuracy or completeness of the information containedherein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the informationcontained herein is believed to be correct, AGM, Inc., owner and their employees and agents disclaim any responsibility for inaccuracies and expect prospectivepurchaser to exercise independent due diligence in verifying all such information. Further, AGM, Inc., owner and their employees and agents disclaim any andall liability for representations and warranties, expressed and implied, contained in, or for omissions from, the confidential offering memorandum or any otherwritten or oral communication transmitted or made available to recipient. This confidential offering memorandum may include certain statements and estimatesby AGM, Inc. with respect to the projected future performance of the property; these assumptions may or may not be proven to be correct, and there can be noassurance that such estimates will be achieved.

The confidential offering memorandum does not constitute a representation that there has been no change in the business or affairs of the property or ownersince the date of preparation of the confidential offering memorandum. Analysis and verification of the information contained in the confidential offering memoran-dum is solely the responsibility of the prospective purchaser. Additional information and an opportunity to inspect the property will be made available uponrequest to interested and qualified prospective investors or purchasers.

Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussionwith any entity at any time with or without notice. Owner shall have no legal commitment or obligation to any entity reviewing the confidential offering memoran-dum or making an offer to purchase the property unless and until such offer is approved by owner, a written agreement for the purchase of the property hasbeen fully executed, delivered and approved by owner and its legal counsel, and any conditions to owner’s obligation thereunder have been satisfied or waived.This confidential offering memorandum and the contents, except such information which is a matter of public record or is provided in sources available to thepublic, are of a confidential nature. This information should not, under any circumstances, be photo copied or disclosed to any third party without the writtenconsent of AGM, Inc. or owner, or used for any other purpose whatsoever other than to evaluate the possible purchase of the property. By accepting the confidentialoffering memorandum, you agree that you will not use the confidential offering memorandum or any of the contents in any fashion or manner detrimentalto the interest of owner or AGM, Inc.

BY ACCEPTING THIS CONFIDENTIAL OFFERING MEMORANDUM, YOU AGREE TO RELEASE AGM, INC. AND HOLD IT HARMLESS FROM ANY KIND OF CLAIM, COST, EX-PENSE, OR LIABILITY ARISING OUT OF YOUR INVESTIGATION AND/OR PURCHASE OF THIS NET LEASED PROPERTY.

NNN LEASE OFFERINGM E M O R A N D U M

02 WALGREENS - HESPERIA, CA | AGM, Inc.

WALGREENS - HESPERIA, CALIFORNIA

INVESTMENT OVERVIEW 04

TENANT OVERVIEW 09

MARKET OVERVIEW 12

15480 Main Street, Hesperia, CA 92345

WALGREENS - HESPERIA, CA | AGM, Inc. 03

www.agmnetlease.com

REPRESENTED BY BROKER OF RECORD

NIKO MICIN, AGM INC.L206.210.5208niko@agmnetlease.com

‘SUMNER HOLLINGSWORTH, HOLLINGSWORTH & ASSOCIATES626.353.5597lic. # 01457401

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04 WALGREENS - HESPERIA, CA | AGM, Inc.

INVESTMENT S U M M A R Y

The subject property is a 14,490 square foot Walgreens store located in inland California, city of Hesperia, part of San Bernardino County.

LEASE DETAILSWalgreens signed a 75-year lease, with ten 5-year termination options that commence on January 1st, 2031. There are approximately 13+/- years remaining on the initial term of the lease. Lease is an absolute NNN lease providing investors with carefree ownership. Store was built in 2006 to capture the spatial gap of Walgreens presence in the Southwestern part of the city, along Main Street. As part of the lease agreement, Tenant shall pay the sum equal to 2% of the gross sales (except for the sales of food items and prescription items), plus 1.0% of the gross sales of food items, plus 0.5% of the gross sales of pre-scription items. TRADE AREAThe I-15 at Main Street trade area has a population of approximately 163,000 residents with average incomes of $64,323 and over $1.24 billion in trade potential. Most recently, a 180,000 SF power center anchored by Target, Marshalls and Ross; and a 195,000 SF Super Walmart anchored community center have been added to Hesperia’s growing list of retailers and dominant shopping centers. During the past few years, over 700,000 SF of retail and restaurants

have made Hesperia their home including national and regional ten-ants such as: Golden Corral, Courtyard by Marriott, Beef O’ Brady’s, Orchard Supply Hardware, Marshalls, Pier 1 Imports, The Habit, Pieology, Firehouse Subs, Starbucks, Wingstop, Panda Express, Fitness 19, Dollar General, Vallarta Supermarkets, the Flame Broiler, Aaron’s, Family Dollar, and O’Reily’s Auto Parts.

REGIONAL GROWTHHesperia has experienced substantial population growth over the past few decades. The City’s population grew to 90,173 people in 2010 which represents a 44.1% increase from 2000. This growth of Hespe-ria as well as the entire High Desert spawned retail growth as well. Hesperia is a pro-business community eager to welcome prospective retailers, new business owners and developers and is poised to con-tinue to experience substantial growth based upon its environment and commerce.

INVESTMENTH I G H L I G H T S

WALGREENS - HESPERIA, CA | AGM, Inc. 05

Strong Nati onal Tenant –

Investment Grade Credit

Walgreens (NASDAQ: WBA) has an Investment

Grade Credit Rati ng “BBB” by Standard & Poor’s.

Annual revenues exceed $103 Billion. Tenant

operati ng at this locati on over 10 Years, showing

strong locati on commitment. Site is equipped

with a drive-thru pharmacy.

Long Term Lease

There are 13+/-years remaining on the original

25 year initi al term of the lease, allowing for a

long term carefree investment. Long lease term,

as well as the investment grade credit of the

tenant make this an easily fi nanceable invest-

ment.

Zero Landlord Responsibility

Lease is absolute NNN, where the Landlord is sub-

scribed to carefree ownership.

Strong Locati on and Unparalleled Visibility

Property is located on a hard corner of heavily traf-

fi cked Main Street and I Avenue. With two lanes in

each directi on on both arterials, signalized inter-

secti on and left turn permitt ed on Main Street, the

locati on is hard to beat.

Strong Nati onal Tenant Presence and Growth

Neighboring retailers include Stater Bros., Family

Dollar, Aarons, Rite Aid, Del Taco, Pep Boys, Wie-

nerSchnitzel, Pizza Hut, Starbucks, 7 Eleven, Kmart,

Subway, McDonalds etc. with a strong infl ow of

other nati onal tenants each year.

Populati on and Economy Growth

Hesperia is experiencing rapid growth. Be-

tween 2000 and 2010, the populati on increase

by 44.1%. The city is focused on conti nuing to

develop commerce, thus strengthening both

economic and populati on growth.

Double Drive-thru

Property is equipped with a double drive-thru,

which accounts for 20%+ of total sales in drug-

stores.

PRICINGA N D F A C T S

06 WALGREENS - HESPERIA, CA | AGM, Inc.

SALE PRICE: $ 5,771,000.00

CAP RATE (CURRENT): 5.80%

NOI: $ 334,716

YEAR BUILT / RENOVATED: 2006

RENTABLE SF: 14,490 SF

LOT SIZE: 1.2 Acres

OWNERSHIP TYPE: Fee Simple

LEASE S U M M A R Y

07WALGREENS - HESPERIA, CA | AGM, Inc.

TENANT: Walgreens Co.

LEASE TYPE: NNN -Zero Landlord responsibiliti es

UTILITIES: Tenant Pays Directly

TAXES: Tenant Pays Directly

INSURANCE: Tenant Pays Directly

LEASE TERM: 25 Years

COMMENCEMENT: January 1, 2006

EXPIRATION: December 31, 2030

REMAINING TERM: 13.5 +/- years

RENEWAL OPTIONS: Ten 5-year opti ons ROFR: Within 15 days

Estoppel Period: Within 15 Days, $500 fee

BASE RENTS C H E D U L E

08 WALGREENS - HESPERIA, CA | AGM, Inc.

1/06 - 12/30 1-25 $23.10 $27,893 $334,716

1/31 - 12/35 26-30 $23.10 $27,893 $334,716

1/36 - 12/40 31-35 $23.10 $27,893 $334,716

1/41 - 12/45 36-40 $23.10 $27,893 $334,716

1/46 - 12/50 41-45 $23.10 $27,893 $334,716

1/51 - 12/55 46-50 $23.10 $27,893 $334,716

1/56 - 12/60 51-55 $23.10 $27,893 $334,716

1/61 - 12/65 55-60 $23.10 $27,893 $334,716

1/66 - 12/70 61-65 $23.10 $27,893 $334,716

1/71 - 12/75 66-70 $23.10 $27,893 $334,716

1/76 - 12/80 71-75 $23.10 $27,893 $334,716

PERIOD YEARS $/SF MONTHLY RENT ANNUAL RENT

09WALGREENS - HESPERIA, CA | AGM, Inc.

PERIOD YEARS $/SF MONTHLY RENT ANNUAL RENT

Walgreens, the nati on’s largest drugstore chain, consti tutes the Retail Pharmacy USA Division of Walgreens Boots Alliance, Inc. (Nasdaq: WBA), the fi rst global pharmacy-led, health and well-be-ing enterprise. More than 8 million customers interact with Walgreens each day in communiti es across America, using the most convenient, multi -channel access to consumer goods and services and trusted, cost-eff ecti ve pharmacy, health and wellness services, and advice. Walgreens oper-ates more than 8,000 drugstores with a presence in all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. Walgreens digital business includes Walgreens.com, Drugstore.com, Beauty.com, SkinStore.com and VisionDirect.com. Walgreens also manages more than 400 health care clinics and provider practi ce locati ons around the country.

For more informati on about Walgreens visit www.walgreens.com.

103.4 billion USDA N N U A L R E V E N U E

87.78 billion USDM A R K E T C A P

TENANT TRADE NAMEWALGREENS BOOTS ALLIANCE, INCOWNERSHIPPUBLICTICKER SYMBOL WBA (NASDAQ)CREDIT RATINGBBB (S&P)

TENANTO V E R V I E W

LOCATION A E R I A L M A P

10 WALGREENS - HESPERIA, CA | AGM, Inc.

PROPERTY S I T E M A P & S I T E P L A N

11WALGREENS - HESPERIA, CA | AGM, Inc.

HESPERIAM A R K E T O V E R V I E W

12 WALGREENS - HESPERIA, CA | AGM, Inc.

Located in San Bernardino County’s Victor Valley, Hesperia and the neighboring Victor Valley citi es have a combined populati on of nearly 400,000 and have been growing rapidly in recent years.

In additi on to populati on growth, Hesperia has been att racti ng devel-opment and private investment. Phase 1 of the High Desert Gateway development was completed in 2011. Seated on nearly 60 acres ad-jacent to Interstate 15 and featuring 500,000 square feet of rentable space, Phase 2 of the development is under constructi on and calls for an anchored center fl anked by nati onal tenants.

Since 2010, Hesperia has experienced a total populati on growth in excess of 10%, with single-family residenti al permits issued by the city last year increasing by a staggering 35%. A 200-unit residenti al devel-opment in the northwest porti on of the city is currently under con-structi on.

Hesperia recently gave approval to the Tapestry Project, a mas-ter-planned community of over 16,000 homes and over 1.4 million square feet of commercial and retail space. The 9,365 acre-project is slated to be constructed in phases over 25 to 30 years and could boost the city’s populati on by 50,000 to 80,000. Phase I of the project could break ground by 2018, which would bring 1,884 homes and 400 to 500 jobs to southeast Hesperia.

A signifi cant industrial project is planned for the southwest side of town, transforming 13 parcels on 232 acres near Interstate 15 into the 3.5 million square foot Hesperia Commerce Center. The devel-opment consists of 34 industrial warehouse and offi ce buildings, warehouse and distributi on faciliti es, commercial storage faciliti es, and an assortment of retail space.

In conjuncti on with these monumental projects, Hesperia is invest-ing in the infrastructure to support them, having completed a $60 million Interchange Bridge at Ranchero Road in early 2015 to handle the increase in traffi c. Hesperia is also making improvments to Ran-chero Road with an S18 million project that will widen fi ve miles of roadway from I-15 east to the Ranchero Road Undercrossing. All of these improvements are designed to address the growing transpor-tati on needs for the City of Hesperia and surrounding area, provid-ing another east-west corridor through the city.

AREA D E M O G R A P H I C S

13WALGREENS - HESPERIA, CA | AGM, Inc.

2015 1 MILE 3 MILES 5 MILESTotal Populati on 6,961 51,506 117,560Total Households 2,299 15,424 35,921

Est. Avg. Household Income $42,658 $50,843 $53,221

2020 Projecti ons 1 MILE 3 MILES 5 MILESTotal Populati on 7,277 53,918 125,272Total Households 2,371 15,994 38,004

The populati on within a 5-mile radius grew 43% between 2000 - 2010.

AGM Incorporated 2100 124th Avenue NE | Suite 100 | Bellevue, Washington 98005 | tel 425.576.8700 | fax 425.576.8976 www.agmnetlease.com 350 Lincoln Road | Miami Beach, Florida 33139 | tel 206.210.5208 | fax 425.576.89769

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