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Newly Built Food CityNet Lease Investment 8.3% Cap Rate4100 Cool Springs Road Morristown, TNDue Diligence InformationInformation contained herein may have been provided by outside sources and while deemed to be reliable, may beestimated, projected, subject to change, and/or limited in scope, and therefore should not be relied upon asaccurate. Information should be independently confirmed within an applicable due diligence period.

Table of ContentsNEW 47,000 SF NN Food City4100 Cool Springs Road Morristown, TN 37814You are receiving this due diligence package because you have executed a confidentiality agreement withthe listing broker regarding the Property.PageTable of Contents and Disclaimer2Investment Highlights32011 Income and Expenses4D&B5‐8Survey9Declaration of Covenants of Barton Springs10‐14Lease Highlights15Lease Letter of Agreement16Letter from Seller Regarding CAM Responsibilities17Lease18‐52Loan Commitment53‐68Warranties—Roof and Structure69‐71P&LNancy Miller, CCIM, MBA404.876.1640 x118Nancy@BullRealty.comTN license #318507Sheree Berk, CCIM404.876.1640 x122Sheree@BullRealty.comAny included income, expenses, cap rates, costs, return estimates, renovations, measurements, square footage, acreage,projections, interest rates, loan terms, property condition, possible uses, zoning and other information herein may have beenprovided by the seller, landlord or other outside sources and while deemed to be reliable, may be estimated, projected, is subject tochange, and/or may be limited in scope, and therefore shall not be relied upon as accurate. Any such information important to thepurchaser, lessee or other parties should be independently confirmed within an applicable due diligence period. Please do notdisturb the management, business, tenants or sellers. This offer is subject to prior change or sale without notice.Information contained herein may have been provided by outside sources and while deemed to be reliable, may beestimated, projected, subject to change, and/or limited in scope, and therefore should not be relied upon asaccurate. Information should be independently confirmed within an applicable due diligence period.

Investment HighlightsOffering SummaryPrice:Down Payment:Cap Rate:Net Rentable Area:Price/Square FootYear Built:Parcel Size (Acres)25% 5,100,000 1,263,70147,800 106.6920106 /‐Loan SummaryExisting Financing: Assumable non‐recourse loan assumptionLender: Protective Life Insurance CompanyOriginal Loan Balance (12/2/10):Loan Balance as of July 1, 2011Down Payment:Interest Rate:Amortization (with maturity ‐ January 2031):Annual Payment ( 29,498.67 monthly):Assumption Fee (based upon outstanding loan balance)Prepayment Penalty: Calculated on a yield maintenance formula.25% 3,875,000 3,836,299 1,263,7016.765%20 years 358,9841%Financial SummaryRental Rate/SFGross Annual RentsExpenses:Net Operating IncomeCAP RateAnnual Debt Service:Pre‐Tax Cash Flow:Taxes, Insurance, CAM ‐ fully reimbursedCash on Cash Return:Information contained herein may have been provided by outside sources and while deemed to be reliable, may beestimated, projected, subject to change, and/or limited in scope, and therefore should not be relied upon asaccurate. Information should be independently confirmed within an applicable due diligence period. 8.85 423,0300 423,0308.3% 358,984 64,0465.1%

0 0 00 0 246,771Information contained herein may have been provided by outside sources and while deemed to be reliable, may beestimated, projected, subject to change, and/or limited in scope, and therefore should not be relied upon asaccurate. Information should be independently confirmed within an applicable due diligence period.NET INCOME 5,754 5,754 5,754 5,754 29,499 5,754 29,499 5,754 29,499 5,754 29,499 0 0 0 0 0 40,280 0 206,491 0Other 29,499 0Other 29,499 0ReservesTOTAL EXPENSES 29,499 0 206,491RepairsProtective Life (Mort)) 0 0 0Non‐Reimbursed Taxes 0 0 0 29,499 0 246,771Oct‐11 Nov‐11 Dec‐11 YTD 2011Non‐Reimbursed Insur 29,499 35,253 35,253Jul‐11 Aug‐11 Sep‐11 0 29,499 35,253 35,253Jun‐11Bank Charges 29,499 35,253 35,253May‐11 0 29,499 35,253 35,253Apr‐11Acct/Legal 29,499 35,253 35,253Mar‐11 0 29,499 35,253 35,253Feb‐11AdminExpenses 35,253TOTAL INCOME 35,253OtherInterestLate FeesRentsIncomeINCOME STATEMENTJan‐114100 Cool Springs Rd., Morristown, TN2011 Income Expenses

D&B Comprehensive Insight Plus Report: K-VA-T FOOD STORES, INC.D&B Small BusinessSolutionsComprehensive Insight Plus Report forK-VA-T FOOD STORES, INC.Report Printed: July 1, 2011Page 1 of 11D-U-N-S #: 14-823-0691Copyright 2004 Dun & Bradstreet – Provided under contract for the exclusive use of subscriber Sheree Berk, Bull Realty Inc.Company SnapshotCreditworthinessPayment History & TrendsPublic FilingsHistory & OperationsBanking & FinanceCompany SnapshotBusiness SummaryProfileK-VA-T FOOD STORES, INC.201 Trigg StAbingdon, VA 24210Likelihood this company will not pay ontime over the next 12 monthsLOWCredit Score Class: 1Mailing address:PO Box 1158Abingdon, VA 24212Likelihood this company will experiencefinancial stress in the next 12 monthsAVERAGEFinancial Stress Class: 3Tel: 276 623-5100Fax: 276 628-6493Timeliness of historical payments for thiscompany**www.foodcity.comD-U-N-S #: 14-823-0691FOOD CITYFOOD CITY DISTRIBUTION CENTER A DIV OFD&B Rating: 1R3SLOWD&B PAYDEX : 76Industry benchmark: Slow**Based on 244 trade experiences on file with D&BCompany StatsYear incorporatedYear startedEmployeesFinancingChief ExecutiveS.I.C.1985195510,500 ( 120 here)SECUREDSteve C Smith , Pres-ceo541151416512Payment performance trend over thepast 90 daysUNCHANGEDIndustryRet groceries, whol general groceries, nonresidential buildingoperatorThis is a headquarters location.Branch(es) or division(s) exist.The Net worth amount in this section may have been adjusted by D&Bto reflect typical deductions, such as certain intangible assets.Evidence of bankruptcy, fraud, or criminal proceedings in the history of this business or itsmanagementNOYESNoteworthy special events in this company's file3Total number of suits, liens and judgments in this company's file 10,500Value of open suits, liens and judgments for this companyValue of open records refers only to 10 most recent filings for each record type. There may be additional suits, liens, judgments, or UCC filings inD&B's file on this company available by contacting 1-866-472-7362.Company SnapshotCreditworthinessPayment History & TrendsPublic FilingsHistory & OperationsBanking & FinanceCreditworthinessSummaryLikelihood this company willexperience financial stress inthe next 12 monthsLikelihood this company will notpay on time over the next 12monthsAVERAGELOWD&B Rating: 1R3Number of employees: 1R is 10 or more employees.Composite credit appraisal: 3 is fair.The 1R and 2R ratings categories reflect company size based on thetotal number of employees for the business. They are assigned tobusiness files that do not contain a current financial statement. In 1Rand 2R Ratings, the 2, 3, or 4 creditworthiness indicator is based -%20Morristown%20TN/D&BReport/.7/3/2011

D&B Comprehensive Insight Plus Report: K-VA-T FOOD STORES, INC.TopicPage 9 of 11DescriptionHistoryDetailed information on the history of a company, including background information on the managementteam and key principals, and information on related companies.Corporate FamilyDetailed information on all related companies, including subsidiaries, affiliates and branches.Registration &IncorporationDetailed registration and incorporation information, including the date and state of incorporation and thetype of corporation formed.Company OperationsDetailed information on a company's operations, including the identity of the parent company, thegeographic scope of the business, and the key holdings.Industry ClassificationDetails on the specific industry within which a company is classified.HistoryOfficer(s):STEVE C SMITH, PRES-CEODirector(s):THE OFFICER(S)BOB SUTHERLAND, V PRESROBERT L NEELEY, V-PRESSEC-TREASTHOMAS HEMBREE, SR VPRES-MKTGSTEVE TROUT, V PRESKNOXVILLE DIVISIONThe Virginia Secretary of State's business registrations file showed that K-va-t Food Stores, Inc. was registered as a Corporation onMay, 7, 1985.Business started 1955 by Jack C Smith. 100% of capital stock is owned by Smith Family.STEVE C SMITH born 1957. 1977-present active here.BOB SUTHERLAND born 1940. 1985-present active here. 1965 to 1985 employed by Quality Foods Inc, Greenville, TN.ROBERT L NEELEY born 1935. 1974-present active here. 1960-1974 partner Dent K Burk Associates, CPA's in Grundy, VA. Left undernormal circumstances to join subject.THOMAS HEMBREE born 1949. 1984 to present active here. 1970-1984 employed by Quality Foods, Inc, Greenville, TN.STEVE TROUT born 1953. 1973-present active here.Corporate FamilySubsidiaries (US):K-Va-T Food Stores, Inc1 Partnership Cir, Abingdon, VADUNS # 78-709-7778Mid-Mountain Foods, Inc.26331 Hillman Hwy, Abingdon, VADUNS # 07-488-6771K-Va-T Food Stores Inc109 S Commonwealth Ave, Corbin, KYDUNS # 04-847-2109K-Va-T Food Stores Inc4221 Chapman Hwy, Knoxville, TNDUNS # 17-049-8885K-Va-T Food Stores Inc9123 Executive Park Dr, Knoxville, TNDUNS # 94-351-0859K-Va-T Food Stores IncHwy 27, Oneida, TNDUNS # 79-254-6871K-Va-T Food Stores, Inc1400 Bob White Blvd, Pulaski, VADUNS # 01-030-2680K-Va-T Food Stores, Inc137 Ridge Cir SW, Wise, VADUNS # 02-401-0191K-Va-T Food Stores, Inc.2478 S US Highway 421, Harlan, KYDUNS # 01-489-0748K-Va-T Food Stores, Inc.50 Morton Blvd, Hazard, KYDUNS # 03-622-5717K-Va-T Food Stores, Inc.70 Business US 23 N, Louisa, KYDUNS # 84-057-0621K-Va-T Food Stores, Inc.102 N 12th St, Middlesboro, KYDUNS # 96-084-5352K-Va-T Food Stores, Inc.330 N Mayo Trl, Paintsville, KYDUNS # 83-677-5635K-Va-T Food Stores, Inc.234 Town Mountain Rd, Pikeville, KYDUNS # 11-236-4278Branches %20-%20Morristown%20TN/D&BReport/.7/3/2011