ACE HARDWARE ANCHORED RETAIL CENTER

Transcription

1 ACE HARDWARE ANCHORED RETAIL CENTER 3434 W. ANTHEM WAY, ANTHEM, ARIZONA (PHOENIX MSA)

2 EXCLUSIVELY MARKETED BY SRS REAL ESTATE PARTNERS-WEST, LLC SEAN THOMAS VICE PRESIDENT 3131 East Camelback Road, Suite 110 Phoenix, AZ DL: AZ License No. SA PATRICK R. LUTHER, CCIM SENIOR VICE PRESIDENT 610 Newport Center Drive, Suite 1500 Newport Beach, CA DL: M: AZ License No. BR

3 TABLE OF CONTENTS 4 INVESTMENT SUMMARY OFFERING HIGHLIGHTS INVESTMENT HIGHLIGHTS 7 PROPERTY OVERVIEW PROPERTY PHOTOS AERIALS SITE PLAN LOCATION MAP 14 AREA OVERVIEW DEMOGRAPHICS 16 FINANCIALS RENT ROLL PRICING SUMMARY BRAND PROFILE

4 INVESTMENT SUMMARY SRS is pleased to present the fee simple interest (land & building) for The Shops at Arizona, a 35,710 SF Ace Hardware anchored neighborhood shopping center (consisting of two buildings) located in Anthem, AZ (Phoenix MSA). Built in 2003, the Shops at Arizona sits on approximately 6.68 acres, and encompasses 35,710 SF of quality retail space with a healthy mix of e-commerce resistant tenants. Anchored by Ace Hardware, the tenant roster boasts other notable daily-needs tenants such as Coldwell Banker, Pizza Hut, Princess Nails, Shanghai Club, and more. In addition, all tenants are operating on NNN leases, reimbursing their pro-rata share of expenses, limiting expense leakage for a future investor. The center is 88% occupied, offering potential upside through lease-up for a future investor. The property also boasts a weighted average lease term (WALT) of 5.26 years, demonstrating the stability of the center. The Shops at Arizona is strategically located at the signalized, hard corner intersection of N. Gavilan Peak Pkwy and W. Anthem Way with a combined 20,400 vehicles passing by daily. West Anthem Way serves as a direct access road to Black Canyon Fwy/Interstate 17 (61,500 VPD), the primary north/south thoroughfare traveling in and out of Phoenix. The property is strategically located across from Anthem Marketplace, a Safeway grocery anchored center, creating excellent tenant synergy and crossover traffic. The asset is also 1.5 miles east of a 24-hour Walmart Supercenter and Outlets at Anthem, a 48-acre, open air, outlet mall with over 60 designer brand shops such as Nike, Bose, Coach, Ralph Lauren, North Face, and many more, greatly increasing consumer traffic to the area. Adjacent to the Outlets is the Anthem Commerce Park, a industrial/office park with over a dozen office buildings. Bela Rosa Apartment Homes (354-units) is half a mile from the site providing a direct consumer base from which to draw from. The 5-mile trade is supported by a population of nearly 49,000 with an affluent average household income of $116, INVESTMENT SUMMARY SRS

5 OFFERING HIGHLIGHTS OFFERING PRICING: $5,400,000 DEC 2018 NOI: $381,714 DEC 2018 CAP RATE: 7.07% ANCHOR: Ace Hardware OCCUPANCY: 88% PROPERTY SPECIFICATIONS RENTABLE AREA: 35,710 SF LAND AREA: 6.68 Acres PROPERTY ADDRESS: 3434 W. Anthem Way, Anthem, AZ YEAR BUILT: 2003 PARCEL NUMBER: OWNERSHIP: Fee Simple (Land and Building) 5 OFFERING HIGHLIGHTS SRS

6 INVESTMENT HIGHLIGHTS ACE HARDWARE ANCHORED CENTER STRONG TENANT LINE UP The Shops at Arizona is anchored by Ace Hardware (over 4,800 locations), the largest non-grocery American retail cooperative in the country Built in 2003, the Shops at Arizona sits on approximately 6.68 acres, and encompasses 35,710 SF of quality retail space in an attractive shopping environment The tenant roster boasts other notable tenants such as Coldwell Banker, Pizza Hut, Princess Nails, Shanghai Club, and more Diverse tenant mix comprised of daily needs, food service, and boutique retail tenants NNN LEASES UPSIDE POTENTIAL THROUGH LEASE-UP OVER 5 YEAR WALT All tenants are operating on NNN leases, reimbursing their pro-rata share of expenses, limiting expense leakage for a future investor The center is 88% occupied, offering potential upside through lease-up for a future investor The property also boasts a weighted average lease term (WALT) of 5.26 years, demonstrating the stability of the center SIGNALIZED HARD CORNER INTERSECTION INTERSTATE 17 EXCELLENT VISIBILITY Situated at the signalized, hard corner intersection of N. Gavilan Peak Pkwy and W. Anthem Way with a combined 20,400 vehicles passing by daily West Anthem Way serves as a direct access road to Black Canyon Fwy/Interstate 17, the primary north/south thoroughfare traveling in and out of Phoenix Excellent visibility with multiple points of ingress/egress and a prominent monument sign STRONG RETAIL CORRIDOR ACROSS FROM SAFEWAY ANCHORED CENTER The property is strategically located across from Anthem Marketplace, a Safeway grocery anchored center Nearby national/credit tenants include CVS, Dollar Tree, Circle K, Wendy s, McDonald s, Starbucks, and more Creates excellent tenant synergy in the area and promotes crossover shopping NEARBY OUTLETS AT ANTHEM WALMART SUPERCENTER (24-HOUR) The site is located just 1.5 miles east of the Outlets at Anthem and a 24-hour Walmart Supercenter (189,000 SF) The outlet shops generate strong through traffic with over 60 designer brand shops such as Nike, Bose, Coach, Ralph Lauren, Rack Room Shoes, North Face, and more ANTHEM COMMERCE PARK (OFFICES) BELA ROSE APARTMENT HOMES Adjacent to the Outlets is the Anthem Commerce Park, a industrial/office park with over a dozen office buildings Bela Rosa Apartment Homes (354-units) is half a mile from the site Provides a consistent employee and resident consumer base for the center AFFLUENT POPULATION IN THE 5-MILE TRADE AREA More than 49,000 residents and nearly 10,000 employees support the trade area $116,000 average household income 35 minutes to downtown Phoenix 6 INVESTMENT HIGHLIGHTS SRS

7 PROPERTY OVERVIEW ACCESS W. Anthem Way:...2 Access Points N. Gavilan Peak Parkway:...3 Access Points TRAFFIC COUNTS W. Anthem Way:... 14,500 VPD Black Canyon Freeway/ Interstate 17:... 61,500 VPD IMPROVEMENTS There is approximately 35,710 SF of existing building area. NAP NAP PARKING There are approximately 210 parking spaces on the owned parcel. The parking ratio is approximately 5.88 stalls per 1,000 SF of leasable area. PARCEL MAP YEAR BUILT PARCEL 2003 Parcel Number: Acres: 6.68 Square Feet: 290,981 SF ZONING C-2: Commercial 7 PROPERTY OVERVIEW SRS

8 Outlets at Anthem Interstate 17 61,500 CARS PER DAY 14,500 CARS PER DAY W. Anthem Way. N. Gavilan Peak Pkwy. 5,900 CARS PER DAY

9 Boulder Creek High School Anthem School 61,500 CARS PER DAY Interstate 17 14,500 CARS PER DAY N. Gavilan Peak Pkwy. W. Anthem Way. 5,900 CARS PER DAY

10 5,900 y. CARS PER DAY Pkw Anthem Marketplace. Way N. G Daisy Mountain Railroad m nthe W. A avi lan Pea k Anthem Golf & Country Club 14,500 CARS PER DAY

11 Outlets at Anthem 14,500 CARS PER DAY Anthem Commerce Park Bela Rosa Apts. 354 Units W. Anthem Way Estimated Population 1 Mile: 9,654 3 Mile: 34,054 5 Mile: 49, Average Household Income 1 Mile: $117,822 3 Mile: $121,555 5 Mile: $116, Estimated Total Employees 1 Mile: 2,486 3 Mile: 6,057 61,500 CARS PER DAY Interstate 17 N. Gavilan Peak Pkwy. Boulder Creek High School Anthem School 5,900 CARS PER DAY Gavilan Peak School 5 Mile: 9,821

12 A3 A1 A2 A4 A5 A6 A7 A8 A9 A10 A11 A12A13A14 A15 NAP NAP N GAVILAN PEAK PKWY. - 5,900 VPD W ANTHEM WAY. - 14,500 VPD SUITE NAME SQ FT A15 Amped Coffee 2,107 A14 Pizza Hut 1,181 A13 Berkshire Hathaway Real Estate 980 A12 Poke Shack 1,307 A11 Lifestyle 2 Nutrition 1,307 A10 Princess Nails 1,372 A9 Vacant 1,236 A8 Vacant 1,600 A7 Sam's Frozen Yogurt 980 A6 Filiberto's 1,635 A5 Freedom Cycles 1,673 A4 Vacant 1,307 A3 The Blind Bear 978 A2 Shanghai Club 2,947 A1 Ace Hardware 15,100

13 2017 ESTIMATED POPULATION 1 Mile... 9,654 3 Mile... 34,054 5 Mile... 49, AVERAGE HOUSEHOLD INCOME 1 Mile...$117,822 3 Mile...$121,555 5 Mile...$116,732 ANTHEM 2017 ESTIMATED TOTAL EMPLOYEES 1 Mile... 2,486 3 Mile... 6,057 5 Mile... 9, Minutes 32 Miles To Phoenix PHOENIX

14 AREA OVERVIEW Anthem, Arizona Anthem is a census-designated place located in Maricopa County, Arizona, within the Phoenix Metropolitan Area. The Anthem Census Designated Place had a population of 23,729 as of July 1, The community is serviced by several large chain retailers, including Fry s Marketplace, and Walmart. The local outlet mall, Outlets at Anthem, includes over 60 designer brand stores. In 2015, a Safeway location was sold to Haagen s, but that Haagen s shut down shortly thereafter. As of January 2017, Safeway has reopened in the space that was previously occupied by Haagen s. The Anthem Community council has a committee on the treasury which deals with financial issues and elects a chairman to be in charge of this committee. Also, each of the three home owner associations has a treasurer who deals with the monetary issues of their subdivision of Anthem. Anthem is served by the Deer Valley Unified School District (DVUSD) as well as several private and charter schools. The nearest colleges and universities are Glendale Community College, Paradise Valley Community College, and Arizona State University at the West campus. Interstate 17 is the primary connection between Anthem and the city of Phoenix. A frontage road running along the east side of Interstate 17 and connecting Carefree Highway in North Gateway to Gavilan Peak Parkway in Anthem opened in October This frontage road connects to North Valley Parkway and Norterra Parkway in North Gateway, providing Anthem with surface street access to the rest of the Phoenix metropolitan area. Valley Metro does not provide bus service to Anthem; however, the agency can provide a vehicle for vanpooling service. Maricopa County is a county in the south-central part of the U.S. state of Arizona. As of July 1, 2017, its population was 4,307,033, making it the state s most populous county and the fourth-most populous in the United States. It is more populous than 23 states. The county seat is Phoenix, the state capital and fifth-most populous city in the country. Maricopa County is the central county of the Phoenix-Mesa-Glendale, AZ Metropolitan Statistical Area. The population explosion is evident in a 2007 Forbes study which ranked four of Maricopa County s municipalities in the top ten fastest-growing cities in the nation. Those included Buckeye as the second-fastest-growing city, Surprise and Goodyear as 3rd and 4th, and Avondale as 9th. 14 AREA OVERVIEW SRS

15 AREA DEMOGRAPHICS DEMOGRAPHICS 1 MILE 3 MILES 5 MILES 2017 Estimated Population 9,654 34,054 49, Projected Population 10,297 36,636 53, Census Population 8,870 30,060 43, Estimated Households 3,348 10,885 16, Projected Households 3,547 11,686 17, Census Households 3,143 9,870 14, Estimated White 87.00% 85.10% 86.40% 2017 Estimated Black or African American 2.40% 3.00% 2.60% 2017 Estimated Asian or Pacific Islander 3.50% 3.30% 3.10% 2017 Estimated American Indian or Native Alaskan 1.10% 1.20% 1.10% 2017 Estimated Other Races 2.40% 3.40% 3.10% 2017 Estimated Hispanic 10.90% 12.10% 11.10% 2017 Estimated Average Household Income $117,822 $121,555 $116, Estimated Median Household Income $83,191 $88,690 $89, Estimated Per Capita Income $38,864 $40,632 $40, Estimated Total Businesses , Estimated Total Employees 2,486 6,057 9, AREA DEMOGRAPHICS SRS

16 RENT ROLL Pro Pro Rental Increases Lease Lease Suite Tenant Name Size Rata Rent Rent Rent Rent Rata Increase Rent Rent Rent Rent Start End Lease Options # SF (SF) Monthly $/SF/Mo Annual $/SF/Yr ($) Date Inc. Monthly $/SF/Mo Annual $/SF/Yr Date Date A15 Amped Coffee 2,107 6% $2,985 $1.42 $35,819 $ % Sep-18 3% $3,074 $1.46 $36,894 $17.51 Sep-17 Oct-22 1 (5-Year) Sep-19 3% $3,167 $1.50 $38,000 $ % Ann. Inc. 3% Annual Increases Thereafter A14 Pizza Hut 1,181 3% $1,357 $1.15 $16,286 $ % Feb-19 3% $1,399 $1.18 $16,782 $14.21 Jan-16 Jan-21 1 (5-Year) Feb-20 3% $1,440 $1.22 $17,278 $ % Ann. Inc. A13 Berkshire Hathaway 980 3% $1,952 $1.99 $23,422 $ % Sep-18 2% $1,991 $2.03 $23,892 $24.38 Jun-09 Aug-19 None Real Estate A12 Poke Shack 1,307 4% $2,124 $1.63 $25,487 $ % Oct-19 3% $2,188 $1.67 $26,258 $20.09 Oct-18 Dec-23 1 (5-Year) Oct-20 3% $2,253 $1.72 $27,042 $ % Ann. Inc. 3% Annual Increases A11 Lifestyle 2 Nutrition 1,307 4% $1,627 $1.25 $19,527 $ % Jun-19 3% $1,676 $1.28 $20,112 $15.39 Jun-17 Jun-22 1 (5-Year) Jun-20 3% $1,726 $1.32 $20,716 $ % Ann. Inc. 3% Annual Increases A10 Princess Nails 1,372 4% $1,819 $1.33 $21,828 $ % Dec-18 3% $1,874 $1.37 $22,487 $16.39 Sep-02 Nov-20 None Dec-19 3% $1,930 $1.41 $23,159 $16.88 A9 Vacant 1,236 3% $1,648 $1.33 $19,776 $ % A8 Vacant 1,600 4% $2,000 $1.25 $24,000 $ % RENT ROLL SRS

17 RENT ROLL Pro Pro Rental Increases Lease Lease Suite Tenant Name Size Rata Rent Rent Rent Rent Rata Increase Rent Rent Rent Rent Start End Lease Options # SF (SF) Monthly $/SF/Mo Annual $/SF/Yr ($) Date Inc. Monthly $/SF/Mo Annual $/SF/Yr Date Date A7 Sam's Frozen Yogurt 980 3% $1,388 $1.42 $16,656 $ % Dec-18 3% $1,430 $1.46 $17,160 $17.51 Dec-17 Dec-23 2 (5-Year) Dec-19 3% $1,473 $1.50 $17,679 $ % Ann. Inc. 3% Annual Increases A6 Filiberto's 1,635 5% $2,245 $1.37 $26,940 $ % Aug-19 3% $2,312 $1.41 $27,748 $16.97 Aug-17 Dec-23 None Aug-20 3% $2,382 $1.46 $28,581 $ % Annual Increases A5 Freedom Cycles 1,673 5% $2,298 $1.37 $27,576 $ % Aug-19 3% $2,367 $1.41 $28,403 $16.98 Aug-17 Dec-23 None Aug-20 3% $2,438 $1.46 $29,255 $ % Annual Increases A4 Vacant 1,307 4% $1,743 $1.33 $20,912 $ % A3 The Blind Bear 978 3% $1,511 $1.55 $18,132 $ % Aug-19 3% $1,556 $1.59 $18,676 $19.10 Oct-18 Dec-23 - Aug-20 3% $1,603 $1.64 $19,236 $ % Annual Increases A2 Shanghai Club 2,947 8% $6,569 $2.23 $78,832 $ % Jan-19-3% $6,385 $2.17 $76,622 $26.00 Apr-03 Dec-29 1 (5-Year) Jan-22 2% $6,508 $2.21 $78,096 $26.50 FMV Jan-24 2% $6,631 $2.25 $79,569 $27.00 Jan-26 2% $6,754 $2.29 $81,042 $27.50 Jan-28 2% $6,876 $2.33 $82,516 $28.00 A1 Ace Hardware 15,100 42% $6,921 $0.46 $83,050 $ % Dec-18 9% $7,550 $0.50 $90,600 $6.00 Nov-14 Nov-24 4 (5-Year) Dec-19 4% $7,865 $0.52 $94,375 $6.25 FMV $0.25 / SF Annual Increases Thereafter Total Occupied 31,567 88% $32,796 $1.04 $393,555 $ % Total Vacant 4,143 12% $5,391 $1.30 $64,688 $ % Total / Wtd. Avg: 35, % $38,187 $1.07 $458,243 $ % 17 RENT ROLL SRS

18 REIMBURSEMENT SUMMARY Pro Suite Tenant Name Size Rata Prop. Ins. CAM Mngmt. Admin Notes # SF (SF) Taxes Fee A15 Amped Coffee 2,107 6% Net Net Net 4% 15% Tenant reimburses 15% Admin on CAM and 4% management fee on gross revenues A14 Pizza Hut 1,181 3% Net Net Net 4% 15% Tenant has the right to Go Dark at any time with at least 30 days prior notice. After 60 consecutive days of ceased operations, Landlord has the right to recapture the premises. A13 Berkshire Hathaway 980 3% Net Net Net 4% - Tenant reimburses 4% management fee on gross revenues A12 Poke Shack 1,307 4% Net Net Net Net 15% Tenant reimburses 15% Admin on CAM and 4% management fee on gross revenues A11 Lifestyle 2 Nutrition 1,307 4% Net Net Net 4% 15% Tenant reimburses 15% Admin on CAM and 4% management fee on gross revenues A10 Princess Nails 1,372 4% Net Net Net 4% 15% Tenant reimburses 15% Admin on CAM and 4% management fee on gross revenues A9 Vacant 1,236 3% Net Net Net Net 15% Assumes full pass-through with a 15% admin fee on CAM A8 Vacant 1,600 4% Net Net Net Net 15% Assumes full pass-through with a 15% admin fee on CAM A7 Sam's Frozen Yogurt 980 3% Net Net Net 4% 15% Tenant reimburses 15% Admin on CAM and 4% management fee on gross revenues A6 Filiberto's 1,635 5% Net Net Net 4% 15% Tenant reimburses 15% Admin on CAM and 4% management fee on gross revenues A5 Freedom Cycles 1,673 5% Net Net Net 4% 15% Tenant reimburses 15% Admin on CAM and 4% management fee on gross revenues A4 Vacant 1,307 4% Net Net Net Net 15% Assumes full pass-through with a 15% admin fee on CAM A3 The Blind Bear 978 3% Net Net Net Net 15% Tenant reimburses 15% Admin on CAM and 4% management fee on gross revenues A2 Shanghai Club 2,947 8% Net Net Net 4% 15% Tenant reimburses 15% Admin on CAM and 4% management fee on gross revenues A1 Ace Hardware 15,100 42% Net Net Net 4% - Tenant reimburses 4% management fee on gross revenues Pad1 Pad2 Deer Valley Credit Union (NAP) The Pitstop (NAP) 3,436 0% - Net Net - - Square footage from title. 1,027 0% - Net Net - - Square footage from title. Total Occupied 31,567 88% Total Vacant 4,143 12% Total / Wtd. Avg: 35, % 18 REIMBURSEMENT RENT ROLL SRS

19 PRICING SUMMARY OPERATING CASH FLOW DEC 2018 STABILIZED Potential Rental Revenue: $468,500 $468,500 Potential Reimbursement Revenue: $251,589 $251,589 Gross Potential Revenue: $720,089 $720,089 Rental Vacancy: ($64,688) 14% ($23,425) 5% Reimbursement Vacancy: ($28,315) 11% ($12,579) 5% Effective Gross Revenue (EGR): $627,087 $684,085 Less Expenses: ($245,373) ($247,653) Net Operating Income: $381,714 $436,432 Less Loan Payment: ($255,855) ($255,855) Cash Flow: $125,859 $180,577 OPERATING EXPENSES 1 DEC 2018 PSF/YR STABILIZED PSF/YR Taxes: $86,095 $2.41 $86,095 $2.41 Insurance: $11,364 $0.32 $11,364 $0.32 CAM: $122,831 $3.44 $122,831 $3.44 Management: 2 $25,083 $0.70 $27,363 $0.77 PRICING SUMMARY Price: $5,400,000 Price/SF: $151 Dec 2018 Cap Rate: 7.07% Dec 2018 Cash/Cash 7.92% Stabilized Cap Rate: % Stabilized Cash/Cash: 11.30% Stabilizing Costs: 4 $60,836 POTENTIAL FIRST LOAN 6 Loan Amount (70%): $3,780,000 Down Payment (30%): $1,620,000 Payment (annual): ($253,415) Interest Rate: 4.55% Amortization: 25 years Maturity: 10 years Total: $245,373 $6.87 $247,653 $6.94 NOTES 1) Operating Expenses are per the 2018 Operating Budget 2) Management is estimated at 4% of EGR. 3) Stabilized cap rate includes stabilizing costs. 4) Stabilizing costs estimated at $10/SF in TIs and 6% LCs (5-year) 5) See Reimbursement Rent Roll for recovery notes. 6) Loan is fixed for ther first 5 years and has no prepayment penalty. 19 PRICING SUMMARY SRS

20 BRAND PROFILE ACE HARDWARE For more than 90 years, Ace Hardware has been known as the place with the helpful hardware folks in thousands of neighborhoods across America, providing customers with a more personal kind of helpful. In 2017, Ace ranked Highest in Customer Satisfaction with Home Improvement Retail Stores, Eleven Years in a Row, according to J.D. Power. With more than 5,000 hardware stores locally owned and operated across the globe, Ace is the largest retailer-owned hardware cooperative in the world. Headquartered in Oak Brook, Ill., Ace and its subsidiaries operate an expansive network of distribution centers in the U.S. and also have Company Type:... Private Locations:... 5,000+ Website:... PIZZA HUT Pizza Hut, Inc. operates a chain of pizza restaurants in the United States and internationally. The company offers pizzas, pastas, wings, sides, dipping sauces, drinks, and desserts. It also offers catering services. Pizza Hut operates nearly 17,000 restaurants in more than 100 countries. In addition, the company provides franchise opportunities. Further, it enables customers to order its products online. The company was founded in 1958 and is based in Plano, Texas. Pizza Hut, Inc. operates as a subsidiary of Company Type:... Subsidiary Parent:...Yum! Brands, Inc Employees:... 60, Revenue:... $5.88 Billion 2017 Net Income:... $1.34 Billion 2017 Assets:... $5.31 Billion Website:...# 422 FORTUNE BRAND PROFILE SRS

21 BRAND PROFILE FILIBERTO S MEXICAN FOOD Filiberto s is the southwest s favorite mexican fast food. The Mexican eatery has an extensive menu of classic and delicious Mexican dishes. Options range from breakfast platters and burritos to tacos, tostadas, enchiladas, tortas, and rice bowls. Quality ingredients and quick service make Filiberto s an easy and convenient choice for good Mexican food. Company Type:... Private Locations:...44 Website:... SAM S FROZEN YOGURT Sam s Frozen Yogurt is all about quality and fun. They will proudly serve Honey Hill Farms products, including frozen yogurt, sorbets and ice creams. They are so excited about serving the best frozen yogurt, their founder is traveling to the headquarters of Honey Hill Farms to meet the owners and tour their facility. Opening in Spring 2018, they will be located in Anthem, Arizona, an incredible community on the north tip of Phoenix. Company Type:... Private Location:...1 Website:... www. samsfrozenyogurt.com 21 BRAND PROFILE SRS

22 BRAND PROFILE SHANGHAI CLUB Shanghai Club was founded in 1992 by Harry and Ming Wong. Shanghai Club provides an extensive menu of French, Mandarin and Vietnamese Chinese Cuisine in a relaxing environment. Company Type:... Private Locations:...1 Website: BRAND PROFILE SRS

23 SRS GLOBAL STATS PROPERTIES CURRENTLY REPRESENTED 600+ CLIENTS REPRESENTED IN 2016 $2.6B* TRANSACTION VALUE 20+ OFFICES *STATISTICS ARE FOR BROKERS, PROFESSIONALS, AND STAFF #1 LARGEST REAL ESTATE FIRM EXCLUSIVELY DEDICATED TO RETAIL SERVICES IN NORTH AMERICA This Offering Memorandum has been prepared by SRS National Net Lease Group (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 projected 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.