Starbucks BOISE, IDAHO

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1 Starbucks BOISE, IDAHO

2 About the Property THE OFFERING provides an opportunity to acquire a brand new construction Starbucks relocation along the highly-trafficked State Street in Boise, Idaho. The investment grade credit tenant exhibits a NNN lease with an initial 10-year term. The new single-tenant building is expected to open in October and is part of the 77,000 square foot Lakeharbor office development. The Lakeharbor complex is also under construction on an additional retail pad adjacent to Starbucks that will open in 2019.

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4 Overview Starbucks 5021 W STATE STREET, BOISE, ID $2,200,000 PRICE 4.80% CAP

5 PAGE 5 Investment Summary LEASEABLE SF 2,200 SF LAND AREA 31,494 SF LEASE TYPE NNN YEAR BUILT 2018 (Estimated Opening: October 2018) PARKING 18 Spaces; 8.2/1,000 SF* *Property shares a reciprocal parking agreement with the adjacent retail pad. Property Highlights Starbucks Corporate lease with BBB+ investment grade credit rating from Standard and Poor s. Brand new construction with drive-thru and a 10-year initial term. NNN expense structure provides minimal landlord responsibilities. High quality construction by experienced Idaho-based developer. Located on the going-to-work side of the heavily-trafficked State Street, carrying more than 37,000 vehicles per day. Part of the 77,000 SF Lakeharbor office development providing significant additional daytime population. New multi-tenant retail construction expected to be completed in 2019 adjacent to the Property will further enhance the draw to the Center.

6 Financial Summary PRICE $2,200,000 CAPITALIZATION RATE 4.80% CASH FLOW SUMMARY SCHEDULED INCOME PER SF Base Rent for the Period of: 11/1/ /31/2019 $48.00 $105,600 Total Effective Gross Income (EGI) $48.00 $105,600 OPERATING EXPENSES Per SF CAMS Property Taxes Insurance Total Operating Expenses NNN NNN NNN NNN NET OPERATING INCOME $105,600 NNN EXPENSE STRUCTURE PROVIDES MINIMAL LANDLORD RESPONSIBILITIES This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

7 PAGE 7 Rent roll STARBUCKS - BOISE Lease Term: Size (SF): 10/1/2018-9/30/2028 2,200 RENT SUMMARY DATE MONTHLY BASE RENT % INCREASE ANNUAL RENT PSF CAP RATE 10/1/2018 $8,800 $105,600 $ % 10/1/2023 $9,680 10% $116,160 $ % OPTIONS 5-YR 1 10/1/2028 $10,648 10% $127,776 $ % 2 10/1/2033 $11,713 10% $140,554 $ % 3 10/1/2043 $12,884 10% $154,609 $ % 4 10/1/2048 $14,172 10% $170,070 $ % CURRENT $8,800 $105,600 $ % COMMENTS: Tenant operates on a NNN lease term with a 10% increase every five years. Tenant has four, five-year options given 180 days' notice. Landlord responsible for the maintenance costs of the roof, structure. Tenant has exclusives for coffee and tea-based drinks. First year expenses not to exceed $3.00/SF for taxes, $1.00/SF for insurance and $4.00/SF for CAMS. Operating expenses not to increase more than 5% year over year. Tenant shall not reimburse management fees in excess of 10% of CAM expenses excluding utilities. Financial Summary

8 W STATE STREET Surrounding Amenities 37,900 VPD 37,900 VPD W STATE STREET LAKEHARBOR OFFICE COMPLEX STARBUCKS DOWNTOWN BOISE 3 MILES

9 PAGE 9 About the Developer HEADQUARTERS: Ketchum, ID FOUNDED: 2000 SAWTOOTH DEVELOPMENT GROUP has a long history of developing high quality retail, office, multi-family, residential, industrial, and mixed-use projects. Based out of Ketchum, Idaho the company has strong ties to development in the greater Boise area as well as large projects up and down the west coast and into Texas. In addition to development, Sawtooth Development Group also works on the designs, the leasing and management of their assets, an element that attests to their great pride of ownership. SITE PLAN NOT TO SCALE ADJACENT TO THE LAKEHARBOR OFFICE COMPLEX UNDER CONSTRUCTION ±5,000 SF RETAIL STRIP TO BE COMPLETED IN ,900 VPD N LAKEHARBOR LANE DOWNTOWN BOISE 3 MILES W STATE STREET Q: IS THERE SHARED ACCESS AND PARKING WITH THE ADJACENT PARCEL TO THE WEST? A: Yes, the driveway to the two properties is shared along with an easement for reciprocal parking. Surrounding Site Retail Plan

10 Featured Photography

11 PAGE 11 MULTI-TENANT RETAIL PAD UNDER CONSTRUCTION Featured Photography

12 Demographics Boise, Idaho MSA BOISE is the capital and most populous city in the state of Idaho. Located along the Boise River this city anchors the Boise City - Nampa Metropolitan Area which is the most populous metropolitan area in Idaho, containing the state s three largest cities; Boise, Nampa, and Meridian. Growth & Development OFFICE DEVELOPMENT IN BOISE is experiencing a significant upswing with 450,000 square feet expected to be completed in 2018, nearly double that of Even with the large amount of added office product, net absorption continues to outpace new construction. Additionally, hi-rise office towers are already in the works to start construction in downtown Boise beginning in 2019.

13 PAGE 13 Corporate Headquarters BOISE IS THE HEADQUARTERS FOR several major companies, such as Boise Cascade LLC, Albertsons, J.R. Simplot Company, Idaho Pacific Lumber Company, Idaho Timber, WinCo Foods, Bodybuilding.com, and Clearwater Analytics. Other major industries are headquartered in Boise or have large manufacturing facilities present. The state government is also one of the city s largest employers. ONE OF THE LARGEST BOISE EMPLOYERS has recently announced a $3B investment into their Virginia operations to further expand their workforce and increase memory chip production. The Boise headquartered company has seen a 233% stock jump over the last three years, well outpacing the tech industry average growth. In the News Drive time POPULATION 5 MINS 10 MINS 15 MINS ,688 69, , ,899 77, , ,901 82, , HH INCOME 5 MINS 10 MINS 15 MINS Average $68,746 $71,027 $74,958 Median $51,961 $51,245 $52,452 KEY 5 MINS 10 MINS 15 MINS

14 Contact Us

15 We d love to hear from you. SEAN MACK smack@capitalpacific.com PH: KEVIN ADATTO kadatto@capitalpacific.com PH: MICHAEL HORWITZ mhorwitz@capitalpacific.com PH: PETER DUNN pdunn@capitalpacific.com PH: LISTING IN CONJUNCTION WITH: BRIANNA MILLER Thornton Oliver Keller Commercial Real Estate briannam@tokcommercial.com PH: The information in this Executive Summary has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies. All rights reserved to Capital Pacific, LLC. Contact Us

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