Nob Hill. LANDMARK LOCATION in Eclectic Nob Hill Trade Area INVESTMENT OFFERING

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1 Nob Hill Albuquerque, NM LANDMARK LOCATION in Eclectic Nob Hill Trade Area INVESTMENT OFFERING

2 Property Description Investment Highlights 6 years left on 25 year term. Opened July 28, five year options with 10% rental increase every 5 years Single net lease. Tenant reimburses landlord for taxes Landmark location in eclectic Nob Hill Trade Area Densely populated Albuquerque, NM - 51,423 residents within a 3-mile radius Nob Hill Entertainment District with over 100 Restaurants and 75,000sf of eclectic retail 2 universities within one mile: University of New Mexico (27,000 Students); Central New Mexico Community College (28,000 Students) Investment Overview Starbucks, at the SEC of Central Ave & Tulane, sits in a highly visible and desirable location in the heart of Nob Hill. The subject property is a 1,400sf single tenant building. The Landlord is responsible for roof, structure and insurance. Taxes are paid by the Landlord and reimbursed by Starbucks. Starbucks (NASDAQ: SBUX) operates over 23,000 retail stores in 64 countries. Central Avenue, known to many as old Route 66, has a distinctive and storied history. It was and still is, Albuquerque's original "Main Street", carrying countless Americans coast to coast for the last 100 years thus creating Nob Hill's distinctive character and blend of architecture and appeal. With walkability of nearby shopping, restaurants, and drinking establishments supporting University of New Mexico, CNM, and surrounding neighborhoods, Nob Hill continues to be one of the best retail centers in the City of Albuquerque.

3 Financials Price $975,000 Tenant Starbucks Corporation Lease Guarantor Corporate NOI $51,684 Cap Rate 5.3% Term 6 Years Gross Income $58,440 based on 10/2017 rent Est. Operating Expenses $6,756 based on 2016 Expenses Renewal of existing 20 year lease Tenant reimburses taxes to landlord ($3,000 for 2016) Landlord responsible for roof/structure/insurance/maintenance Property Data Location Central & Tulane Year Built 1950 apprx. Building area 1,400 sf Patio 230 sf Land size 8,735 sf Traffic Counts Central Ave = 36k CPD Carlisle Blvd = 8k CPD Annualized Operating Data Major Rental Tenants Period Price SF % Annual of Project Monthly Expiration Base PSF Base Rent Rent Existing Term 20 $36.00 $50,400 $4,200 Thru 9/17 Lease Years $39.60 $55,440 $4,620 Begins 10/17 Option Period Annual Monthly Base Base Rent Rent Lease Years $43.56 $60,984 $5,082 Lease Years $47.96 $67,082 $5,590 Lease Years $52.71 $73,790 $6,149 Lease Years $57.98 $81,169 $6,764 Recently renewed amendment calls for current owner to place $7,500 in escrow for new HVAC Parking lot repaved, restriped and new bumpers, December 2016 Area Tenants

4 Starbucks Profile Brand Portfolio Starbucks Coffee, Seattle s Best Coffee, Teavana, Tazo, Evolution Fresh, La Boulange, Ethos Water and Torrefazione Italia Coffee. lease exp. Investor Information Starbucks record Q3 performance, highlighted by strong 7% comp growth and record revenues and profits in China and 18% year-over-year growth in our Starbucks Rewards loyalty program, demonstrates the strength and resilience of the Starbucks brand and business around the world, said Starbucks chairman and ceo Howard Schultz. As we enter Q4 and approach fiscal 2017, we have clear line of sight to returning our U.S. business to historic levels of comp sales growth which had been at or above 5% for the 25 consecutive quarters prior to Q3. STARBUCKS Revenues Up 7% to Q3 Record $5.2 Billion

5 CNM 1 Mile > Aerial View Silver Ave Amherst Dr Tulane Dr D CP 8K d le Bl v Carli s Dr y Dr awr nm Blvd UNM 1 Mile > Bry pus Korean BBQ le Welles Cam 36K CPD Dr Central Ave ond hm Ric SITE N

6 Albuquerque Overview Intel Double Eagle Airport Cottonwood Mall North Valley ABQ Academy Sandia Tram & Ski Resort Old Town Subject Property Coronado Coronade Mall ABQ Uptown University Winrock Mall of New Mexico Albuquerque CNM Kirkland AFB ABQ International Airport South Valley

7 Site Plan SITE

8 Demographics OVER 38% HOMES WITH VALUE AVERAGE HOUSEHOLD INCOME OF $48,043 $200K OR MORE $224 million spent on Apparel, Personal Care & Entertainment $ $ $ $ notable retailers & restaurants DEMOS BASED ON 3 MILE RADIUS $2.2 billion TOTAL HOUSEHOLD EXPENDITURES PER YEAR Estimated population 111,554 $347 million spent on food & beverage

9 The City of Albuquerque The Duke City Albuquerque is located in the expanding Sunbelt part of the United States and Interstate 40 and Interstate 25. Albuquerque and has a population of approximately 680,000, or roughly 75 percent of all residents in the Albuquerque metro area. More than half of the population of the metro lives within the Albuquerque city limits. The city, which was founded more than 300 years ago, is rich in history and culture but also has the dynamism of a modern, growing city. Several large public and private employers provide the engines for growth in the area. Employment Overview The local labor force consists of nearly 400,000 workers. The largest employment sector is government, which is supported by the largest employer in the metro area, Kirtland Air Force Base. The base employs over 23,000 workers, including 3,400 civil service workers and 12,500 contractors. The base, along with mission partners, the Department of Energy and Sandi National Laboratories, have annual economic impact on the Albuquerque area of more than $4 billion. Government employment in the Albuquerque MSA accounts for nearly one in every four jobs. Other large government employers include the Albuquerque Public Schools (14,800 workers), City of Albuquerque (5,500), State of New Mexico (4,950) and Bernalillo County (2,600). Education The University of New Mexico plays a significant role in the Albuquerque economy, serving as a large employer and also training the growing workforce. The university has more than 15,000 employees and an enrollment of nearly 29,000 students. Development Overview Approximately 650,000 square feet of commercial construction is currently under way in the Albuquerque metro area in addition to roughly 475 multifamily units that are being developed. Retail construction accounts for the greatest number of projects, but represents a modest total of square footage as most properties currently under way are small, single-tenant developments.

10 disclaimer The information contained in the following marketing brochure is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Sedberry & Associates and should not be made available to any other person or entity without the written consent of Sedberry & Associates. This marketing brochure has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Sedberry & Associates have not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, pcb s or asbestos, the compliance with state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant s plans or intention to continue its occupancy of the subject property. The information contained in this marketing brochure has been obtained from sources we believe to be reliable; however, Sedberry & Associates have not verified, and will not verify, any of the information contained herein, nor has Sedberry & Associates conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measure to verify all of the information set forth herein.