Landmark Station Greensboro, NC. Offering Memorandum

Transcription

1 Greensboro, NC Offering Memorandum

2 Confidentiality Agreement The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap. This offering memorandum has been prepared to provide summary, unverified financial and physical 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. Marcus & Millichap has 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, PCBs or asbestos, the compliance with local, 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 intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap 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 measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

3 exclusively listed Exclusively listed by: Investment Sales: OFFICES NATIONWIDE Scott Wiles Vice President Investments Senior Director, National Retailer Group CLEVELAND Tel: (216) Fax: (614) License: OH SAL Erin Patton Vice President Investments Senior Director, National Retailer Group COLUMBUS Tel: (614) Fax: (614) License: OH SAL Craig Fuller Vice President Investments Senior Director, National Retailer Group CLEVELAND Tel: (216) Fax: (614) License: OH SAL Andrew Margulies Vice President Investments Senior Director, National Retail Group RALEIGH Tel: (312) Fax: (877) License: NC

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5 Table of Contents EXECUTIVE SUMMARY Offering Highlights....2 Investment Overview...3 Summary of Terms....5 PROPERTY DESCRIPTION Property Detail Regional Map Local Map Aerial Photograph...11 Site Plan Parcel Map FINANCIAL ANALYSIS Schedule of Prospective Cash Flow Assumptions...18 Rent Roll...19 Tenant and Lease Summaries MARKET OVERVIEW Demographic Summary Location Overview....28

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7 summaryexecutive SUMMARY

8 EXECUTIVE SUMMARY Offering Highlights EXECUTIVE SUMMARY LANDMARK STATION Bridford Pkwy Greensboro, NC Offering Summary Offering Price $10,060,000 Current Occupancy % PROPERTY DESCRIPTION Total Gross Leasable Area (GLA) 103,494 SF Price/SF $97.20 Year Built 1994 Lot Size 8.18 Acres Vital Data Current Cap Rate 7.60% Current Net Operating Income $764,790 FINANCIAL ANALYSIS Year 1 Cash-on-Cash Return 9.66% 10 Year Leveraged IRR 15.34% Proposed New Financing Loan Amount $6,539,000 Loan-to-Sale Ratio 65.00% Interest Rate 4.00% COMPARABLES Term Amortization Major Tenants 10 Year 25 Year Debt Service Cover Ratio 1.85 Major Area Employers Demographics 1-MILE 5-MILES 10-MILES 2014 Population 7,269 64, ,527 MARKET OVERVIEW TENANT GLA LEASE EXP LEASE TYPE Hobby Lobby 60,219 SF 02/2019 NNN K&G Fashion Superstore 20,850 SF 02/2022 NNN Dollar Tree 13,455 SF 02/2027 NNN Apna Sabji Mandi 4,485 SF 01/2020 NNN Old Europe Restaurant 4,485 SF 04/2018 NNN MAJOR EMPLOYERS Cornerstone Health Care Timco Aviation Services Inc. Klaussner Funiture Industries Koury Corp. Technimark SERVICE Health Care Manufacturing Manufacturing Commercial Real Estate Manufacturing 2019 Population 8,069 68, , Households 3,896 29,238 58, Households 4,356 31,487 62,811 Median HH Income $44,908 $43,558 $48,617 Per Capita HH Income $30,647 $28,068 $30,452 Average HH Income $57,159 $61,824 $69,864 2 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

9 EXECUTIVE SUMMARY Investment Overview Marcus & Millichap, on behalf of ownership as its exclusive advisor, is pleased to bring to market in Greensboro, North Carolina. Situated on 8.18 acres and constructed in 1994, this 103,494 square foot shopping center is anchored by Hobby Lobby (60,219 SF), K&G Men s Co. (20,850 SF), and Dollar Tree (13,455 SF). Hobby Lobby is on its original 15 year lease that commenced in 2004 and is leased to NNN terms through February There are two, five-year options remaining. K&G Men s Co. is leased through February 2022, and Dollar Tree is leased through February The center is fully occupied with Hobby Lobby making up over 58 percent of the total gross leasable area and the three anchors combining for 91 percent of the total gross leasable area. Other tenants include Apna Sabji Mandi and Old Europe Restaurant. All leases are NNN terms. The subject property is located directly off of Interstate 40 along West Wendover Avenue, a dense retail corridor which sees 52,344 cars per day. There are 64,641 residents in five miles and 135,527 residents within ten miles. The average household income is $61,824 within five miles. Nearby retailers include Walmart, Target, Sam s Club, Home Depot, Lowe s, Kohl s, Best Buy, and Dick s Sporting Goods, to name a few. EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS Investment Highlights 100% Occupied and Stabilized 103,494 SF Shopping Center Anchored by Hobby Lobby, K&G Fashion Superstore, & Dollar Tree Below-Market Anchor Lease with Hobby Lobby ($5.25/SF NNN) Provides Upside Shadowed by Home Depot and Field & Stream with Shared Access/Parking Scheduled $75,274 ($1.25/SF) Rent Bump in Hobby Lobby s 2019 Option; Bumps CAP Rate to 8.38% Recent Lease Extensions with K&G Fashion Superstore (2/2022) & Dollar Tree (2/2027) High-Growth North Carolina Location (65% 1-Mile Population Growth Since 2000) 3 Anchors Comprise 91.3% of Total GLA (Low Management, 5-Tenant Property) National Anchors (Hobby Lobby: 600 Locations, K&G: 85 Locations, Dollar Tree: 13,600 Locations) Only Greensboro Locations for Hobby Lobby and K&G Fashion Superstore All NNN Leases with 100% of RE Taxes, Insurance, & CAM Reimbursed Located in Greensboro MSA s Largest Retail Trade-Area (724,000 Person MSA) Nearby Retailers Include Costco, Walmart, Target, Sam s Club, Lowe s, Kohl s, & Dicks COMPARABLES MARKET OVERVIEW 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

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11 EXECUTIVE SUMMARY Summary of Terms Interest Offered Fee simple interest in, a 103,494-square foot shopping center located at Bridford Pkwy, Greensboro, NC EXECUTIVE SUMMARY Terms of the Sale is offered at $10,060,000 based on a capitalization rate of 7.60%. The net operating income figures for the Property assume a fiscal year starting January Property Tours Prospective purchasers are encouraged to visit the subject property prior to submitting offers. However, all property tours must be arranged with the Marcus & Millichap listing agents. Please do not contact the tenants, on-site management or staff without prior approval. PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET OVERVIEW 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

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13 description PROPERTY DESCRIPTION

14 PROPERTY DESCRIPTION Property Details EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS THE OFFERING Property Property Address SITE DESCRIPTION Gross Leasable Area Ownership Bridford Pkwy Greensboro, NC ,494 SF Fee Simple Year Built 1994 Number of Stories 1 Parking Parking Ratio Topography PARCELS 532 Free Surface Spaces 5.14 per 1,000 SF Level The property consists of 1 tax parcel APN Acres 8.18 Acres CONSTRUCTION Foundation Framing Exterior Parking Surface Roof MECHANICAL HVAC Fire Protection Utilities ZONING PUD Concrete Slab Steel & Masonry Masonry Asphalt Thermoplastic Roof Mounted To Code All Local Providers Commercial ACCESS POINTS The property is accessed by two curb cuts on Bridford Pkwy and one curb cut on Bridford Place. There is also secondary access from connections with neighboring retailers Field & Stream and Home Depot MARKET OVERVIEW COMPARABLES 8 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

15 PROPERTY DESCRIPTION Regional Map EXECUTIVE SUMMARY Landmark Station PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET OVERVIEW 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

16 PROPERTY DESCRIPTION Local Map MARKET OVERVIEW COMPARABLES FINANCIAL ANALYSIS PROPERTY DESCRIPTION EXECUTIVE SUMMARY Landmark Station 10 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

17 PROPERTY DESCRIPTION Aerial Photo EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET OVERVIEW 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

18 PROPERTY DESCRIPTION Site Plan MARKET OVERVIEW COMPARABLES FINANCIAL ANALYSIS PROPERTY DESCRIPTION EXECUTIVE SUMMARY 12 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

19 PROPERTY DESCRIPTION Parcel Map EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET OVERVIEW 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

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21 analysis FINANCIAL ANALYSIS

22 FINANCIAL ANALYSIS Schedule of Prospective Cash Flow EXECUTIVE SUMMARY PROPERTY DESCRIPTION For the Years Ending: Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Dec-2017 Dec-2018 Dec-2019 Dec-2020 Dec-2021 Dec-2022 Dec-2023 Dec-2024 Dec-2025 Dec-2026 Potential Gross Revenue Base Rental Revenue $795,325 $798,315 $862,539 $883,905 $885,400 $888,390 $889,885 $914,976 $929,487 $930,982 Absorption & Turnover Vacancy Scheduled Base Rental Revenue 795, , , , , , , , , ,982 Expense Reimbursement Revenue Real Estate Taxes 81,532 83,163 84,826 86,523 88,255 90,019 91,818 93,656 95,528 97,439 Insurance 7,120 7,262 7,406 7,554 7,706 7,861 8,017 8,176 8,339 8,508 Common Area Maintenance 93,331 95,198 97,100 99, , , , , , ,538 Total Reimbursement Revenue 181, , , , , , , , , ,485 Total Potential Gross Revenue 977, ,938 1,051,871 1,077,024 1,082,386 1,089,313 1,094,825 1,124,014 1,142,705 1,148,467 General Vacancy (6,630) (6,795) (6,886) (7,344) (7,436) (7,602) (7,695) (7,713) (8,206) (8,299) EFFECTIVE GROSS REVENUE 970, ,143 1,044,985 1,069,680 1,074,950 1,081,711 1,087,130 1,116,301 1,134,499 1,140,168 FINANCIAL ANALYSIS Operating Expenses Real Estate Taxes 81,532 83,163 84,826 86,522 88,253 90,018 91,818 93,655 95,528 97,438 Insurance 7,119 7,261 7,407 7,555 7,706 7,860 8,017 8,177 8,341 8,508 Common Area Maintenance 83,263 84,928 86,627 88,359 90,127 91,929 93,768 95,643 97,556 99,507 Management 33,974 34,200 36,574 37,439 37,623 37,860 38,050 39,071 39,707 39,906 Total Operating Expenses 205, , , , , , , , , ,359 NET OPERATING INCOME 764, , , , , , , , , ,809 COMPARABLES Leasing and Capital Costs Tenant Improvements Leasing Commissions Structural Reserves 10,349 10,556 10,768 10,983 11,203 11,427 11,655 11,888 12,126 12,368 Total Leasing and Capital Costs 10,349 10,556 10,768 10,983 11,203 11,427 11,655 11,888 12,126 12,368 NET CASH FLOW BEFORE DEBT SERVICE 754, , , , , , , , , ,441 MARKET OVERVIEW Debt Service Interest Payments 258, , , , , , , , , ,502 Principal Payments 155, , , , , , , , , ,681 Total Debt Service 414, , , , , , , , , ,183 NET CASH FLOW AFTER DEBT SERVICE $340,258 $342,852 $404,600 $424,639 $425,855 $428,434 $429,639 $453,684 $467,058 $468, 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

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24 FINANCIAL ANALYSIS Assumptions EXECUTIVE SUMMARY Property Timing Start of Analysis End of Analysis Analysis Period Jan-2017 Dec Year PROPERTY DESCRIPTION Property Operating Parameters MARKET RENTS Square Feet Per Year Varies Lease Type NNN GENERAL VACANCY Year 1 Thereafter 5% of Small-Shop 5% of Small-Shop CAPITAL EXPENSE (YEAR 1) Capital Reserves $10,349 FINANCIAL ANALYSIS COMPARABLES GROWTH RATES Market Rents Year 1 2% Year 2 2% Year 3 2% Year 4 2% Thereafter 2% Operating Expenses 2% Real Estate Taxes 2% Capital Reserves 2% CPI 2% OPERATING EXPENSES (YEAR 1) Real Estate Taxes $81,532 Insurance $7,119 Common Area Maintenance $83,263 Management $33,974 Total Operating Expenses $205,888 Amount Reimbursed by Tenants $181,983 MARKET LEASING ASSUMPTIONS Renewal Probability 75% Market Rent (SF/YR) Varies Downtime 3 Months Tenant Improvements $10/SF Leasing Commissions 5% Rent Escalation None Lease Term 5-10 Years Lease Type NNN MARKET OVERVIEW 18 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

25 FINANCIAL ANALYSIS Rent Roll As of Jan-2017 for 103,494 Square Feet TENANT NAME TYPE & SUITE NUMBER LEASE DATES & TERM FLOOR SF BLDG SHARE RATE & AMOUNT PER YEAR PER MONTH CHANGES ON CHANGES TO OTHER OPTIONS/ % RENT LEASE TYPE 1 Hobby Lobby $5.25 Mar-2019 $6.50 (2) 5 Year NNN Retail, Suite: ,219 $316,150 Mar-2024 $7.00 Mar-2004 to Feb % $ Months $26,346 2 K&G Fashion Superstore $ (1) 5 Year NNN Retail, Suite: ,850 $187,650 Feb-2005 to Feb % $ Months $15,638 3 Dollar Tree $13.00 Mar-2017 $13.00 (2) 5 Year NNN Retail, Suite: ,455 $174,915 Mar-2027 $13.50 Mar-2007 to Feb % $1.08 Mar-2032 $ Months $14,576 4 Apna Sabji Mandi $13.00 Jan-2020 $14.30 (2) 5 Year NNN Retail, Suite: 1315B 4,485 $58,305 Jan-2025 $15.75 Jan-2015 to Jan % $ Months $4,859 5 Old Europe Restaurant $13.00 May-2018 $14.00 (2) 5 Year NNN Retail, Suite: 1315A 4,485 $58,305 May-2020 $15.00 May-2015 to Apr % $1.08 May-2022 $ Months $4,859 May-2025 $17.00 Total Occupied Square Feet 103,494 Total Available Square Feet 0 EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS COMPARABLES MARKET OVERVIEW 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

26 FINANCIAL ANALYSIS Tenant and Lease Summaries EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS Hobby Lobby Hobby Lobby is a chain of retail arts and crafts stores based in Oklahoma City, Oklahoma, formerly called Hobby Lobby Creative Centers. The stores are managed by direct corporate hires David Green opened the first Hobby Lobby store, in a 300 SF space in northwest Oklahoma City, in Retail sales were $3,200 from August to the end of the year. He moved to a larger 1,000 square foot space in January A second store in Oklahoma City opened in 1975, and a store opened in Tulsa, Oklahoma the next year. It grew to seven stores by mid 1982,and the first store outside Oklahoma opened in 1984.By the start of 1989, the chain had about 15 stores. By late 1992, it had grown to 50 locations in seven states, and its growth continued to accelerate. Its 100th store opened in August 1995, and its 200th in August By March 2002, that number had grown to 281 stores in 24 states,and 310 by October 2003 As of April 2015, the chain has 600 stores nationwide. Hobby Lobby stores and facilities are open for business every day with the exception of Sunday due to Green s Christian beliefs. He wanted his employees to have more time to spend for worship, rest, and family, even at the expense of profits. Rent Commencement: 3/1/2004 Lease Expiration: 2/28/2019 Gross Leasable Area: 60,219 SF Current Tenancy: 12 Years Option Term: (2) 5 Year Pro Rata Share of Project: 58.19% Headquartered: Oklahoma City, OK No. of Locations: 600 Website: K & G Fashion Superstore COMPARABLES MARKET OVERVIEW The feminization of K&G Men s Company, doing business as K&G Fashion Superstore, is well underway. The retailer operates about 85 deep-discount career apparel superstores in nearly 30 states. Its stores feature brand-name and private-label tailored and casual clothing, footwear, and accessories for men, women, and children. The bargain warehouse-type stores average about 23,000 sq. ft. and offer first-run merchandise at prices 30%-60% lower than department stores. Founded in 1989, K&G is a subsidiary of Tailored Brands and accounts for about 18% of its parent company s sales. After purchasing K&G, Men s Wearhouse (Tailored Brands predecessor) converted most of its outlets to the K&G Fashion Superstores banner and began adding women s and kids apparel to the racks. K&G Men s Company Inc. operates as a subsidiary of Tailored Brands, Inc. and is based in Houston, Texas. Rent Commencement: 2/19/2005 Lease Expiration: 2/28/2022 Gross Leasable Area: 20,850 SF Current Tenancy: 11 Years Option Term: (1) 5 Year Pro Rata Share of Project: 20.15% Headquartered: Houston, TX No. of Locations: 85 Website: 20 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

27 FINANCIAL ANALYSIS Tenant and Lease Summaries Dollar Tree Dollar Tree, Inc. is an American chain of discount variety stores that sells items for $1 or less. A Fortune 500 company, Dollar Tree is headquartered in Chesapeake, Virginia and operates 13,600 stores throughout the 48 contiguous U.S. states and Canada. Its stores are supported by a nationwide logistics network of ten distribution centers. The company operates one dollar stores under the names of Dollar Tree and Dollar Bills. The company also operates a multiprice-point variety chain under the name Deals. Dollar Tree competes in the dollar store and low-end retail markets. Each Dollar Tree stocks a variety of products including national, regional, and private-label brands. Departments found in a Dollar Tree store include health and beauty, food and snacks, party, seasonal Old Europe Restaurant Rent Commencement: 3/1/2007 Lease Expiration: 2/28/2027 Gross Leasable Area: 13,455 SF Current Tenancy: 9 Years Option Term: (2) 5 Year Pro Rata Share of Project: 13.00% Headquartered: Cheasapeake, VA No. of Locations: 13,600 Website: NYSE: DLTR EXECUTIVE SUMMARY PROPERTY DESCRIPTION FINANCIAL ANALYSIS At 75, Karl Wenzel is as passionate about cooking as he was when he started his career 60 years ago as an apprentice. Wenzel learned to cook in the German apprentice system after World War II. As a young man, he helped train U.S. Army cooks stationed in Germany in how to cook German food. The soldiers would go out to German restaurants because they liked the food, Wenzel said. They wanted me to teach them so the soldiers would spend their money (on the base). Wenzel eventually started traveling as he worked in hotel restaurants. That brought him to the United States in By the 1980s, Wenzel had made his way to the Triad. Wenzel, a native of Germany, is the owner of Old Europe Restaurant in Greensboro. It s the only German restaurant in the Triad, and one of the few authentic German restaurants within hundreds of miles. There are other German restaurants (outside the Triad), but the food isn t 100 percent German. They Americanize it. And they don t have Germans cooking it, Wenzel said. Wenzel prides himself on keeping his German heritage alive and cooking everything from scratch. Rent Commencement: 5/1/2015 Lease Expiration: 4/30/2018 Gross Leasable Area: 4,485 SF Original Term: 3 Year Option Term: (2) 5 Year Pro Rata Share of Project: 4.33% Headquartered: Greensboro, NC No. of Locations: 1 Website: COMPARABLES MARKET OVERVIEW 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

28 FINANCIAL ANALYSIS Tenant and Lease Summaries EXECUTIVE SUMMARY Apna Sabji Mandi Indian grocery with fresh produce and authentic indian spices. Apna Sabji Mandi which translates to Our vegetables market is a great place to buy south Asian food and ingredients. The store is well lit, well organized and well stocked. You ll get fresh vegetables, snacks, spices and more. Rent Commencement: 1/15/2015 Lease Expiration: 1/15/2020 Gross Leasable Area: 4,485 SF PROPERTY DESCRIPTION Original Term: 5 Year Option Term: (2) 5 Year Pro Rata Share of Project: 4.33% Headquartered: Greensboro, NC No. of Locations: 1 MARKET OVERVIEW COMPARABLES FINANCIAL ANALYSIS 22 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap ACT ID T

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30 The Home Depot is located adjacent to subject property, part of the larger landmark station shopping center

31 overviewmarket OVERVIEW

32 MARKET AND PROPERTY ANALYSIS Demographic Summary OUR ADVANTAGE MARKETING TEAM MARKET AND PROPERTY ANALYSIS MARKETING PLAN & CLIENT REPORTING POPULATION 1-MILE 5-MILES 10-MILES 2000 Population 4,408 53, , Population 6,795 61, , Population 7,269 64, , Population 8,069 68, ,981 HOUSEHOLDS 1-MILE 5-MILES 10-MILES 2000 Households 2,267 23,247 47, Households 3,639 27,909 56, Households 3,896 29,238 58, Households 4,356 31,487 62, Average HH Size Daytime Population 5,327 37,785 85, Owner Occupied Housing Units 37.88% 46.45% 56.92% 2000 Renter Occupied Housing Units 54.62% 47.22% 37.40% 2000 Vacant 7.50% 6.33% 5.68% 2014 Owner Occupied Housing Units 46.91% 44.66% 55.44% 2014 Renter Occupied Housing Units 53.09% 55.34% 44.56% 2014 Vacant 5.22% 8.17% 6.84% 2019 Owner Occupied Housing Units 47.53% 43.84% 54.65% 2019 Renter Occupied Housing Units 52.47% 56.16% 43.35% 2019 Vacant 4.97% 8.60% 7.07% INCOME 1-MILE 5-MILES 10-MILES $0 - $ 14, % 12.4% 11.5% $15,000 - $24, % 12.7% 11.9% $25,000 - $34, % 14.2% 12.4% $35,000 - $49, % 16.4% 15.2% $50,000 - $74, % 18.4% 18.2% $75,000 - $99, % 11.3% 12.2% $100,000 - $124, % 6.3% 7.2% $125,000 - $149, % 2.7% 3.8% $150,000 - $200, % 3.1% 4.0% $200,000 to $249, % 1.0% 1.4% $250, % 1.5% 2.1% 2014 Median HH Income $44,908 $43,558 $48, Per Capita Income $30,647 $28,068 $30, Average HH Income $57,159 $61,824 $69,864 COMPENSATION 26 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap

33 MARKET AND PROPERTY ANALYSIS Demographic Summary Geography: 5 Miles Population In 2014, the population in your selected geography is 135,526. The population has changed by 20.88% since It is estimated that the population in your area will be 142,980 five years from now, which represents a change of 5.49% from the current year. The current population is 47.80% male and 52.19% female. The median age of the population in your area is 35.4, compare this to the Entire US average which is The population density in your area is 1, people per square mile. Households There are currently 58,750 households in your selected geography. The number of households has changed by 24.77% since It is estimated that the number of households in your area will be 62,810 five years from now, which represents a change of 6.91% from the current year. The average household size in your area is 2.28 persons. Income In 2014, the median household income for your selected geography is $48,616, compare this to the Entire US average which is currently $51,972. The median household income for your area has changed by 1.81% since It is estimated that the median household income in your area will be $55,920 five years from now, which represents a change of 15.02% from the current year. The current year per capita income in your area is $30,451, compare this to the Entire US average, which is $28,599. The current year average household income in your area is $69,863, compare this to the Entire US average which is $74,533. Race and Ethnicity The current year racial makeup of your selected area is as follows: 59.13% White, 26.65% Black, 0.07% Native American and 6.27% Asian/Pacific Islander. Compare these to Entire US averages which are: 71.60% White, 12.70% Black, 0.18% Native American and 5.02% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 9.09% of the current year population in your selected area. Compare this to the Entire US average of 17.13%. Housing In 2000, there were 28,413 owner occupied housing units in your area and there were 18,669 renter occupied housing units in your area. The median rent at the time was $568. Employment In 2014, there are 85,481 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 70.40% of employees are employed in white-collar occupations in this geography, and 29.73% are employed in blue-collar occupations. In 2014, unemployment in this area is 6.31%. In 2000, the average time traveled to work was 20.5 minutes. OUR ADVANTAGE MARKETING TEAM MARKET AND PROPERTY ANALYSIS MARKETING PLAN & CLIENT REPORTING COMPENSATION Demographic data 2010 by Experian/Applied Geographic Solutions. 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap 27

34 MARKET AND PROPERTY ANALYSIS Location Overview OUR ADVANTAGE MARKETING TEAM MARKET AND PROPERTY ANALYSIS MARKETING PLAN & CLIENT REPORTING COMPENSATION Greensboro is a city in the U.S. state of North Carolina.It is the third-largest city by population in North Carolina and the county seat and largest city in Guilford County and the surrounding Piedmont Triad metropolitan region. Three major interstate highways (Interstate 85, Interstate 40 and Interstate 73) in the Piedmont region of central North Carolina were built to intersect at this city. Greensboro is located among the rolling hills of North Carolina s Piedmont, situated midway between the state s Blue Ridge and Great Smoky mountains to the west and the Atlantic beaches and Outer Banks to the east. The view of the city from its highest building the Lincoln Financial tower (commonly known as the Jefferson-Pilot Building after the local newspaper) shows an expanse of shade trees in the city. Interstates 40 and 85 intersect at the city, and the planned I-73 is to pass through its borders. In 2003, the previous Greensboro Winston-Salem High Point metropolitan statistical area (MSA) was re-defined by the U.S. Office of Management and Budget. This region was separated into the Greensboro-High Point MSA and the Winston-Salem MSA. With a great selection of 135 attractions, the fun never ends in Greensboro! Centrally located in North Carolina s picturesque heartland, Greensboro is the perfect place to relax and be immersed in entertainment. Play in the center of it all! Dine with a selection of more than 500 restaurants. Rich in history, nightlife, shopping, and horses (8,000 buyers per year go to the Sharpe Family Horse Farm.) Greensboro lives up to its name in the host of gardens, science centers, and arboretums. The Bog Garden features a living wetland ecosystem. History is also at home here with museums dedicated to the Revolutionary War, the Civil War, and the Civil Rights movement. After a day of sightseeing, visitors flock to the Four Seasons Town Center for dinner, shopping, and a movie. Location Highlights Greensboro is the largest city in Guilford County and the Piedmot Triad MSA and the third largest in the state of North Carolina Greensboro s biggest draw is the PGA Chrysler Classic of Greensboro Greensboro boasts 170 parks, gardens and special facilities. The city also has 12 recreation centers Greensboro boasts five four-year colleges and universities, a two-year community college, a law school and a collaborative joint campus. These higher educational facilities employ 6,000 faculty and staff Greensboro is a past winner of the All-America City Award from the National Civic League 28 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. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc Marcus & Millichap

35 Field & Stream is located adjacent to subject property, part of the larger landmark station shopping center

36 Hamrick s is located adjacent to subject property, part of the larger landmark station shopping center

37 Greensboro, NC exclusively listed Exclusively listed by: Investment Sales: OFFICES NATIONWIDE Scott Wiles Vice President Investments Senior Director, National Retailer Group CLEVELAND Tel: (216) Fax: (614) License: OH SAL Erin Patton Vice President Investments Senior Director, National Retailer Group COLUMBUS Tel: (614) Fax: (614) License: OH SAL Craig Fuller Vice President Investments Senior Director, National Retailer Group CLEVELAND Tel: (216) Fax: (614) License: OH SAL Andrew Margulies Vice President Investments Senior Director, National Retail Group RALEIGH Tel: (312) Fax: (877) License: NC