MARKET AT CEDAR LAKE MARKET AT CEDAR LAKE EDMOND, OK OFFERING MEMORANDUM

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1 MARKET AT CEDAR LAKE MARKET AT CEDAR LAKE EDMOND, OK OFFERING MEMORANDUM 1

2 CONFIDENTIALITY & CONDITIONS Newmark Grubb Levy Strange Beffort ( NGLSB ) has been engaged as the exclusive sales representative for the sale of Market at Cedar Lake 121 & 251 E Waterloo Rd., Edmond, OK (individually a Property or collectively the Property or Portfolio ) by High Chaparral Development, Inc. (the Seller ). The Property is being offered for sale in an as-is, where-is condition, and the Seller and NGLSB make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include confidential information and are being furnished solely for the purpose of review by prospective purchasers ( Purchasers ) of the interest described herein for which they shall be fully and solely responsible. Neither the enclosed materials, nor any information contained herein, are to be used for any other purpose, or made available to any other person without the express written consent of the Seller. Each recipient, as a prerequisite to receiving the enclosed information, should be registered with NGLSB as a Registered Potential Investor or as a Purchaser s Broker as hereinafter defined for an identified Registered Potential Investor. The use of this Offering Memorandum, and the information provided herein, is subject to the terms, provisions and limitations of the Confidentiality Agreement furnished by NGLSB prior to delivery of this Offering Memorandum. The material contained herein is based on information and sources deemed to be reliable, but no representation or warranty, express or implied, is being made by NGLSB or the Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners, and directors, as to its accuracy or completeness. Summaries contained herein of any legal or other documents are not intended to be comprehensive statements of the terms of such documents, but rather only outlines of some of the principal provisions contained therein. Neither the Seller nor NGLSB shall have any liability whatsoever for any other written or oral communication or information transmitted, or made available, or any action taken, or decision made by the recipient with respect to the Property. from the market for sale at any time and for any reason without notice, to reject any and all expressions of interest or offers regarding the Property, and/or to terminate discussions with any entity at any time, with or without notice. This Offering Memorandum is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. NGLSB is not authorized to make any representations or agreements on behalf of the Seller. The Seller shall have no legal commitment or obligation to any recipient reviewing the enclosed materials, performing additional investigation, and/or making an offer to purchase the Property unless and until a binding written agreement for the purchase of the Property has been fully executed, delivered, and approved by Seller and any conditions required under the contract for title to pass from the Seller to the Purchaser has been satisfied or waived. By taking possession of and reviewing the information contained herein, the recipient agrees that (a) the enclosed materials and their contents will be held and treated in the strictest of confidence; and (b) the recipient shall not contact employees, contractors, sub-contractors or lien-holders of the Property directly or indirectly regarding any aspect of the enclosed materials or the Property without the prior written approval of the Seller or NGLSB; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of the Seller or NGLSB or as otherwise provided in the Confidentiality Agreement executed and delivered by the recipient(s) to NGLSB. The Seller will be responsible for any commission due to NGLSB in connection with a sale of the Property. However, any broker engaged by Purchaser ( Purchaser s Broker ) shall seek its commission only from the Purchaser. Under no circumstances will NGLSB or the Seller be liable for same and recipient will indemnify and hold NGLSB and the Seller harmless from any claims by any brokers having dealt with recipient other than NGLSB. Any Purchaser s Broker must provide a registration signed by the recipient acknowledging said Purchaser s Broker s authority to act on the recipient s behalf. The Seller reserves the right, at its sole and absolute discretion, to withdraw the Property 2

3 EXECUTIVE SUMMARY... 4 The Offering... 5 LOCATION OVERVIEW Location Map... 7 Aerials... 8 FINANCIAL OVERVIEW Financial Summary Income and Expenses Rent Roll MARKET OVERVIEW Market and Demographic Summary Oklahoma Market Profile Advisors SALE TERMS & CONTACT INFO EXCLUSIVE ADVISORS MICHAEL RAPELLA (O) (C) mrapella@newmarklsb.com EXCLUSIVE ADVISORS DANNY OJEDA (O) (C) dojeda@newmarklsb.com 3

4 EXECUTIVE SUMMARY 4

5 EXECUTIVE SUMMARY THE OFFERING Newmark Grubb Levy Strange Beffort is pleased to present the opportunity to acquire Market at Cedar Lake, ( Property ), a 38,020, square foot neighborhood shopping center located in Edmond, Oklahoma. This Property is situated on a CLO ground lease with over 44 years remaining. AREA HIGHLIGHTS EDMOND, OKLAHOMA Located just north of Oklahoma City, Edmond is known as the Crown Jewel of Oklahoma. With a population of over 91,000, Edmond is the fifth largest city in the state of Oklahoma. In 2007, Edmond was listed as one of the Top 100 Places to Live, by Relocate America. In 2011, Edmond was voted #1 on CNBC s 10 Perfect Suburbs list. PROPERTY DETAILS SALE PRICE: $4,000, E WATERLOO RD BUILIDNG SF: 29,030 SF OAK TREE COUNTRY CLUB Oak Tree Country Club is located in Edmond, OK and prides itself on being a family club, featuring a wide range of amenities including: 36 holes of championship golf, tennis, swimming, family activities and more. 251 E WATERLOO RD BUILDING SF: 8,990 SF LAND SIZE: 7.03 ACRES 2016 TAXES: $23, INSURANCE ESTIMATE: $13,

6 MARKET AT CEDAR LAKE LOCATION OVERVIEW 6

7 PROPERTY OVERVIEW LOCATION MAP SITE 7

8 MARKET AT CEDAR LAKE PROPERTY OVERVIEW AERIAL 6,880(11) VPD approx. 3 mi. East SITE 5,278(16) VPD Oak Tree Golf & Countr y Club 8

9 FINANCIAL OVERVIEW 9

10 FINANCIAL OVERVIEW FINANCIAL SUMMARY INVESTMENT OVERVIEW Price $4,000, Price per SF $ psf CAP Rate 7.25% OPERATING DATA Gross Income $428, Operating Expenses $132, Net Operating Income $296,

11 FINANCIAL OVERVIEW INCOME & EXPENSES 121 E WATERLOO RD. INCOME SUMMARY Total Annual Rent Includes Reimbursements $321,793 GROSS INCOME $321,793 EXPENSE SUMMARY Taxes $36,288 Insurance $10,161 Common Area Maintenance $24,676 Ground Lease $12,000 Management Fee $9,653 GROSS EXPENSES $92,777 NET OPERATING INCOME $229,016 11

12 FINANCIAL OVERVIEW INCOME & EXPENSES 251 E WATERLOO RD. INCOME SUMMARY Total Annual Rent Includes Reimbursements $106,539 GROSS INCOME $106,539 EXPENSE SUMMARY Taxes $12,300 Insurance $3,444 Common Area Maintenance $8,364 Ground Lease $12,000 Management Fee $3,196 GROSS EXPENSES $39,304 NET OPERATING INCOME $67,235 12

13 FINANCIAL OVERVIEW RENT ROLL 121 E WATERLOO RD. Suite Tenant Occupied SF Vacant SF Lease Exp. Rent/Month ANNUAL RENT CAM Total 1 F & M Bank 3,000 8/2018 $4, $54, $ Vacant 1,500 3 Becker Investments 1,500 MTM $1, $15, $ F5 Vapor 1,500 MTM $1, $15, $ Subway 1,500 MTM $1, $21, $ Farmers Insurance 1,500 9/2018 $1, $15, $ Vacant 1,070 8 Texlahoma BBQ 1,930 9/2018 $1, $23, $ Boomers Barber 1,500 MTM $1, $15, $ Allstate 1,500 MTM $1, $16, $ Vacant Victory Fitness 4,530 MTM $2, $30, $ Danny s Pizza 2,100 12/2017 $2, $24, $ Combat Boxing Club 1,500 MTM $1, $15, $ DiVi Nails 1,500 MTM $1, $15, $ Logan Cleaners 1,920 7/2019 $2, $24, $ Cowgirl Coffee Out Parcel MTM $ $6, $ Twice the Ice Out Parcel MTM $ $6, $75.00 Totals/Averages 25,480 3,550 $24, $294, $2,

14 FINANCIAL OVERVIEW RENT ROLL 251 E WATERLOO RD. Suite Tenant Occupied SF Vacant SF Lease Exp. Rent/Month ANNUAL RENT CAM Total 1 YIS Donuts 1,790 MTM $1, $17, $1, $19, Leslie s Pool 2,700 3/31/2018 $2, $27, $5, $32, Habaneros 4,500 12/31/2019 $4, $50, $3, $54, Totals/Averages 8,990 $95, $11, $106,

15 MARKET AT CEDAR LAKE MARKET OVERVIEW 15

16 MARKET OVERVIEW MARKET AND DEMOGRAPHIC SUMMARY 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - Population 75,543 68,488 21,973 24,651 1,679 1,841 1 MI 3 MI 5 MI 1 MI 3 MI 5 MI 2017 POPULATION 2022 POPULATION 2017 Household Income 0-1 MI. 0-3 MI. 0-5 MI Population 1,678 21,943 68, Population 1,841 24,651 75, Annual Rate 2.66% 2.56% 2.48% Annual Rate 1.87% 2.35% 1.98% 2017 Total Households 585 7,584 24, Total Households 640 8,478 27, Annual Rate 2.53% 2.43% 2.32% Annual Rate 1.81% 2.25% 1.87% $86,632 $119,254 $139,093 $197,014 $162, Average Income 1 MI 2017 Average Income 3 MI 2017 Average Income 5 MI 2022 Median Income 1 MI 2022 Median Income 3 MI 2017 Average Household Income $197,014 $162,000 $120, Annual Rate 1.56% 1.74% 2.07% 2017 Median Household Income $139,093 $119,254 $86,632 $120, Median Income 5 MI Annual Rate 0.83% 0.90% 1.92% 16

17 OKLAHOMA OVERVIEW 17

18 MARKET OVERVIEW OKLAHOMA MARKET OVERVIEW Oklahoma City has seen immense growth over the past decade. As of 2017, the Oklahoma City Metro area s population is nearing 1.4 million people. Since 2010, the Oklahoma MSA is the 10th fastest growing large metro in the country and has grown twice as fast as the U.S. ECONOMIC DEVELOPMENT PROJECT 180 Funded by the tax increment financing district created for Devon Energy s project, the $176 million project redesigned downtown streets, sidewalks, parks and plazas to improve appearance and make the central core more pedestrian friendly. NEW CONVENTION CENTER The $287 million convention center will be located just south of the Chesapeake Arena and is expected to triple the economic impact of the existing Cox Convention Center. Annual economic impact of the new 470,000 square foot center is estimated at $80 million, while a total of 1,100 jobs to be created by the site. Construction is expected to begin in 2018 with an opening in GENERAL ELECTRIC Completed in 2016, the $110 million global energy research center will employ 130 employees focused on solving problems facing the oil and natural gas industry and is expected to generate an economic impact of $13 million annually. HOBBY LOBBY In 2015, Hobby Lobby completed its $88 million, 1.9 million square foot warehouse (equal to 33 football fields) adjacent to its corporate campus in southwest Oklahoma City. BOEING Completed an $80 million, 290,000 square foot facility to house the engineering and research and development laboratories in July Boeing s economic impact to Oklahoma City is estimated at more than $637 million. 18

19 EXCLUSIVE ADVISOR MICHAEL RAPELLA (O) (C) EXCLUSIVE ADVISOR DANNY OJEDA (O) (C) Levy Strange Bef fort Oklahoma City 204 N. Robinson, Ste. 700, Oklahoma City, OK, Tulsa 2021 S Lewis Ave., Ste. 410, Tulsa, OK