EXCLUSIVE OFFERING $12,215,000 / 7.00% cap La fitness

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1 St. Vincent Health Center (420 Beds) Rep Photo EXCLUSIVE OFFERING $12,215,000 / 7.00% cap EXP DALLAS JOE CAPUTO joe@exp1031.com BOB MOORHEAD bob@exp1031.com property. Brand new 47,500+ SF building on acres. lease structure. Corporate, 15 year, net lease, with 10% or CPI increases every 5-years whichever is lower. Occupancy is scheduled for October 1st, 2013 and Rent Commencement April 1st, location. The subject property is located at the intersection of University Avenue (21,954 Cars / Day) and Markham Street (24,797 Cars / Day). The site is across from Midtowne Little Rock (136,865 SF), a newly constructed, open-air lifestyle center. Tenants in Midtowne Little Rock include The Container Store, Pottery Barn, Williams-Sonoma, Ann Taylor LOFT, Lewis & Clark, Pei Wei Asian Diner, and Starbucks. Also across from Park Plaza which boasts 546,000 square feet of retail space, and houses Abercrombie & Fitch, Aeropostale, ALDO, American Eagle Outfitters, Ann Taylor, Banana Republic, Bath & Body Works, Coldwater Creek, Crabtree & Evelyn, Dillard s, Eddie Bauer, Gap, Gap Maternity, GapKids/Baby Gap, Gymboree, Lane Bryant, The Limited, Limited Too, Talbots, Talbots Petites, Talbots Woman, Victoria s Secret, and Zales.

2 Table of contents PAGE 1: PAGE 2: PAGE 3: PAGE 4-5: PAGE 6: PAGE 7-8: PAGE 9-14: PAGE 15: PAGE 16-17: PAGE 18: COVER TABLE OF CONTENTS INVESTMENT OVERVIEW SITE PLAN ELEVATIONS FLOOR PLAN AERIAL PHOTOS LOCATION OVERVIEW LOCATION MAPS DEMOGRAPHICS DisclaimER EXP Realty Advisors, Inc. ( Agent ) has been engaged as an agent for the sale of the property located at University Avenue & Markham Street, Little Rock, AR by the owner of the Property ( Seller ). The Property is being offered for sale in an as-is, where-is condition and Seller and Agent make no representations or warranties as to the accuracy of the information contained in this Offering Memorandum. The enclosed materials include highly confidential information and are being furnished solely for the purpose of review by prospective purchasers of the interest described herein. The enclosed materials are being provided solely to facilitate the prospective investor s own due diligence for which it shall be fully and solely responsible. 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 Agent or Seller or any of their respective representatives, affiliates, officers, employees, shareholders, partners and directors, as to the accuracy or completeness of the information contained herein. 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 Agent nor the Seller shall have any liability whatsoever for the accuracy or completeness of the information contained herein or 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. Interested parties are to make their own investigations, projections and conclusions without reliance upon the material contained herein. Seller reserves the right, at its sole and absolute discretion, to withdraw the Property from being marketed for sale at any time and for any reason. Seller and Agent each expressly reserves the right, at their sole and absolute discretion, 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 is made subject to omissions, correction of errors, change of price or other terms, prior sale or withdrawal from the market without notice. Agent is not authorized to make any representations or agreements on behalf of Seller. Seller shall have no legal commitment or obligation to any interested party 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 to Seller s obligations hereunder have 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 are of a highly confidential nature and will be held and treated in the strictest confidence and shall be returned to Agent or Seller promptly upon request; and (b) the recipient shall not contact employees or tenants 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 Agent; and (c) no portion of the enclosed materials may be copied or otherwise reproduced without the prior written authorization of Seller and Agent. Listed in association with ARKANSAS broker of record: Flake & kelley commercial

3 Investment overview PRICE: $12,215,000 CAP RATE: 7.00% NET OPERATING INCOME: $855,000 BUILDING AREA: 47,500+ Square Feet LAND AREA: Acres Initial Lease Term: 15-Years, Plus 3, 5-Year Options to Renew Projected Rent Commencement: April 2014 Projected Lease Expiration: April 2029 Lease Type: Double Net Rent Increases: Every 5-Years, CPI or 10% Whichever is Less Year 1-5 Annual Rent (Current): $855,000 YEAR BUILT: 2013 (Under Construction) Year 6-10 Annual Rent: $940,500 LANDLORD RESPONSIBILITY: Includes Roof & Structure OWNERSHIP: Fee Simple Interest OCCUPANCY: 100% (October 2013) Year Annual Rent: $1,034,550 Year Annual Rent (Option 1): $1,138,805 Year Annual Rent (Option 2): $1,251,805 Year Annual Rent (Option 3): $1,376,986 Tenant overview LA FITNESS LA Fitness is a privately owned American health club chain with over 500 clubs across 25 US states and Canada making it the largest gym chain in the US. The company was formed in 1984 and is based in Irvine, California. In 1995, LA Fitness designed and built a new multipurpose sports and fitness club that became the company s signature model at the time. This prototypical design starts with the strength and cardio equipment, free weights and group exercise room that are found in most fitness centers and adds a swimming pool and court sports (basketball and racquetball in most locations) to offer LA Fitness members a wider variety of workout options. With a successful prototype in place, LA Fitness then expanded its in-house development efforts, and new club construction now accounts for the vast majority of the clubs opened every year. In 1998, with 12 proven prototype clubs in Southern California and Arizona, the company rapidly increased the rate of new club development and began rolling out its concept into several new geographic regions across the U.S., including the Sun Belt, the Pacific Northwest, the Mid-Atlantic states, the Northeast, and the upper Midwest. The rate of expansion was rapid, with over 180 new clubs added from 2006 to In 2000, the company acquired the then largest health club chain in Atlanta and eventually replaced its 25 units with 14 larger prototype clubs. The company continued to build clubs in the Atlanta area and currently has 26 clubs in Georgia. In 2007, the company expanded outside of the United States by way of an acquisition of six fitness clubs, in Toronto, Canada. Also of notable size, in 2010 the company acquired 10 locations in Phoenix from Pure Fitness Arizona. On July 2, 2012, the company completed the acquisition of all 33 Lifestyle Family Fitness Clubs in Florida. LA Fitness remains a privately owned company, with major ownership interests held by private equity firms Seidler Equity Partners, CIVC Partners and Madison Dearborn Partners. 3

4 SITE PLAN 4

5 SITE PLAN 5

6 ELEVATIONS 6

7 Floor plan 7

8 Floor plan 8

9 Aerial photo Doctor s Hospital Park Avenue Lofts (258 Units) St. Vincent Health Center (420 Beds) 9

10 Aerial photo Park Avenue Lofts (258 Units) St. Vincent Health Center (420 Beds) 10

11 Aerial photo St. Vincent Health Center (420 Beds) Doctor s Hospital Park Avenue Lofts (258 Units) 11

12 Aerial photo Interstate 630 (115,000 Cars / Day) Doctor s Hospital Park Avenue Lofts (258 Units) Catholic High School for Boys 12

13 Aerial photo Park Avenue Lofts (258 Units) Catholic High School for Boys Forest Heights Middle School Doctor s Hospital St. Vincent Health Center (420 Beds) 13

14 Aerial photo 14

15 Location overview IMMEDIATE TRADE AREA The subject property is located at the intersection of University Avenue (21,954 Cars / Day) and Markham Street (24,797 Cars / Day). Just east on Markham, War Memorial Park includes War Memorial Stadium (54,120 Seats), the Little Rock Zoo and many other amenities. Surrounding the Midtowne area, there are 3 major neighborhoods: Hillcrest, immediately east of University Avenue; the Heights, to its north; and Briarwood, east of and contiguous to the site. Within 1-mile, residents have fewer children, have smaller households, are more affluent, are more educated, and are more likely to be employed in executive, managerial or professional specialty occupations. Estimated disposable income for Little Rock and North Little Rock is $18.4 billion. The site is across from Midtowne Little Rock (136,865 SF), a newly constructed, open-air lifestyle center. Tenants in Midtowne Little Rock include The Container Store, Pottery Barn, Williams-Sonoma, Ann Taylor LOFT, Lewis & Clark, Pei Wei Asian Diner, and Starbucks. The site is also next to Park Plaza, a traditional enclosed mall which underwent a recent multi-million dollar renovation. Park Plaza boasts 546,000 square feet of retail space, and houses Abercrombie & Fitch, Aeropostale, ALDO, American Eagle Outfitters, Ann Taylor, Banana Republic, Bath & Body Works, Coldwater Creek, Crabtree & Evelyn, Dillard s, Eddie Bauer, Gap, Gap Maternity, GapKids/Baby Gap, Gymboree, XXI Lane Bryant, The Limited, Limited Too, Talbots, Talbots Petites, Talbots Woman, Victoria s Secret, and Zales. The mall s specialty stores enjoy sales of $470 per square foot, with total annual sales in the mid eighty-million-dollar range. The site is also less than 2-miles from the University of Arkansas-Little Rock (UALR) which has the 3 rd largest student population in the state. LITTLE ROCK, AR Little Rock is the capital and the largest city in the state of Arkansas with a population of 193,524. As the largest city in the state, Little Rock is the center of economic activity in Arkansas. Major corporations headquartered in Little Rock include Dillard s Department Stores, Windstream Communications and Acxiom. Additional large companies headquartered in Little Rock include Metropolitan National Bank, Rose Law Firm, Nuvell Financial Services, Central Flying Service and large brokerage Stephens Inc. Large companies headquartered in other cities but with a large presence in Little Rock include Dassault Falcon Jet and Raytheon Aircraft Company near Little Rock National Airport, and Fidelity National Information Services. Local, state, and federal government have been Little Rock's major employers for many years. Medical facilities, banks, and other service industries are also important to the economy, and their presence has in turn attracted to the area other companies that offer a variety of support services, especially those that are computerrelated. Aviation is among the most dynamic industries in Little Rock. Aircraft and spacecraft are Arkansas' largest export, according to the Arkansas Department of Economic Development. In Little Rock itself, several aircraft companies bolster the local economy. Central Flying Service Inc. is one of the nation's largest fixed-base operations, and Dassault Aviation SA's primary service and completion center for its Falcon jets is located in Little Rock. Biotechnology is an emerging industry in Little Rock. The University of Arkansas for Medical Sciences is the cornerstone for medical biotechnology research in Arkansas. The facility not only conducts research and development, it offers a business incubator program to support start-up biotechnology companies. As a result of its strategic location, Little Rock has long served as a center for trade. The Little Rock Port Industrial Park offers some of the finest facilities on the Arkansas River, enabling the city to promote itself not only as a distribution center for the state's agricultural products, but also for its increasing number of manufactured goods. The Little Rock Port is an intermodal river port with a large industrial business complex. It is designated as Foreign Trade Zone 14. International corporations have established new facilities adjacent to the port in recent years. LITTLE ROCK-NORTH LITTLE ROCK-PINE BLUFF CSA The Little Rock MSA had a population of 699,767 people in the 2010 census. The MSA in turn included in the Little Rock-North Little Rock-Pine Bluff, Arkansas Combined Statistical Area (CSA) - population of 877,091 in the 2010 census. 15

16 Location map 16

17 Location map 17

18 Demographics DEMOGRAPHIC SNAPSHOT Radius 1 Mile 3 Mile 5 Mile Population: 2016 Projection 8,584 74, , Estimate 8,497 74, , Census 8,525 74, ,775 Growth % 0.80% 1.80% Growth % -0.70% 0.00% Households: 2016 Projection 4,212 33,220 67, Estimate 4,182 32,947 66, Census 4,193 33,204 66,564 Growth % 0.80% 1.90% Growth % -0.80% -0.10% Owner Occupied 2,323 17,458 34,239 Renter Occupied 1,859 15,489 32, Avg Household Income $60,627 $62,234 $60, Med Household Income $43,489 $41,857 $40, Per Capita Income $30,672 $28,895 $27, Households by Household Inc: Income Less than $15, ,100 11,956 Income $15,000 - $24, ,440 8,803 Income $25,000 - $34, ,089 7,818 Income $35,000 - $49, ,256 9,899 Income $50,000 - $74, ,808 11,261 Income $75,000 - $99, ,885 5,984 Income $100,000 - $149, ,019 6,241 Income $150,000 - $199, ,056 Income $200, ,352 2,500 DOWNTOWN LITTLE ROCK, AR PARK PLAZA MALL 18