Kroger Shadow-Anchored Retail Center 3680 State Highway 121, Plano, TX 75025

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2 TABLE OF CONTENTS Confidentiality & 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 Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. 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. 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, 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 intentions 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, 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. Non-Endorsement Notice Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. The presence of any corporation s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS Contents PROPERTY INFORMATION 3 Executive Summary 4 Property Description 5 Complete Highlights 6 Additional Photos 7 LOCATION INFORMATION 8 Regional Map 9 Location Maps 10 Aerial Map 11 Aerial Map 12 Aerial Map 13 FINANCIAL ANALYSIS 14 Financial Summary 15 Income & Expenses Rent Roll SALE COMPARABLES Sale Comps Sale Comps Summary Sale Comps Map RENT COMPARABLES Rent Comps Rent Comps Summary Rent Comps Map DEMOGRAPHICS Demographics Report Demographics Map IABS

3 Section 1 PROPERTY INFORMATION

4 PROPERTY INFORMATION EXECUTIVE SUMMARY OFFERING SUMMARY Sale Price: $4,244,000 Cap Rate: 6.0% *NOI: $254,668 PROPERTY OVERVIEW Marcus & Millichap is pleased to offer the opportunity to acquire a newly constructed 8,957-square foot multi-tenant retail center in the highly desirable Dallas/Fort Worth suburb of Plano, Texas. DEMOGRAPHICS 1 MILE 3 MILES 5 MILES Lot Size: 0.99 Acres Total Households 3,753 61, ,868 Total Population 11, , ,792 Year Built: 2017 Average HH Income $121,380 $136,673 $128,653 Building Size: 8,957 Price / SF: $

5 PROPERTY INFORMATION PROPERTY DESCRIPTION PROPERTY OVERVIEW Marcus & Millichap is pleased to offer the opportunity to acquire a newly constructed 8,957-square foot multi-tenant retail center in the highly desirable Dallas/Fort Worth suburb of Plano, Texas. The center is 100 percent occupied with three tenants: Saalna South Indian Eatery, Cozy Nail Spa, and Dental Studio 121. All leases are triple-net and have annual rent escalations. The leases all have two five-year options for renewal at market rates. Current rental rates are below market. Constructed in 2017, the building sits on approximately one acre of land. LOCATION OVERVIEW The subject property is located on the south side of the Sam Rayburn Tollway (State Highway 121), just east of the intersection with Coit Road. Traffic counts on Sam Rayburn Tollway are approximately 57,325 vehicles per day and 25,500 vehicles per day on Coit Road. The property is adjacent to a Kroger grocery-anchored shopping center, with tenants including Bank of America, Comerica Bank, Chase Bank, Capital One Bank, Subway, and The UPS Store. Baylor Scott & White Medical Center Centennial, a 118-bed, full-service hospital, is located in the northeast quadrant of the Sam Rayburn Tollway/Coit Road intersection. The surrounding area has phenomenal demographics. A highly affluent area, the average household income within one mile is $121,380; $136,670 within three miles; and $128,650 within five miles. More than 262,700 residents live within five miles of the subject property. A dense retail trade area at the intersection of Sam Rayburn Tollway and Preston Road is located approximately two-and-one-half miles west of the property. Stonebriar Centre shopping mall houses 165 tenants renting over 1,630,000 square feet of gross leasable area. Anchored by Dillard s, Macy s, Nordstrom, JCPenney, Sears, and Dick s Sporting Goods, other major retailers include Dave & Busters, Barnes & Noble, AMC Theatres, The Cheesecake Factory, and Buca di Beppo. Neighboring retailers include Target, Ross Dress for Less, Old Navy, Marshalls, Staples, Best Buy, The Home Depot, Discount Tire, Walmart, Sam s Club, 7-Eleven, HomeGoods, On the Border, PetCo, Total Wine, Buy Buy Baby, Bed Bath & Beyond, Office Depot, JoAnn Fabrics, Olive Garden, and numerous others. Dr. Pepper Arena and Dr. Pepper Ballpark entertainment venues, to the west of Stonebriar Centre, are additional traffic generators. 5

6 PROPERTY INFORMATION COMPLETE HIGHLIGHTS SALE HIGHLIGHTS Kroger Shadow-Anchored Multi-Tenant Retail Center New 2017 Construction 100 Percent Occupied by Three Internet Resistant Tenants All Leases are Triple-Net and have Annual Rent Escalations All Leases have Personal Guarantees Saalna South Indian Eatery has Eight Guarantors, Cozy Nail Salon has Three, and Dental Studio 121 is Personally Guaranteed by Dr. Rishi Bafna All Leases have Two Five-Year Options for Renewal at Market Rates Current Lease Rates are Below Market Desirable Freeway Location off Sam Rayburn Tollway (State Highway 121) in Plano, Texas Near Coit Road Traffic Counts on Sam Rayburn Tollway are Approximately 57,325 Vehicles per Day and 25,500 Vehicles per Day on Coit Road Highly Affluent Area One-Mile Average Household Income is $121,380 Three-Mile Average Household Income is $136,670 Five-Mile Average Household Income is $128,650 Heavily Populated with More than 262,700 Residents Within Five Miles Two-and-One-Half Miles from a Dense Retail Trade Area at Sam Rayburn Tollway and Preston Road, Featuring Stonebriar Centre Shopping Mall (165+ Stores and 1,630,000 Square Feet of Gross Leasable Area), Dr. Pepper Arena, and Dr. Pepper Ballpark 6

7 PROPERTY INFORMATION ADDITIONAL PHOTOS 7

8 Section 2 LOCATION INFORMATION

9 LOCATION INFORMATION REGIONAL MAP Kroger Shadow-Anchored Retail Center 9

10 LOCATION INFORMATION LOCATION MAPS 10

11 LOCATION INFORMATION AERIAL MAP 11

12 LOCATION INFORMATION AERIAL MAP 12

13 LOCATION INFORMATION AERIAL MAP 13

14 Section 3 FINANCIAL ANALYSIS

15 FINANCIAL ANALYSIS FINANCIAL SUMMARY INVESTMENT OVERVIEW Price $4,244,000 Price per SF $ CAP Rate 6.0% Total Return (yr 1) $254,668 OPERATING DATA Gross Income $317,413 Operating Expenses $62,745 Net Operating Income $254,668 FINANCING DATA Down Payment $4,244,000 Loan Type All Cash 15

16 FINANCIAL ANALYSIS INCOME & EXPENSES INCOME SUMMARY PER SF *Base Rent $254,668 $28.43 Real Estate Taxes Reimbursements $36,550 $4.08 Insurance Reimbursements $1,747 $0.20 CAM Reimbursements $11,948 $1.33 Management Fee Reimbursement $12,500 $1.40 Gross Income $317,413 $35.44 EXPENSE SUMMARY PER SF Real Estate Taxes $36,550 $4.08 Insurance $1,747 $0.20 Utilities $4,415 $0.49 Waste $2,556 $0.29 Landscaping $610 $0.07 Fire Protection $225 $0.03 Civil Fees $3,306 $0.37 Professional Fees $836 $0.09 Management Fee $12,500 $1.40 Gross Expenses $62,745 $7.01 Net Operating Income $254,668 $28.43 *Base Rent is based on the future base rent of $254,668 as of 9/01/2019. Current actual rent is $246,872. Seller shall credit Buyer the monthly rent differential on a pro rata basis, at Closing. 16

17 FINANCIAL ANALYSIS RENT ROLL TENANT NAME PERSONAL GUARANTEE UNIT SIZE (SF) % OF GLA LEASE START LEASE END ANNUAL RENT RENT ESC RENT/SF PERYEAR LEASE TYPE OPTION EXPENSE REIMBURSEMENT Dental Studio 121 Yes 2, /06/ 9/05/ $60,165 $0.33/Yr $26.74 NNN (2) $15, MKT Cozy Nail Salon Yes 2, /08/ 9/07/ $85,753 $0.50/Yr $29.00 NNN (2) $20, MKT Saalna South Indian Yes 3, /23/ 3/31/ $108,750 $0.50/Yr $29.00 NNN (2) $26, Eatery MKT *Totals/Averages 8,957 $254,668 $28.43 $62, $62, *Base Rent is based on the future base rent of $254,668 as of 9/01/2019. Current actual rent is $246,872. Seller shall credit Buyer the monthly rent differential on a pro rata basis, at Closing. 17

18 Section 4 SALE COMPARABLES

19 SALE COMPARABLES SALE COMPS SUBJECT PROPERTY 3680 State Highway 121 Plano, TX Sale Price: Year Built: $4,244, Lot Size: Building SF: 0.99 AC 8,957 SF Price PSF: $ Cap: 6.0% NOI: $254,668 1 CUSTER BRIDGES II 6111 Custer Road Frisco, TX Sale Price: Year Built: $6,550, Lot Size: Building SF: AC 9,632 SF Price PSF: $ CAP: 5.16% Closed: 06/23/2016 Occupancy: 100% Chipotle, AT&T, Mattress Firm, Subway 1 2 TOP GOLF SHADOW RETAIL 5101 State Highway 121 The Colony, TX Sale Price: Year Built: $5,697, Lot Size: Building SF: 1.37 AC 10,149 SF Price PSF: $ CAP: 6.25% Closed: 08/21/2015 Occupancy: 100% Freddy's Frozen Custard, LIV Dentistry, Navy Federal Credit Union 2 19

20 SALE COMPARABLES SALE COMPS 3 WILLOW BEND CROSSING 1855 Dallas Parkway Plano, TX Sale Price: Year Built: $8,100, Lot Size: Building SF: 2.12 AC 14,555 SF Price PSF: $ CAP: 6.32% Closed: 09/03/2015 Occupancy: 100% Shell Shack, Jersey Mike's Subs, Salata, Wok Box, Torchy's Tacos 3 4 LA CIMA CROSSING 1480 East University Drive Prosper, TX Sale Price: Year Built: $5,047, Lot Size: Building SF: 1.2 AC 10,149 SF Price PSF: $ CAP: 6.48% Closed: 10/02/2017 Occupancy: 100% 380 Dentist, Donut Shop, Nail Salon, Rosati's Pizza, Art Cleaners 4 5 FRISCO LAKES 8075 FM 423 Frisco, TX Sale Price: Year Built: $4,410, Lot Size: Building SF: 1.4 AC 9,535 SF Price PSF: $ CAP: 6.77% Closed: 11/04/2016 Occupancy: 85.4% Dickey's Barbecue, Sherwin Williams, Ritter's Frozen Custard, Forest Dental 5 20

21 SALE COMPARABLES SALE COMPS SUMMARY SUBJECT PROPERTY PRICE BLDG SF PRICE/SF CAP # OF UNITS SALE DATE Kroger Shadow-Anchored Retail Center 3680 State Highway 121 Plano, TX $4,244,000 8,957 SF $ % SALE COMPS PRICE BLDG SF PRICE/SF CAP # OF UNITS SALE DATE CLOSE Custer Bridges II 6111 Custer Road Frisco, TX Top Golf Shadow Retail 5101 State Highway 121 The Colony, TX Willow Bend Crossing 1855 Dallas Parkway Plano, TX La Cima Crossing 1480 East University Drive Prosper, TX Frisco Lakes 8075 FM 423 Frisco, TX $6,550,000 9,632 SF $ % /23/2016 $5,697,000 10,149 SF $ % /21/2015 $8,100,000 14,555 SF $ % /03/2015 $5,047,000 10,149 SF $ % /02/2017 $4,410,000 9,535 SF $ % /04/2016 PRICE BLDG SF PRICE/SF CAP # OF UNITS SALE DATE CLOSE Totals/Averages $5,960,800 10,804 SF $ % - 21

22 SALE COMPARABLES SALE COMPS MAP SUBJECT PROPERTY 3680 State Highway 121 Plano, TX CUSTER BRIDGES II Custer Road Frisco, TX TOP GOLF SHADOW RETAIL State Highway 121 The Colony, TX WILLOW BEND CROSSING Dallas Parkway Plano, TX LA CIMA CROSSING East University Drive Prosper, TX FRISCO LAKES FM 423 Frisco, TX

23 Section 5 RENT COMPARABLES

24 RENT COMPARABLES RENT COMPS SUBJECT PROPERTY 3680 State Highway 121 Plano, TX Lease Rate: $28.43 SF Space Size: 0 SF Year Built: 2017 Lot Size: 0.99 AC 1 CASTLE HILLS COMMONS 4920 State Highway 121 Lewisville, TX Lease Rate: $37.48 SF Lease Type: NNN Space Size: 1,756 SF Year Built: 2016 Bldg Size: Occupancy: 7,727 SF 77% Lot Size: 1.23 AC 1 Starbucks, Marsh Ridge Dental, F45, Planet Subs 2 CUSTER BRIDGES II 6111 Custer Road Frisco, TX Lease Rate: $35.11 SF Lease Type: NNN Space Size: SF Year Built: 2016 Bldg Size: Occupancy: 9,632 SF 100% Lot Size: AC 2 Chipotle, Mattress Firm, Subway, AT&T 24

25 RENT COMPARABLES RENT COMPS 3 WILLOW BEND CROSSING 1855 Dallas Parkway Plano, TX Lease Rate: $35.19 SF Lease Type: NNN Space Size: SF Year Built: 2015 Bldg Size: Occupancy: 14,555 SF 100% Lot Size: 2.12 AC 3 Shell Shack, Jersey Mikes, Salata, Wok Box, Torchy's Tacos 4 FRISCO PLAZA 9500 Dallas Parkway Frisco, TX Lease Rate: $32.30 SF Lease Type: NNN Space Size: 2,180 SF Year Built: 2016 Bldg Size: Occupancy: 9,050 SF 76% Lot Size: 1.07 AC 4 Direct Orthopedic Care, Mezcal Taco, Industrial Cigars 5 SPRINT - CASTLE SPA 6055 Eldorado Parkway Frisco, TX Lease Rate: $37.00 SF Lease Type: NNN Space Size: SF Year Built: 2017 Bldg Size: Occupancy: 5,083 SF 100% Lot Size: 0.93 AC 5 Sprint, Castle Spa 25

26 RENT COMPARABLES RENT COMPS 6 FRISCO LAKES 8075 FM 423 Frisco, TX Lease Rate: $31.29 SF Lease Type: NNN Space Size: 1,488 SF Year Built: 2014 Bldg Size: Occupancy: 10,200 SF 85.4% Lot Size: 1.4 AC 6 Sherman Williams, Forest Dental, Dickey's Barbecue, Ritter's Frozen Custard 7 CUSTER & ELDORADO RETAIL CENTER 3241 South Custer Road McKinney, TX Lease Rate: $35.28 SF Lease Type: NNN Space Size: SF Year Built: 2017 Bldg Size: Occupancy: 12,586 SF 100% Lot Size: 0.9 AC 7 Pet Supermarket, ATI Physical Therapy, SuperCuts, Code Ninjas 8 TOP GOLF SHADOW RETAIL 5101 State Highway 121 The Colony, TX Lease Rate: $34.17 SF Lease Type: NNN Space Size: SF Year Built: 2015 Bldg Size: Occupancy: 10,023 SF 100% Lot Size: 1.37 AC 8 Freddy's Frozen Custard, LIV Dentistry, Navy Federal CU 26

27 RENT COMPARABLES RENT COMPS 9 LA CIMA CROSSING 1480 East University Drive Prosper, TX Lease Rate: $32.22 SF Lease Type: NNN Space Size: SF Year Built: 2017 Bldg Size: Occupancy: 10,149 SF 100% Lot Size: 2.9 AC Family Dentistry, Rosati's Pizza, Art Cleaners, Donut Bliss 27

28 RENT COMPARABLES RENT COMPS SUMMARY SUBJECT PROPERTY PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY % Kroger Shadow-Anchored Retail Center 3680 State Highway 121 Plano, TX N/A 0 SF 8,957 SF 100.0% RENT COMPS PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY % Castle Hills Commons 4920 State Highway 121 Lewisville, TX Custer Bridges II 6111 Custer Road Frisco, TX Willow Bend Crossing 1855 Dallas Parkway Plano, TX Frisco Plaza 9500 Dallas Parkway Frisco, TX Sprint - Castle Spa 6055 Eldorado Parkway Frisco, TX Frisco Lakes 8075 FM 423 Frisco, TX $ ,756 SF 7,727 SF 77% $ ,632 SF 100% $ ,555 SF 100% $ ,180 SF 9,050 SF 76% $ ,083 SF 100% $ ,488 SF 10,200 SF 85.4% 28

29 RENT COMPARABLES RENT COMPS SUMMARY 8 9 Custer & Eldorado Retail Center 3241 South Custer Road McKinney, TX Top Golf Shadow Retail 5101 State Highway 121 The Colony, TX La Cima Crossing 1480 East University Drive Prosper, TX $ ,586 SF 100% $ ,023 SF 100% $ ,149 SF 100% PRICE/SF/YR AVAILABLE SF BLDG SF OCCUPANCY % Totals/Averages $ ,808 SF 9,889 SF 93.16% 29

30 RENT COMPARABLES RENT COMPS MAP SUBJECT PROPERTY 3680 State Highway 121 Plano, TX CASTLE HILLS COMMONS State Highway 121 Lewisville, TX CUSTER BRIDGES II Custer Road Frisco, TX WILLOW BEND CROSSING Dallas Parkway Plano, TX FRISCO PLAZA Dallas Parkway Frisco, TX SPRINT - CASTLE SPA Eldorado Parkway Frisco, TX FRISCO LAKES FM 423 Frisco, TX CUSTER & ELDORADO RETAIL TOP GOLF SHADOW RETAIL CENTER State Highway South Custer Road The Colony, TX McKinney, TX LA CIMA CROSSING East University Drive Prosper, TX

31 Section 6 DEMOGRAPHICS

32 DEMOGRAPHICS DEMOGRAPHICS REPORT 1 MILE 3 MILES 5 MILES Total population 11, , ,792 Median age Median age (male) Median age (female) Total households 3,753 61, ,868 Total persons per HH Average HH income $121,380 $136,673 $128,653 Average house value $234,867 $257,967 $257,756 Total Population - White 7,403 68, ,514 % White 66.2% 62.2% 61.1% Total Population - Black 404 6,052 13,800 % Black 3.6% 5.5% 5.3% Total Population - Asian 2,224 24,400 39,521 % Asian 19.9% 22.0% 15.0% Total Population - Hawaiian % Hawaiian 0.0% 0.0% 0.1% Total Population - American Indian ,068 % American Indian 0.6% 0.3% 0.4% Total Population - Other 153 1,952 4,728 % Other 1.4% 1.8% 1.8% Total Population - Hispanic 520 7,296 21,449 % Hispanic 4.7% 6.6% 8.2% * Demographic data derived from 2010 US Census 32

33 DEMOGRAPHICS DEMOGRAPHICS MAP POPULATION 1 MILE 3 MILES 5 MILES Total population 11, , ,792 Median age Median age (male) Median age (Female) HOUSEHOLDS & INCOME 1 MILE 3 MILES 5 MILES Total households 3,753 61, ,868 # of persons per HH Average HH income $121,380 $136,673 $128,653 Average house value $234,867 $257,967 $257,756 ETHNICITY (%) 1 MILE 3 MILES 5 MILES Hispanic 4.7% 6.6% 8.2% RACE (%) White 66.2% 62.2% 61.1% Black 3.6% 5.5% 5.3% Asian 19.9% 22.0% 15.0% Hawaiian 0.0% 0.0% 0.1% American Indian 0.6% 0.3% 0.4% Other 1.4% 1.8% 1.8% * Demographic data derived from 2010 US Census 33

34 INFORMATION ABOUT BROKERAGE SERVICES Texas law requires all real estate license holders to give the following information about brokerage services to prospective buyers, tenants, sellers and landlords TYPES OF REAL ESTATE LICENSE HOLDERS: A BROKER is responsible for all brokerage activities, including acts performed by sales agents sponsored by the broker. A SALES AGENT must be sponsored by a broker and works with clients on behalf of the broker. A BROKER S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents): Put the interests of the client above all others, including the broker s own interests; Inform the client of any material information about the property or transaction received by the broker; Answer the client s questions and present any offer to or counter-offer from the client; and Treat all parties to a real estate transaction honestly and fairly. A LICENSE HOLDER CAN REPRESENT A PARTY IN A REAL ESTATE TRANSACTION: AS AGENT FOR OWNER (SELLER/LANDLORD): The broker becomes the property owner's agent through an agreement with the owner, usually in a written listing to sell or property management agreement. An owner's agent must perform the broker s minimum duties above and must inform the owner of any material information about the property or transaction known by the agent, including information disclosed to the agent or subagent by the buyer or buyer s agent. AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant's agent by agreeing to represent the buyer, usually through a written representation agreement. A buyer's agent must perform the broker s minimum duties above and must inform the buyer of any material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or seller s agent. AS AGENT FOR BOTH - INTERMEDIARY: To act as an intermediary between the parties the broker must first obtain the written agreement of each party to the transaction. The written agreement must state who will pay the broker and, in conspicuous bold or underlined print, set forth the broker's obligations as an intermediary. A broker who acts as an intermediary: Must treat all parties to the transaction impartially and fairly; May, with the parties' written consent, appoint a different license holder associated with the broker to each party (owner and buyer) to communicate with, provide opinions and advice to, and carry out the instructions of each party to the transaction. Must not, unless specifically authorized in writing to do so by the party, disclose: that the owner will accept a price less than the written asking price; that the buyer/tenant will pay a price greater than the price submitted in a written offer; and any confidential information or any other information that a party specifically instructs the broker in writing not to disclose, unless required to do so by law. AS SUBAGENT: A license holder acts as a subagent when aiding a buyer in a transaction without an agreement to represent the buyer. A subagent can assist the buyer but does not represent the buyer and must place the interests of the owner first. TO AVOID DISPUTES, ALL AGREEMENTS BETWEEN YOU AND A BROKER SHOULD BE IN WRITING AND CLEARLY ESTABLISH: The broker s duties and responsibilities to you, and your obligations under the representation agreement. Who will pay the broker for services provided to you, when payment will be made and how the payment will be calculated. LICENSE HOLDER CONTACT INFORMATION: This notice is being provided for information purposes. It does not create an obligation for you to use the broker s services. Please acknowledge receipt of this notice below and retain a copy for your records. Licensed Broker /Broker Firm Name or Primary Assumed Business Name License No. Phone Designated Broker of Firm License No. Phone Licensed Supervisor of Sales Agent/Associate License No. Phone Sales Agent/Associate s Name License No. Phone Buyer/Tenant/Seller/Landlord Initials Date Regulated by the Texas Real Estate Commission Information available at IABS 1-0

35 ACTIVITY ID Z