STARBUCKS HICKORY, NORTH CAROLINA REPRESENTATIVE PHOTO

exclusive offering Presented By: Phil Sambazis Vice President Investments SAN DIEGO Tel: (858) 373-3174 Fax: (858) 373-3110 phil.sambazis@marcusmillichap.com License: CA 01474991 Brandon Hanks Senior Associate SAN DIEGO Tel: (858) 373-3224 Fax: (858) 373-3110 brandon.hanks@marcusmillichap.com License: CA 01416786 Allen Smith Broker of Record CHARLOTTE License: NC 127350 OFFICES NATIONWIDE www.marcusmillichap.com

FINANCIAL OVERVIEW 1186 Lenoir Rhyne Blvd. SE Hickory, NC 28602 Price $1,315,000 Down Payment 100% / $1,315,000 Gross Leasable Area (GLA) 1,870 SF Price / SF $703.21 CAP Rate 7.50% Net Operating Income $98,661 Year Built 2008 Lot Size 0.78 +/- Acres Type of Ownership Fee Simple LEASE SUMMARY Lease Type Double Net Roof & Structure Landlord Responsible Lease Term 10-Year Lease Commencement 11/19/2007 Rent Commencement 10/3/2008 Lease Expiration 2/28/2019 Term Remaining 5 Years Increases 10% Every 5 Years Options Three, 5-Year RENT ROLL TERM ANNUAL RENT MONTHLY RENT RENT / SF Current - Year 10 $98,661 $8,222 $52.76 Option 1 $108,535 $9,045 $58.04 Option 2 $119,400 $9,950 $63.85 Option 3 $131,330 $10,944 $70.23 NET OPERATING INCOME $98,661 TOTAL RETURN 7.50% / $98,661

TENANT OVERVIEW Tenant Name Property Address Property Type Square Feet Starbucks 1186 Lenoir Rhyne Blvd. SE Hickory, NC 28602 Net Leased Restaurant 1,870 SF Number of Locations 19,200+ Headquartered Seattle, Washington Website www.starbucks.com Ownership Public Tenant Corporate Store Net Worth $11.517 Billion Sales Volume $14.892 Billion Stock Symbol NASDAQ: SBUX Credit Rating Standard & Poor s: A- Lease Commencement 11/19/2007 Rent Commencement 10/3/2008 Lease Expiration 2/28/2019 Term Remaining 5 Years Lease Type Double Net Roof & Structure Landlord Responsible Lease Term 10-Year Increases 10% Every 5 Years Starbucks Corporation is an international coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, selling drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and panini, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Options to Renew Options to Terminate Options to Purchase First Right of Refusal Three, 5-Year None None None

LEASE SUMMARY Landlord Responsibilities Tenant Responsibilities Taxes Insurance Landlord shall maintain and repair and make replacements to the premises and the building, including the common area. Landlord shall, at its sole costs and expense, make the repairs and replacements and perform such work that is necessary to maintain the building in a good and sound condition, including the upkeep of the roof, roof membrane and roof systems (gutters, downspouts, and the like), foundation, exterior walls, interior structural walls, and all structural components of the premises and building. Landlord shall maintain and repair all parking areas, sidewalks, landscaping, and drainage systems on the property and all utility systems (including mechanical, electrical and HVAC systems) and plumbing systems which serve the building as a whole and not a particular tenant s premises. Tenant, at Tenant s expense, shall keep the premises in good order and repair, including maintain all plumbing, HVAC, electrical and lighting facilities and equipment within the premises and exclusively serving the premises and the store front, doors, and plate glass of the premises. Tenant shall pay its pro rata share of Taxes to Landlord. Tenant shall obtain and keep in full force and effect liability insurance including bodily injury, personal injury and property damage insurance naming Landlord as additionally insured. Tenant shall also obtain commercial property insurance. Landlord shall also obtain and keep in full force and effect liability insurance including bodily injury, personal injury and property damage insurance naming Tenant as additionally insured. Utilities & Trash Removal Assignment & Subletting Exclusivity Estoppel Tenant shall pay directly to the applicable utility provider all charges for water, sewer, gas and electricity used on the premises. Tenant shall arrange for its trash and recycling services and shall pay costs directly to the company providing such service. Tenant shall not assign or sublet the lease without written consent of Landlord and shall remain primarily liable under the lease regardless. Landlord shall not use or allow any other person or entity to use any portion of the property for the sale of whole ground coffee beans, espresso, espresso-based drinks or coffee-based drinks, tea or tea-based drinks, gourmet brand-identified brewed coffee or blended beverages containing coffee, espresso and/or tea. Tenant has 30 Days to provide an executed estoppel.

INVESTMENT OVERVIEW 5-Years Remaining on 10-Year NN Lease Adjacent to CommScope Headquarters with 12,000 Employees Worldwide and Hickory Daily Record Headquarters Owned by Berkshire Hathaway Situated Directly off Interstate-40 with 83,000 Cars Per Day Freeway Signage Going East and West 1/2-Mile from the only Enclosed Regional Mall within a 40-Mile Radius Trade Area Spans Six Counties with a Population of 400,000 Across from Six Hotels and the Hickory Metro Convention Center Landlord Responsible for Roof and Structure 10% Increases Every Five Years No Early Termination Clause Nearest Starbucks 3.3 Miles Away Marcus & Millichap is pleased to present the Starbucks in Hickory, North Carolina. Built in 2008, Starbucks occupies a 1,870 square-foot freestanding building with a drive-thru on 0.78 acres and has 5-years remaining on a 10-year NN lease with 10% increases every 5 years including each of the three, 5-year renewal options. Starbucks is located along Lenoir Rhyne Boulevard with 37,000 cars per day and is directly off Interstate-40, the main east-west freeway in North Carolina, with 83,000 cars per day. Starbucks has signage going East and West on the freeway. The property is adjacent to the CommScope (NASDAW; COMM) Headquarters, which has 12,000 employees worldwide and the Hickory Daily Record Headquarters, a newspaper company owned by Berkshire Hathaway. Starbucks is surrounded by ten hotels within a one-mile radius and is within ½-mile of the Valley Hills Mall, owned by Rouse Properties and anchored by Belk, Dillard s, JC Penney, and Sears. It is the only enclosed regional mall in a 40-mile radius. The primary trade area spans six counties with a population of 400,000 that continues to grow. The nearest freestanding Starbucks is approximately 3.3 miles away and services the northside of the city. Hickory is the largest city within the Hickory-Lenoir-Morganton MSA in the foothills of the Blue Ridge Mountains, just 60 miles north of Charlotte. Hickory is well known for their furniture manufacturing industry, which at one time produced 60% of the new furniture manufactured in the US. Today, Hickory serves as the Corporate Headquarters of Corning Cable Systems, one of the largest fiber optic cable manufacturers in the world, and Apple and Google both have major data centers in the region. Nearly one million travelers visit the area each year for furniture markets and events, contributing over $265 million to the local economy.

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DEMOGRAPHIC REPORT POPULATION 1-MILE 3-MILES 5-MILES 2000 Population 1,636 27,741 65,432 2010 Population 1,458 28,327 68,162 2013 Population 1,445 28,488 68,453 2018 Population 1,421 28,725 69,701 HOUSEHOLDS 1-MILE 3-MILES 5-MILES 2000 Households 523 11,333 26,266 2010 Households 508 11,582 27,645 2013 Households 502 11,647 27,753 2018 Households 504 11,897 28,564 2012 Average Household Size 2.48 2.32 2.41 2012 Daytime Population 3,705 36,441 52,874 2000 Median Housing Value $106,797 $113,594 $105,816 2000 Owner Occupied Housing Units 48.00% 48.52% 59.31% 2000 Renter Occupied Housing Units 51.23% 43.15% 33.75% 2000 Vacant 8.98% 7.03% 6.50% 2013 Owner Occupied Housing Units 55.41% 48.44% 61.14% 2013 Renter Occupied Housing Units 44.59% 51.56% 38.86% 2013 Vacant 15.28% 12.92% 11.07% 2018 Owner Occupied Housing Units 55.73% 47.94% 61.00% 2018 Renter Occupied Housing Units 44.27% 52.06% 39.00% 2018 Vacant 16.32% 13.60% 11.61% INCOME 1-MILE 3-MILES 5-MILES $ 0 - $14,999 26.3% 17.9% 14.3% $ 15,000 - $24,999 16.0% 16.1% 14.7% $ 25,000 - $34,999 11.3% 15.1% 13.2% $ 35,000 - $49,999 17.3% 17.2% 15.9% $ 50,000 - $74,999 16.3% 17.2% 18.1% $ 75,000 - $99,999 6.2% 7.1% 10.3% $100,000 - $124,999 3.7% 4.2% 5.6% $125,000 - $149,999 1.8% 1.8% 2.9% $150,000 - $199,999 0.7% 1.8% 2.5% $200,000 - $249,999 0.1% 0.6% 0.9% $250,000 + 0.4% 1.0% 1.7% 2012 Median Household Income $32,076 $35,577 $41,656 2012 Per Capita Income $14,454 $20,939 $24,899 2012 Average Household Income $41,081 $49,792 $60,692

SUMMARY REPORT GEOGRAPHY: 5 MILES POPULATION In 2013, the population in your selected geography was 68,453. The population has changed by 4.61% since 2000. It is estimated that the population in your area will be 69,701 five years from now, which represents a change of 1.82% from the current year. The current population is 48.3% male and 51.6% female. The median age of the population in your area is 38.8, compare this to the U.S. average which is 37. The population density in your area is 882.52 people per square mile. HOUSEHOLDS There are currently 27,753 households in your selected geography. The number of households has changed by 5.66% since 2000. It is estimated that the number of households in your area will be 28,564 five years from now, which represents a change of 2.92% from the current year. The average household size in your area is 2.41 persons. INCOME In 2013, the median household income for your selected geography is $41,656, compare this to the U.S. average which is currently $53,535. The median household income for your area has changed by 5.76% since 2000. It is estimated that the median household income in your area will be $48,393 five years from now, which represents a change of 16.17% from the current year. The current year per capita income in your area is $24,899, compare this to the U.S. average, which is $28,888. The current year average household income in your area is $60,692, compare this to the U.S. average which is $75,373. RACE & ETHNICITY The current year racial makeup of your selected area is as follows: 76.26% White, 11.58% African American, 0.37% Native American, and 3.89% Asian/Pacific Islander. Compare these to the U.S. averages which are: 72,20% White, 12.65% African American, 0.96% Native American and 5.01% Asian/Pacific Islander. People of Hispanic origin are counted independently of race. People of Hispanic origin make up 11.56% of the current year population in you selected area. Compare this to the U.S. average of 16.55%. HOUSING The median housing value in your area was $105,816 in 2000, compare this to the U.S. average of $110,781 for the same year. In 2000, there were 16,672 owner occupied housing units in your area and there were 9,487 renter occupied housing units in your area. The median rent at the time was $430. EMPLOYMENT In 2013, there are 52,874 employees in your selected area, this is also known as the daytime population. The 2000 Census revealed that 52.2% of employees are employed in white-collar occupations in this geography, and 47.7% are employed in blue-collar occupations. In 2013, unemployment in this area is 6.49%. In 2000, the median time traveled to work was 16.7 minutes.