ALDI - GROUND LEASE 516 W AVALON AVENUE MUSCLE SHOALS, AL

ALDI - GROUND LEASE 516 W AVALON AVENUE MUSCLE SHOALS, AL

5141 Virginia Way, Suite 320 Brentwood, TN 37027 T: 615.309.6100 F: 615.523.4990 CONTENTS: MEMPHIS ALDI Ben Sullivan Managing Partner ben@marketstreetretail.com Harrison Truex Managing Partner harrison@marketstreetretail.com PROPERTY PROFILE 3 LOCATION OVERVIEW 11 FINANCIAL ANALYSIS 21 HUNTSVILLE Tim Hickey Managing Partner tim@marketstreetretail.com BIRMINGHAM 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 Market Street Retail Advisors and should not be made available to any other person or entity without the written consent of Market Street Retail Advisors. 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. Market Street Retail Advisors have not made any investigation, and make 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 improvements 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, Market Street Retail Advisors have not verified, and will not verify, any of the information contained herein, nor have Market Street Retail Advisors 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. 2 ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARKET STREET AGENT FOR MORE DETAILS. 3

DE MO G R A P H ICS Description OFFERING SU M M A RY 5 Mil e s 7 Mil e s 10 Mil e s 44,042 43,193 43,933 44,263 45,618 0.75 3.06 63,184 63,112 64,739 65,088 67,136 0.54 3.15 84,443 87,421 90,641 91,130 94,043 0.54 3.2 P O P U L AT I O N BY Y E A R Population (4/1/1990) Population (4/1/2000) Population (4/1/2010) Population (4/1/2016) Population (4/1/2021) Percent Growth (2016/2010) Percent Forecast (2021/2016) OPINION OF VALUE Opinion of Value Price Per Square Foot H O U S EH O L DS BY Y E A R Households (4/1/1990) Households (4/1/2000) Households (4/1/2010) Households (4/1/2016) Households (4/1/2021) Percent Growth (2016/2010) Percent Forecast (2021/2016) 17,933 18,402 18,771 18,760 19,500 25,651 27,071 27,952 27,881 28,989 33,524 36,848 38,861 38,785 40,329-0.06 3.94-0.25 3.97-0.2 3.98 37.9 20,605 23,328 777.9 41,739 2,194 38.1 30,227 34,512 582.6 58,690 6,049 40 42,675 47,966 315.6 73,909 16,732 18,771 11,254 7,517 2.24 51.5 97,739 372 2.1 27,952 16,787 11,165 2.24 51.7 96,417 382 2.1 38,861 24,461 14,400 2.28 52.8 108,596 392 2.2 SITE $2,141,304 $118.96 Tenant Name ALDI - Ground Lease Rentable Square Feet Capitalization Rate 4.60% Number of Buildings Pro Forma Capitalization Rate 4.97% Year Built Unleveraged 10-year IRR 4.72% Acreage 18,000 1 2014 2.5 Access Type W Avalon Avenue G EN ER A L P O P U L AT I O N C H A R AC T ER I S T I C S Median Age Male Female Density Urban Rural G EN ER A L H O U S EH O L D C H A R AC T ER I S T I C S Households (4/1/2010) Families Non-Family Households Average Size of Household Median Age of Householder Median Value Owner Occupied ($) Median Rent ($) Median Vehicles Per Household G EN ER A L H O U S I N G C H A R AC T ER I S T I C S Housing, Housing, Housing, Housing, Units Owner Occupied Renter Occupied Vacant 21,258 10,999 7,772 2,487 31,358 16,441 11,511 3,406 43,357 24,892 13,969 4,496 31,880 10,079 487 162 551 774 47,928 13,745 625 234 999 1,208 71,119 15,643 831 344 1,175 1,529 1,142 31,462 1,983 47,196 2,409 70,188 996,004,812 955,571,703 35,777 50,907 22,671 1,436,011,963 1,390,916,753 34,747 49,761 22,182 2,159,183,128 2,111,094,605 40,000 54,324 23,821 CONSTRUCTION & UTILITIES Exterior Roof Location: ALDI - Ground Lease Address: 516 W Avalon Ave Latitude: 34 : 44 : 39 Longitude: -87 : 40 : 09 Fo ot note s: Parking Surface Brick / Concrete / Glass Flat Asphalt Electricity Muscle Shoals Electric Board Water & Sewer Muscle Shoals Utilities Board Gas North Alabama Gas District Easy Analytic Sof tware, Inc. (EASI) is the source of all updated estimates. All other data are derived from the US Census and other of ficial government sources. P O P U L AT I O N BY R AC E White Alone Black Alone Asian Alone American Indian and Alaska Native Alone Other Race Alone Two or More Races P O P U L AT I O N BY E T H N I C I T Y Hispanic White Non-Hispanic G EN ER A L I N CO M E C H A R AC T ER I S T I C S Total Personal Income ($) Total Household Income ($) Median Household Income ($) Average Household Income ($) Per Capita Income ($) 4 5

TEN A N T O V E R V IEW ALDI Aldi originated in 1946 when Karl and Theo Albrecht took over their mother s grocery store in Essen, Germany. Within 4 years, they had opened 13 stores in the Ruhr Valley. The Albrecht brothers made a habit of removing merchandise that didn t sell from the shelves, cutting costs by neither advertising nor offering fresh produce, and keeping the size of their retail outlets small. By 1960, the company had 300 stores, and the brothers split up the company into Aldi (short for Albrecht-discount) Nord (North) and Sud (South). In the late 60s and early 70s, the company experienced rapid expansion into nearby European markets and the United States. Additionaly, the company owns and operates fresh-format concept Trader Joe s in the United States. A study in Germany showed that 95% of the country s blue-collar workers shop at Aldi, as its discount concept and simplicity create an easy and accesible shopping atmosphere. Aldi typically carries only one or two brands of each available product to ensure simplicity and efficiency. 6 Headquartered (U.S) Batavia, IL Number of Locations 9,221 Areas of Operation 17 countries Square Footage 18,000 Base Rent Per SF $5.47 Website https://www.aldi.us 7

BILLY BOWLING DR SITE PLAN MICHIGAN AVE Walgreens Call Center 640 jobs LEE HWY (26,620 VPD) W AVALON AVE S BEVERLY AVE W STATE AVE BROADWAY AVE STATE AVE 8 9

LOCATION OVERVIEW

LOC ATIO N O V E R V IE W Muscle Shoals is located on the Tennessee River in northeastern Alabama. With 13,000+ citizens, it is the largest city in Colbert County, Alabama. As part of the Florence-Muscle Shoals Metropolitan Area, it is commonly referred to as The Shoals. US-72 runs along the southern end of the city and US-43 goes directly through the city, creating easy access for the citizens of Muscle Shoals to access large metropolises. The city is just 10 minutes from Florence, AL and 50 minutes from Decatur, AL. In addition, the city is close to: Huntsville, AL (1 hour 15 min), Birmingham, AL (1 hour 50 minutes), Memphis, TN (2 hours 30 min), and Nashville, TN (2 hours 30 minutes). Muscle Shoals is home to several major employers including North American Lighting (1,400+ jobs), Costellium (1,100+ jobs), Hellen Keller Hospital (900+ jobs), and the Tennessee Valley Authority (800+ jobs). Muscle Shoals School District provides 500+ jobs and is ranked 9th in the state by Niche.com. Northwest Shoals Community College and the University of North Alabama are available for those wishing to further their education. Muscle Shoals is perhaps most renowned for it s presence in the music industry. The city is home to two famous music studios; FAME Studios and Muscle Shoals Sound Studio. These studios are credited for famous classic recordings from Rod Stewart, Aretha Franklin, Eric Clapton, Lynyrd Skynyrd, The Rolling Stones, and The Allman Brothers as well as recent hits from stars such as Carrie Underwood and Heartland. The town was even mentioned in Lynyrd Skynyrd s Sweet Home Alabama. Shoals Hospital, containing 137 beds and emergency services, is located in Muscle Shoals. Together with Florence, AL, Muscle Shoals give its tenants quick access to several hospitals within a 15-minute drive. Northwest Alabama Regional Airport serves the Shoals region and is located just outside of the city limits. 12 13

FINANC IAL ANA LYSI S

OVERVIEW FINANCIAL ANALYSIS ALDI - GROUND LEASE 516 W AVALON AVENUE MUSCLE SHOALS, AL Term INCOME SUMMARY From To Monthly Yearly PSF yr. 1 July 2014 June 2015 $8,208.33 $98,500 $5.47 yr. 2 July 2015 June 2016 $8,208.33 $98,500 $5.47 Property Summary Tenant Aldi - Ground Lease Rentable Square Feet 18,000 Year Built 2014 Acreage (±) 2.5 Acres (108,900 ft) Parcel No. 13-01-02-2-002-011.000 Lease Details Lease Commenced July 1, 2014 Lease Expires June 30, 2034 Landlord Responsibilities NNN Increases 8% after Year 10 Options 3 5-Yr Options Percentage Rent None Purchase Summary Offering Price $2,141,304 Down Payment 25% $2,141,304 Price per Square Foot $118.96 Unleveraged 10-Year IRR 4.72% Leveraged 10-Year IRR 4.72% Operations Summary Year 1 10-Year Effective Gross Income $98,500 $106,380 Net Operating Income $98,500 $106,380 Capitalization Rate 4.60% 4.97% Financing Summary Buyer To Obtain New Debt Proposed Loan Amount All Cash Interest Rate N/A Years of Amortization N/A Years until Term N/A Monthly Payment N/A Cash After Debt N/A Cash-on-Cash Return 4.60% yr. 3 July 2016 June 2017 $8,208.33 $98,500 $5.47 yr. 4 July 2017 June 2018 $8,208.33 $98,500 $5.47 yr. 5 July 2018 June 2019 $8,208.33 $98,500 $5.47 yr. 6 July 2019 June 2020 $8,208.33 $98,500 $5.47 yr. 7 July 2020 June 2021 $8,208.33 $98,500 $5.47 yr. 8 July 2021 June 2022 $8,208.33 $98,500 $5.47 yr. 9 July 2022 June 2023 $8,208.33 $98,500 $5.47 yr. 10 July 2023 June 2024 $8,208.33 $98,500 $5.47 yr. 11 July 2024 June 2025 $8,865.00 $106,380 $5.91 yr. 12 July 2025 June 2026 $8,865.00 $106,380 $5.91 yr. 13 July 2026 June 2027 $8,865.00 $106,380 $5.91 yr. 14 July 2027 June 2028 $8,865.00 $106,380 $5.91 yr. 15 July 2028 June 2029 $8,865.00 $106,380 $5.91 yr. 16 July 2029 June 2030 $8,865.00 $106,380 $5.91 yr. 17 July 2030 June 2031 $8,865.00 $106,380 $5.91 yr. 18 July 2031 June 2032 $8,865.00 $106,380 $5.91 yr. 19 July 2032 June 2033 $8,865.00 $106,380 $5.91 yr. 20 July 2033 June 2034 $8,865.00 $106,380 $5.91 Opt 1 21-25 July 2034 June 2039 $9,574.20 $114,890 $6.38 Opt 2 26-30 July 2039 June 2044 $10,340.14 $124,082 $6.89 Opt 3 31-35 July 2044 June 2049 $11,167.35 $134,008 $7.44 22

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