EAST TOWN - LoopNet

65,636 SF INVESTMENT OPPORTUNITYGROCERY-ANCHORED RETAIL CENTERCONFIDENTIAL OFFERING MEMORANDUM

EAST TOWNSHOPPING CENTER

PRIMARY CONTACTS:

SECONDARY CONTACTS:

JOSH JACOBS

Principal [email protected]

713.900.3001

BURDETTE HUFFMAN


713.900.3024

BILL PYLE

Vice President [email protected]

713.900.3018

KEVIN HOLL AND

Senior Vice President [email protected]

713.900.3025

JONATHAN WALKER, CCIM

Maestri-Murrell, Inc [email protected]

225.810.3294

EAST TOWN951 3RD AVENUE | LAKE CHARLES, LA 70601

SHOPPING CENTER

CONFIDENTIALOFFERING MEMORANDUM

5444 Westheimer Rd, Suite 1650Houston, Texas 77056

T 713.900.3000edge-cm.com

TABLE OF CONTENTS

EXECUTIVE SUMMARY

THE OFFERING 4

THE PROPERTY

PROPERTY DETAILS

KEY SELLING POINTS

INVESTMENT HIGHLIGHTS

MAJOR TENANT SUMMARY

TENANT PROFILES

AERIALS

SITE PLAN

5

6

8

9

11

14

15

THE FINANCIALS

FINANCIAL SUMMARY

RENT ROLL

CASH FLOW

CASH FLOW ASSUMPTIONS

LEASE EXPIRATIONS

15

16

17

18

19

THE MARKET

LOCATION OVERVIEW

DEMOGRAPHIC MAP

MARKET OVERVIEW

20

22

23

EAST TOWN SHOPPING CENTEREDGE REALTY CAPITAL MARKETS 4

ADDRESS

951 3RD AVENUE LAKE CHARLES, LA 70601

GL A

65,636 SF

L AND ARE A

2.21 ACRES OR 96,108 SF

PRICE

$1,948,000

PRICE PSF

$29.80

IN - PL ACE NOI

$170,501

IN - PL ACE C AP R ATE

8.75%

YE AR BUILT

1963

OCCUPANCY

81% LEASED

PROPERTY DETAILSTHE OFFERING

EDGE Realty Capital Markets is pleased to present the opportunity to acquire East Town Shopping Center (“Property”), a 65,636-square foot grocery-anchored shopping center in Lake Charles, Louisiana. The Property is anchored by Market Basket, the premier grocer in Lake Charles for 54 years. The Property is strategically located in the heart of Lake Charles with convenient access to many of the city’s major employment centers and residential neighborhoods. East Town Shopping Center is approximately 80% occupied and has maintained a long and successful history catering to the surrounding consumer base.

The acquisition of East Town Shopping Center provides a unique opportunity for investors to acquire a shopping center anchored by the region’s leading grocer with a stable income stream in one of the strongest-performing economies in the Gulf Coastal region.

EXECUTIVE SUMMARY


KEY SELLING POINTS

• Anchored by Market Basket, the leading

grocer in the Lake Charles area

• Complementary tenant mix poised to

serve various needs of consumers

• Substantial access via three (3) ingress/

egress along 3rd Avenue

• Upside potential by leasing the remaining

19% vacancy

• Strategically located less than a mile off of

Interstate 10, a major east-west thoroughfare

that connecting Houston to New Orleans

• Developed to maximize visibility & access

for drive-by traffic and surrounding

residential neighborhoods


• GROCERY-ANCHORED CENTER: The Property is anchored by Market Basket, the leading grocer in the Lake Charles MSA. Market Basket experiences a loyal consumer base in the Lake Charles MSA, with over 30% of the market share. Market Basket has called East Town Shopping Center home for 54 years, demonstrating the grocer’s long-term success at the Property.

• MAJOR VALUE ENHANCEMENT OPPORTUNITY: With 12,470 square feet of immediate lease-up potential, East Town Shopping Center provides investors in search of higher yield and excellent value-add opportunity. Multiple tenants occupying the Property have options with contractual rental increases, allowing an investor to realize growth throughout its hold period.

• STRONG LEASING MOMENTUM: The Property has seen an influx of leasing activity, including the recent signing of Dollar Tree and Metro PCS. Accounting for over 15% of the Property’s square footage, the onset of new retailers solidifies the viability of a value-add strategy at East Town Shopping Center.

• COHESIVE MIX OF NATIONAL TENANTS: East Town Shopping Center’s underlying value is bolstered by a diverse tenant lineup featuring a collection of national, regional and local retailers which complement each other and serve the daily needs of the surrounding community. Market Basket, Family Dollar, Dollar Tree, Rent-A-Center and Metro PCS all promote cross-shopping and provide a steady consumer draw to the shopping center.

• PROMINENT RETAIL LOCATION: East Town Shopping Center holds a coveted location along 3rd Avenue A and Broad Street, less than a mile away from Interstate 10. The Property’s leading market position places it in the heart of Lake Charles and provides excellent access and visibility to the surrounding trade area. Additionally, East Town Shopping Center is perfectly situated to benefit from its proximity to the Port of Lake Charles, one of the city’s largest employers.

INVESTMENT HIGHLIGHTS

• EXCEPTIONAL INGRESS/EGRESS: The Property is located on 3rd Avenue just off the intersection of Broad Street. Ease of traffic flow in and around the Property is dictated by the abundance of ingress/egress points to and from the Property via three (3) entrances along 3rd Avenue. These access points ensure the Property’s consumers can quickly and easily reach the shopping center from surrounding neighborhoods.

• STEADFAST LAKE CHARLES ECONOMY: Lake Charles is the fifth largest incorporated city in the state of Louisiana and is comprised of two parishes – Calcasieu and Cameron. It has a diverse economy dominated by energy, tourism, gaming and aircraft repair and is the major industrial, cultural and educational center in southwest Louisiana. A major element of the city and surrounding region’s economy is the Port of Lake Charles, one of the nation’s top ports for exporting and the port of entry for Calcasieu Parish.



MA JOR TENANTS SIZE (SF) % OF GLA RENT PSF

% OF RENTAL REVENUE

YEARS OFOCCUPANCY

MARKET BASKET 24,000 36.72% $3.00 34.34% 54

FAMILY DOLLAR 12,582 19.25% $3.74 22.44% 18

DOLLAR TREE 8,690 13.29% $5.00 20.72% 1

RENT-A- CENTER 6,210 9.50% $5.33 15.78% 16

TOTALS 51,482 78.76% - 93.28% 31.67



Dollar Tree Inc. is an International discount retail chain where all goods sold are $1 or less. The company has a long history in the industry, originally founded in 1954 under the name ‘Ben Franklin’, finalizing the brand as the Dollar Tree in 1991. The corporation is headquartered in Chesapeake, Virginia, and operates 13,600+ stores in the continental United States and Canada. Dollar Tree competes in the dollar store and low-end retail markets, and in August of 2015 the company successfully acquired it’s second-largest competitor, Family Dollar.

www.dollartree.com

In 1961, Bruce Thompson opened the first Market Basket grocery store in Groves, Texas. Today, Market Basket remains a privately-owned grocer serving the East Texas and Louisiana region, employing more than 2,000 supermarket associated with 34 full-service supermarkets offering outstanding value on fresh produce, quality meats, delicious bakery goods, beautiful floral arrangements and pharmacy services in select locations.

www.marketbasketfoods.com

www.familydollar.com

In 1959, Leon Levine opened the first Family Dollar store in Charlotte, NC, offering customers a variety of high-quality, good value merchandise for under $2 with the philosophy “the customers are the boss, and you need to keep them happy”. Creating a uniform floor plan for each store allowed customers to easily shop and store managers to focus on good customer service. This self-serve, cash-and-carry neighborhood discount store in low to middle income neighborhoods proved so successful that today Family Dollar has over 8,000 locations across the United States.

Since being incorporated in 1986, Rent-A-Center (RAC) has grown from 16 stores to more than 3,050 in the United States, Puerto Rico, Mexico, and Canada through acquisitions and new store openings. In 1995, RAC went public on the NASDAQ stock market under the symbol “RCII”. The Plano, Texas-based company is a rent-to-own industry leader and employs over 22,000 people.

www.rentacenter.com

MetroPCS is one of the leading providers of unlimited 4G LTE wireless service with no annual contract. We make wireless simple by offering unlimited data, talk and text with all applicable taxes & fees included – so there are no surprises.

www.metropcs.com

TENANT PROFILES


1

2

3

4

1

2

3

4

L AKE CHARLES CIVIC CENTER

L’AUBERGE / GOLDEN NUGGET

PRIEN L AKE MALL

CHENNAULT INTERNATIONAL AIRPORTEAST TOWN SHOPPING CENTER

LOCATION MAP


AERIAL - TRADE AREA OVERVIEW


AERIAL - SITE


SITE PLAN

SUITE TENANT SIZE (SF)

929 Market Basket 24,000

931 Available 8,400

933 Rent-A-Center 6,210

935 Dollar Tree 8,690

943 Available 4,120

945 Metro PCS 1,364

947 Family Dollar 12,582


LAKE CHARLES RETAIL MARKET

East Town Shopping Center’s superior location provides excellent visibility to an expansive trade area as a well-positioned shadow grocery-anchored retail neighborhood center in Lake Charles, Louisiana. Strategically located at the southeast corner of 1st Street and 3rd Avenue, the Property has frontage on Avenue A and draws over 85,000 consumers within a 5-mile radius. Lake Charles is the fifth largest incorporated city in the state of Louisiana and is comprised of two parishes – Calcasieu and Cameron. It has a diverse economy dominated by energy, tourism, gaming and aircraft repair and is the major industrial, cultural and educational center in southwest Louisiana. Lake Charles is in the beginning stages of its largest growth period in history and has been nationally recognized for its new corporate construction and expansion projects. The city is projected to be one of the dominating economies of the Gulf Coast region and expected to lead the state of Louisiana in job growth.

As the regional hub of southwest Louisiana, which encompasses five parishes totaling 5,617 square miles and a population exceeding 698,000, Lake Charles is the largest city within a 75-mile radius and serves as the geographic mid-point along Interstate 10 between Houston and New Orleans/Baton Rouge. Lake Charles’ prime regional location with access to the Gulf of Mexico, diverse economy, variety of entertainment options and revitalization of its downtown enhances the quality of life and has made Lake Charles an excellent destination for businesses and families. The city is home to the Port of Lake Charles, the 6th top port for exports in the nation and the port of entry for Calcasieu Parish. Lake Charles’ location near the Gulf of Mexico, diverse economy, strong infrastructure, pro-business environment and high quality of life makes it a great place to live and do business.

BEAUMONT RETAIL TOTAL

3-MILE RADIUSOF PROPERTY

Number of Buildings 1,836 460

Existing Supply (SF) 23,489,149 3,850,229

Available (SF) 1,473,497 169,139

Occupancy 95.7% 98.4%

Average Rental Rate $11.10 PSF $11.48 PSF

12 Month Absorption (SF) 123,083 -3,143

Under Construction (SF) 49,472 0

12 Month Deliveries (SF) 76,199 0

TRADE AREA ATTRIBUTES

LOCATION OVERVIEW

LOCATION / TRADE AREA OVERVIEW


NEW ORLEANS 9. 52 M I L L ION A N N UA L V I SI TOR S I N 2 015

#1 FA ST E ST- GROW I NG CI T Y FOR

E M PLOY M E N T, I NCOM E , A N D

POPU L AT ION I N T H E U. S .

POPUL ATION

4,670,724

LAFAYETTE#1 M S A FOR JOB GROW T H OF U. S .

M I D - SI Z E D CI T I E S I N 2 015

SHREVEPORT#1 LOW E ST N E W BUSI N E S S I N V E ST M E N T

COSTS I N T H E U. S .

BATON ROUGE HOM E TO STAT E’S L A RGE ST H IGH E R

E DUC AT ION I NST I T U T ION, LOU I SI A NA

STAT E U N I V E R SI T Y (30 ,0 0 0 + ST U DE N T

E N ROL L M E N T )

TOP

10BUSINESS CLIMATE BY A R E A DE V ELOPM EN T, BUSI N E S S FACI L I T I E S, A N D SI T E SEL ECT ION I N 2 015

NAMED AMERICA’S NEW FRONTIER FOR BUSINESS BY FORBES IN 2013

TOP 5 BUSINESS-FRIENDLY CITY IN THE UNITED STATES

28,900,000A NN UA L V ISITORS IN 2015

13%COST OF LIVING13% LOW ER T H A N T H E U.S. AV ER AGE

3RD LOWEST PROPERTY TAXES 0.92% LOW ER TH A N THE U.S. AV ER AGE

MOST ENGAGED WORKERSIN THE U.S. BY GALLUP IN 2015

3RD LARGEST PRODUCER OF PET ROL EU M I N T H E U.S.

19 REFINERIESCA PACIT Y TO PRODUCE 3,273,020 BARRELS PER DAY

LAKE CHARLES L A RGE ST C A SI NO M A R K ET I N T H E STAT E

#5 L A RGE ST I NCOR POR AT E D CI T Y I N T H E STAT E

MARKET OVERVIEW - LOUISIANA


LARGEST CITY IN THE STATE5th DEMOGR A PHICS (MSA)

POPULATION 206,831

TOTAL HOUSEHOLDS 82,205

AVERAGE HOUSEHOLD INCOME $66,260

MEDIAN AGE 35.4

BACHELOR DEGREE + 20.7%

TOTAL EMPLOYEES 102,995

COST OF LIVING 4.5% LOWER TH A N TH E U.S. AV ER AGE

HOME TO CHENNAULT INTERNATIONAL AIRPORT A M E R I C A ’ S P R E M I E R I N D U S T R I A L A I R P O R T

L A RGE ST EM PLOY ER S

CALCASIUE VETERINARY MEDICAL ASSOCIATION,

MBS ANSWERING SERVICES

ST. CHARLES GAMING CO, INC.

PNK (LAKE CHARLES), LLC

SWHLS, INC.

SOUTHWEST LOUISIANA HOSPITAL ASSOCIATION

SOUTHWEST LOUISIANA MEMORIAL FOUNDATION

CITY OF LAKE CHARLES

8,500+ ST U DEN TS ATTEND MCNEESE STATE UNIVERSITY

REGIONA LLY SIGNIFICA NT CENTER FOR PETROCHEMICAL PLANTS AND OIL REFINERY

LARGEST CASINO MARKETIN THE STATE OF LOUISIANA

DIVERSE EMPLOYMENT &CULTURAL CENTER

MARKET OVERVIEW - LAKE CHARLES


IN PLACE YEAR 1 YEAR 1 YEAR 2 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 11

PSF MAR 2018 MAR 2019 MAR 2020 MAR 2021 MAR 2022 MAR 2023 MAR 2024 MAR 2025 MAR 2026 MAR 2027 MAR 2028

BASE RENTAL REVENUE $4.62 $301,667 $302,102 $304,088 $304,691 $323,625 $352,382 $362,340 $362,340 $375,785 $384,971 $391,682

ABSORPTION & TURNOVER VACANCY ($1.40) ($91,600) - - - ($35,975) ($9,148) ($8,199) - ($10,641) ($20,828) -

$209,693 $3.21 $210,067 $302,102 $304,088 $304,691 $287,650 $343,234 $354,141 $362,340 $365,144 $364,143 $391,682

EXPENSE REIMBURSEMENT REVENUE $82,416 $1.28 $83,735 $113,126 $117,184 $120,388 $110,654 $121,213 $127,378 $132,943 $133,647 $137,649 $146,313

$292,109 $4.49 $293,802 $415,228 $421,272 $425,079 $398,304 $464,447 $481,519 $495,283 $498,791 $501,792 $537,995

GENERAL VACANCY - - ($20,761) ($21,064) ($21,254) - ($14,532) ($16,287) ($24,764) ($14,831) ($5,303) ($29,556)

COLLECTION LOSS - - - - - - - - - - - -

$292,109 $4.49 $293,802 $394,467 $400,208 $403,825 $398,304 $449,915 $465,232 $470,519 $483,960 $496,489 $508,439

CONTRACT SERVICES $7,152 $0.11 $7,149 $7,363 $7,584 $7,812 $8,046 $8,288 $8,536 $8,792 $9,056 $9,328 $9,607

REPAIRS & MAINTENANCE $49,956 $0.76 $49,954 $51,452 $52,996 $54,586 $56,223 $57,910 $59,647 $61,437 $63,280 $65,178 $67,134

GENERAL & ADMINISTRATIVE $8,868 $0.14 $8,867 $9,133 $9,407 $9,689 $9,980 $10,279 $10,588 $10,905 $11,232 $11,569 $11,917

UTILITIES $4,356 $0.07 $4,357 $4,488 $4,622 $4,761 $4,904 $5,051 $5,202 $5,358 $5,519 $5,685 $5,855

MANAGEMENT FEE $11,688 $0.18 $11,752 $15,779 $16,008 $16,153 $15,932 $17,997 $18,609 $18,821 $19,358 $19,860 $22,463

INSURANCE $22,092 $0.34 $22,093 $22,756 $23,438 $24,141 $24,866 $25,612 $26,380 $27,171 $27,987 $28,826 $29,691

RE TAXES $17,496 $0.27 $17,500 $18,025 $18,565 $19,122 $19,696 $20,287 $20,895 $21,522 $22,168 $22,833 $23,518

$121,608 $1.86 $121,672 $128,996 $132,620 $136,264 $139,647 $145,424 $149,857 $154,006 $158,600 $163,279 $170,185

$170,501 $2.63 $172,130 $265,471 $267,588 $267,561 $258,657 $304,491 $315,375 $316,513 $325,360 $333,210 $338,254

TENANT IMPROVEMENTS - - - $125,200 - - $125,835 $26,255 $29,517 - $42,563 $89,511 -

LEASING COMMISSIONS - - - $33,528 - - $70,077 $24,152 $11,069 - $20,111 $26,126 -

CAPITAL RESERVES $13,068 $0.20 $13,073 $13,465 $13,869 $14,285 $14,714 $15,155 $15,610 $16,078 $16,561 $17,058 $17,569

$13,068 $0.20 $13,073 $172,193 $13,869 $14,285 $210,626 $65,562 $56,196 $16,078 $79,235 $132,695 $17,569

$157,433 $2.43 $159,057 $93,278 $253,719 $253,276 $48,031 $238,929 $259,179 $300,435 $246,125 $200,515 $320,685CASH FLOW

SCHEDULED BASE RENTAL REVENUE

TOTAL POTENTIAL GROSS REVENUE

TOTAL EFFECTIVE GROSS REVENUE

TOTAL OPERATING EXPENSES

TOTAL LEASING & CAPITAL COSTS

EFFECTIVE GROSS REVENUE

OPERATING EXPENSES

LEASING & CAPITAL COSTS

NET OPERATING INCOME

CASH FLOW


RENT ROLL

MARKET BASKET 929 24,000 36.72% 12/5/1963 10/31/2021 4/1/2017 $3.00 $72,000 NNN w/ 15% Admin on total Opex

4 x 5-year options, based on CPI

0

RENT-A-CENTER 933 6,210 9.50% 5/1/2001 4/30/2021 4/1/2017 $5.33 $33,099 NNN w/ 15% Admin on total Opex

0 5/1/2019 $5.60 $34,776

0

DOLLAR TREE 935 8,690 13.29% 8/1/2016 8/31/2021 4/1/2017 $5.00 $43,450 None

5 x 5-year renewal options; Each option has a $0.50 psf increase in rent

0

METRO PCS 945 1,364 2.09% 5/1/2016 4/30/2021 4/1/2017 $10.33 $14,090 NNN w/ 15% Admin on total Opex

0 5/1/2017 $10.64 $14,513

0 5/1/2018 $10.96 $14,949

0 5/1/2019 $11.29 $15,400

0 5/1/2020 $11.63 $15,863

0

FAMILY DOLLAR 947 12,582 19.25% 4/1/1999 6/30/2022 4/1/2017 $3.74 $47,057 NNN

6 x 5-year renewal options; Each option has a 10% increase in rent

0

AVAILABLE 931 8,400 12.85% 4/1/2018 3/31/2025 4/1/2018 $6.00 NNN

0

AVAILABLE 943 4,120 6.30% 4/1/2018 3/31/2023 4/1/2018 $10.00 NNN

0

TOTAL LEASED 52,846 80.85%

TOTAL VACANT 12,520 19.15%

TOTAL AREA 65,366 100.00%

$209,696TOTAL IN-PLACE RENT

EXPENSE REIMBURSEMENTMETHOD

SUITE SF (BUILDING) ANNUAL RENT% OF GLA

LEASESTART

LEASEEND

PSF (BUILDING)

OPTIONS/NOTES

DATE


LEASE EXPIRATIONS

RENT-A-CENTER 933 Contract 5/1/2001 4/30/2021 5 6,210 9.50%

METRO PCS 945 Contract 5/1/2016 4/30/2021 5 1,364 2.09%

DOLLAR TREE 935 Contract 8/1/2016 8/31/2021 5 8,690 13.29%

MARKET BASKET 929 Contract 12/5/1963 10/31/2021 5 24,000 36.72%

0 TOTAL MAR-2022 EXPIRATIONS 5 40,264 61.60% 40,264 61.60%

FAMILY DOLLAR 947 Contract 4/1/1999 6/30/2022 6 12,582 19.25%

AVAILABLE 943 Speculative 4/1/2018 3/31/2023 6 4,120 6.30%


AVAILABLE 931 Speculative 4/1/2018 3/31/2025 8 8,400 12.85%


% GLACUMULATIVE SF (BUILDING)

CUMULATIVE % GLA

SUITE STATUSLEASESTART

LEASEEND

ANALYSISYEAR

BUILDING SF


FINANCIAL ASSUMPTIONS

SUITE 931: $6.00 PSF NEW / $6.00 PSF RENEWALSUITE 943: $10.00 PSF NEW / $10.00 PSF RENEWAL

NNN w/ 15% ADMIN ON ALL EXP Market Basket, Rent-A-Center, Metro PCSNNN Family Dollar6,000 SF - 10,000 SF Suite 931<6,000 SF Suite 943NONE Dollar Tree

<6,000 SF $15.00 PSF NEW / $3.00 PSF RENEWAl6,000 SF - 10,000 SF $10.00 PSF NEW / $2.00 PSF RENEWAl> 10,000 SF $5.00 PSF NEW / $1.00 PSF RENEWAl

6.0% NEW / 4.0% RENEWAL

<6,000 SF 70%6,000 SF - 10,000 SF 75%> 10,000 SF 80%

9 MONTHS

<6,000 SF 5 years6,000 SF - 10,000 SF 5 years> 10,000 SF 10 years

SUITE 931: MONTH 13 / 8,400 SF / $6.00 PSFSUITE 943 MONTH 13 / 4,120 SF / $10.00 PSF

3%

CONTRACT SERVICES: $7,149 per year (100% fixed)REPAIRS & MAINTENANCE: $49,954 per year (100% fixed)GENERAL & ADMINISTRATIVE: $8,867 per year (100% fixed)UTILITIES: $4,357 per year (100% fixed)MANAGEMENT FEES: 4.00% OF EGR (100% fixed)INSURANCE: $22,093 per year (100% fixed)REAL ESTATE TAXES: $17,500 per year (100% fixed)

$0.20 PSF PER YEAR (100% FIXED)

5.00% OF POTENTIAL GROSS REVENUE

65,366

92.79%

*Note 1: Both new market rents and renewal rents are subject to annual inflation. Renewal rates are based on the next rent bump or option period discounted back to the present value.*Note 2: Operating Expenses based on 2016 Operating Statements provided.*Note 3: Average Projected Economic Occupancy based on 10-year hold period.

LEASE UP

GENERAL INFLATION

CAPITAL RESERVES

OPERATIONAL EXPENSES

MARKET BASKET: $4.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATES

GENERAL VACANCY

TOTAL NET RENTABLE SF

AVERAGE PROJECTED ECONOMIC OCCUPANCY

TI ALLOWANCE

LEASING COMMISSIONS

RENEWAL PROBABILITY

MONTHS VACANT

LEASE TERM

METRO PCS: $10.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATES

RENT-A-CENTER: $5.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATESDOLLAR TREE: $5.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATES

FAMILY DOLLAR: $4.00 PSF NEW / SEE NOTE 1 REGARDING RENEWAL RATESMARKET LEASING ASSUMPTIONS - RENTS

REIMBURSEMENTS


LEASE ABSTRACTS

TENANT:

SQUARE FOOTAGE:

SPECIFIC USE:

DOCUMENTATION:

RENT COMMENCEMENT DATE:

LEASE EXPIRATION DATE:

TERM:

SECURITY DEPOSIT:

Period Per Month Annual PSF

August 25, 2016 - November 24, 2016 $0.00 $0.00 $0.00

*Rent Commencement per the lease is the same as the commencement date; however, Tenant is granted the equivalent of three months of free rent

November 25, 2016 - August 31, 2021 $3,620.83 $43,450.00 $5.00

Remaining Renewal Options

Term 1: September 1, 2021 - August 31, 2026 $3,982.92 $47,795.00 $5.50





RENEWAL OPTION(S):

CAM PAYMENTS:

INSURANCE PAYMENTS:

RE TAX PAYMENTS:

UTILITIES:

TENANT MAINTENANCE:

LANDLORD MAINTENANCE:

PERCENTAGE RENT:

BASE RENT:

None.

None.

Tenant shall pay for all utilities used in the premises.

Tenant shall keep the premises and any fixtures, facilities or equipment contained therein in good condition and repair, including but not limited to, the exterior and interior portions of all doors, windows, plate glass and showcases surrounding the premises; all electrical, plumbing and sewer systems inside of the premises and all portions of the store front area which do not constitute common area.

Landlord shall keep the foundations, roof, floor, floor slab, walls, other structural portions and sprinkler system serving the premises in good repair

N/A

None.

Dollar Tree

8,690

Premises shall be used as a retail variety store selling general merchandise including food and beverages.

Lease dated June 1, 2016, first amendment dated July 27, 2016 and commencement letter dated August 31, 2016.

November 25, 2016

August 31, 2021

5 years

None.

5, 5-year renewal options remaining. Tenant must provide written notice of not less than 6 months prior to the expiration of the term.


LEASE ABSTRACTS

BREAKPOINT:

EXECUTOR:

GUARANTOR:

ASSIGNEE:

CO-TENANCY/TERMINATION:

EXCLUSIVES / RESTRICTIONS:

ESTOPPEL CERTIFICATE:

ADDITIONAL INFORMATION:

Tenant shall provide an estoppel certificate within 30 days upon written request by the Landlord.

N/A

Landlord shall not lease any space in the shopping center for the operation of a single price point variety store.

N/A

Dollar Tree Stores, Inc

N/A

N/A

Tenant has the right to terminate the lease if the tenant Market Basket has ceased to operate in the center and is not replaced within a period of 6 months by a suitable tenant occupying at least 75% of the square footage currently occupied by Market Basket.


LEASE ABSTRACTS

TENANT:

SQUARE FOOTAGE:

ORIGINAL SQUARE FOOTAGE:

SPECIFIC USE:

DOCUMENTATION:



TERM:

SECURITY DEPOSIT:


April 29, 1999 - December 31, 2004 $2,500.00 $30,000.00 $3.57

Renewal Option Exercised

Term 1: January 1, 2005 - December 31, 2009 $2,625.00 $31,500.00 $3.75

Term 2: January 1, 2010 - June 30, 2012 $2,625.00 $31,500.00 $3.75

Term 2: July 1, 2012 - June 30, 2017 $3,920.00 $47,040.00 $3.74

Remaining Renewal Option

Term 1: July 1, 2017 - June 30, 2022 $3,920.00 $47,040.00 $3.74

Term 2: July 1, 2022 - June 30, 2027 $4,312.00 $51,744.00 $4.11

Term 3: July 1, 2027 - June 30, 2032 $4,743.20 $56,918.40 $4.52

Term 4: July 1, 2032 - June 30, 2037 $5,217.50 $62,610.00 $4.98

Term 5: July 1, 2037 - June 30, 2042 $5,739.25 $68,871.00 $5.47

Term 6: July 1, 2042 - June 30, 2047 $6,313.20 $75,758.40 $6.02

RENEWAL OPTION(S):

CAM PAYMENTS:

INSURANCE PAYMENTS:

RE TAX PAYMENTS:

UTILITIES:

TENANT MAINTENANCE:


PERCENTAGE RENT:

BASE RENT:

6, 5-year renewal options remaining. Tenant must provide written notice of not less than 180 days prior to the expiration of the term.

Tenant shall reimburse Landlord its pro rata share of all Insurance expenses.

Tenant shall reimburse Landlord its pro rata share of all Real Estate Tax expenses.

Tenant shall pay all charges for gas, water, fuel and electricity used in the premises.

Tenant shall maintain and repair all interior, non-structural portions of the premises except those portions which landlord is obligated to maintain and repair.

Landlord shall be responsible for maintaining and repairing all exterior portions of the premises including the roof, exterior walls, canopy, gutters, downspouts, doors, door closures and plate glass; all structural portions of the building both interior and exterior; sprinkler systems and all exterior plumbing and electrical lines; and all parking areas and driveways.

2.50%

Tenant shall reimburse Landlord its pro rata share of all CAM expenses. The increase in CAM expenses is capped at 5% per year.

April 29, 1999

June 30, 2017

5 years and 8 months + 5 years + 7 years and 6 months

None.

Family Dollar

12,582

8,400

Premises shall be used for the conduct of a mercantile business of the type and known as a "variety store", "discount store", "dollar store" or "variety discount store".

Lease and February 11, 1999, first amendment to lease dated June 29, 2004, executed proposal dated April 28, 2009, letter of intent dated November 10, 2011 and third amendment dated April 16, 2012.


LEASE ABSTRACTS

BREAKPOINT: Period Breakpoint

April 29, 1996 - December 31, 2004 $1,000,000.00

Renewal Option Exercised

Term 1: January 1, 2005 - December 31, 2009 $1,050,000.00

Term 2: January 1, 2010 - June 30, 2012 $1,050,000.00

Term 2: July 1, 2012 - June 30, 2017 $1,881,600.00


Term 1: July 1, 2017 - June 30, 2022 $1,881,600.00

Term 2: July 1, 2022 - June 30, 2027 $2,069,760.00

Term 3: July 1, 2027 - June 30, 2032 $2,276,736.00

Term 4: July 1, 2032 - June 30, 2037 $2,504,400.00

Term 5: July 1, 2037 - June 30, 2042 $2,754,840.00

Term 6: July 1, 2042 - June 30, 2047 $3,030,336.00

EXECUTOR:

GUARANTOR:

ASSIGNEE:






N/A

Landlord shall not lease any space in the shopping center to any discount store occupying 40,000 square feet operated by or under the name of Fred's, Marc's, Wal-Mart, K-Mart, Meijer's, Duckwall-Alco, Big Lots, Shopko, Pamida, Value City, Dolgencorp or Dollar General, Bonus Dollar, Deal$, Only Deals, 99 Cents Only, Dollar Tree or any entity controlled by, affiliated with or related to any of them or any other dollar store or single price point store occupying more than 2,000 square feet or to any store operated by Variety Wholesalers including Maxway, Roses, Super 10, ValuMart, Popes and Bargaintown.

Family Dollar Stores of Louisiana, Inc

N/A

N/A

Tenant has the right to terminate the lease if the tenant Market Basket ceases to conduct its business in the shopping center.


LEASE ABSTRACTS

TENANT:

SQUARE FOOTAGE:

SPECIFIC USE:

DOCUMENTATION:



TERM:

SECURITY DEPOSIT:


November 1, 2016 - October 31, 2017 $6,000.00 $72,000.00 $3.00

November 1, 2017 - October 31, 2021 TBD - Based on CPI


Term 1: November 1, 2021 - October 31, 2026 TBD - Based on CPI




RENEWAL OPTION(S):

CAM PAYMENTS:

INSURANCE PAYMENTS:

RE TAX PAYMENTS:

UTILITIES:

TENANT MAINTENANCE:


PERCENTAGE RENT:

4, 5-year renewal options remaining. Tenant must provide written notice of not less than 6 months prior to the expiration of the term.

Tenant shall reimburse Landlord its pro rata share of all Insurance expenses plus an administrative fee equal to 15% of such expenses.

Tenant shall reimburse Landlord its pro rata share of all Real Estate Tax expenses plus an administrative fee equal to 15% of such expenses.

Tenant shall pay all charges for utilities supplied to the premises.

Tenant shall at its own cost and expense make any necessary repairs, improvements and decorations and perform all maintenance on, in and to the demised premises that are necessary or appropriate to keep the leased premises including the doors and windows, clean, orderly and in good condition and repair, and in a safe and tenantable condition. Tenant's obligation shall include, without limitation the maintenance, repair and replacement of the store front including but not limited to all glass, doors and windows, tenant's signs, all mechanical plumbing and HVAC.

Landlord shall keep the roof and the exterior walls of the demised premises (excluding the store front, interior nonstructural portions of the exterior walls and any plate glass, windows, window frames, doors and door frames) in proper repair.

1.00%

Tenant shall reimburse Landlord its pro rata share of all CAM expenses and an administrative fee equal to 15% of such expenses.

Market Basket

24,000

Premises shall be used as a supermarket, grocery store or food store selling any one or more of all the types of merchandise handled by tenant from time to time in any of its other stores and for storage, processing and office uses incidental to operation of such supermarket.

Lease dated November 4, 2016.

November 1, 2016

October 31, 2021

5 years

None.

BASE RENT:


LEASE ABSTRACTS

BREAKPOINT: Period Per Month

November 1, 2016 - October 31, 2017 $7,200,000.00

November 1, 2017 - October 31, 2021 TBD


Term 1: November 1, 2021 - October 31, 2026 TBD




EXECUTOR:

GUARANTOR:

ASSIGNEE:






Tenant has been on the property since December 1963 and signed a new lease in 2016.

Tenant shall not operate any similar business within a radius of 5 miles from the shopping center

Retail Investors of TX, LTD

N/A

N/A

N/A


LEASE ABSTRACTS

TENANT:

SQUARE FOOTAGE:

SPECIFIC USE:

DOCUMENTATION:



TERM:

SECURITY DEPOSIT:


May 1, 2016 - April 30, 2017 $1,174.18 $14,090.16 $10.33

May 1, 2017 - April 30, 2018 $1,209.41 $14,512.92 $10.64

May 1, 2018 - April 30, 2019 $1,245.79 $14,949.48 $10.96

May 1, 2019 - April 30, 2020 $1,283.30 $15,399.60 $11.29

May 1, 2020 - April 30, 2021 $1,321.94 $15,863.28 $11.63

RENEWAL OPTION(S):

CAM PAYMENTS:

INSURANCE PAYMENTS:

RE TAX PAYMENTS:

UTILITIES:

TENANT MAINTENANCE:


PERCENTAGE RENT:

May 1, 2016

April 30, 2021

5 years

$1,294

Metro PCS

1,364

Premises shall be used for the operation of a cell phone store.

Lease dated March 21, 2016.

BASE RENT:

None.

Tenant shall reimburse Landlord its pro rata share of all Insurance expenses plus an administrative fee equal to 15% of such expenses.

Tenant shall reimburse Landlord its pro rata share of all Real Estate Tax expenses plus an administrative fee equal to 15% of such expenses.

Tenant shall pay all charges for utilities supplied to the premises.

Tenant shall at its own cost and expense make any necessary repairs, improvements and decorations and perform all maintenance on, in and to the demised premises that are necessary or appropriate to keep the leased premises including the doors and windows, clean, orderly and in good condition and repair, and in a safe and tenantable condition. Tenant's obligation shall include, without limitation the maintenance, repair and replacement of the store front including but not limited to all glass, doors and windows, tenant's signs, all mechanical plumbing and HVAC.

Landlord shall keep the roof and the exterior walls of the demised premises (excluding the store front, interior nonstructural portions of the exterior walls and any plate glass, windows, window frames, doors and door frames) in proper repair.

N/A

Tenant shall reimburse Landlord its pro rata share of all CAM expenses and an administrative fee equal to 15% of such expenses.


LEASE ABSTRACTS

BREAKPOINT:

EXECUTOR:

GUARANTOR:

ASSIGNEE:





Tenant shall not operate any similar business within a radius of 5 miles from the shopping center

N/A

Houston Xcell Communications, Inc

Husam Mahomoud

N/A

N/A


N/A


LEASE ABSTRACTS

TENANT:

SQUARE FOOTAGE:

SPECIFIC USE:

DOCUMENTATION:



TERM:

SECURITY DEPOSIT:


April 15, 1996 - April 30, 2001 $1,819.63 $21,835.56 $3.52

May 1, 1997 - April 30, 1997 $1,940.63 $23,287.56 $3.75

May 1, 1998 - April 30, 1999 $2,070.00 $24,840.00 $4.00

May 1, 1999 - April 30, 2000 $2,199.38 $26,392.56 $4.25

May 1, 2000 - April 30, 2001 $2,328.75 $27,945.00 $4.50

Extension Terms

Term 1: May 1, 2001 - April 30, 2002 $2,070.00 $24,840.00 $4.00

Term 1: May 1, 2002 - April 30, 2003 $2,121.75 $25,461.00 $4.10

Term 1: May 1, 2003 - April 30, 2004 $2,173.50 $26,082.00 $4.20

Term 1: May 1, 2004 - April 30, 2005 $2,225.25 $26,703.00 $4.30

Term 1: May 1, 2005 - April 30, 2006 $2,282.18 $27,386.16 $4.41

Term 2: May 1, 2006 - April 30, 2011 $2,758.28 $33,099.36 $5.33

Term 3: May 1, 2011 - April 30, 2016 $2,758.28 $33,099.36 $5.33

Term 4: May 1, 2016 - April 30, 2019 $2,758.28 $33,099.36 $5.33

Term 4: May 1, 2019 - April 30, 2021 $2,898.00 $34,776.00 $5.60

RENEWAL OPTION(S):

CAM PAYMENTS:

INSURANCE PAYMENTS:

RE TAX PAYMENTS:

UTILITIES:

TENANT MAINTENANCE:


PERCENTAGE RENT:

BASE RENT:

Tenant shall reimburse Landlord its pro rata share of all Insurance expenses.

Tenant shall reimburse Landlord its pro rata share of all Real Estate Tax expenses.

Tenant shall pay for all water, sanitary sewer, gas, electricity and other utilities used in the premises.

Tenant shall maintain the leased premises in a clean, attractive condition and in good repair and shall also keep adjacent sidewalks clean.

Landlord shall repair any damage to the roof, structural portions of the leased premises and damage to any utility lines located outside the leased premises.

N/A

April 30, 2021

5 years + 5 years + 5 years + 5 years + 5 years

None.

None.

Tenant shall reimburse Landlord its pro rata share of all CAM expenses and an administrative fee equal to 15% of such expenses. The increase in CAM expenses is capped at 4% per year.

April 15, 1996

Renter's Choice

6,210

Premises shall be used for the operation of a rent-to-own business offering.

Lease dated December 31, 1995, renewal letter dated January 23, 2001, first amendment dated March 9, 2001, second lease amendment dated January 13, 2011 and lease extension and modification agreement dated February 25, 2016.


LEASE ABSTRACTS

BREAKPOINT: N/A

EXECUTOR:

GUARANTOR:

ASSIGNEE:





Tenant shall provide an estoppel certificate upon written request by the Landlord.

N/A

N/A

Renter's Choice, Inc

N/A

N/A

N/A


EDGE Realty Capital Markets exclusively presents the

listing of East Town Shopping Center (“Property”) for your

acquisition. The owner is offering for sale the Property

through its exclusive listing with the team.

EDGE Realty Capital Markets and owner provides the

material presented herein without representation or

warranty. A substantial portion of information must be

obtained from sources other than actual knowledge and

not all sources can be absolutely confirmed. Moreover, all

information is subject to changes by the parties involved as

to price or terms before sale, to withdrawal of the Property

from the market, and to other events beyond the control of

EDGE Realty Capital Markets or owner. No representation

is made as to the value of this possible investment other

than hypothetical scenarios. It is encouraged that you or

any of your affiliates consult your business, tax and legal

advisors before making a final determination of value or

suitability of the Property for acquisition.

As a condition of EDGE Realty Capital Markets’ consent

to communicate the information contained herein–as

well as any information that may be communicated to you

subsequently either verbally or in writing by EDGE Realty

Capital Markets, owner or agents of either of these parties

regarding the Property–it is required that you agree to

treat all such information confidentially.

DISCLAIMER

PRIMARY CONTACTS:

SECONDARY CONTACTS:

JOSH JACOBS


713.900.3001

BURDETTE HUFFMAN


713.900.3024

BILL PYLE

Vice President [email protected]

713.900.3018

KEVIN HOLL AND

Senior Vice President [email protected]

713.900.3025

JONATHAN WALKER, CCIM

Maestri-Murrell, Inc [email protected]

225.810.3294

EAST TOWN951 3RD AVENUE / LAKE CHARLES, LA 70601

As of April 11, 2017

SHOPPING CENTER

CONFIDENTIALOFFERING MEMORANDUM

5444 Westheimer Rd, Suite 1650Houston, Texas 77056

T 713.900.3000edge-cm.com

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EAST TOWN - LoopNet