HUNTERS CROSSINGOFFERING MEMORANDUM

1115 HUNTERS CROSSINGAlcoa, Tennessee 37701 (Knoxville MSA)

H U N T E R S C R O S S I N G 2

H U N T E R S C R O S S I N G

DISCLAIMERS AFFILIATED BUSINESS DISCLOSURECBRE, Inc. operates within a global family of companies with many subsidiaries and related entities (each an “Af-filiate”) engaging in a broad range of commercial real es-tate businesses including, but not limited to, brokerage services, property and facilities management, valuation, investment fund management and development. At-times different Affiliates, including CBRE Global Inves-tors, Inc. or Trammell Crow Company, may have or rep-resent clients who have competing interests in the same transaction. For example, Affiliates or their clients may have or express an interest in theproperty described in this Memorandum (the “Property”), and may be the suc-cessful bidder for the Property. Your receipt of this Memorandum constitutes your acknowledgement of that possibility and your agreement that neither CBRE, Inc. nor any Affiliate has an obligation to disclose to you such Affiliates’ interest or involvement in the sale or pur-chase of the Property. In all instances, however, CBRE, Inc. and its Affiliates will act in the best interest of their respective client(s), at arms’ length, not in concert, or in a manner detrimental to any third party. CBRE, Inc. and its Affiliates will conduct their respective businesses in a manner consistent with the law and all fiduciary duties owed to their respective client(s).

CONFIDENTIALITY AGREEMENTYour receipt of this Memorandum constitutes your ac-knowledgement that (i) it is a confidential Memorandum solely for your limited use and benefit in determining whether you desire to express further interest in the ac-quisition of the Property, (ii) you willhold it in the strict-est confidence, (iii) you will not disclose it or its contents to any third party without the prior written authorization of the owner of the Property (“Owner”) or CBRE, Inc., and (iv) you will not use any part of this Memorandum in any manner detrimental to the Owner or CBRE, Inc.If after reviewing this Memorandum, you have no further inter-est in purchasing the Property, kindly return it to CBRE, Inc.

DISCLAIMERThis Memorandum contains select information pertain-ing to the Property and the Owner, and does not purport to be all-inclusive or contain all or part of the informa-tion which prospective investors may require to evalu-ate a purchase of the Property. The information con-tained in this Memorandum has been obtained from sourcesbelieved to be reliable, but has not been verified for accuracy, completeness, or fitness for any particular purpose. All information is presented “as is” without rep-resentation or warranty of any kind. Such information includes estimates based on forward-looking assump-tions relating to the general economy, market condi-tions, competition and other factors which are subject to uncertainty and may not represent the current or future performance of the Property. All references to acreages, square footages, and other measurements are approxi-mations. This Memorandum describes certain docu-ments, including leases and other materials, in summary form. These summaries may not be complete nor accu-rate descriptions of the full agreements referenced. Ad-ditional information and an opportunity to inspect the Property may be made available to qualified prospective purchasers. You are advised to independently verify the accuracy and completeness of all summaries and infor-mation contained herein, to consult with independent legal and financial advisors, and carefully investigate the economics of this transaction and Property’s suitability for your needs. ANY RELIANCE ON THE CONTENT OF THIS MEMORANDUM IS SOLELY AT YOUR OWN RISK.The Owner expressly reservesthe right, at its sole discre-tion, to reject any or all expressions of interest or offers to purchase the Property, and/or to terminate discus-sions at any time with or without notice to you. All of-fers, counteroffers, and negotiations shall be non-bind-ingand neither CBRE, Inc. nor the Owner shall have any legal commitment or obligation except as set forth in a fully executed, definitive purchase and sale agreement delivered by the Owner.

CONTACT US

PAUL GAITHERSenior Vice President+1 615 248 1161paul.gaither@cbre.com

MIA KELLERSenior Associate+1 615 248 1171mia.keller@cbre.com

© 2018 CBRE, INC. ALL RIGHTS RESERVED

1 EXECUTIVE SUMMARY

2 PROPERTY OVERVIEW

3 AREA SNAPSHOT

4 MARKET OVERVIEW

5 F INANCIALS

TABLE OF CONTENTS

HUNTERS CROSSING1115 HUNTERS CROSSING, ALCOA, TENNESSEE 37701

HUNTERS CROSSING

H U N T E R S C R O S S I N G 4

S E C T I O N 1

EXECUTIVE SUMMARY

CBRE is pleased to offer for sale Hunter’s Crossing, a four-tenant retail center in the heart of a vibrant community which is part of the Knoxville, Tennessee metro area. Hunter’s Crossing consist of approximately 18,037 square feet, is 100% leased, and ensconced within a critical mass of national retailers such as Wal-Mart, Lowe’s Home Improvement, Dick’s Sporting Goods, Ross Dress For Less, and many more. In addition, Hunter’s Crossing benefits from its proximity to a newly developed 269-unit upscale apartment community within walking distance. The center has experienced tremendous stability with each of the current tenants in place for over ten years. As a result, the rents are below market and less than what would be required to kick off new construction, creating built-in barriers to entry.

INVESTMENT HIGHLIGHTS

+ Regional Retail Hub

+ Below Market Rents

+ Long-Term Occupancy

+ University Town

+ Economic Diversity

+ All Leases Recently Renewed

PROPERTY OVERVIEW

Address1115 Hunters Crossing,

Alcoa, TN 37701

TenantsAaron’s Rents, Mattress Direct, Armed Services,

Lendmark Financial

Price $2,600,000

NOI $202,610

Cap Rate 7.79%

GLA (SF) ± 18,037

Price PSF $144

Occupancy 100%

3 MILE 5 MILE 7 MILE

2017 Population 39,343 70,913 96,034

2017 Households 15,876 28,249 38,306

2017 Average HH Income $61,207 $65,319 $65,918

2017 Average Home Value $204,435 $218,485 $226,385

DEMOGRAPHIC SNAPSHOT

ADT

Highway 129 36,252

Middlesettlements Road 14,784

TRAFFIC COUNTS

H U N T E R S C R O S S I N G 5

S E C T I O N 1

INVESTMENT HIGHLIGHTS REGIONAL RETAIL HUB

Hunter’s Crossing is located in the heart of the retail trade area surrounded by a multitude of national retailers who draw customers from a wide region. These include: Wal-Mart, Aldi, AFC Urgent Care, Verizon Wireless, Chick-fil-A, Lowe’s, Hooters, Dick’s Sporting Goods, Old Navy, Pet Smart, Michaels, Ross, Rue 21, Shoe Carnival, AT&T, Cheddars, Moe’s, Aspen Dental, Massage Envy, Panera Bread, Salsarita’s, Mattress Warehouse, Five Guys and many more.

BELOW MARKET RENTS

With an average rent of approximately $12 per square foot, Hunter’s Crossing is well below many of its peers which maintain rents in the $20 per square foot range, creating a competitive advantage, greater tenant retention, and upside potential in the event of a vacancy.

LONG-TERM OCCUPANCY

Each tenant has been in place at Hunter’s Crossing for over ten years, and each has recently renewed its lease. Given the currently favorable rent structures and built-in increases Hunter’s Crossing provides tremendous cash flow stability and long-term leasing upside.

UNIVERSITY TOWN

Hunter’s Crossing is located approximately 11 miles from the University of Tennessee, which boasts over 27,000 graduate and undergraduate students and acts as a cultural and economic touchstone for the region. The University is an incubator for highly trained workers, new business initiatives, research and development, and large-scale capital projects which support the school’s mission. As a result, the University of Tennessee’s presence adds a recession proof segment to the region’s economic base.

ECONOMIC DIVERSITY

The greater Knoxville metro area maintains economic diversity in leading industry sectors including technology, education, healthcare, and tourism. Its “Innovation Valley” economic development partnership has successfully brought world class science, technology and business resources to this region. More than a thousand wholesale distribution centers call the region home as well as several customer service call centers for various corporations.

3 MILE 5 MILE 7 MILE

2017 Population 39,343 70,913 96,034

2017 Households 15,876 28,249 38,306

2017 Average HH Income $61,207 $65,319 $65,918

2017 Average Home Value $204,435 $218,485 $226,385

ADT

Highway 129 36,252

Middlesettlements Road 14,784

Address1115 Hunters Crossing,

Alcoa, TN 37701

TenantsAaron’s Rents, Mattress Direct, Armed Services,

Lendmark Financial

NOI $202,610

GLA (SF) ± 18,037

Site Size (AC) ± 2.10 AC

Year Built / Renovated

2004

Occupancy 100%

Zoning E-1 Planned Commercial Unit Development

Parking 68 Standard / 4 Handicapped

H U N T E R S C R O S S I N G 6

S E C T I O N 2

PROPERTY OVERVIEW

DEMOGRAPHIC SNAPSHOT

TRAFFIC COUNTS

H U N T E R S C R O S S I N G 7

S E C T I O N 2

SITE PLAN

1119

Aarons

Renta

l

8,000 SF

1115

Mattres

s Dire

ct

5,000 SF

1117

Armed

Servi

ces

3,727 SF

1121

Landmark Financial

1,310 SFHUNTERS

CROSS

ING

NAP

H U N T E R S C R O S S I N G 8

S E C T I O N 2

PROPERTY PHOTOS

H U N T E R S C R O S S I N G 9

S E C T I O N 2

PROPERTY PHOTOS

H U N T E R S C R O S S I N G 10

S E C T I O N 3

LOCATION OVERVIEW

HUNTERS CROSSING

H U N T E R S C R O S S I N G 11

S E C T I O N 3

MARKET OVERVIEW

NWALMART

SUPERCENTER

HUNTERS CROSSING

HAMILTON CROSSING

NEW MIDLAND PLAZABLOUT MEMORIAL

HOSPITAL

DENSO MANUFACTURING

FOOTHILLS MALLMARYVILLE HIGH

SCHOOL

H U N T E R S C R O S S I N G 12

S E C T I O N 3

AERIAL FACING NORTH

HAMILTON CROSSING

HUNTERS CROSSING

WALMART

ALCOA HIGH SCHOOL

US FOODS

HILTON KNOXVILLE AIRPORT ANDERSON TRUSS

COMPANY

HWY 129 (36,252 ADT)HUNTERS CROSSING

TVA EMPLOYEES CREDIT UNION

H U N T E R S C R O S S I N G 13

S E C T I O N 3

AERIAL FACING SOUTH

DENSO MANUFACTURING

HWY

129

(36,

252

ADT)

HUNTERS CROSSING

MIDDLESETTLEMENTS RD (14,784 ADT)

FOOTHILLS MALL

GREEN MEADOW WINE & SPIRITS

FOOTHILLS STORAGE CENTER

HUNTERS CROSSING

H U N T E R S C R O S S I N G 14

S E C T I O N 3

# PROPERTY ADDRESS CENTER TYPE GLA (SF) OCCUPANCYESTIMATED SHOP

RENTAL RATESTOTAL AVAILABLE

SPACE (SF)YEAR BUILT

S Hunters Crossing 1115 Hunters Crossing Dr Community Center 18,037 100% $12 - 2004

1 Hamilton Crossings111-221 Hamilton Crossing Dr

Community Center 238,196 100% $27 9,351 1976

2 Hunter Crossing 1030 Hunters Crossing Dr Community Center 420,040 100% $16 24,000 1996/2001

3 Horseshoe Center 727 Louisville Rd Strip Center 20,409 100% $24 - 2005

4 Crabtree Commons 451-457 Marilyn Dr Strip Center 19,325 100% $24 - 2006

5 New Midland Plaza 126-256 S Calderwood St Community Center 364,682 95% $13 20,442 1980

6 Kroger Shopping Center 230-250 S Hall Rd Neighborhood Center 73,370 100% $15 - 1980/2003

7Walgreens Shopping Center

225 Hall Rd Strip Center 27,063 78% $13 6,063 1995

8 Midland Shops 245-261 S Calderwood St Neighborhood Center 49,012 97% $11 1,391 1963/2007

9 Ellie Brook Place 325-333 Gill St Strip Center 15,399 100% $11 - 1952/1992

10 Foothills Marketplace 355 Gill St Strip Center 13,000 100% $15 - 2006

AVERAGE 124,050 97% $17 6,125 1990

LEASE COMPARABLES

H U N T E R S C R O S S I N G 15

S E C T I O N 3

LEASE COMPARABLES MAP

2

5

1

HUNTERS CROSSING

HUNTER CROSSING

HAMILTON CROSSINGS

HORSESHOE CENTER3

NEW MIDLAND PLAZA

8

KROGER SHOPPING CENTER6

MIDLAND SHOPS ELLIE BROOK PLACE9

FOOTHILLS MARKETPLACE

10

WALGREENS SHOPPING CENTER

7

4

CRABTREE COMMONS

H U N T E R S C R O S S I N G 16

S E C T I O N 3

3 Mile Radius 5 Mile Radius 7 Mile Radius

2017 POPULATION 39,343 70,913 96,034

2022 POPULATION 41,141 74,176 100,502

2010 POPULATION 36,848 66,549 90,136

2000 POPULATION 32,839 58,321 78,887

PERCENT POP. CHANGE: 2010 TO 2017 0.91% 0.88% 0.88%

PERCENT POP. CHANGE: 2017 TO 2022 0.90% 0.90% 0.91%

2017 MEDIAN AGE 39.60 41.80 42.40

2017 HOUSEHOLDS 15,876 28,249 38,306

2022 HOUSEHOLDS 16,553 29,459 39,964

2010 HOUSEHOLDS 14,998 26,716 36,225

2000 HOUSEHOLDS 13,461 23,611 32,014

PERCENT HH CHANGE: 2010 TO 2017 0.79% 0.77% 0.77%

PERCENT HH CHANGE: 2017 TO 2022 0.84% 0.84% 0.85%

AVERAGE HOUSEHOLD SIZE 2.39 2.44 2.46

2017 AVERAGE HOUSEHOLD INCOME $61,207 $65,319 $65,918

2022 AVERAGE HOUSEHOLD INCOME $70,220 $74,859 $75,631

2017 PER CAPITA INCOME $25,434 $26,550 $26,793

2017 MEDIAN HOME VALUE $165,111 $177,886 $182,126

2017 AVERAGE HOME VALUE $204,435 $218,485 $226,385

DEMOGRAPHICS

H U N T E R S C R O S S I N G 17

S E C T I O N 4

KNOXVILLE MARKETAlcoa is a part of the Knoxville Metropolian Area of Tennesse, located in Blount County, in the eastern portion of Tennessee lying in the shadows of the Great Smokey Mountains and Cumberland Mountains. The Knoxville Metropolitan Statistical Area (MSA) has a population of 874,799 and covers 2,518 square miles through Anderson, Blount, Loudon, Knox, Sevier and Union counties. The third largest metropolitan area in Tennessee, Knoxville is perhaps one of the most scenic cities in the country and provides endless opportunities for recreation and lifestyle offering hundreds of acres of quality parks and greenways just minutes from downtown.

Combine the area’s picturesque beauty with the low cost of living and it’s easy to see how people quickly fall in love with this region. Forbes recently voted Knoxville the #2 most affordable city in the U.S. taking into account the fact that the state of Tennessee does not collect income tax and Knoxville’s cost of living index is 11% lower than the U.S. average. In addition, housing prices are among the lowest in the state and are a full 18% below the national average.

The area is the hub for three major interstate systems including Interstate 40, Interstate 75 and Interstate 81, and is within one day’s drive of half of the nation’s population. Additionally, Interstate 640 circles the city to the north and Interstate 140 connects the airport to surrounding cities such as Alcoa and Oak Ridge. The McGhee Tyson Airport, a regional passenger and freight airport, handles over 100 commercial flights daily for the region. The airport is located approximately 12 miles from downtown Knoxville and offers service through 12 commercial airlines.

Knoxville is rich with cultural attractions: a symphony orchestra, an opera company, a city ballet, a professional theater company and multiple museums boasting national exhibits, as well as excellent parks and a thriving downtown. The main campus of the University of Tennessee adds to the allure of this area, with nationally ranked sporting events, and the energy of 27,845 students to the community. The University of Tennessee is a 580– acre campus and offers over 300 degree programs including agriculture, business administration, communications, education, engineering, law, veterinary medicine, social work and liberal arts.

MAJOR EMPLOYERS IN THE KNOXVILLE AREA

+ U.S. Department of Energy - Oak Ridge National Laboratory

+ University of Tennessee

+ Knox County Public School System

+ Covenant Health

+ Tennova Healthcare

+ University of Tennessee Medical Center

+ City of Knoxville

+ County of Knox

+ Clayton Homes

+ Aluminum Company of America (ALCOA)

+ Dollywood

+ Denso Manufacturing Tennessee

+ Walmart Stores

+ Food City

H U N T E R S C R O S S I N G 18

S E C T I O N 4

OAK RIDGE NATIONAL LABORATORY

Oak Ridge National Laboratory is a multi-program science and technology lab managed for the United States Department of Energy. ORNL employs about 13,000 full-time staff members including 2,600 scientists and engineers.

TENNESSEE VALLEY AUTHORITY

Tennessee Valley Authority is a federally owned corporation in the US employing over 13,000 people. Focusing on electric power distribution and economic development organization.

THE UNIVERSITY OF TENNESSEE KNOXVILLE

The University of Tennessee Knoxville is a public university founded in 1794 that employs over 8,000 people. Home to over 27,845 students, UT is ranked 46th among public institutions.

THE UNIVERSITY OF TENNESSEE MEDICAL CENTER

The University of Tennessee Medical Center is an academic medical center overseen by The University of Tennessee Graduate School of Medicine. UTMC currently employs over 3,225 people and has 581 beds.

CLAYTON HOMES

Clayton Homes, founded in 1966, is a mobile home manufacturer that is one of the largest home builders in the country. Clayton employs over 2,500 in Knoxville alone.

COVENANT HEALTH

Headquartered in Knoxville, Covenant Health is the region’s top performing healthcare network with an acute-care hospitals and 1,500 physicians throughout the east Tennessee area.

PILOT

Pilot is a petroleum corporation that houses Pilot Food Mart and FJ Management making it the largest truck stop chain in the US. Pilot employs over 20,000 people nationwide and more than 1,500 in Knoxville.

SCRIPPS NETWORK

Scripps Network is an American multimedia production & cable broadcasting company with networks that include HGTV, DIY, GAC, Food Network and much more. Headquartered in Knoxville, TN, they employ over 1,000 people.

RUBY TUESDAY INC.

Ruby Tuesday Inc., headquartered in Maryville, TN, is American multinational food service retailer that owns Ruby Tuesday restaurants. The headquarters in Knoxville employs over 1,000 people.

ECONOMIC DRIVERS

H U N T E R S C R O S S I N G 19

S E C T I O N 5

IN-PLACE PRO FORMA (CALENDAR YEAR ENDING 12/31/2018)

In-Place NOI $ PSF

Size of Improvements 18,037

REVENUESBase Rent $216,624 $12.01Recoveries 76,645 4.25

TOTAL GROSS INCOME 293,269 16.26Vacancy Loss (3%) 8,798 0.49

EFFECTIVE GROSS INCOME 284,471 15.77

EXPENSESSweeping (1,200) (0.07)Landscaping (2,400) (0.13)Fire Alarm (396) (0.02)Utilities (3,000) (0.17)Repairs & Maint. (3,600) (0.20)Office Cleaning [1] (8,400) (0.47)Office Utilities [1] (9,107) (0.50)Real Estate Taxes (40,331) (2.24)Insurance (3,089) (0.17)Management Fee (3%) (8,534) (0.47)

TOTAL EXPENSES (80,057) (4.44)NET OPERATING INCOME 204,414 11.33

Capital Reserves (1,804) (0.10)NOI After Reserves $202,610 $11.23

Notes:[1] Office Cleaning and Utilities attributable to Armed Services only.

IN-PLACE PRO FORMACalendar Year Ending 12/31/18

H U N T E R S C R O S S I N G 20

S E C T I O N 5

RENT ROLL (CALENDAR YEAR ENDING 12/31/2018)RENT ROLL - Calendar Year Ending 12/31/18

Minimum Rent Options Recoveries Total

Tenant Suite GLA Begin End Annual Monthly PSF Annual Monthly PSF Revenue

Mattress Direct 1115 5,000 10/1/2004 2/1/2022 $64,800 $5,400 $12.96 Feb-20 $13.21 $17,300 $1,442 $3.46 $82,100

Armed Services 1117 3,727 3/23/2007 12/31/2021 $50,864 $4,239 $13.65 $30,412 $2,534 $8.16 $81,276

Aaron's Rents 1119 8,000 10/1/2004 6/30/2022 $80,000 $6,667 $10.00 Dec-19 $10.25 1-5yr @ $10.50 $24,400 $2,033 $3.05 $104,400

Lendmark Financial 1121 1,310 3/1/2007 2/28/2021 $20,960 $1,747 $16.00 $4,533 $378 $3.46 $25,493

Owned 18,037 100.0% Totals $216,624 $18,052 $12.01 $76,645 $293,269Occupied 18,037 100.0%

Vacant 0 0.0%

Rent

Increases

Lease Term

Capital Markets | Investment Properties

CONTACT US

PAUL GAITHERSenior Vice President+1 615 248 1161paul.gaither@cbre.com

MIA KELLERSenior Associate+1 615 248 1171mia.keller@cbre.com