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Northcutt Dental1598 Montgomery Hwy, Hoover, AL 35216

OFFERING MEMORANDUM

This Marketing Brochure contains select information pertaining to the business and affairs of Northcutt Dental located at 1598 Montgomery Hwy, Hoover, AL 35216 here to referred to as “Property”. Information in this Marketing Brochure is confidential and provided solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose and may not be made available to any other person without the written consent of the Seller or Matthews Retail Group, Inc.

This Marketing Brochure has been prepared by Matthews Retail Group, Inc. (also known as Matthews Retail Advisors) based in part upon information supplied by the Seller and in part upon financial information obtained from sources deemed reliable by Matthews Retail Group, Inc. However, Matthews Retail Group, Inc. has not and will not verify any of this information, nor has Matthews Retail Group, Inc. conducted any investigation regarding these matters. Matthews Retail Group, Inc. makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

It is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for the Buyer’s thorough due diligence investigation of this investment opportunity. Matthews Retail Group, Inc. expressly denies any obligation to conduct a due diligence examination of this Property for the Buyer. Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this Property. The value of a net leased property to the Buyer depends on factors that should be evaluated by the Buyer and their tax, financial and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any property to determine to their satisfaction the suitability of the Property for their investment goals.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the Property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future performance.

Similarly, the lease rate for some properties, including newly-constructed facilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be interrupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the Property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the Property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the Property, and Buyer’s legal ability to make alternate use of the Property.

By accepting this Marketing Brochure you agree to release the Seller and Matthews Retail Group, Inc. of any and all liability and hold the parties harmless from any kind of claim, cost, or expense arising out of your investigation and/or purchase of this Property.

NON-ENDORSEMENT NOTICEMatthews Retail Group, Inc. is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this Marketing Brochure. 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 Matthews Retail Group, Inc., its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Matthews Retail Group, Inc., and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

CONFIDENTIALITY & DISCLAIMER STATEMENT

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PRICING AND FINANCIAL ANALYSISInvestment Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Financial Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3Company Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

PROPERTY DESCRIPTIONProperty Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Bird’s Eye . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Tenant Map . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Regional Map. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

DEMOGRAPHICSDemographics Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11City Overview . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

TABLE OF CONTENTS

PRESENTED BY

Kyle MatthewsBroker of Record

License No. 00109289

Josh BishopVP & Director

License No. 01940394O 310.919.5823M 315.730.6228josh.bishop@matthews.com

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™PRICING AND FINANCIAL ANALYSIS

INVESTMENT HIGHLIGHTS• 15-Year NN+ lease, with very minimal landlord responsibilities

• Strong 6.25% increases every 5 years in the base term of the lease

• Rent increases are a great hedge against inflation and help preserve/build equity

• 1 - 5 Year Options with a 5% rent increase

• The building was completely remodeled for the tenant in 2016, including brand new parking lot, HVAC units, and interior walls

• Seller will warrant the roof for a period of 10 years, commencing at close of escrow

• Northcutt Dental currently has six locations throughout central and southern Alabama with plans to continue expansion over the next few years

• Strong traffic counts, Montgomery Highway boasts 38,000 VPD

• 100 SF frontage along Montgomery Highway with excellent visibility from the road

• 3-Mile demographics in excess of 67,400 residents

• 5-Mile demographics in excess of 134,800 residents

• Extremely strong average household incomes, 3-mile in excess of $85,000 annually and 5-mile in excess of $93,000 annually

• Hoover is a premier city in central Alabama and is the largest suburb of Birmingham with over 84,800 residents, and is home to the Riverchase Galleria, one of the largest shopping centers in the Southeast

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Investment Overview

EXECUTIVE SUMMARY1598 Montgomery Hwy Hoover, AL 35216List Price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,375,000Gross Leasable Area . . . . . . . . . . . . . . . . . . . . . . . . ±5,500 SFCAP Rate - Current/Future . . . . . . . . . . . . . . . 6.00%/6.40%/6.80%Year Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1970/2016Lot Size . . . . . . . . . . . . . . . . . . . . . . . . ± 0.52 Acres (22,651 SF)

ANNUALIZED OPERATING DATAMonthly Rent Annual Rent Increases CAP Rate

Current - 4/30/2021 $6,875.00 $82,500.00 Flat 6.00%

5/1/2021 - 4/30/2026 $7,333.33 $87,999.96 6.25% 6.40%

5/1/2026 - 4/30/2031 $7,791.67 $93,500.04 6.25% 6.80%

Option 1 - 4/30/2036 $8,181.25 $98,175.04 5.00% 7.14%

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Financial Overview

TENANT SUMMARYTenant Trade Name Northcutt Dental

Type of Ownership Fee Simple

Lease Type NN+

Roof and Structure Landlord Responsible

HVAC, CAM, Taxes & Insurance Tenant responsible

Roof Warranty 10 Years

Original Lease Term 15 Years

Lease Commencement Date 8/21/2015

Rent Commencement Date 4/16/2016

Lease Expiration Date 4/30/2031

Term Remaining on Lease 14.75 Years

Increases 6.25% Every 5 Years & 5% in Option

Options One (1), Five (5) Year Option

Property Name Northcutt Dental

Ownership Private

No. of Locations ±6

Headquartered Fairhope, AL

Web Site www.northcuttdental.com

Year Founded 1996

Northcutt Dental is a family owned and operated business that has been serving the Gulf Coast for over 20 years. Equipped with a compassionate team, Northcutt Dental strives to deliver the most comfortable, pain-free and effective dental treatment available. They offer a comprehensive range of general, restorative and cosmetic dentistry for the entire family for those looking for quality and exceptional dental care.

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Company Overview

™PROPERTY DESCRIPTION

THE OFFERINGProperty Name . . . . . . . . . . . . . . . . . . . . . . . . Northcutt DentalProperty Address . . . . . . . . . . . . . . . . . . 1598 Montgomery Hwy Hoover, AL 35216Assessor’s Parcel Number . . . . . . . . . . . . 39-00-12-2-003-082.000Zoning. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . C

SITE DESCRIPTIONNumber of Stories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . OneYear Built . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1970/2016Gross Leasable Area (GLA) . . . . . . . . . . . . . . . . . . . . . ±5,500 SFLot Size . . . . . . . . . . . . . . . . . . . . . . . ± 0.52 Acres (22,651 SF)Type of Ownership. . . . . . . . . . . . . . . . . . . . . . . . . Fee SimpleParking . . . . . . . . . . . . . . . . . . . . . . . . . . ± 18 Surface SpacesParking Ratio . . . . . . . . . . . . . . . . . . . . . . . . . . 3.27 : 1,000 SFLandscaping . . . . . . . . . . . . . . . . . . . . . . . . . . . . ProfessionalTopography. . . . . . . . . . . . . . . . . . . . . . . . . . . Generally Level

CONSTRUCTIONFoundation . . . . . . . . . . . . . . . . . . . . . . . . . . . .Concrete SlabFraming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . MasonryParking Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . .AsphaltRoof . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Pitched

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Property Overview

PROPERTY DESCRIPTION

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Bird’s Eye

Montgomery Hwy ± 37,000 ADT

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Tenant Map

PROPERTY DESCRIPTION

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Regional Map

™DEMOGRAPHICS

Population 1-Mile 3-Mile 5-Mile

2021 Projection 8,440 69,450 138,978

2016 Estimate 8,354 67,476 134,877

2010 Census 8,314 65,082 129,463

2000 Census 8,249 56,266 111,139

Growth 2016-2021 1.03% 2.93% 3.04%

Growth 2010-2016 0.48% 3.68% 4.18%

Growth 2000-2010 0.78% 15.67% 16.49%

Households

2021 Projection 3,641 29,207 57,554

2016 Estimate 3,605 28,388 55,819

2010 Census 3,594 27,452 53,564

2000 Census 3,696 24,138 46,222

Growth 2016-2021 1.00% 2.88% 3.11%

Growth 2010-2016 0.31% 3.41% 4.21%

Growth 2000-2010 -2.77% 13.73% 15.88%

Income

$0 - $15,000 8.17% 7.32% 7.65%

$15,000 - $24,999 9.33% 8.40% 7.40%

$25,000 - $34,999 12.33% 10.35% 9.34%

$35,000 - $49,999 18.14% 15.01% 13.71%

$50,000 - $74,999 18.61% 17.86% 17.07%

$75,000 - $99,999 11.61% 12.42% 12.25%

$100,000 - $124,999 8.25% 9.73% 9.88%

$125,000 - $149,999 3.40% 5.37% 6.01%

$150,000 - $199,999 4.33% 6.42% 7.71%

$200,000 - $249,999 2.26% 2.97% 3.52%

$250,000 - $499,999 2.54% 3.20% 4.13%

$500,000+ 1.02% 0.95% 1.33%

2016 Est. Average Household Income $75,727 $85,285 $93,235

2016 Est. Median Household Income $52,718 $62,491 $67,421

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Demographics Report

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City Overview

BIRMINGHAM, ALABAMA

Hoover is a city in north central Alabama and is the largest suburb of Birmingham. As the most populous city in the state, Birmingham is the county seat of Jefferson County.

Nestled at the foothills of the Appalachian Mountains at the cross-section of two major railroads, Birmingham was once the primary industrial center of the southern United States. At the height of the nation’s manufacturing age, the city grew so fast in population that it was called the “Magic City.”

Today, Birmingham has transformed itself into a medical research, banking and service-based economy, making it one of the nation’s most livable cities with a vibrant downtown, a burgeoning loft community, a world-class culinary scene and more green space per capita than any other city in the nation. The city is centrally located in the southeast and easily accessible to major hubs in the region in addition to being consistently rated as one of America’s best places to work and earn a living.

TOP EMPLOYERS - BIRMINGHAM, AL

1. University of Alabama at Birmingham

2. Regions Financial Corporation

3. AT&T

4. St. Vincent’s Health System

5. Honda Manufacturing of Alabama, LLC

6. Baptist Health System, Inc.

7. Alabama Power Company

8. Children’s Health System/Children’s of Alabama

9. Mercedes-Benz U.S. International, Inc.

10. Blue Cross-Blue Shield of Alabama

841 Apollo Street, Suite 150 | El Segundo, CA 90245 | www.matthews.com™

Northcutt Dental1598 Montgomery Hwy, Hoover, AL 35216

OFFERING MEMORANDUM

Kyle MatthewsBroker of Record

License No. 00109289

Josh BishopVP & Director

License No. 01940394O 310.919.5823M 315.730.6228josh.bishop@matthews.com