™o f f e r i n g m e m o r a n d u m

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EXECUTIVE SUMMARY

FINANCIAL OVERVIEW

AREA OVERVIEW

TENANT OVERVIEW

Kyle MatthewsBROKER OF RECORDLIC # 263667 (TN)

Steele McdonaldAssociateSTEELE.MCDONALD@MATTHEWS.COMDIR 214.692.2265MOB 615.417.3631LIC # 694333 (TX)

BROKER OF RECORD

CONTENTS

LISTED BY

Braden CrockettAssociate vp & DirectorBRADEN.CROCKETT@MATTHEWS.COMDIR 214.692.2040MOB 714.345.6206LIC # 01946071 (CA)

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E X E C U T I V EO V E R V I E W

I N V E S T M E N T H I G H L I G H T S• New Construction site completed in 2017

• ±9 years remaining on base term – Four, 5-year options to extend

• Attractive 10% rental increases every 5 years – strong hedge against inflation

• NN Lease – minimal landlord responsibilities

• Guaranteed by Starbucks Corporation – (NYSE SBUX) with 82.51B Market CAP

Location Highlights

• Located at The Pinnacle, the premier shopping, dining and entertainment destination in the Tri-Cities

• The 1,000,000 SF center is anchored by Belk, Bass Pro Shops, Dick’s Sporting Goods and Marquee Cinemas

• Strategically positioned at the intersection of I-81 & Highway 11, directly between Bristol and Kingsport

• The Pinnacle serves a market area of 1,000,000 people in Northeast Tennessee and Southwest Virginia

• Overall, The Pinnacle is home to over 75 retail and restaurant tenants, with more announcements coming soon

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F I N A N C I A LO V E R V I E W

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ANNUALIZED OPERATING DATA

Monthly Rent Annual Rent Rent/SF Cap RateCurrent - 5/24/2022 $6,750.00 $81,000.00 $40.50 5.00%

5/25/2022 - 5/24/2027 $7,425.00 $89,100.00 $44.55 5.50%

5/25/2027 - 5/24/2032 $8,175.00 $98,100.00 $49.05 6.06%

5/25/2032 - 5/24/2037 $8,983.00 $107,796.00 $53.90 6.65%

5/25/2037 - 5/24/2042 $9,882.00 $118,584.00 $59.29 7.32%

5/25/2042 - 5/24/2047 $10,871.00 $130,452.00 $65.23 8.05%

EXECUTIVE SUMMARY

Property Name Starbucks

Property Street 215 Stevens Trail

City, State, Zip Bristol, TN 37620

GLA ±2,000 SF

Lot Size ±0.64 AC

Year Built 2017

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TENANT SUMMARY

Tenant Trade Name Starbucks

Type of Ownership Fee Simple

Lease Guarantor Corporate

Lease Type NN+

Roof & Structure Owner Responsibility (Roof Warranty)

Original Lease Term 10 years

Rent Commencement Date 5/25/2017

Lease Expiration Date 5/25/2027

Term Remaining ±9 years

Increases 10% Every 5 Years

Options Four, 5-Year

FINANCIAL HIGHLIGHTS

LIST PRICE

$1,620,000

CAP RATE

5.00%

TERM REMAINING

±9 YEARS

T e n a n to v e r v i e w

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Starbucks Corporation operates as a roaster, marketer,

and retailer of specialty coffee worldwide. The company

operates in four segments: Americas; Europe, Middle

East, and Africa; China/Asia Pacific; and Channel

Development. Its stores offer coffee and tea beverages,

packaged roasted whole bean and ground coffees,

single-serve and ready-to-drink coffee and tea products,

juices, and bottled water. The company’s stores also

provide fresh food and snack offerings; and various food

products, such as pastries, and breakfast sandwiches and

lunch items, as well as serve ware, beverage making

equipment, and accessories.

In addition, it licenses its trademarks through licensed

stores, and grocery and national food-service accounts.

The company offers its products under the Starbucks,

Teavana, Tazo, Seattle’s Best Coffee, Evolution Fresh, La

Boulange, Ethos, Starbucks VIA, Seattle’s Best Coffee,

Frappuccino, Starbucks Doubleshot, Starbucks

Refreshers, and Starbucks Discoveries Iced Café Favorites

brand names. As of March 27, 2016, it operated 23,921

cafes. Starbucks Corporation was founded in 1985 and is

based in Seattle, Washington.

STARBUCKS C O M P A N Y T R A D E N A M ES T A R B U C K S C O R P O R A T I O N

H E A D Q U A R T E R E DS E A T T L E , W A

N O . O F E M P L O Y E E S± 1 5 7 , 0 0 0

W E B S I T EW W W . S T A R B U C K S . C O M

# O F L O C A T I O N S± 2 3 , 9 2 1

Y E A R F O U N D E D1 9 8 5

R E V E N U E$ 1 9 B

Oceanside Blvd ± 31,792

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PARCEL MAP

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the offering

Property Name Starbucks

Property Address215 Stevens TrailBristol, TN 37620

Site DescriptionNumber of Stories One

Year Built 2017

GLA ±2,000 SF

Lot Size ±0.64 Acres (2,000 SF)

Type of Ownership Fee Simple

s u r r o u n d i n g t e n a n t s 9

Click to watch area overview video of Pinnacle Shopping Area(Video Provided by Seller)

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PROPOSEDHOTEL SITE

The OverlookAt The

Pinnacle

PROPOSED 7,000-SEAT AMPITHEATER

Site Plan Provided by seller

A R E AO V E R V I E W

BRISTOL, TNBristol, TN is the twin city of Bristol, VA. The two cities sit directly across from one another on the state line between Tennessee and Virginia. The state line runs through their shared downtown district. Bristol is a principal city the Kingsport-Bristol-Bristol, TN-VA Metropolitan Statistical Area. The Johnson City-Kingsport-Bristol, TN-VA Combined Statistical Area is known as the “Tri-Cities” region.

Bristol is well known for a number of different reasons. The city is recognized by the U.S. Congress as the “Birthplace of Country Music.” They have earned this title because It was where the first commercial recordings of country music were recorded in Bristol. The city is also home to Birthplace of Country Music Museum. Bristol is the site of the Bristol Motor Speedway, a NASCAR short track that has become one of the most well-known motorsports facilities in the country.

POPULATION 30 Mile 45 Mile 60 Mile

2023 Projection 501,483 792,789 1,072,329

2018 Estimate 494,674 784,708 1,065,065

Growth 2018 - 2023 1.38% 1.03% 0.68%

HOUSEHOLDS 30 Mile 45 Mile 60 Mile

2023 Projection 213,269 332,258 447,986

2018 Estimate 209,647 327,844 443,550

Growth 2018 - 2023 1.73% 1.35% 1.00%

INCOME 30 Mile 45 Mile 60 Mile

2017 Est. Average Household Income

$59,885.73 $57,547.53 $56,104.29

PINNACLE TRADE AREA

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Economy

The Bristol Chamber of Commerce represents the economic climate of Bristol Tennessee and Virginia along with the surrounding Tri-cities region. The Bristol Chamber of Commerce is in the top 1.5% of chambers in the United States for strong business practices, leadership, outstanding contributions to the Bristol Community, supporting free enterprise and pro-growth practices, leadership, and supporting free enterprise and pro-growth policies.

Top Employers # of Employees

Eastman 6,800

Wellmont Health Systems 6,225

Holston Medical Group 5,300

Sullivan County Department of Education

1,650

Kingsport City Schools 1,100

Pal’s Fast Food 950

CenturyLink Telecommunications 950

BAE Systems 850

Robinette Company 350

Domtar Paper 330

This Offer ing Memorandum contains select informat ion pertaining to the business and af fa i rs of Starbucks located at 215 Stevens Trail, Bristol TN 37620 (“Property”) . I t has been prepared by Matthews Real Estate Investment Services. This Offer ing Memorandum may not be al l - inclusive or contain a l l of the informat ion a prospect ive purchaser may desire. The informat ion contained in th is Offer ing Memorandum is conf ident ia l and furnished solely for the purpose of a review by a prospect ive purchaser of the Property. I t is not to be used for any other purpose or made avai lable to any other person without the wri t ten consent of Sel ler or Matthews Real Estate Investment Services. The mater ia l is based in part upon informat ion suppl ied by the Sel ler and in part upon f inancial informat ion obtained from sources i t deems rel iable. Owner, nor their of f icers , employees, or agents makes any representat ion or warranty, express or impl ied, as to the accuracy or completeness of th is Offer ing Memorandum or any of i ts contents and no legal l iabi l i ty is assumed or shal l be impl ied with respect thereto. Prospect ive purchasers should make their own project ions and form their own conclusions without rel iance upon the mater ia l contained herein and conduct their own due di l igence.

By acknowledging your receipt of th is Offer ing Memorandum for the Property, you agree:

1 . The Offer ing Memorandum and i ts contents are conf ident ia l ;

2 . You wi l l hold i t and treat i t in the str ictest of conf idence; and

3. You wi l l not , d i rect ly or indirect ly, d isclose or permit anyone else to disclose this Offer ing Memorandum or i ts contents in any fashion or manner detr imental to the interest of the Sel ler.

Owner and Matthews Real Estate Investment Services expressly reserve the r ight , at their sole discret ion, to reject any and al l expressions of interest or of fers to purchase the Property and to terminate discussions with any person or ent i ty reviewing this Offer ing Memorandum or making an of fer to purchase the Property unless and unt i l a wr i t ten agreement for the purchase and sale of the Property has been ful ly executed and del ivered.

I f you wish not to pursue negot iat ions leading to the acquis i t ion of the Property or in the future you discont inue such negot iat ions, then you agree to purge al l mater ia ls relat ing to th is Property including this Offer ing Memorandum.

A prospect ive purchaser ’s sole and exclusive r ights with respect to th is prospect ive t ransact ion, the Property, or informat ion provided herein or in connect ion with the sale of the Property shal l be l imited to those expressly provided in an executed Purchase Agreement and shal l be subject to the terms thereof. In no event shal l a prospect ive purchaser have any other c la ims against Sel ler or Matthews Real Estate Investment Services or any of their af f i l iates or any of their respect ive of f icers , Directors , shareholders, owners, employees, or agents for any damages, l iabi l i ty, or causes of act ion relat ing to th is sol ic i tat ion process or the market ing or sale of the Property.

This Offer ing Memorandum shal l not be deemed to represent the state of af fa i rs of the Property or const i tute an indicat ion that there has been no change in the state of af fa i rs of the Property s ince the date this Offer ing Memorandum.

C O N F I D E N T I A L I T Y & D I S C L A I M E R S TA T E M E N T

EXCLUSIVELY LISTED BY ™

STARBUCKS2 1 5 S T E V E N S T R A I L | B R I S T O L , T N 3 7 6 2 0

Kyle MatthewsBROKER OF RECORDLIC # 263667 (TN)

Steele McdonaldAssociateSTEELE.MCDONALD@MATTHEWS.COMDIR 214.692.2265MOB 615.417.3631LIC # 694333 (TX)

BROKER OF RECORD

Braden CrockettAssociate vp & DirectorBRADEN.CROCKETT@MATTHEWS.COMDIR 214.692.2040MOB 714.345.6206LIC # 01946071 (CA)

* A c t u a l P r o p e r t y *