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HOPE MILLS MARKETPLACE OFFERING MEMORANDUM WALMART NEIGHBORHOOD MARKET ANCHORED CENTER HOPE MILLS, NC

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Page 1: WALMART HOPE MILLS MARKETPLACE MARKET …molloykayeretail.com/wp-content/uploads/2018/05/OM-Hope-Mills... · hope mills marketplace offering memorandum walmart neighborhood market

HOPE MILLS MARKETPLACEO F F E R I N G M E M O R A N D U M

WALMART NEIGHBORHOOD

MARKET ANCHORED

CENTER

HOPE MILLS, NC

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NON-ENDORSEMENT & DISCLAIMER NOTICE

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 Marcus & Millichap and should not be made available to any other person or entity without the written consent of Marcus & Millichap. This Marketing Bro-chure 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. Marcus & Millichap has not made any investigation, and makes 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 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, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the infor-mation provided. All potential buyers must take appropriate measures to verify all of the information set forth herein.

NON-ENDORSEMENT NOTICE

Marcus & Millichap is not affiliated with, sponsored by, or endorsed by any commercial tenant or lessee identified in this marketing package. 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 Marcus & Millichap, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Marcus & Millichap, and is solely included for the purpose of providing tenant lessee information about this listing to prospective customers.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

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JARED KAYE Senior Associate

[email protected]

Direct: (678) 808-2821

MARK RUBLE Senior Managing Director Investments

[email protected]

Direct: (602) 687-6766

HOPE MILLSMARKETPLACE

E X C L U S I V E L Y L I S T E D B Y

SONNY MOLLOY Senior Vice President Investments

[email protected]

Direct: (678) 808-2763

JAMIE MEDRESS Senior Managing Director Investments

[email protected]

Direct: (602) 687-6778

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TABLE OF CONTENTS

EXECUTIVE SUMMARY

01Offering Highlights

Investment Overview

Summary of Terms

PROPERTY DETAILS

02Site Plan

Regional Map

Local Maps

Retail Market Aerial

LOCATION OVERVIEW

03Location Overview & Highlights

Demographics

FINANCIAL ANALYSIS

04Financial Summary

Rent Roll

Lease Abstracts

Tenant Summaries

Additional Offering

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01-EXECUTIVE SUMMARY

TOTAL HOUSEHOLDS IN 5-MILE RADIUS

38,860

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EXECUTIVE SU

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Price $2,882,800

Occupancy 100%

GLA 12,034 SF

Cap Rate 8.25%

Price Per SF $239.55

Year Built 2017

Lot Size 3.33 Acres (includes a 1.21 acre retention pond)

Zoning R-10

Net Operating Income - Year 1 $237,833

MAJOR CUMBERLAND COUNTY EMPLOYERS

Department of Defense Goodyear Tire & Rubber, Inc.

Cumberland County Schools City of Fayetteville

Cape Fear Valley Health Systems Veterans Administration

Walmart Associates, Inc. Fayetteville Technical Community College

County of Cumberland Fayetteville State University

4230 Legion Road, Hope Mills, NC 28348

HOPE MILLS MARKETPLACE

OFFERING HIGHLIGHTS

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INVESTMENT OVERVIEWFundamental Location, Visibility & Access

◆ Located within Fayetteville, NC MSA (Population of ±377k)

◆ Situated at the Intersection of Legion Road (±10k VPD) & Elk Road (±12k VPD)

◆ Two Points of Ingress & Egress with Access to Traffic Signal

◆ ±600 Feet of Frontage Along Legion Road (Inclusive of the Walmart Parcel)

◆ Robust Population Growth of 51.8% since 2000 (1-Mile)

◆ Daytime Population of ±105k :: Density of ±46k (3-Mile) & ±102k (5-Mile)

◆ Attractive 2017 Construction :: TPO Roof System accompanied by a 15-Yr. Roof Warranty

Stable Tenant Lineup

◆ Shadow Anchored by Walmart Neighborhood Market

◆ Complementary Mix of Convenience Retailers

◆ 100 Percent of Leases Contain Rent Escalations During Base Term, of which 56.5% of the Leases have 3% Annual Rent Escalations Beginning in Year 3 & Throughout Each Option Period

◆ Base Terms Range from 5-10 Years w/ Renewal Options

Economic Drivers

◆ Fort Bragg & Pope Field

- One of the Largest Military Installations in the World

- 50,000+ Active Duty Personnel

- Annual Economic Impact of ±4.5 Billion

◆ Cape Fear Valley Health Systems

- 3rd Largest Employer in Cumberland County

- Specializes in Cardiac Care, Cancer Treatment, Surgical Services, Neuroscience, Pediatrics, Rehabilitation, Orthopedics and More

◆ Goodyear Tire & Rubber Company

- Employs ±2,500 People

- Produces ±32,000 Tires Per Day in Fayetteville

DAYTIME POPULATIONON LEGION RD.

±10,000 VPD 104,902600 FeetOF ROAD FRONTAGE

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LOCATION HIGHLIGHTS

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● Cumberland County is the 5th-most populous county in North Carolina.

● Cumberland County is home to major manufacturing companies, including Goodyear Tire & Rubber Co., Mann+Hummel Purolator Filters LLC, and Eaton Corp.

● Fort Bragg, the largest military installation in the world by population (50,000+ active duty personnel), is only 15 miles away.

● Fort Bragg and Pope Field generate around $4.5 billion/year into the region’s economy, making it one of the best retail markets in the country.

● Part of one of the fastest growing areas in North Carolina

● More than 20 golf courses are within an hour’s drive of Hope Mills.

● Fayetteville is a three-time winner of the National Civic League’s All-America City Award and is a part of the All-America City Hall of Fame.

● Fayetteville ranked 25th on Forbes “The Best Places for Business and Careers” List in 2017.

● Cumberland County is home to four colleges: Methodist University, Fayetteville State University, Fay-etteville Technical Community College, and Miller-Motte College-Fayetteville (±23,000 Combined

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02-PROPERTY DETAILS

AHHI 5-MILE RADIUS

$58,280

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PROPERTY D

ETAILS

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PROPERTY DETAILS

THE OFFERINGPROPERTY 4220 Legion Road

PROPERTY ADDRESS Hope Mills, NC 28348

ZONING R-10

MAJOR TENANTS GLA LEASE EXPIRATIONAnytime Fitness 5,234 5/31/2023

Liberty Tax Service 1,200 4/30/2023

Lee Nails & Spa 1,400 6/30/2022

China Star 1,400 6/30/2027

Yamato Express 1,400 6/30/2027

Lease Pending 1,400 5/30/2023

FOUNDATION PARKINGFRAMING EXTERIORCONCRETE STUCCO 95 PARKING SPACESSTEEL-FRAME CONSTRUCTION

ROOFTPO ROOFING SYSTEM

(15-YR WARRANTY)

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AERIALS

Lee Nails & Spa

Yamato Express

Ed V Baldwin Elementary SchoolStudents: ± 643

South View Senior High SchoolStudents: ± 1,782

South View Middle SchoolStudents: ± 689

Industrial Space

Legio

n Roa

d

Elk Road

± 12,000 Daily

± 10,000 Daily

China Star

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AERIALS

PROPERTY D

ETAILS

± 23,000 Daily

± 51,000 Daily

8,500 Seat Coliseum

5-Mile RadiusResidents: ±101,503

Average HH Income: $58,280

Lee Nails & Spa

Yamato ExpressChina Star

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AERIALS

±7 M

iles

±1 Million SF of Retail Space

200-Bed Hospital

Lee Nails & Spa

Yamato ExpressChina Star

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PROPERTY D

ETAILS

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SITE PLAN

SUBJECT PROPERTY

Note: Walmart Neighborhood Market, located adjacent to the Hope Mills Marketplace offering, is also available for purchase. Please contact Listing Agent to obtain the Walmart Neighborhood Market offering memorandum.

AVA

ILA

BLE

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PROPERTY PHOTOS

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03-LOCATION OVERVIEW

2017 TOTAL POPULATION | 5-MILE RADIUS

101,503

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LOCATIO

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LOCATION OVERVIEWHope Mills, NC

Hope Mills is located in western Cumberland County south of Fayetteville, the county seat. The town center is next to a dam on Little Rockfish Creek, forming Hope Mills Lake. Little Rockfish Creek flows southeast to Rockfish Creek, a tributary of the Cape Fear River.

North Carolina Highway 59 (Main Street) runs through the center of the town, leading north 5 miles to U.S. Route 401 in western Fayetteville, and south 2.5 miles to Interstate 95 at Exit 41. Chartered in 1891, Hope Mills can trace its beginning back to 1766, when due to the wealth of natural water power and the abundance of timber, a lumber camp, saw mill, grist mill and pottery business were established. In 1839, construction of the first cotton mill powered by the Hope Mills Dam was completed and was the beginning of a new era for the town. Much of the heritage and the town’s name itself can be attributed to the cotton milling industry that followed.

Hope Mills offers its residents a full variety of services and recreation. There are public parks and recreational facilities located throughout the town. These facilities provide walking trails to tennis courts. Hope Mills has its own police and fire departments and is only minutes away from four major hospitals (Cape Fear Valley Medical Center, Hoke Hospital, Highsmith-Rainey Specialty Hospital, and Fayetteville VA Medical Center). The new county library provides a number of special services including summer reading programs and public meeting rooms. Five shopping centers, the historic downtown district, a post office, two medical clinics, five elementary schools, two middle schools, two high schools, and more than twenty churches round out the community.

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LOCATION HIGHLIGHTS

7 Miles to Downtown Fayetteville

15 Miles to Fort Bragg, the largest U.S. Army Base based on population

(±240,000)

Hope Mills has an average household income of $58,280 within a 5-Mile

Radius (2017)

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DEMOGRAPHICS

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POPULATION 1 - MILE 3 - MILE 5 - MILE2022 Projection 8,344 49,503 107,175

2017 Estimate 7,103 45,950 101,503

Growth 2017 - 2022 17.48% 7.73% 5.59%

2000 Census 4,678 35,668 83,409

2010 Census 6,650 43,652 97,153

Growth 2000 - 2010 42.15% 22.38% 16.48%

HOUSEHOLDS2022 Projections 2,893 18,996 41,361

2017 Estimate 2,454 17,499 38,860

Growth 2017 - 2022 17.88% 8.56% 6.44%

2010 Census 2,307 16,635 37,376

2000 Census 1,655 13,285 31,246

Growth 2000 - 2010 39.36% 25.21% 19.62%

2016A EST. HOUSEHOLDS BY INCOME

$200,000 or More 1.30% 0.81% 1.69%

$150,000 - $199,999 1.67% 1.84% 2.57%

$100,000 - $149,999 10.81% 9.31% 9.64%

$75,000 - $99,999 12.55% 10.93% 10.69%

$50,000 - $74,999 19.03% 19.00% 18.78%

$35,000 - $49,999 14.05% 16.59% 15.98%

$25,000 - $34,999 12.65% 12.61% 13.15%

$15,000 - $24,999 11.62% 12.58% 12.66%

$10,000 - $14,999 6.29% 6.44% 6.00%

Under $9,999 10.04% 9.89% 8.85%

Average Household Income $57,644 $53,484 $58,280

POPULATION PROFILE

20 to 34 Years 25.00% 24.50% 23.20%

35 to 59 Years 31.50% 30.60% 31.50%

60 to 74 Years 8.50% 10.60% 11.70%

Age 75+ 2.9% 4.1% 5.0%

2017 Median Age 30.8 32.2 33.7

2017 Population 25 + by Education Level 4,258 28,543 64,518

Elementary (0-8) 3.37% 3.61% 3.29%

Some High School (9-11) 8.99% 9.22% 7.52%

High School Graduate (12) 25.95% 29.64% 28.63%

Some College (13-15) 27.63% 28.12% 27.67%

Associates Degree Only 13.43% 11.01% 10.91%

Bachelors Degree Only 12.54% 11.66% 13.62%

Graduate Degree 6.50% 5.32% 7.26%

1 - MILE 3 - MILE 5 - MILE

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04-FINANCIAL ANALYSIS

2017 DAYTIME POPULATION | 5-MILE RADIUS

104,902

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FINANCIAL SUMMARYTHE OFFERINGPrice $2,882,800

Down Payment $900,240 (30%)

Number of Suites 6

Price Per SF $239.55

Gross Leasable Area (GLA) 12,034 SF

Lot Size 3.33 Acres (includes a 1.21 acre retention pond)

Year Built/Renovated 2017

Occupancy 100%

RETURNS YEAR 1 YEAR 2CAP Rate 8.25% 8.34%

Cash-on-Cash 12.72% 13.03%

Debt Coverage Ratio 1.86 1.88

FINANCING 1ST LOAN

Loan Amount $2,017,960

Loan Type New

Interest Rate 4.85%

Amortization 30 Years

Year Due 2028

INCOME YEAR 1 YEAR 2

Scheduled Base Rental Income $246,076 $248,852

Total Reimbursement Income 14.5% $35,685 14.8% $36,755

Other Income (Admin. Fee) $5,264 $5,422

Potential Gross Revenue $287,025 $291,029

General Vacancy ($12,304) ($12,433)

Effective Gross Revenue $274,721 $278,596

Less: Operating Expenses 13.4% ($36,888) 13.2% ($36,755)

Net Operating Income $237,833 $241,841

Cash Flow $237,833 $241,641

Debt Service ($133,014) ($133,014)

Net Cash Flow After Debt Service 11.64% $104,819 12.07% $108,827

Principal Reduction $31,838 $33,417

Total Return 15.18% $136,658 15.78% $142,244

OPERATING EXPENSES Year 1 Year 2

CAM $11,595 $13,146

Insurance $4,575 $4,712

Real Estate Taxes $7,515 $7,740

Management Fee $12,000 $12,360

Capital Reserves $1,203 $1,203

Other Expenses - Non-Reimbursable $0.00 $0.00

Total Expenses $36,888 $37,958

Expenses/SF $3.06 $3.15

Note: Total Reimbursement Income includes a Management Fee of $12,000 in Year 1 and $12,360 in Year 2.

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OPERATING STATEMENT

Income Year 1 Per SFScheduled Base Rental Income $246,076 $20.66

Expense Reimbursement Income

CAM $11,595 $0.99

Insurance $4,575 $0.39

Real Estate Taxes $7,515 $0.64

Management + Administration Fees $17,264 $1.48

Total Reimbursement Income $40,949 111.0% $3.50

Potential Gross Revenue $287,025 $24.17

General Vacancy ($12,304) 5.0% ($1.03)

Effective Gross Revenue $274,721 $23.13

Operating Expenses Year 1 Per SFCAM $11,595 $0.99

Capital Reserves $1,203 $0.10

Insurance $4,575 $0.39

Real Estate Taxes $7,515 $0.64

Management Fee $12,000 4.4% $1.03

Total Expenses $36,888 $3.15

Expenses as % of EGR 13.4%

Net Operating Income $237,833 $19.98

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FINA

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Anytime Fitness 100 5,234 43.5% 3/9/17 5/31/23 $20.00 $8,723 $104,680 Jun-2020 $109,914 NNN 2, 5 yr

Liberty Tax Service 200 1,200 10.0% 3/21/17 4/30/23 $21.00 $2,100 $25,200 May-2019 $25,956 NNN 1, 5 yr

Lee Nails & Spa 300 1,400 11.6% 3/21/17 6/30/22 $22.00 $2,567 $30,800 Jul-2019 $31,728 NNN 1, 5 yr

China Star 400 1,400 11.6% 3/21/17 6/30/27 $20.00 $2,333 $28,000 Jul-2019 $28,836 NNN 2, 10 yr

Yamato Jr. Japanese Express

500 1,400 11.6% 3/21/17 6/30/27 $20.00 $2,333 $27,996 Jul-2019 $28,836 NNN 2, 10 yr

Lease Pending 600 1,400 11.6% 6/1/18 5/30/23 $21.00 $2,450 $29,400 Jun-2020 $30,282 NNN 2, 5 yr

Total 12,034 $20.67 $20,506 $246,076

Occupied Tenants: 6 Occupied GLA: 100.00%

Unoccupied Tenants: 0 Unoccupied GLA: 0.00%

RENT ROLL

Tenant Name SuiteSquareFeet

%BldgShare

Lease DatesComm. Exp.

AnnualRent perSq. Ft.

Total RentPer Month

Total RentPer Year

Changeson

Changesto

LeaseType

Renewal Options

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LEASE ABSTRACTS

WWW.ANYTIMEFITNESS.COM

TENANT: Franchisee, d/b/a Anytime Fitness

LEASE GUARANTOR: PGs from Operator

PREMISES: 5,234 Square Feet

PRO RATA SHARE OF GLA:43.5%

LEASE COMMENCEMENT:March 9, 2017

LEASE EXPIRATION:May 31, 2023

BASE TERM:6 Years

BASE RENT:$20.00 per square foot/$104,680 annually (Years 1-3)$21.00 per square foot/$109,914 annually (Years 4-6)

OPTIONS:Two (2), 5 year options

OPTION RENT:Option 1 (Years 7-11): 2.5% Rent Increases during each year of Option 1Option 2 (Years 12-16): 2.5% Rent Increases during each year of Option 2

COMMON AREA MAINTENANCE:Tenant is responsible for prorata share of Common Area Maintenance expenses including a 15% Admin fee.

HVAC MAINTENANCE:Tenant shall be responsible for all maintenance of HVAC.

REAL ESTATE TAXES:Tenant shall reimburse its prorata share of property taxes and any other tax associated with the Premises.

INSURANCE:Tenant shall reimburse to Landlord its prorata share of all in-surance paid by Landlord for the premises.

ESTOPPEL:Upon request by Landlord, Tenant shall execute and deliver to Landlord an Estoppel Certificate within Ten (10) business days.

Anytime Fitness is a 24-hour health and fitness club. The company operates over 3,000 franchised locations in 20 countries. The gym facilities are open 24 hours a day, 365 days out of the year. Chuck Runyon, Dave Mortensen, and Jeff Klinger founded Anytime Fitness in 2002. Runyon is the CEO of the company. Anytime Fitness is based in Woodbury, Minnesota. According to Forbes, Anytime Fitness was the fastest growing health club franchise in 2014. In 2015, Entrepreneur Magazine ranked Anytime Fitness first on its global franchise list.

2002 43.5% YEAR FOUNDED PRO RATA

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LEASE ABSTRACTS

WWW.LIBERTYTAX.COM

TENANT: Liberty Tax Service

LEASE GUARANTOR: PG from Operator

PREMISES: 1,200 Square Feet

PRO RATA SHARE OF GLA:10.0%

LEASE COMMENCEMENT:March 21, 2017

LEASE EXPIRATION:April 30, 2023

BASE TERM:5 Years

BASE RENT:$21.00 per square foot/$25,200 annually (Years 1-2)$21.63 per square foot/$25,956 annually (Years 3)$22.28 per square foot/$26,735 annually (Years 4)$22.95 per square foot/$27,537 annually (Years 5)

OPTIONS:One (1), 5 year options

OPTION RENT:Option 1: 3.00% Rent Increases during each year of Option

COMMON AREA MAINTENANCE:Tenant is responsible for its prorata share of Common Area Maintenance expenses including a 15% Admin Fee.

HVAC MAINTENANCE:Tenant shall be responsible for all maintenance of HVAC.

REAL ESTATE TAXES:Tenant shall reimburse its prorata share of property taxes and any other tax associated with the Premises.

INSURANCE:Tenant shall reimburse to Landlord its prorata share of all insurance paid by Landlord for the premises.

ESTOPPEL:Upon request by Landlord, Tenant shall execute and deliver to Landlord an Estoppel Certificate within Ten (10) Business Days.

Liberty Tax Service is an American company specializing in the preparation of tax returns for individuals and small businesses. It is the third largest tax preparation franchise in the United States. The company began in Canada in 1997 when John Hewitt, co-founder of Jackson Hewitt, acquired a Canadian tax franchisor, U&R Tax Depot. In 1998, the company became Liberty Tax Service and opened five offices in the United States. Liberty Tax Service is the primary subsidiary of Liberty Tax, Inc., a NASDAQ-traded company.

Liberty Tax Service appeared on Forbes “Top 20 Franchises for the Buck” in 2012. Liberty Tax Service is well known for its wavers, people in Statue of Liberty costumes and Uncle Sam costumes, used as a form of guerrilla marketing.

1997 10.0% YEAR FOUNDED PRO RATA

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LEASE ABSTRACTSTENANT: Lee Nails & Spa

LEASE GUARANTOR: PG from Operator

PREMISES: 1,400 Square Feet

LEASE COMMENCEMENT:March 21, 2017

LEASE EXPIRATION:June 30, 2022

BASE TERM:5 Years

BASE RENT:$22.00 per square foot/$30,800 annually (Years 1-2)$22.66 per square foot/$31,724 annually (Years 3)$23.34 per square foot/$32,676 annually (Years 4)$24.04 per square foot/$33,656 annually (Years 5)

OPTIONS:One (1), 5 year options

OPTION RENT:Option 1: 3.00% Rent Increases during each year of Option

COMMON AREA MAINTENANCE:Tenant is responsible for prorata share of Common Area Maintenance expenses including a 15% Admin fee.

HVAC MAINTENANCE:Tenant shall be responsible for all maintenance of HVAC.

REAL ESTATE TAXES:Tenant shall reimburse its prorata share of property taxes and any other tax associated with the Premises.

INSURANCE:Tenant shall reimburse to Landlord its prorata share of all insurance paid by Landlord for the premises.

ESTOPPEL:Upon request by Landlord, Tenant shall execute and deliver to Landlord an Estoppel Certificate within Ten (10) Business Days.

2017 11.6% YEAR FOUNDED PRO RATA

LEE NAILS & SPA

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LEASE ABSTRACTSTENANT: China Star

LEASE GUARANTOR: PGs from the Operator

PREMISES: 1,400 Square Feet

LEASE COMMENCEMENT:March 21, 2017

LEASE EXPIRATION:June 30, 2027

BASE TERM:10 Years

BASE RENT:$20.00 per square foot/$28,000 annually (Years 1-2)$20.60 per square foot/$28,840 annually (Years 3)$21.22 per square foot/$29,705 annually (Years 4)$21.85 per square foot/$30,596 annually (Years 5)$22.51 per square foot/$31,514 annually (Years 6)$23.19 per square foot/$32,459 annually (Years 7)$23.88 per square foot/$33,433 annually (Years 8)$24.60 per square foot/$34,436 annually (Years 9)$25.34 per square foot/$35,469 annually (Years 10)

OPTIONS:Two (2), 5 year options

OPTION RENT:Option 1: 3.00% Rent Increases during each year of Option 1Option 2: 3.00% Rent Increases during each year of Option 2

COMMON AREA MAINTENANCE:Tenant is responsible for prorata share of Common Area Maintenance expenses including a 15% Admin fee.

HVAC MAINTENANCE:Tenant shall be responsible for all maintenance of HVAC.

REAL ESTATE TAXES:Tenant shall reimburse it’s prorata share of property taxes and any other tax associated with the Premises.

INSURANCE:Tenant shall reimburse to Landlord its prorata share of all insurance paid by Landlord for the premises.

ESTOPPEL:Upon request by Landlord, Tenant shall execute and deliver to Landlord an Estoppel Certificate within Ten (10) Business Days.

2017 11.6% YEAR FOUNDED PRO RATA

CHINA STAR

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LEASE ABSTRACTSTENANT: Yamato Jr. Japanese Express

LEASE GUARANTOR: PGs from the Operator

PREMISES: 1,400 Square Feet

LEASE COMMENCEMENT:March 21, 2017

LEASE EXPIRATION:June 30, 2027

BASE TERM:10 Years

BASE RENT:$20.00 per square foot/$28,000 annually (Years 1-2)$20.60 per square foot/$28,840 annually (Year 3)$21.22 per square foot/$29,705 annually (Year 4)$21.85 per square foot/$30,596 annually (Year 5)$22.51 per square foot/$31,514 annually (Year 6)$23.19 per square foot/$32,459 annually (Years7)$23.88 per square foot/$33,433 annually (Year 8)$24.60 per square foot/$34,436 annually (Year 9)$25.34 per square foot/$35,469 annually (Year 10)

OPTIONS:Two (2), 5 year options

OPTION RENT:Option 1: 3.00% Rent Increases during each year of Option 1Option 2: 3.00% Rent Increases during each year of Option 2

COMMON AREA MAINTENANCE:Tenant is responsible for prorata share of Common Area Maintenance expenses including a 15% Admin fee.

HVAC MAINTENANCE:Tenant shall be responsible for all maintenance of HVAC.

REAL ESTATE TAXES:Tenant shall reimburse it’s prorata share of property taxes and any other tax associated with the Premises.

INSURANCE:Tenant shall reimburse to Landlord its prorata share of all insurance paid by Landlord for the premises.

ESTOPPEL:Upon request by Landlord, Tenant shall execute and deliver to Landlord an Estoppel Certificate within Ten (10) Business Days.

2017 11.6% YEAR FOUNDED PRO RATA

YAMATO JR. JAPANESE EXPRESS

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2017 TOTAL POPULATION 5-MILE RADIUS

101,503

5 - MILE LOCAL DEMOGRAPHIC HIGHLIGHTS

P O P U L AT I O N G R O W T H 2 0 0 0 - 2 0 1 0

16.48%=

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ADDITIONAL OFFERINGAVAILABLE SEPARATELY OR AS A PORTFOLIO WITH

HOPE MILLS MARKETPLACE

4220 Legion Road, Hope Mills, NC 28348WALMART NEIGHBORHOOD MARKET

Price $10,550,000 | $254.90 PSF

GLA 41,389 SF

Cap Rate 5.45%

Year Built 2017

Lot Size 5.22 Acres

Net Operating Income - Current $575,000

PORTFOLIO OFFERINGPrice $13,432,800 | $251.44 PSF

Combined Net Operating Income $812,833

Cap Rate 6.05%

INVESTMENT HIGHLIGHTS

◆ Complimentary Mix of Convenience Retailers Anchored by Walmart Neighborhood Market

◆ Located within Fayetteville, NC MSA (±377k People)

◆ Situated at the Signalized Intersection of Legion Road (±10k VPD) & Elk Road (±12k VPD)

◆ Two Points of Ingress & Egress with Access to Traffic Signal

◆ ±600’ of Frontage Along Legion Road with Excellent Visibility

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MARK RUBLESenior Managing Director Investments

[email protected]

Direct: (602) 8687-6766

JARED KAYESenior Associate

[email protected]

Direct: (678) 808-2821

SONNY MOLLOYSenior Vice President Investments

[email protected]

Direct: (678) 808-2763

JAMIE MEDRESS Senior Managing Director Investments

[email protected]

Direct: (602) 687-6778