O F F E R I N G M E M O R A N D U M

4140 N. CHERRY STREET

• SINGLE TENANT OFFICE • MONARCH HEALTHCARE

• 7 YEAR TERM | 7.50% CAP RATE

M A R K E T O V E R V I E W

WINSTON-SALEM, NORTH CAROLINA

Winston-Salem is a primary city of North Carolina’s Piedmont Triad Region—a 12-county area of more than 1.6 million people— representing a significant market and labor resource. Twentieth century businesses, such as R. J. Reynolds Tobacco and the Hanes companies, shaped Winston-Salem by bringing remarkable wealth to the city and endowing it with an impressive list of institutions and foundations. Their rise to prominence only furthered the spirit of entrepreneurship that has characterized the city since its earliest days, and which remains in evidence today as the city’s economy shifts from manufacturing to finance, medicine and technology.

Winston-Salem is known for its diversity of business and community. With a strong and unwavering commitment to the arts, excellence in healthcare research and technology, and opportunities for specialized and advanced education. Winston-Salem truly is the City of Arts and Innovation.

EMPLOYMENT BY INDUSTRY SECTOR

Health Care & Social Services 18%

Retail Trade 11%

Government 11%

Hospitality, Arts & Entertainment 10%

Manufacturing 8%

Administrative Support, Waste Management & Remediation Services 8%

Finance & Insurance, Information & Real Estate 7%

Wholesale Trade, Transportation & Warehousing 6%

Educational Services 5%

Other Services 5%

Professional, Scientific & Technical Services 5%

Natural Resources, Utilities & Construction 4%

Management of Companies 3% Source: wsbusinessinc.com

M A R K E T O V E R V I E W

LABOR FORCE + 1.3%

RESIDENTIAL UNITS SOLD

+ 3.2%

EMPLOYMENT + 2%

RESIDENTIAL NEW CONSTRUCTION

+ 5.7%

COMMERCIAL BUILDING/DEVELOPMENT

+ 10.1%

TOTAL WAGES + 4.9%

NC DEPARTMENT OF COMMERCE, MICHAEL S. CLAPP, MAI, WSFC PLANNING & DEVELOPMENT SERVICES

QUARTERLY ECONOMIC UPDATE, WINSTON SALEM CHAMBER OF COMMERCE

DEMOGRAPHICS

2010 2018 2023

Population 229,516 246,224 257,873

Daytime Population

296,602

Households 92,300 98,271 102,959

Average HH Income

$68,746 $76,848

WINSTON-SALEM AT A GLANCE: 2019

L O C AT I O N

I N V E S T M E N T H I G H L I G H T S

PROPERTY OVERVIEW

• 12,563sf of office space

• 3,948sf of storage/garage space

• Monarch has recently renewed their lease

• Lease runs through 5/31/2027

• Tenant has been in place since 2014

• Three HVAC units were replaced in 2018

• Landlord responsible for taxes, insurance, roof, structure,

and HVAC

INVESTMENT OVERVIEW Address 4140 Cherry Street

Sales Price $1,304,512

Gross Income $113,268.57

Total Expenses $15,430.17

NOI $97,838.40

Cap Rate 7.50%

Rentable SF 16,511

Year Built 1980

Lot Size 1.90

EXPENSES OVERVIEW 2019 Insurance $2,009 - 2016 Base Year

2019 Taxes $8,921.17 - 2016 Base Year

Capital Repair/Reserve $4,500

Total Expenses $15,430.17

T E N A N T S U M M A R Y

LEASE SUMMARY

Tenant Monarch

Annual Rent $113,268.57

Size (sf) 16,511

Term 5/31/2027

Renewal Options Two 5-year options

Rent Increases 2.5% per year

Guarantor Monarch

TENANT SUMMARY

Founded in 1958, Monarch is a statewide provider of comprehen-sive specialty mental health and human services. As one of NC’s largest non-profits, they offer trauma-informed, quality care for people with mental illness, substance use disorders and intellec-tual and developmental disabilities.

A variety of behavioral health services are offered, including: Outpatient Therapy and Psychiatric Services Open Access– no appointment necessary for first visit Psychosocial Rehabilitation (PSR) Innovations Community-Based Services Assertive Community Treatment Team (ACTT) Intensive In-Home Services

Monarch has over 150 locations in North Carolina across 43 coun-ties. In total, they employee over 250 individuals to help serve their communities. Monarch’s vision is to lead the way in the state to creatively support people with disabilities in growing toward their potential, reaching their dreams, and making their own informed choices about where they live, learn, work, play and wor-

COUNTIES SERVED BY MONARCH

P R O P E R T Y O V E R V I E W

I N T E C G r o u p , I n c .2 1 4 W . T r e m o n t A v e .S u i t e 3 0 1C h a r l o t t e , N C 2 3 8 0 3P : 7 0 4 . 3 7 2 . 9 7 1 0w w w . i n t e c g r o u p . n e t

Mon

arch

4140

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07.2

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Scale : NTSNew Millwork

New Door

Existing Door

Existing Partition

New Partition

Furniture Plan

Legend

MECHANICAL

OFFICE18'-2 1

4" x 13'-1"

THERAPY ROOM9'-6 1

4" x 13'-1"THERAPY ROOM

9'-2" x 13'-1"

THERAPY ROOM10'-5 1

2" x 13'-1"

THERAPYROOM

8'-8 12" x 13'-10 14"

THERAPYROOM

8'-8 14" x 13'-10 14"

THERAPYROOM

8'-7 34" x 13'-10 14"

THERAPYROOM

8'-7 12" x 13'-10 14"

THERAPYROOM

11'- 14" x 13'-10 14"

LAB11'-4 1

2" x 8'-7 14"

CONFERENCE23'-4" x 11'-11 12"

CONFERENCE16'-3 1

2" x 23'-1/2"

OFFICE8'-7 1

2" x 13'-2 34"

OFFICE12'-5 1

2" x 13'-1"

OFFICE13'-9 1

2" x 13'-1"

THERAPYROOM

13'-9 12" x 9'-9"

RECEPTION29'-4 1

4" x 16'-8 12"

PHARMACY13'-0" x 25'- 34"

KIDS8'-10 3

4" x 10'-1 14"

WAITING12'-9" x 14'-11 14"

CHECK-IN/CHECK-OUT13'-0" x 8'-6 34"

OFFICE10'-5 3

4" x 13'-1"

OFFICE10'-6" x 13'-1"

OFFICE13'-5" x 13'-1"

OFFICE13'-1

2" x 13'-1"

OFFICE13'-1

2" x 13'-1"

OFFICE13'-0" x 13'-1"

OFFICE14'-14" x 13'-11"

OFFICE14'-14" x 12'-12"

DIRECTOR'SOFFICE

14'-14" x 14'-6 14"

OFFICE14'-14" x 12'-12"

OFFICE14'-14" x 18'-2 14"

OFFICE13'-10 1

2" x 12'-12"OFFICE

13'-10 12" x 12'-12"

THERAPY ROOM13'-10 1

2" x 10'-5 34"THERAPY ROOM

13'-10 12" x 10'-1 12"

THERAPY ROOM13'-10 1

2" x 9'-2 34"

OPEN OFFICE40'-10 3

4" x 21'-4"

OFFICE11'-3 3

4" x 9'-10 34"OFFICE

11'-3 34" x 9'-10 34"

OFFICE11'-3 3

4" x 9'-10 14"

WOMENSRESTROOM

COPY/WORK ROOM11'-9 1

2" x 10'-11 34"

MENSRESTROOM

MECHANICAL IT ROOM

WOMENSRESTROOM

MENSRESTROOM

BREAKROOM19'-10 3

4" x 12'-0"

STORAGE4'-1 3

4" x 5'-11 14"

INJECTIONROOM

11'-4 12" x 5'-0"

P R O P E R T Y O V E R V I E W

D I S C L A I M E R S

Linville Team Partners has been retained as the exclusive Broker regarding the sale of this Net Leased property and hereby advises all prospective buyers as follows:

This Offering Memorandum has been prepared by Linville Team Partners and the information contained herein has been taken from sources believed to be reliable. Linville Team Partners has not verified it and makes no representation or warranties, expressed or implied, as to the accuracy or completeness of this information.

All information in this document is subject to verification by the Buyer prior to purchase. The Offering Memorandum does not claim to be all-in-clusive or contain all information that a Buyer of this property may need or desire. As the potential Buyer of a net leased property, it is the Buyer’s responsibility to complete a thorough due diligence investigation of this property to determine whether it is suitable to their needs. Linville Team Partners denies any obligation to carry out a due diligence examination for the Buyer.

As with any real estate investment, this Net Leased property carries significant risks. The Buyer and their legal and/or financial advisors should conduct a careful investigation of all legal and financial documents related to this property and tenant. Any projections, opinions, assumptions or estimates used in this Offering Memorandum are only examples and do not represent the present or future performance of the property. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. In addition, the lease rate for some properties, especially new construction or newly-acquired locations, may be set based on the tenant’s projected sales with little or no record of actual performance or comparable rents for the area. Returns are not guaranteed; the tenant(s) and any guarantor(s) may fail to pay the lease rent, 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, the Buyer is responsible for conduct-ing an 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 the Buyer may be able to negotiate with a potential replacement tenant considering the location of the property and the Buyer’s legal ability to make alternate use of the property.

The Owner expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or to terminate discussions with the Buyer at any time without notice. The Owner has no legal commitment or obligations to any Buyer reviewing the Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered and approved by the Owner. The Buyer agrees not to contact the tenant, their employees or customers without prior permission from the Owner.

Linville Team Partners is not affiliated with or endorsed by the commercial tenant or lesee identified in this Offering Memorandum. The use of the tenant’s name or logo is not intended to imply any affiliation with or endorsement by Linville Team Partners. Its inclusion is solely for the purpose of providing tenant lessee information about this listing to prospective customers.

By accepting this Offering Memorandum, the Buyer agrees to release Linville Team Partners and hold it harmless from any claim, cost, expense or liability arising out of the buyer’s investigation and/or purchase of this Net Leased property.

All showings of this property are by appointment only. Please contact your broker for more details.

PRESENTED BY:

Nick Gonzalez

Partner

Linville Team Partners

336.724.1715

Nick@LTPcommercial.com

Linville Team Partners

206 W. Fourth Street

Winston-Salem, NC 27101

P: 336.724.1715

F: 336.724.1713