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OFFERING MEMORANDUM 19116 W. CATAWBA AVENUECORNEL IUS , NC 28031

CATAWBA RETAIL

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CATAWBARETAIL19116 W. CATAWBA AVENUECORNELIUS, NC 28031

This is a confidential Memorandum intended solely for your limited use and benefit in determining whether you desire to express further interest into the acquisition of the Subject Property.

This Memorandum contains selected information pertaining to the Property and does not purport to be a representation of state of affairs of the Owner or the Property, to be all-inclusive or to contain all or part of the information which prospective investors may require to evaluate a purchase of real property. All financial projections and information are provided for general reference purposes only and are based on assumptions relating to the general economy, market conditions, competition, and other factors beyond the control of the Owner or Franklin Street Real Estate Services, LLC. Therefore, all projections, assumptions, and other information provided and made herein are subject to material variation. All references to acreages, square footages, and other measurements are approximations. Additional information and an opportunity to inspect the Property will be made available to all interested and qualified prospective purchas-ers. Neither the Owner or Franklin Street Real Estate Services, LLC. , nor any of their respective directors, officers, affiliates or representatives are making any representation or warranty, expressed or implied, as to the accuracy or completeness of this Memorandum or any of its contents, and no legal commitment or obligation shall arise by reason of your receipt of this Memorandum or use of its contents; and you are to rely solely on your own investigations and inspections of the Property in evaluating a possible purchase of the real property.

The Owner expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase Property, and/or to terminate discus-sions with any entity at any time with or without notice which may arise as a result of review of this Memorandum. The Owner shall have no legal commitment or obligation to any entity reviewing this Memorandum or making an offer to purchase the Property unless and until written agreement(s) for the purchase of the Property have been fully executed, delivered, and approved by the Owner and any obligations therein have been satisfied or waived.

By receipt of the Memorandum, you agree that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or the Franklin Street Real Estate Services, LLC. Furthermore, you agree not to use this Memorandum or any of its contents in a manner detrimental to the interest of the Owner or Franklin Street Real Estate Services, LLC.

In this Memorandum, certain documents, including leases and other materials, are described in summary form. These summaries do not purport to be complete nor necessarily accurate descriptions of the full agreements referenced. Interested parties are so advised and expected to review all such summaries and other documents of whatever nature independently and not to rely on the contents of this Memorandum in any manner.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR FRANKLIN STREET REAL ESTATE SERVICES, LLC AGENT FOR MORE DETAILS.

CONFIDENTIALITY AGREEMENTBryan BelkSenior [email protected]

John TennantSenior [email protected]

Oliver [email protected]

4 FranklinSt.com 5FranklinSt.com

INVESTMENT HIGHLIGHTS

EXECUTIVE SUMMARY

CHARLOTTE, NC MSA• Major retail corridor in the region • Located on the "going to work" side of the road with 28,000+ VPD passing

by the property• Charlotte is the second largest banking center in the US and is the

headquarters of 8 Fortune 500 companies• Surrounded by many daily traffic generators: Publix, Harris Teeter, Fresh

Market, Walgreens, CVS, Wells Fargo, amongst many others

VERY AFFLUENT AREA• Located in one of Charlotte's most affluent areas with $123,000+

household incomes• $966,000+ average household net worth in the area• Lake Norman is where many of Charlotte, NC wealthy residents live; many

atheletes and NASCAR employees have homes in the area

EASE OF MANAGEMENT• High quality construction with no imminent deferred maintenance• Fixed rental increases during initial term and options • Tenant reimburses 100% for CAM, taxes, and insurance

STRONG GROWING TENANT BRANDS• Dunkin Donuts has over 11,000 locations across the world• Nekter has 70 open locations with major expansion in the works• Penn Station Subs has over 310 locations in 15 states

EXECUTIVE SUMMARY THE OPPORTUNITYFranklin Street is pleased to present this newly constructed three-tenant building in Cornelius, North Carolina. The property sits on the main thoroughfare in Cornelius, connecting the lake homes to the interstate. A newly developed Publix-anchored center is adjacent to the property and numerous other national retailers surround the site. This investment provides a unique opportunity to acquire a net leased asset in one of the strongest markets in the country. An investor will benefit from a passive investment with strong intrinsic real estate value.

Dunkin’ Donuts and Penn Station East Coast Subs have signed 10-year leases on the property that commenced at the end of 2015. Nekter has signed a new 10-year lease that will commence the beginning October. The landlord’s only responsibility is for the roof and structure, as the tenants are responsible for CAM, taxes and insurance. Dunkin’ Donuts is a franchise location and the operator has 7 open locations with rights to add stores throughout northern Charlotte metro. The Penn Station East Coast Subs operator has 4 locations currently. This site is unique because of the difficulties of getting drive -thru zoning in this area due to strict zoning requirements, which also requires the finishes for newer construction developments to be very high end.

CORNELIUS, NCCornelius is located 15 miles north of downtown Charlotte. Charlotte is the largest city in North Carolina and the third fastest growing major city in the United States. Charlotte is the second largest banking center in the U.S. and has eight Fortune 500 companies headquarters. Cornelius is known as a wealthy suburb which is home to Lake Norman. Many Carolina Panthers, Charlotte Hornets, and NASCAR members call Cornelius home.

PROPERTY INFORMATIONProperty Name Catawba Retail

Address 19116 W. Catawba Avenue

City, State, ZIP Cornelius, NC

Lot Size (Acres) 0.91

Building Size (SF) 5,530

Year Built 2015

Occupancy 100%

Lease Structure NNN


CATAWBA RETAIL

PROPERTY AND MARKETOVERVIEW

Located in the heart of the region's retail corridor

28,067+ VPDOver 28,000 vehicles drive

directly by the site each day on

W. Catawba Avenue

201,023+Residents

The area has over 201,000

residents within 15 minutes of

the property

SITE PLAN


TENANT OVERVIEW & LEASE ABSTRACT

Demised Premises2,200 SF

Lease Term10-Years11/1/2015 thru 10/31/2025

Lease TypeNNN

GuarantorFranchisee

Renewal Option(s)Two, 5-year renewals

Increases10% Increases Every 5 Years

Annual Base Rent

Year 1-5 $70,400

Year 6-10 $77,440

Option Rent

Option 1 (11-16) $85,140

Option 2 (16-20) $93,654

Dunkin’ Donuts is an American global doughnut company and coffeehouse chain based in Canton, Massachusetts in Greater Boston. It was founded in 1950 by William Rosen-berg in Quincy, Massachusetts. Since its founding, the company has grown to become one of the largest coffee and baked goods chains in the world, with 11,000 restaurants in 33 countries. The chain’s products include doughnuts, bagels, other baked goods, and a wide variety of hot and iced beverages. The company primarily competes with Starbucks, as over half the company’s business is in coffee sales, as well as with Krispy Kreme Doughnuts and Honey Dew Donuts.

Before 1990, Dunkin’ Donuts’ primary competitor was Mister Donut but in February of that year Mister Donut was acquired by Dunkin’ Donuts’ owner Allied-Lyons. After the acquisition of Mister Donut by Allied-Lyons, all Mister Donut stores in North America were offered the chance to change their name to Dunkin’ Donuts. As of 2014, Dunkin’ Donuts is owned by Dunkin’ Brands Inc., which also owns Baskin-Robbins and previously owned the Togo’s chain.

Locations: 11,000 Headquarters: Canton, MARevenue: $10.1 B (2015)Website: www.dunkindonuts.com

TENANT OVERVIEW & LEASE ABSTRACTPrivately-owned and founded in Southern California by two healthy living enthusiasts, Steve and Alexis Schulze, Nékter Juice Bar is dedicated to inspiring a community of kids and adults to live an active, well-balanced, health-minded and compassionate life. Now with over 70 corporate and franchise locations in California, Arizona, Colorado, Nevada, North Carolina and Texas, Nékter Juice Bar is a modern reinvention of the juice bar, and continues to be at the forefront of the juicing revolution, offering an array of cold-pressed juices, smoothies, coffees, and acai bowls that are natural, unprocessed, nutrient-rich, great tasting, and affordable. The "Nékter Life" also includes making a positive difference by offering food with a purpose and by supporting charitable organi-zations in the communities they serve.

Company Type: Privately HeldHeadquarters: Santa Ana, CAEmpolyees: 159Website: www.nekterjuicebar.com

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Lease TypeNNN

GuarantorFranchisee



Annual Base Rent

Year 1-5 $38,913

Year 6-10 $42,804

Option Rent

Option 1 (11-15) $47,091

Option 2 (16-20) $51,789

http://www.dunkindonuts.com

http://www.nekterjuicebar.com

https://www.verizonwireless.com/

https://www.verizonwireless.com/


TENANT OVERVIEW & LEASE ABSTRACTPenn Station is a chain of East Coast sub restaurants found throughout the South and Midwest United States. The first restaurant was opened in 1985 by Jeff Osterfeld in Cincinnati, Ohio. Currently, Penn Station has over 310 locations in 15 states. By 1987, Osterfeld had opened several Penn Station restaurants in and around Cincinnati. He be-gan selling franchises that year and restaurants soon opened in St. Louis, Louisville, and Nashville. Today, Penn Station has become a large chain across the South and Midwest, with 310 restaurants currently open.

In 2007, Penn Station was ranked #196 on Entrepreneur Magazine’s list of the Top 500 International Franchises. In 2005, Penn Station was ranked #145. The rankings are based primarily on financial strength and stability, and the system’s growth rate and size. Penn Station serves 14 types of subs, ranging from its trademark Philly Chees-esteak sub to the “create it yourself” Dagwood. All sandwiches are made to order in front of the customer. Sandwiches are offered in 5 sizes: a kid’s size is 4 inches long, a lite is 6 inches long, small is 8 inches, a medium is 10 inches, and a large is 12 inches. Recently, Penn Station has started offering fresh salads, following a trend in providing healthier menu options. The salads, like the sandwiches, are made fresh. They are simply a “bread-less” version of a particular sandwich.

Locations: 310+ Headquarters: Cincinnati, OHWebsite: www.penn-station.com



Lease TypeNNN

GuarantorFranchisee



Annual Base Rent

Year 1-5 $53,620

Year 6-10 $58,982

Option Rent

Option 1 (11-15) $64,880

Option 2 (16-20) $71,368

http://www.penn-station.com


FINANCIALANALYSIS

PRICING AND FINANCIALS

LIST PRICEPrice $2,700,000

Price per SF $488.25

Cap Rate 6.01%

CURRENT OPERATIONSCurrent Occupancy 100%

Total Base Rent $162,933 $29.46

Effective Gross Income $162,933 $29.46

Reserves $553.00 $0.10

Net Operating Income $162,380 $29.36

DEBT ANALYSISLoan Type Proposed

Loan to Value 75.00%

Interest Rate 4.85%

Amortization Period (Years) 25

Fixed Term (Years) 10

Year 1 Total Return 9.65%

CURRENT "AS IS"

INCOME TOTAL PER SFBase Rent $1,611,423 $8.54

CTI + Utilities $298,773 $1.58

Other Revenue $23,178 $0.12

Gross Potential Income $1,910,196 $10.12

EFFECTIVE GROSS INCOME $1,910,196 $10.12

EXPENSESCAM $323,998 $1.72

Utilities $197,025 $1.04

Taxes $59,746 $0.32

Insurance $51,412 $0.27

Management - 4% $76,408 $0.40

Reserves $37,752 $0.20

TOTAL EXPENSES $746,341 $3.95

NET OPERATING INCOME $1,163,855 $6.17

INCOME AND EXPENSE ANALYSIS


FINANCIALANALYSIS




Cap Rate 6.01%




Reserves $553.00 $0.10




Interest Rate 4.85%




CURRENT "AS IS"







Utilities $197,025 $1.04

Taxes $59,746 $0.32

Insurance $51,412 $0.27

Management - 4% $76,408 $0.40

Reserves $37,752 $0.20



INCOME AND EXPENSE ANALYSIS SURROUNDING PROPERTIESSURROUNDING PROPERTIES

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© 2016 Google

© 2016 Google

Image Landsat / Copernicus



LOCAL MAP

W. CATAWBA AVE 28,067 VPD

LAKE NORMAN

Online TrainingAcademy

PrimroseSchool

The Peninsula ClubHomes $700K±

81,984 VPD


REGIONAL MAP

28,067 VPD

81,984 VPD


DEMOGRAPHICS

DRIVETIME DEMOGRAPHICS

BASED ON DRIVETIMES5 Mins 10 Mins 15 Mins

2017 Estimated Total Population 34,376 91,520 201,023

Population Growth 2000 to 2010 7.3% 6.1% 7.0%

Population Growth 2010 to 2017 2.3% 2.4% 2.2%

Projected Population 2022 38.109 100,724 220,410

2017 Estimated Household Income $109,888 $114,774 $99,773

2017 Estimated Households 15,364 36,574 78,248

2017 Estimated Median Home Value $309,838 $305,549 $254,462

Source: REGis Pro 2017

TRAFFIC COUNTSI-77 81,984

W. Catawba 28,067

Jetton Rd (Combined) 21,602

5 Min

10 Min

15 Min

DEMOGRAPHICS BASED ON 1-3-5 MILE RADIUS1 Miles 3 Miles 5 Miles

POPULATION

2017 Estimated Population 6,829 41,359 81,951

2022 Projected Population 7,596 45,847 90,187

Forecast Population Growth 2017-2022 2.2% 2.2% 2.0%

2017 Male Population 49.2% 48.5% 48.7%

2017 Female Population 50.8% 51.5% 51.3%

2017 Some College or Higher 83.9% 80.6% 82.1%

INCOME

2017 Average Household Income $121,047 $113,716 $123,111

2017 Median Household Income $88,108 $90,249 $100,230

2017 Household Net Worth $887,167 $869,010 $966,519

2017 Household Income Dist. >$100,000 41.6% 44.0% 48.3%

RACE AND ETHNICITY

2017 White 82.0% 81.1% 82.4%

2017 Black 10.5% 10.8% 10.0%

2017 American Indian or Alaska Native 0.2% 0.3% 0.3%

2017 Hispanic Origin 2.8% 3.1% 2.7%

2017 Asian 3.4% 3.9% 3.7%

2017 Other Races 2.5% 1.9% 1.7%

HOUSEHOLDS

2017 Total Households 3,184 18,145 32,681

2022 Total Households Forecast 3,492 19,906 35,622

2017 Average HH Size 2.1 2.3 2.4

HOUSING

2017 Total Housing Units 3,362 19,260 34,504

2017 Median Housing Value $385,750 $320,767 $336,448

2017 Average Home Value >$150,000 98.0% 86.4% 91.3%

25FranklinSt.com

OUR LOCATIONS

TAMPA

ATLANTA

ORLANDO

MIAMI

FT.LAUDERDALE

JACKSONVILLE

KEY WEST

AtlantaPhone: 404.832.1250

JacksonvillePhone: 904.271.4120

OrlandoPhone: 407.458.5400

TampaPhone: 813.839.7300

MiamiPhone: 786.292.3188

Key WestPhone: 813.915.1569

Atlanta3384 Peachtree Road, NE

Atlanta, GA 30326

Phone: 404.832.1250Fax: 404.842.1755

Email: [email protected]

Franklin Street Real Estate Services’ investment sales division specializes in efficient transaction management, helping identify buyers’ and sellers’ needs. By operating from the perspective of an investor, our team combines in-depth analysis of each asset—including cash flow models and anticipated returns—with current valuation methods to provide the

information needed to make the most profitable investment decisions.

STRATEGIC PLANNING AND ADVISORY SERVICESThe strategic phase of the real estate process offers the greatest opportunity to maximize cost savings and generates lasting benefits. Beginning with an understanding of your business goals and objectives, our investment sales division formulates, and delivers, targeted and customized solutions designed specifically to meet your financial objectives. Our process is straightforward: validating your need, formulating solutions, and providing a program for

implementation.

ACQUISITIONS AND DISPOSITIONSFranklin Street Real Estate Services will work with you throughout all property acquisition

and disposition stages to ensure optimal financial results are achieved. By incorporating

expert financial analysis with the most-accurate valuation methods, our research team will

provide you with vital data essential to your investment decisions. Our process is based on

comprehensive market knowledge, creative and effective marketing strategies, an extensive

client database, and current technology applications streamlining the process and increasing

speed to market.

TRANSACTION MANAGEMENTEffective transactions reduce acquisition and operating expenses, establish a competitive advantage, and provide necessary flexibility. Our methodology includes a comprehensive examination of the transaction at hand followed by a detailed analysis of the process. This platform provides our clients with upfront strategies yielding the greatest financial and

operational results with the fewest hassles.

WHAT WE DOFranklin Street Real Estate Services delivers positive results and enhanced value for clients by assisting commercial property owners and tenants of all sizes with their real estate choices.

INVESTMENT SALES

TRANSACTIONS COMPLETED ACROSS OVER

45 STATES

TOTAL TRANSACTION VOLUMEINVESTMENT SALES

$507,099,511

404.832.1250 | [email protected] | FranklinSt.com

3384 Peachtree Road NE, Suite 650Atlanta, GA 30326

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