loopnet...5141 virginia way, suite 320 . brentwood, tn 37027 t: 615.309.6100 | f: 615.523.4990. ben...

MERCEDES PLACE4845 KINGSTON PIKE | KNOXVILLE, TN

5141 Virginia Way, Suite 320 Brentwood, TN 37027T: 615.309.6100 | F: 615.523.4990

Ben SullivanManaging [email protected]

Harrison TruexManaging [email protected]

Tim HickeyManaging [email protected]

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 Market Street Retail Advisors and should not be made available to any other person or entity without the written consent of Market Street Retail Advisors. This Marketing Brochure 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. Market Street Retail Advisors have not made any investigation, and make 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 improvements 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, Market Street Retail Advisors have not verified, and will not verify, any of the information contained herein, nor have Market Street Retail Advisors conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONSULT YOUR MARKET STREET AGENT FOR MORE DETAILS.

MERCEDES PLACE

KNOXVILLECONTENTS:

OFFERING SUMMARY 4

LOCATION OVERVIEW 15

FINANCIAL ANALYSIS 27

32

Long-Term Panera History: Panera Bread & Prestige Cleaners are the two longest-standing tenants within the project and both have nearly a 20-year operating history at Mercedes Place.

Sought-After Knoxville Submarket: With nearly 150,000 people in a five mile radius, Mercedes Place benefits from the draw of the nearby University of Tennessee and one of Knoxville’s most affluent communities (Sequoyah Hills). Also, multiple high-end retailers such as Whole Foods, REI, Lululemon, & Anthropologie have located in Bearden within the last few years.

Value Creation: 1 shop vacancy (1,360 SF) and a potential ATM pad site give a buyer near-term increases to the NOI.

Capital Improvements: A new roof was installed on the inline retail space within the last 12 months, and the parking lot has been sealed & striped within the past several years.

Leasehold Interest: Property is subject to a 60-year ground lease, with just over 40 years of the term remaining.

THE OFFERING

Offering Price Unpriced

Number of Tenants 7

Rentable Square Feet 26,214

Average Total Rent Per Square Foot $20.95

Average Base Rent $16.31

Year Built 1999

Acreage (±) 3.68

Occupancy as of 04/01/2018 94.81%

Net Operating Income $275,725

GROUND LEASE TERMS

Lease Commenced September 3, 1998

Lease Expires August 9, 2018

Current Rate (Yrs 16-20) $177,131

8 5-yr Options: Rate Per Option

21-25 $200,407

26-30 $226,743

31-35 $256,539

36-40 $290,250

41-45 $328,391

46-50 $371,544

51-55 $420,368

56-60 $475,608

Market Street Retail Advisors is pleased to present this

Offering Memorandum for Mercedes Place Shopping

Center, located at 4845 Kingston Pike in Knoxville, TN. The

leasehold consists of one freestanding 3,473 SF building

and a 22,750 SF retail center. The following pages provide

a detailed analysis of the property offering.

OFFERING SUMMARY INVESTMENT HIGHLIGHTS

TENANT OVERVIEWS

PANERA

Opened as St. Louis Bread in 1987, Panera Bread

is a bakery-café chain of fast casual restaurants.

Exapnded into a national brand in 1999, Panera

operates over 2,100 stores in the United States

and Canada. Well-renowned for soups, salads,

pasta, sandwiches, specailty drinks, and bakery

items, Panera has been rated by restaurant review

service Zagat #1 for “Best Healty Option”, “Best

Salad”, and “Best Facilities” among restaurants

with fewer than 5,000 locations.

JERSEY MIKE’S

Jersey Mike’s was founded in 1956 as Mike’s Subs

in Point Pleasant, NJ. In 1971, current CEO Peter

Cancro purchased Mike’s at the ripe age of 17 and

has grown the fast casual sandwich restaurant to

over 1,500 locations in the US and abroad. Every

Mike’s order, hot or cold, is made fresh to order

in front of the customer. Many prefer to have their

sandwiches “Mike’s Way”, with includes sliced

onions, lettuce, tomatoes, oregano, salt and a

mix of red-wine vinegar and olive oil. Each Jersey

Mike’s store manager is sent to the original location

in Point Pleasant for a six-to-eight-week training

course, ensuring consistent quality and service.

TENANT OVERVIEWS

NADEAU FURNITURE

With 38 locations in major markets acorss the

country, Nadeau was founded with the idea that

great furniture should be attainable by everyone.

Founded in 1991, Tom Nadeau first began importing

works he found in travels and sold them to

wholesale clients in warehouses across the country.

Soon after, he opened retail storefronts and knew

the company would be a success. The company’s

slogan is “Furniture with a Soul”.

H&R BLOCK

With over 12,000 offices worldwide, H&R

Block is the largest tax prep chain in the

United States. Based in Kansas City, the

company emlpoys over 90,000 preparers

and offers both retail and digital tax services.

In addition, H&R Block als offers payroll

services, business consulting services,

and consumer tax software. Founded as a

bookkeeping business by brothers Henry

and Richard Bloch following their return from

WWII in th 1940s, the company exploded

by charging affordable income tax filing

services.

Square Footage 6,640

% of GLA 25.32%

Base Rent Per SF $21.55

Store Count 2,100

Website www.panerabread.com


% of GLA 7.63%


Store Count 1,500

Website www.jerseymikes.com


% of GLA 25.74%


Store Count 38

Website www.furniturewithasoul.com


% of GLA 7.63%


Store Count 12,000

Website www.hrblock.com

76

TENANT OVERVIEWS

PRESTIGE CLEANERS

Founded by Eddie Mannis in 1985, Prestige Cleaners

provides quality garment care in the Knoxville area.

Prestige has been voted best dry cleaners in Knoxville

by metroPulse readers, and for outstanding plant

design by their industry. The company was also given

the Blue Ribbon Small Business of the Year award

in both 2010 and 2014 and has been recognized as

a workplace that works for women by the Women’s

Political Caucus. Preestige operates 10 locations in

the Knoxville area and offers free pick up and delivery,

wedding gown preservation and restoration, shoe

repair, alterations, and specialty and vintage clothing

care.


% of GLA 15.25%


Store Count 10

Website www.prestigecleanersinc.net

98

POPUL ATION BY YE ARPopulation (4/1/1990)Population (4/1/2000)Population (4/1/2010)Population (4/1/2017)Population (4/1/2022)Percent Growth (2017/2010)Percent Forecast (2022/2017)

HOUSEHOLDS BY YE ARHouseholds (4/1/1990)Households (4/1/2000)Households (4/1/2010)Households (4/1/2017)Households (4/1/2022)Percent Growth (2017/2010)Percent Forecast (2022/2017)

GENER AL POPUL ATION CHAR ACTERISTICSMedian AgeMaleFemaleDensityUrbanRural

GENER AL HOUSEHOLD CHAR ACTERISTICSHouseholds (4/1/2010)FamiliesNon-Family HouseholdsAverage Size of HouseholdMedian Age of HouseholderMedian Value Owner Occupied ($)Median Rent ($)Median Vehicles Per Household

GENER AL HOUSING CHAR ACTERISTICSHousing, UnitsHousing, Owner OccupiedHousing, Renter OccupiedHousing, Vacant

POPUL ATION BY R ACEWhite AloneBlack AloneAsian AloneAmerican Indian and Alaska Native AloneOther Race AloneTwo or More Races

POPUL ATION BY ETHNICIT YHispanicWhite Non-Hispanic

GENER AL INCOME CHAR ACTERISTICSTotal Personal Income ($)Total Household Income ($)Median Household Income ($)Average Household Income ($)Per Capita Income ($)

125,844131,517140,883148,730153,635

5.573.3

51,42756,47059,32162,58364,502

5.53.07

31.968,48172,402

1,832.70139,399

1,484

59,32130,61328,708

2.2244.8

151,6466181.9

65,97230,43728,884

6,651

115,12615,4243,308

5153,2463,264

6,793112,283

3,828,643,0223,735,511,864

41,18362,97127,176

209,125224,916239,304253,062261,612

5.753.38

86,59896,879

102,081107,697111,011

5.53.08

34.2115,906123,398

1,590.20236,328

2,976

102,08155,86046,221

2.2447.1

148,944605

2

113,68756,40545,67611,606

192,89030,008

4,980856

5,0985,472

10,745188,330

6,565,452,7406,442,103,495

43,06963,10827,436

293,880324,852356,973377,702390,609

5.813.42

119,135137,022149,546157,735162,598

5.483.08

36.1172,884184,0891,186.20343,838

13,135

149,54688,83960,707

2.3148.7

155,0996092.1

165,25892,98956,55715,712

298,51536,743

6,9381,1586,2617,358

14,075292,010

10,209,855,93910,057,013,709

47,72567,25028,601

5 Mi lesDescr ipt ion 7 Mi les 10 Mi les

Location: Mercedes PlaceAddress: 4845 Kingston PikeLatitude: 35° : 56’ : 28”Longitude: -83° : 59’ : 06”

Footnotes:

Easy Analytic Software, Inc. (EASI) is the source of all updated estimates. All other data are derived from the US Census and other official government sources.

DEMOGRAPHICS

1110

SITE PLAN

1312

LOCATION OVERVIEW

1514

MARKET SUMMARY

Knoxville, TN is a flourishing metro nestled in the heart of Tennessee’s Great Appalachian Valley at the foot of the Smokey Mountains. Centrally located at the junction of three major interstates (I-40, I-75 and I-81), Knoxville is within a day’s drive of 60% of the U.S. population.

Tennessee’s flagship state university, the University of Tennessee, is located in the city center. Knoxville’s strong economy is the core of a greater regional economy fueled by technology, energy and logistics.

The nearby Oak Ridge National Laboratory is the U.S. Department of Energy’s largest science and energy laboratory. The laboratory employs more than 4,000 scientific researchers, computer scientists, engineers and more, who come from around the world to participate in cutting-edge research.

The city’s setting near the Smokey Mountains offers residents easy access to a wide variety of outdoor activities. Sporting events at the University of Tennessee are popular destinations for locals and people from across the state. University students and the diverse, global population drawn to the region’s national research institutions, create a rich and diverse cultural environment.

High-paying jobs in science, technology, engineering and research have driven Knox County’s average household income, $72,613, far higher than the statewide average, nearly $20,000 less. Despite these high household incomes, expenditures on housing and other cost of living indicators remain quite low. According to a report from the Council for Community and Economic Research, Knoxville’s composite Cost of Living Index is 86.4, compared to the national average of 100. Housing expenses are the city’s lowest-ranking indicator at 80.6.

High average wages, combined with currently-low housing costs mean massive opportunity for investors in residential property.

The 10 Best Cit ies toRelocate to in the U.S.

– Huffington Post

#1 in Green Job Growth-Brookings Institute

1716

EMPLOYMENT/ECONOMY

The Knoxville economy is anchored in its major industry sectors—energy, research, healthcare, education and logistics. However, as the population of the city and region grows, the economy is diversifying to include new, emerging industries. Knoxville and the surrounding region are also home to a large number of corporate headquarters. Unemployment rates are considerably lower than national averages.

By far the largest regional employer, The Oak Ridge National Laboratory (ORNL) employs over 4,000 staff members from 84 countries with 3,000 guest researchers. ORNL has an annual budget of approximately $1.4 billion. Tennessee Valley Authority, an electric power distributor with

operations in seven states, is headquartered in Knoxville, employing more than 1,500.

A regional center for healthcare, several large healthcare systems have major operations in Knoxville, Covenant Health (10,458 employees), University Health System (4,224 employees) and Tennova Healthcare (4,067 employees), to name a few.

Employment in Knoxville’s education sector is also high, both in K-12 education and post-secondary. Knox County Schools employ 6,804, and the University of Tennessee another 6,660.

The national headquarters for Pilot/Flying J Gas Stations is located in Knoxville, and employs 1,443 locally, and more than 20,000 nation-wide.

Television/media is an emerging sector in Knoxville, with home-shopping giant Jewelry Television (1,100 employees) and broadcasting company Scripps Networks (925 employees).

POPULATION STATISTICS

While 188,895 live within the core city, Knoxville has a broad footprint, with a county population of 454,652 and an MSA population of 865,193. Knox County is projected to grow 4.43% between 2016 and 2021, outpacing national projections.

Despite having a university student population of over 45,000, the average age is 39.1, slightly older than the national average. In the City of Knoxville, 49.26% of the population lives inrenter-occupied housing.

James R. Martin / Shutterstock.com

EDUCATION

Knoxville is a regional center for research and higher education, and Knoxville residents on average hold more college-level and advanced degrees than the state average. With an abundance of post-secondary education options, 34% of Knoxville’s population hold a bachelor’s degree or higher, compared with 25% state-wide.

More than 45,000 students attend one of the ten higher education institutions in Knoxville. The University of Tennessee has the largest student population, with more than 30,000 students and offering 300 degree programs. A major research institution, the university attracts more than $160 million in research awards annually. Nationally ranked programs include supply chain management/logistics, nuclear engineering, printmaking, accounting, the master of business administration, law and social work. The university also partners with the Oak Ridge National Laboratory on several joint educational/research institutes, including Biological Sciences, Computational Sciences, Neutron Sciences, Heavy Ion Research and the National Transportation Center.

In addition to four-year education, local community colleges and technical schools contribute to a diversified workforce, prepared for skilled trades, high-tech manufacturing jobs and other in-demand occupations. Pellissippi State Community College has more than 10,000 students in 49 available degree programs, and Knoxville’s campus of the Tennessee College of Applied Technology has 1,300 students.

Tennessee Theater

1918

FINANCIAL ANALYSIS

2726

INCOME SUMMARY Base Rent Annual Reimb.Total

IncomePSF

Pro Forma EOY 15(1)

PSF

Prestige Cleaners Inc. $81,167 $22,372 $103,539 $25.88 $146,849 $36.71

Jersey Mike's $37,827 $11,578 $49,405 $24.95 $67,941 $34.31

H&R Block $39,553 $11,784 $51,338 $25.53 $68,909 $34.27

Nadeau Furniture $110,475 $37,330 $147,805 $21.90 $217,124 $32.17

Panera Bread $145,978 $34,359 $180,337 $27.16 $272,776 $41.08

AVAILABLE $0 $0 $0 $0.00 $0 $0.00

Westwood Antiques $62,545 $15,417 $77,962 $22.45 $113,792 $32.76

Net Rental Income $477,545 $132,840 $610,385 $21.12 $887,392 $30.19

Other Income - Panera Leased Parking Area $11,314 $0 $11,314 $11,314

Effective Gross Income $488,859 $132,840 $621,699 $898,706

EXPENSE SUMMARYTotal

ExpensesPSF

Pro Forma EOY 15

PSF

Recoverable Expenses

(3) Property Taxes

County $27,666 $1.06 $39,445 $1.50

City $32,153 $1.23 $45,842 $1.75

Insurance $6,437 $0.25 $9,737 $0.37

CAM

Repair Electric $2,335 $0.09 $3,531 $0.13

Repair Parking Lot $1,200 $0.05 $1,815 $0.07

Site Maintenance Labor $0 $0.00 $0 $0.00

Landscape Contract $8,935 $0.34 $13,515 $0.52

Security System Other $3,068 $0.12 $4,641 $0.18

Security System Contract $3,276 $0.12 $4,955 $0.19

Security System Phone $2,476 $0.09 $3,745 $0.14

Electricity General $7,112 $0.27 $10,757 $0.41

Water & Sewer $151 $0.01 $229 $0.01

Trash Disposal $8,297 $0.32 $12,550 $0.48

Snow Removal $3,250 $0.12 $4,916 $0.19

Sweeping Parking Lot $4,560 $0.17 $6,897 $0.26

Pressure Washing $876 $0.03 $1,325 $0.05

Repairs & Maintenance $8,622 $0.33 $13,042 $0.50

Trash Removal Contract $765 $0.03 $1,157 $0.04

Management Fee $23,793 4.98% $34,323 5%

Total CAM $78,716 $3.00 $117,399 $4.48

Total Recoverable Expenses $144,972 $5.53 $212,422 $8.10

Non-Recoverable Expenses

Utilities $89 $0.00 $92 $0.00

(3) Ground Lease $190,709 $7.28 $256,539 $9.79

Administrative $511 $0.02 $772 $0.03

Professional $4,451 $0.17 $6,732 $0.26

(4) Reserves $5,243 $0.20 $5,243 $0.20

Total Non-Recoverable Expenses $201,002 $7.67 $269,378 $10.28

Total Expenses $345,974 $13.20 $481,800 $18.38

RETURNS SUMMARY

Net Operating Income $275,725 $416,905

FOOTNOTES

Tax Reappraisal

Schedule

Last Reassessment

Year

Next Reassessment

Year

Assessment Ratio

Total Millage Rate

Every 4 Years 2017 2021 40% $4.5838 per $100 of assessed value

Time Period

Parcel ID Appraised Value

Assessed Value

Knox Co. millage

rate

Knoxville millage rate

Real Estate Taxes

2017 107KG-015 $3,262,500 $1,305,000 $2.1200 $2.4638 $59,819

Not included in the Taxes are the Franchise and Excise Taxes charge by the state of Tennessee. These are a state income tax charged to certain (not all) ownership entities. Franchise tax is 0.25% of the greater net worth or real and tangible property in Ten-nessee and the excise tax is 6.5% of Tennessee taxable income. We recommend investors contact a tax consultant regarding the franchise tax.

The line item Real Estate Taxes has been removed from this analysis. The above 2017 Real Estate Taxes have been used.

The Owner of this property is currently appealing the 2017 Appraised Value and awaiting a hearing date. The above 2017 Ap-praised Value could be adjusted based on the result of this hearing.

3. Ground Lease under Total Expenses was calculated using the current Ground Lease expense ($177,131) and the Ground Lease Expense as of 9/1/2018 ($200,407).

4. A Capital Reserves of $0.20 per Square Foot has been added to the Pro Forma.

1. The rent increases have been determined by this analysis as follows: Prestige Cleaners, Inc.: 2% Increase Annually after the Renewal Options Expire Jersey Mike’s: 2% Increase Annually after the Reneweal Options Expire H&R Block: 2% Increase Annually after the Renewal Options Expire Nadeau Furniture: 3% Increase Annually after the Renewal Options Expire Panera Bread: 3% Increase Annually after the Renewal Options Expire Westwood Antiques: 3% Increase Annually after the Renewal Options Expire

2.

INCOME & EXPENSESAPRIL 1 2018 - MARCH 31 2019

2928

15-YEAR I&E

INCOME SUMMARY EOY 1 EOY 2 EOY 3 EOY 4 EOY 5 EOY 6 EOY 7 EOY 8 EOY 9 EOY 10 EOY 11 EOY 12 EOY 13 EOY 14 EOY 15

Prestige Cleaners Inc. $81,167 $83,167 $85,470 $88,034 $91,593 $94,561 $96,452 $98,381 $100,349 $102,356 $104,403 $106,491 $108,621 $110,793 $113,009

Jersey Mike's $37,827 $38,966 $39,746 $40,547 $41,351 $42,178 $42,194 $43,038 $43,898 $44,776 $45,672 $47,520 $48,470 $49,440 $50,429

H&R Block $39,553 $39,553 $39,553 $41,019 $41,907 $42,745 $43,600 $44,472 $45,361 $46,269 $47,194 $48,138 $49,101 $50,083 $51,084

Nadeau Furniture $110,475 $113,237 $116,068 $118,970 $121,944 $124,992 $128,117 $131,320 $134,603 $138,586 $142,744 $147,026 $151,437 $155,980 $160,660

Panera Bread $145,978 $150,357 $154,868 $159,514 $164,299 $169,228 $174,305 $179,534 $184,920 $190,468 $196,182 $202,067 $208,129 $214,373 $220,804

AVAILABLE $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Westwood Antiques $62,545 $63,796 $65,072 $66,373 $67,701 $69,340 $71,420 $73,563 $75,770 $78,043 $80,384 $82,796 $85,280 $87,838 $90,473

Net Rental Income $477,545 $489,076 $500,777 $514,457 $528,795 $543,045 $556,089 $570,308 $584,902 $600,498 $616,579 $634,038 $651,038 $668,507 $686,459

Net Reimbursements $132,840 $136,825 $140,930 $145,158 $149,513 $153,998 $158,618 $163,376 $168,278 $173,326 $178,526 $183,882 $189,398 $195,080 $200,932

Other Income - Panera Leased Parking Area $11,314 $11,314 $11,314 $11,314 $11,314 $11,314 $11,314 $11,314 $11,314 $11,314 $11,314 $11,314 $11,314 $11,314 $11,314

Effective Gross Income $621,699 $637,216 $653,021 $670,929 $689,622 $708,357 $726,021 $744,999 $764,494 $785,138 $806,419 $829,234 $851,750 $874,901 $898,706

EXPENSE SUMMARY EOY 1 EOY 2 EOY 3 EOY 4 EOY 5 EOY 6 EOY 7 EOY 8 EOY 9 EOY 10 EOY 11 EOY 12 EOY 13 EOY 14 EOY 15

Recoverable Expenses

Property Taxes

County $27,666 $27,666 $27,666 $31,138 $31,138 $31,138 $31,138 $35,046 $35,046 $35,046 $35,046 $39,445 $39,445 $39,445 $39,445

City $32,153 $32,153 $32,153 $36,188 $36,188 $36,188 $36,188 $40,730 $40,730 $40,730 $40,730 $45,842 $45,842 $45,842 $45,842

Insurance $6,437 $6,630 $6,829 $7,034 $7,245 $7,462 $7,686 $7,917 $8,154 $8,399 $8,651 $8,910 $9,178 $9,453 $9,737

CAM

Repair Electric $2,335 $2,405 $2,477 $2,551 $2,628 $2,706 $2,788 $2,871 $2,957 $3,046 $3,138 $3,232 $3,329 $3,428 $3,531

Repair Parking Lot $1,200 $1,236 $1,273 $1,311 $1,351 $1,391 $1,433 $1,476 $1,520 $1,566 $1,613 $1,661 $1,711 $1,762 $1,815

Site Maintenance Labor $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

Landscape Contract $8,935 $9,203 $9,479 $9,764 $10,056 $10,358 $10,669 $10,989 $11,319 $11,658 $12,008 $12,368 $12,739 $13,121 $13,515

Security System Other $3,068 $3,160 $3,255 $3,353 $3,453 $3,557 $3,663 $3,773 $3,886 $4,003 $4,123 $4,247 $4,374 $4,505 $4,641

Security System Contract $3,276 $3,374 $3,475 $3,580 $3,687 $3,798 $3,912 $4,029 $4,150 $4,274 $4,402 $4,535 $4,671 $4,811 $4,955

Security System Phone $2,476 $2,550 $2,627 $2,705 $2,787 $2,870 $2,956 $3,045 $3,136 $3,230 $3,327 $3,427 $3,530 $3,636 $3,745

Electricity General $7,112 $7,325 $7,545 $7,771 $8,004 $8,245 $8,492 $8,747 $9,009 $9,279 $9,558 $9,844 $10,140 $10,444 $10,757

Water & Sewer $151 $156 $160 $165 $170 $175 $181 $186 $192 $197 $203 $209 $216 $222 $229

Trash Disposal $8,297 $8,546 $8,803 $9,067 $9,339 $9,619 $9,907 $10,205 $10,511 $10,826 $11,151 $11,485 $11,830 $12,185 $12,550

Snow Removal $3,250 $3,348 $3,448 $3,551 $3,658 $3,768 $3,881 $3,997 $4,117 $4,241 $4,368 $4,499 $4,634 $4,773 $4,916

Sweeping Parking Lot $4,560 $4,697 $4,838 $4,983 $5,132 $5,286 $5,445 $5,608 $5,776 $5,950 $6,128 $6,312 $6,501 $6,697 $6,897

Pressure Washing $876 $902 $929 $957 $986 $1,015 $1,046 $1,077 $1,109 $1,143 $1,177 $1,212 $1,249 $1,286 $1,325

Repairs & Maintenance $8,622 $8,881 $9,147 $9,422 $9,704 $9,995 $10,295 $10,604 $10,922 $11,250 $11,587 $11,935 $12,293 $12,662 $13,042

Trash Removal Contract $765 $788 $812 $836 $861 $887 $914 $941 $969 $998 $1,028 $1,059 $1,091 $1,124 $1,157

Management Fee $23,793 $24,454 $25,039 $25,723 $26,440 $27,152 $27,804 $28,515 $29,245 $30,025 $30,829 $31,702 $32,552 $33,425 $34,323

Total CAM $78,716 $81,024 $83,306 $85,738 $88,256 $90,823 $93,385 $96,064 $98,820 $101,687 $104,641 $107,728 $110,859 $114,081 $117,399

Total Recoverable Expenses $144,972 $147,473 $149,954 $160,099 $162,827 $165,611 $168,398 $179,757 $182,750 $185,862 $189,068 $201,925 $205,323 $208,821 $212,422

Non-Recoverable Expenses

Utilities $89 $92 $92 $92 $92 $92 $92 $92 $92 $92 $92 $92 $92 $92 $92

Ground Lease $190,709 $200,407 $200,407 $200,407 $200,407 $200,407 $226,743 $226,743 $226,743 $226,743 $226,743 $256,539 $256,539 $256,539 $256,539

Administrative $511 $526 $542 $558 $575 $592 $610 $628 $647 $666 $686 $707 $728 $750 $772

Professional $4,451 $4,584 $4,722 $4,863 $5,009 $5,160 $5,314 $5,474 $5,638 $5,807 $5,981 $6,161 $6,346 $6,536 $6,732

Reserves $5,243 $5,243 $5,243 $5,243 $5,243 $5,243 $5,243 $5,243 $5,243 $5,243 $5,243 $5,243 $5,243 $5,243 $5,243

Total Non-Recoverable Expenses $201,002 $210,852 $211,005 $211,163 $211,326 $211,493 $238,002 $238,179 $238,363 $238,551 $238,745 $268,741 $268,947 $269,160 $269,378

Total Expenses $345,974 $358,325 $360,959 $371,262 $374,153 $377,105 $406,399 $417,936 $421,113 $424,413 $427,813 $470,667 $474,271 $477,981 $481,800

RETURNS SUMMARY

Net Operating Income $275,725 $278,891 $292,061 $299,668 $315,469 $331,253 $319,621 $327,063 $343,381 $360,725 $378,606 $358,568 $377,480 $396,920 $416,905

15-YEAR I&E

3130

LEASE SYNOPSIS

Lease Data Monthly Rent Annual Rent Total RentIncreases /

Option Terms

Tenant Suite SF ProRata Start Date End Date Base Rent CAM Taxes Insurance Base Rent Reimb. Gross Rent Base (PSF) Reimb. (PSF) Date New Rent

Prestige Cleaners Inc. 4837 4,000 15.26% 10/1/2009 8/31/2020 $6,667 $1,240 $622 $88 $80,000 $23,403 $103,403 $20.00 $5.85 9/1/2018 $6,833

9/1/2019 $7,000

Jersey Mike's 4839 1,980 7.55% 1/1/2014 3/31/2019 $3,152 $614 $308 $44 $37,827 $11,584 $49,411 $19.10 $5.85 4/1/2019 $3,247

4/1/2020 $3,312

4/1/2021 $3,379

4/1/2022 $3,446

4/1/2023 $3,515

4/1/2024 $3,516

4/1/2025 $3,586

4/1/2026 $3,658

4/1/2027 $3,731

4/1/2028 $3,806

4/1/2029 $3,960

4/1/2030 $4,039

4/1/2031 $4,120

4/1/2032 $4,202

4/1/2033 $4,286

H&R Block 4841 2,011 7.67% 4/22/2014 4/30/2023 $3,296 $624 $313 $44 $39,553 $11,766 $51,319 $19.67 $5.85 5/1/2021 $3,429

5/1/2022 $3,498

5/1/2023 $3,568

5/1/2024 $3,639

5/1/2025 $3,712

3332

LEASE SYNOPSIS


Option Terms


Nadeau Furniture 4845 6,750 25.75% 5/1/2017 4/30/2022 $9,000 $2,093 $1,050 $149 $108,000 $39,492 $147,492 $16.00 $5.85 5/1/2018 $9,225

5/1/2019 $9,456

5/1/2020 $9,692

5/1/2021 $9,934

5/1/2022 $10,183

5/1/2023 $10,437

5/1/2024 $10,698

5/1/2025 $10,966

5/1/2026 $11,240

Panera Bread 4851 & 4853 6,640 25.33% 8/1/2009 7/31/2019 $11,926 $2,059 $1,032 $146 $143,115 $38,849 $181,964 $21.55 $5.85 8/1/2018 $12,284

8/1/2019 $12,653

8/1/2020 $13,032

8/1/2021 $13,423

8/1/2022 $13,826

8/1/2023 $14,241

8/1/2024 $14,668

8/1/2025 $15,108

8/1/2026 $15,561

8/1/2027 $16,028

8/1/2028 $16,509

AVAILABLE 4849 1,360 5.19% $0 $0.00 $0.00

3534

LEASE SYNOPSIS


Option Terms


Westwood Antiques 4861 3,473 13.25% 10/1/2013 10/31/2018 $5,169 $1,077 $540 $76 $62,028 $20,320 $82,348 $17.86 $5.85 11/1/2018 $5,272

11/1/2019 $5,378

11/1/2020 $5,485

11/1/2021 $5,595

11/1/2022 $5,707

11/1/2023 $5,878

11/1/2024 $6,055

11/1/2025 $6,236

11/1/2026 $6,423

11/1/2027 $6,616

SubTotals 7 26,214 100.00% $39,210 $5,717 $4,720 $633 $470,524 $132,840 $603,364 $16.31 $4.63

3736

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