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

5202 SCHUBERT RD | KNOXVILLE, TN 37912

±5 YRSTERM REMAINING

8.13%CAP RATE

NN+LEA SE

200+LOCATION S

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CONTENTS

03 EXECUTIVE OVERVIEW

04 FINANCIAL OVERVIEW

08 TENANT OVERVIEW

10 AREA OVERVIEW

LISTED BY:

THOR ST JOHNAssociateD: (310) 955-1774 M: (510) 684-0574E: thor.stjohn@matthews.comLicense No. 02051284 (CA)

BROKER OF RECORDKYLE MATTHEWSLicense No. 263667 (TN)

MICHAEL MORENOAssociate Vice President & DirectorD: (949) 432-4511 M: (818) 522-4497E: michael.moreno@matthews.comLicense No. 01982943 (CA)

RAHUL CHHAJEDSenior AssociateD: (949) 432-4513 M: (818) 434-1106E: rahul.chhajed@matthews.comLicense No. 01986299 (CA)

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PROPERTY HIGHLIGHTS• Early Tenant Extension—Smile Doctors extended their lease early at an increased

rent, proving their long-term commitment to the location

• Very Passive Lease—Smile Doctors is on a NNN lease where the landlord is only responsible for the roof and structure

• Healthcare Real Estate—Healthcare properties are extremely sought-after investments for their resistance to recessions and e-commerce

LOCATION HIGHLIGHTS• Tennessee is an income tax free state

• Knoxville is the third largest city in Tennessee and was rated one of the best 50 cities to live in (US News & World Report)

• Market Leader—Smile Doctors operates more locations in Knoxville than any other competitor

• The University of Tennessee and Downtown Knoxville are just 10 minutes from the property

• The clinic is located right off of I-75, an interstate that sees nearly 90,000 cars per day and runs throughout Knoxville

TENANT HIGHLIGHTS• Rapid Tenant Growth Since 2017–Smile Doctors has rapidly grown from 90 locations

in 2017 to over 200 locations in 15 states in 2019, making it the fastest growing DSO

• Streamlined Expansion—Smile Doctors acquires existing orthodontic practices that are already successful and established within the community. This allows them to quickly grow their footprint across new markets and states

• Growing Sector in Healthcare—The global orthodontic support market is expected to grow at a CAGR of 11.7% over the next 4 years alone

LIST PRICE $480,000

YEAR 1 NOI $39,000

PROPERTY ADDRESS 5202 SCHUBERT RD

KNOXVILLE, TN 37922

CAP RATE8.13%± 2,718 SF

GROSS LEASABLE AREA

LEASE TERM REMAINING±5 YEARS

EXECUTIVE OVERVIEW

SECTION

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FINANCIALOVERVIEW

SECTION

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PROPERTY SUMMARY

Tenant Trade Name Smile Doctors

Property Address 5202 Schubert Rd

City Knoxville

State TN

Zip 37912

Lot Size 0.40 AC

GLA ± 2,718 SF

LEASE SUMMARY

Tenant Name Smile Doctors

Type of Ownership Fee Simple

Guarantor Smile Doctors, LLC (Corporate)

Lease Type NNN

Roof/Structure Landlord Responsible

Original Lease Term 5 Years

Lease Commencement Date 1/1/2020

Lease Expiration Date 12/31/2024

Term Remaining 5 Years

Increases 2.0% Annually

Options Two (2) Five (5) Year Options

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M E R C H A N T R D± 2 3 , 1 4 0 V P D

C L I N T O N H W Y± 2 7, 7 0 0 V P D

SURROUNDING TENANTS

» H E A D Q U A R T E R SGEORGETOWN, TX

» C O M P A N Y N A M ESMILE DOCTORS

» I N D U S T R YORTHODONTICS

Smile Doctors is the largest orthodontic dental support organization in the country with more than 200 locations in 15 states. Founded by Dr. Scott Law, Scotte Hudsmith, Dr. Dana Fender and Dr. Greg Goggans in 2015, the company is headquartered in Georgetown, Texas and focuses exclusively on developing and growing existing orthodontic practices. Smile Doctors locations are operated by licensed orthodontists and committed to providing affordable, all-inclusive orthodontic treatment to patients across the country. Smile Doctors’ patient-centric approach and team collaboration result in beautiful, confident smiles and the highest standard of patient care.

Linden Capital made an undisclosed investment in Smile Doctors in 2017. As a result of the transaction, Linden will become the majority shareholder in Smile Doctors while previous backer Sheridan Capital will have a minority stake. William Blair served as financial adviser to Smile Doctors and Houlihan Lokey did likewise for Linden. Twin Brook Capital Partners provided $325 million in financing to support Linden’s acquisition of Smile Doctors.

TENANT OVERVIEW

TENANTOVERVIEW

SECTION

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AREAOVERVIEW

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POPULATION 1 - MILE 3 - MILE 5 - MILE

2025 Projection 7,213 59,350 161,966

2020 Estimate 6,981 57,311 156,429

2010 Census 6,660 54,413 147,593

Growth 2020-2025 3.32% 3.56% 3.54%

Growth 2010-2020 4.82% 5.33% 5.99%

HOUSEHOLDS 1 - MILE 3 - MILE 5 - MILE

2025 Projection 3,151 25,564 67,926

2020 Estimate 3,058 24,694 65,517

2010 Census 2,943 23,466 61,620

Growth 2020-2025 3.04% 3.52% 3.68%

Growth 2010-2020 3.91% 5.23% 6.32%

INCOME 1 - MILE 3 - MILE 5 - MILE

2020 Est. Average Household Income

$63,553 $57,813 $61,955

DEMOGRAPHICS

KNOXVILLE, TN

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KNOXVILLE, TNKnoxville retains the charm of a small southern town while providing the amenities of a big city. It is home to the main campus of the University of Tennessee, which has been classified by the Carnegie Commission as a university with “very high research activity.” The 400-acre university campus is located along the waterfront just to the southwest of the downtown area, adding a notable college-town element. A short walk from the university campus, downtown Knoxville has emerged as a thriving hub for socializing. Downtown’s Market Square is a hotspot for happy hour, dinner and Sunday brunch, offering a number of shops and restaurants. Next to Market Square, Gay Street features the Tennessee and Bijou Theaters, both of which offer well-known musical acts, stage productions and the Knoxville Symphony. Knoxville’s rich arts community is supplemented with a number of quality museums and many festivals held throughout the year.

Outside of downtown there are a variety of nice, older neighborhoods and suburbs, offering a good family lifestyle and proximity to the heart of the city. With the added benefit that Tennessee does not collect income tax, Knoxville offers an affordable cost of living. This, combined with an abundance of recreational activities, has made the area one of the fastest growing regions for retirees as well as workers. Knoxville has been ranked as a top 10 city for college graduates for its diverse business climate and growing downtown. In addition to the University of Tennessee, seventeen other training programs and colleges provide a ready supply of trained workers.

Full of history and culture, Knoxville’s Appalachian roots are apparent in the surrounding scenery. From floating along the Tennessee River or on one of the major lake ways in the region to hiking in the Great Smoky Mountains National Park, visitors and residents can take in the area’s natural beauty.

DOWNTOWN KNOXVILLE

Downtown Knoxville is the hub of business and government activity. Main Street features a number of historic structures and a modern-day hotel. Gay Street consists of several historic buildings, restaurants, banks, and shops. Historic Market Square features popular restaurants, shops, and music venues. Volunteer Landing serves as a boat dock and also has a marina, high quality restaurants, a historic park, and a riverboat cruise. The World’s Fair Park contains the famous Sunsphere, various water fountains, floral gardens, a war memorial, and more. Downtown Knoxville is also a popular venue for many festivals held throughout the year.

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The University of Tennessee, founded in 1794, was designated as the state land-grant institution in 1869. The Knoxville campus now has more than 26,000 students and 400 academic programs and includes an agricultural campus, a veterinarian campus, and a 581-bed teaching hospital. UT has one of the strongest athletics department in the nation. The VOLS football team have been national champions as have the Lady VOLS basketball team.

THE UNIVERSITY OF TENNESSEE

294 BUILDINGS 29,460 STUDENTS$1.7 BILLION IN ECONOMIC IMPACT

5.1 MI FROM SUBJECT PROPERTY

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This Offering Memorandum contains select information pertaining to the business and affairs of Smile Doctors located in 5202 Schubert Rd, Knoxville, TN 37912 (“Property”). It has been prepared by Matthews Real Estate Investment Services. This Offering Memorandum may not be all-inclusive or contain all of the information a prospective purchaser may desire. The information contained in this Offering Memorandum is confidential and furnished solely for the purpose of a review by a prospective purchaser of the Property. It is not to be used for any other purpose or made available to any other person without the written consent of Seller or Matthews Real Estate Investment Services. The material is based in part upon information supplied by the Seller and in part upon financial information obtained from sources it deems reliable. Owner, nor their officers, employees, or agents makes any representation or warranty, express or implied, as to the accuracy or completeness of this Offering Memorandum or any of its contents and no legal liability is assumed or shall be implied with respect thereto. Prospective purchasers should make their own projections and form their own conclusions without reliance upon the material contained herein and conduct their own due diligence.

By acknowledging your receipt of this Offering Memorandum for the Property, you agree:

1. The Offering Memorandum and its contents are confidential;2. You will hold it and treat it in the strictest of confidence; and3. You will not, directly or indirectly, disclose or permit anyone else to disclose this Offering Memorandum or its contents in any fashion

or manner detrimental to the interest of the Seller.

Owner and Matthews Real Estate Investment Services expressly reserve the right, at their sole discretion, to reject any and all expressions of interest or offers to purchase the Property and to terminate discussions with any person or entity reviewing this Offering Memorandum or making an offer to purchase the Property unless and until a written agreement for the purchase and sale of the Property has been fully executed and delivered.

If you wish not to pursue negotiations leading to the acquisition of the Property or in the future you discontinue such negotiations, then you agree to purge all materials relating to this Property including this Offering Memorandum.

A prospective purchaser’s sole and exclusive rights with respect to this prospective transaction, the Property, or information provided herein or in connection with the sale of the Property shall be limited to those expressly provided in an executed Purchase Agreement and shall be subject to the terms thereof. In no event shall a prospective purchaser have any other claims against Seller or Matthews Real Estate Investment Services or any of their affiliates or any of their respective officers, Directors, shareholders, owners, employees, or agents for any damages, liability, or causes of action relating to this solicitation process or the marketing or sale of the Property.

This Offering Memorandum shall not be deemed to represent the state of affairs of the Property or constitute an indication that there has been no change in the state of affairs of the Property since the date this Offering Memorandum.

CONFIDENTIALITY AGREEMENT & DISCLAIMER

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LISTED BY:

MICHAEL MORENOAssociate Vice President & Director

D: (949) 432-4511 M: (818) 522-4497

E: michael.moreno@matthews.comLicense No. 01982943 (CA)

THOR ST JOHNAssociate

D: (310) 955-1774 M: (510) 684-0574

E: thor.stjohn@matthews.comLicense No. 02051284 (CA)

BROKER OF RECORDKYLE MATTHEWS

License No. 263667 (TN)

RAHUL CHHAJEDSenior AssociateD: (949) 432-4513 M: (818) 434-1106

E: rahul.chhajed@matthews.comLicense No. 01986299 (CA)

5202 SCHUBERT RD | KNOXVILLE, TN 37912