walmart neighborhood market

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Guaranteed by “AA” Walmartpossible 3.5% long-term debtGrowing metro area in an outer suburb of atlantaOpened january 28th

In conjuction with: Steve Miller of Miller Realty Services, Inc.smiller@millerrealtyservices | (770) 409-0266

1435 Thompson Bridge Road, Gainesville, GA 30501

For more info on this opportunity please contact:

RICK SANNERrsanner@capitalpacific.com | (415) 274-2709 CA BRE# 01792433

BOB SANNERbsanner@capitalpacific.com | (415) 274-2717 CA BRE# 00869657

ACTUAL STORE

Investment HighlightsWALMART NEIGHBORHOORD MARKET IN THE OUTER SUBURBS OF ATLANTA

The Neighborhood Market is Walmart’s smaller grocery concept, which was launched in 1998 and gives customers a more convenient shopping

experience than the typical Walmart Supercenter.

The Supercenter is typically 160,000 square feet compared to the Neighborhood Market, which is approximately 40,000 square feet and has a fuel center and a drive-thru pharmacy for increased convenience.

Walmart’s strategy is to have a total of 500 stores operating by 2015 and build hundreds more every year for the foreseeable future. This store is in a growing metro area 40 miles northeast of the interstate highway, I-285, around the perimeter of Atlanta. With recent interest rates, 20-year fixed rate debt on this property was quoted in early February at 3.5%.

RENTABLE SF . . . . 41,983 SF

LAND AREA . . . . . . 5.24 AcresPRICE: $12,844,860CAP: 5.00%

LEASE HIGHLIGHTS

20 year base term began January 28, 2015

4-5 year options, each with a 10% increase

Landlord is responsible for structural elements of the building. Tenant is responsible for all other expenses, including the roof and parking lot.

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ACTUAL STORE

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This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Income & Expense

PRICE $12,844,860

Cap Rate: 5.00%

Total Rentable Area (SF): 41,983

Lot Size (Acres): 5.24

STABILIZED INCOME Per Square Foot

Scheduled Rent $15.30 $642,243

Effective Gross Income $15.30 $642,243

LESS Per Square Foot

Taxes $0.00

Insurance $0.00

Total Operating Expenses $0.00

EQUALS NET OPERATING INCOME $642,243

ACTUAL STORE

ACTUAL STORE

Representative Photos WALMART NEIGHBORHOOD MARKET | 4

This information has been secured from sources we believe to be reliable but we make no representations or warranties, expressed or implied, as to the accuracy of the information. Buyer must verify the information and bears all risk for any inaccuracies.

Rent Roll

TENANT INFO LEASE TERMS RENT SUMMARY

Tenant Name Sq. Ft. Term Current Rent

Monthly Rent

Yearly Rent

Monthly Rent/FT

Yearly Rent/FT

Walmart Neighborhood Market 41,983 2/1/2015 1/31/2035 $642,243 $53,520 $642,243 $1.27 $15.30

2/1/2035 1/31/2040 Option 1 $58,872 $706,467 $1.40 $16.83

2/1/2040 1/31/2045 Option 2 $64,760 $777,114 $1.54 $18.51

2/1/2045 1/31/2050 Option 3 $67,997 $815,970 $1.62 $19.44

2/1/2050 1/31/2055 Option 4 $71,397 $856,768 $1.70 $20.41

Current Totals: 41,983 $642,243 $53,520 $642,243 $1.27 $15.30

ACTUAL STORE

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29,700 DAILYGreen Street

Downey Boulevard

S Enota Drive NE

Enota Avenue NE

Park Hill Drive

Riverside Drive

Thompson Bridge Road

369

369

369

11

11

60

60

Fair Street School

Enota Elementary

SHERWOOD PLAZA

GAINESVILLE CITY CENTER

60

Thom

pson

Brid

ge R

oad

Brandon Place

NOT A PART

FUEL STATION

Site Plan

ACTUAL STORE

TENANT Wal-Mart Stores East, LP (This is a wholly-owned Walmart subsidiary)

GUARANTOR Wal-Mart Stores, Inc. (AA rated; the parent company)

DATE OPENED January 21, 2015

LANDLORD RESPONSIBILITIES Landlord shall be responsible for the cost and expense of maintenance, repair, and replacement of structural components only (not the roof ). Expenses related to the roof , parking lot, and all other parts of the property are the responsibility of the tenant.

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Key Lease Information

ABOUT WALMART NEIGHBORHOOD MARKETWalmart Neighborhood Market is a chain of grocery stores launched by Walmart in 1998. There are over 359 Neighborhood Markets in the U.S. featuring a wide variety of products, including fresh produce, deli foods, fresh meat and dairy items, health and beauty aids, one-hour photo, drive-thru pharmacies, stationery and paper goods, pet supplies, and household chemicals. Walmart Neighborhood Market was designed to create easier parking, less crowded aisles, and quicker checkouts than at Walmart Supercenters.

Walmart is the world’s biggest retailer and largest employer - with over 2.2 million full and part-time workers worldwide, including more than 1.4 million in the U.S. With more than $476 billion in total sales for 2013, Walmart is known for its low pricing and wide selection of goods.

2013 SALES $476 BILLION

S&P RATING AA

Walmart Neighborhood Market

WALMART STORES, INC. IS RANKED #1 IN THE

FORTUNE 500 AND IS EASILY THE LARGEST GROCERY

RETAILER IN THE U.S.

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ACTUAL STORE

ACTUAL STORE

WALMART IS EASILY THE LARGEST GROCERY RETAILER - AND ITS LEAD IS INCREASING

In 2012 Walmart had 55% (up from 53% in 2011) of its sales from grocery, thus indicating that Walmart had grocery sales in 2012 of $244 billion. Comparatively, the largest grocery chain, Kroger, in 2012 had sales of $98 billion.

Walmart’s grocery sales were initiated, starting from zero, a few decades ago when it began adding grocery departments to its new stores, thus adding to square footage and calling these larger units “superstores.”

In 1998, Walmart began building stand-alone grocery stores called Walmart Neighborhood Market. Survey after survey has shown Walmart to be the leader in low priced groceries. For example, from Supermarket News, July 16, 2014, “Walmart’s [groceries] were the least expensive and had the lowest-priced items during mystery shops conducted recently at a Los Angeles Walmart, Vons, Ralphs, and Target.”

Walmart Dominance

OVERALL RETAILING

Walmart, with 2013 sales of $476 billion, is easily the largest retail chain in the world. The second largest U.S. chain is Costco, with sales of $110 billion, less than one quarter of the Walmart sales. Costco’s sales are actually less than one half of Walmart’s grocery sales.

CREDIT

Walmart has the highest S&P credit rating of any retailer: AA. Credit ratings of other strong retailers such as Lowe’s, Costco, Walgreens, and CVS are significantly lower. Walmart also has a higher rating than any U.S. bank.

SIZE

Walmart is #1 in the Fortune 500 - the largest company in America.

WALMART IS SIMPLY THE TOP

NAME IN GROCERY, IN OVERALL

RETAILING, CREDIT RATING, AND SIZE

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Walmart In The News

THE ADDITIONAL STORES MENTIONED BY FORBES WILL INCREASE WALMART’S GROCERY

DOMINANCE

Representative Photos

WHY WALMART SUDDENLY THINKS SMALLER IS BETTER

JUNE 16, 2014 - BY WALTER LOEB

“[Previously, Walmart management believed that] customers preferred the larger assortment in the superstores.”

“[But at Walmart now] the convenience of quick shopping has become front and center. Today there is a real focus at Walmart on smaller stores. Two hundred new Neighborhood Market units will open this year...there could be thousands in five years.”

“[Walmart’s CEO] is stressing that the customer wants the convenience of a quick shopping trip to a [Neighborhood Market].”

ACTUAL STORE

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Exerpts from article:

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GAINESVILLE, GA OVERVIEW

The Gainesville MSA had a 2013 estimated population of 187,000+, up 4.4% from the 2010 official census of 179,000+. This is well above average growth compared to the U.S. as a whole. The city is located in northeast Georgia, approximately 50-55 miles northeast of downtown Atlanta, in the foothills of the Blue Ridge Mountains surrounded on three sides by man-made Lake Sidney Lanier, a huge and popular recreational spot. Gainesville is the largest of the six cities in Hall County and is the county seat. As the business hub for northeast Georgia, Gainesville’s daytime population is estimated in excess of 100,000.

With the growth of Atlanta particularly toward the northeast, Gainesville has increased in importance to commuters. The city is 40 miles from I-285, “The Perimeter” interstate around Atlanta.

Gainesville has numerous poultry processing plants, with the poultry industry representing six of the top ten employers. Another major industry is health care, with Northeast Georgia Health System being the top employer in the city.

The huge Wrigley plant is one of that company’s three U.S. production facilities, manufacturing products such as Juicy Fruit chewing gum and Life Savers.

Gainesville is also home to three institutions of higher education: University of North Georgia (15,000 students), Brenau University (2,000 students), and the Interactive College of Technology.

Location & Demos

2013 HOUSEHOLD INCOMES

POPULATION

Northeast Georgia Health SystemFieldale Farms Pilgrim’s Mar-Jac Wrigley

TOP EMPLOYERS IN GAINESVILLE

1-Mile 3-Mile 5-Mile

2010 6,142 34,448 65,6962013 6,117 34,465 66,6142018 6,273 35,499 69,183

1-Mile 3-Mile 5-Mile

Average $67,841 $55,614 $59,756Median $40,819 $35,848 $40,616

REPRESENTATIVE PHOTO

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Regional Map Gainesville

Location

WALMART NEIGHBORHOOD

MARKET

gainesville

ACTUAL STORE

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Copyright © 2014 [Capital Pacific Real Estate Brokerage Company]

In conjuction with: Steve Miller of Miller Realty Services, Inc.smiller@millerrealtyservices | (770) 409-0266

RICK SANNERrsanner@capitalpacific.com | (415) 274-2709 CA BRE# 01792433

BOB SANNERbsanner@capitalpacific.com | (415) 274-2717 CA BRE# 00869657

ACTUAL STORE